Equitrans Midstream Corp (ETRN) 2022 Q2 法說會逐字稿

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Equitrans Midstream Second Quarter 2022 Earnings Conference Call. (Operator Instructions)

您好，感謝您的支持。我的名字是 Regina，今天我將成為您的會議接線員。在這個時候，我想歡迎大家參加 Equitrans Midstream 2022 年第二季度收益電話會議。 （操作員說明）

I would now like to turn the conference over to Tom Karam, Chairman and CEO. Please go ahead.

我現在想把會議交給董事長兼首席執行官湯姆·卡拉姆。請繼續。

Good morning, and welcome to the second quarter 2022 earnings call for Equitrans Midstream Corporation. A replay of this call will be available for 14 days beginning this evening. The phone number for the replay is (800) 770-2030 or (647) 362-9199, and the conference ID is 6625542.

早上好，歡迎參加 Equitrans Midstream Corporation 的 2022 年第二季度財報電話會議。從今晚開始，該電話的重播將持續 14 天。重播電話為（800）770-2030或（647）362-9199，會議ID為6625542。

Today's call may contain forward-looking statements related to future events and expectations. Please refer to today's news release and Risk Factors in ETRN's Form 10-K for the year ended December 31, 2021, and as updated by Form 10-Qs for factors that could cause the actual results to differ materially from these forward-looking statements. Today's call may contain certain non-GAAP financial measures. Please refer to this morning's news release and our investor presentation for important disclosures regarding such measures, including reconciliations to the most comparable GAAP financial measure. On the call today are Tom Karam, Chairman and CEO; Diana Charletta, President and Chief Operating Officer; Kirk Oliver, Senior Vice President and Chief Financial Officer; Justin Macken, Senior Vice President, Gas Systems Planning and Engineering; Brian Pietrandrea, Vice President and Chief Accounting Officer; and Janice Brenner, Vice President and Treasurer. After the prepared remarks, we will open the call to questions.

今天的電話會議可能包含與未來事件和預期相關的前瞻性陳述。請參閱今天的新聞稿和 ETRN 表格 10-K 中截至 2021 年 12 月 31 日的年度以及表格 10-Q 更新的風險因素，以了解可能導致實際結果與這些前瞻性陳述產生重大差異的因素。今天的電話會議可能包含某些非公認會計原則的財務措施。請參閱今天上午的新聞稿和我們的投資者介紹，了解有關此類措施的重要披露，包括與最具可比性的 GAAP 財務措施的對賬。今天的電話會議是董事長兼首席執行官湯姆·卡拉姆（Tom Karam）； Diana Charletta，總裁兼首席運營官； Kirk Oliver，高級副總裁兼首席財務官； Justin Macken，氣體系統規劃和工程高級副總裁； Brian Pietrandrea，副總裁兼首席會計官；以及副總裁兼財務主管 Janice Brenner。在準備好的評論之後，我們將打開提問電話。

With that, I will turn it over to Tom.

有了這個，我會把它交給湯姆。

Thanks, Nate, and good morning, everyone. Today, we reported second quarter results ahead of our forecast, including net income of $74 million, adjusted EBITDA of $264 million and deferred revenue of $89 million. We also increased our full year financial guidance. Kirk will provide details on the financial results in a few minutes. The base business continues to deliver solid results. We secured a nice compression growth project that will further enhance our core assets and we will continue to make progress with our many ESG efforts, as detailed in our recently published corporate sustainability report. On MVP, we reiterate the targeted full in-service date during the second half of 2023 at a total project cost of $6.6 billion. We are encouraged by and appreciate the work being done by the federal agencies on the permitting renewal process. We remain focused on everything within our control and believe projects like MVP, that follow every required process and receive every required permit should prevail.

