Equitrans Earnings: Permitting Support Continues to Grow for the Mountain Valley Pipeline

Equitrans’ ETRN existing business performed well during the first quarter while it continues to pursue all avenues to bring the Mountain Valley Pipeline online. We expect to maintain our $10.80 per share fair value estimate and narrow moat rating.

Equitrans believes it can address the permitting setback from the Fourth Circuit earlier this year, as it had expected the ruling given the earlier oral argument in October 2022. It is still sticking with its 2023 in-service date and $6.6 billion cost estimate, though it has, like last quarter, retained 2023 guidance including the MVP start-up and guidance without the MVP. Equitrans expects to receive the U.S. Forest Service and Bureau of Land Management permits for the right of way across Jefferson National Forest in the next few weeks. Then its focus will shift to obtaining the troublesome water quality certification from West Virginia and individual water permits from the U.S. Army Corps of Engineers.

We still believe federal permitting reform is the best way to move the pipeline into service, which continues to seem highly likely, as it would benefit solar and wind projects, too, not just oil and gas efforts. Notably, the Mountain Valley Pipeline has received public support from the U.S. Secretary of Energy, Jennifer Granholm, who sent a letter to the Federal Energy Regulatory Commission highlighting the value of the MVP. Senator Joe Manchin (democrat West Virginia) just reintroduced his permitting legislation originally brought to the table last year, on May 2, in another positive signal.