Equitrans: This High-Yielding Midstream Company Is Attractive But Risky

Summary

  • Equitrans Midstream is one of the few natural gas-focused midstream companies operating in the Appalachian region.
  • The company has an incredibly attractive contract with EQT that guarantees significant cash flow growth over the next eighteen months.
  • Equitrans likely has some growth prospects beyond this as the demand for natural gas is expected to grow over the next two decades.
  • The company's financial structure leaves a lot to be desired as it is carrying an incredibly high amount of debt given its cash flow.
  • The 8.69% yield is probably sustainable, but there may be some risks of a cut here if the growth story does not perfectly play out.
  • This idea was discussed in more depth with members of my private investing community, Energy Profits in Dividends. Learn More »

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Equitrans Midstream Corporation (NYSE:ETRN) is a midsized natural gas-focused midstream company that operates throughout the Appalachian region. This makes it somewhat unique among the midstream firms as it is one of the only ones that is exclusively focused on

Equitrans Service Footprint

Equitrans Midstream

MVP Pipeline Map

Equitrans Midstream

Equitrans Midstream Growth Projects

Equitrans Midstream

IEA Demand Growth Projections by Fuel

Pembina Pipeline/Data from IEA 2021 World Energy Outlook

ETRN Dividend History

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