謝謝，內特，大家早上好。今天，我們報告了超出我們預期的第二季度業績，包括 7400 萬美元的淨收入、2.64 億美元的調整後 EBITDA 和 8900 萬美元的遞延收入。我們還增加了全年財務指導。柯克將在幾分鐘內提供有關財務結果的詳細信息。基礎業務繼續取得可觀的成果。我們獲得了一個不錯的壓縮增長項目，這將進一步增強我們的核心資產，我們將繼續在我們的許多 ESG 工作中取得進展，如我們最近發布的企業可持續發展報告中所述。關於 MVP，我們重申了 2023 年下半年的目標全面投入使用日期，項目總成本為 66 億美元。我們對聯邦機構在許可證更新過程中所做的工作感到鼓舞和讚賞。我們仍然專注於我們控制範圍內的一切，並相信像 MVP 這樣的項目應該遵循每一個必要的流程並獲得每一個必要的許可。

And now I'll turn it to Diana for the operations update, and then Kirk will discuss the financial results. Diana?

現在我將把它交給戴安娜來進行運營更新，然後柯克將討論財務結果。戴安娜？

Thanks, Tom. Good morning, everyone. I'll start with gathering. During the quarter, we entered into an agreement with a producer customer to add booster compression to existing facilities. Backed by a firm long-term agreement, the project is targeted to be in service in mid-2024 with an investment total of about $70 million. On compression projects like this, we typically realize a build multiple in the 4x to 6x range. At a high level, we still believe that A-Basin volumes will remain roughly flat until further takeaway capacity becomes available. For this year, we continue to expect that gathered volumes will be slightly down year-over-year based on current year development plans and pad timing.

謝謝，湯姆。大家，早安。我將從收集開始。在本季度，我們與生產商客戶達成協議，為現有設施添加增壓壓縮。該項目在一份長期協議的支持下，計劃於 2024 年年中投入使用，總投資約 7000 萬美元。在像這樣的壓縮項目中，我們通常會實現 4x 到 6x 範圍內的構建倍數。在較高的水平上，我們仍然認為 A-Basin 的銷量將大致持平，直到有更多的外賣能力可用。對於今年，我們繼續預計根據本年度的發展計劃和墊時間，收集量將同比略有下降。

Moving on to transmission. Earlier this year, we announced the Ohio Valley Connector expansion or OVCX project and began the FERC application process. In July, FERC provided its notice of intent to prepare an environmental impact statement for the project. And based on the expected permitting time frame, we are now targeting an in-service in the first half of 2024. OVCX will add about 350 million cubic feet per day of deliverability on our Ohio Valley Connector pipeline, which provides access to the Mid-Continent and Gulf Coast markets through interconnects in Clarington, Ohio. On the water side, we continue to expect our water EBITDA of approximately $30 million for the year and are making good progress on the mixed-use system buildout.

繼續傳輸。今年早些時候，我們宣布了俄亥俄河谷連接器擴展或 OVCX 項目，並開始了 FERC 申請流程。 7 月，FERC 提供了為該項目準備環境影響報告的意向通知。根據預期的許可時間框架，我們現在的目標是在 2024 年上半年投入使用。OVCX 將在我們的俄亥俄河谷連接器管道上每天增加約 3.5 億立方英尺的可交付性，該管道提供通往中部的通道。大陸和墨西哥灣沿岸市場通過俄亥俄州克拉靈頓的互連。在水方面，我們繼續預計我們今年的水 EBITDA 約為 3000 萬美元，並且在混合用途系統建設方面取得了良好進展。

Next, an update on ESG. Last week, we released our annual corporate sustainability report. The report utilizes the global reporting initiative newest consolidated set of GRI Standards 2021 and continues to follow the SASB oil and gas midstream standards. The report also reflects the results of our 2022 materiality assessment, which, for the first time, included input from both internal and external stakeholders. In 2021, we formalized many commitments, including the adoption of a supplier code of conduct, human rights policy and stakeholder engagement and community investment policy. And more recently, we published our Environmental Justice Policy.

接下來，關於 ESG 的更新。上週，我們發布了年度企業可持續發展報告。該報告利用全球報告倡議組織最新的 GRI 標準 2021 綜合集，並繼續遵循 SASB 石油和天然氣中游標準。該報告還反映了我們 2022 年重要性評估的結果，該評估首次納入了內部和外部利益相關者的意見。 2021 年，我們正式確定了許多承諾，包括採用供應商行為準則、人權政策和利益相關者參與以及社區投資政策。最近，我們發布了我們的環境正義政策。

As outlined in our climate policy, we are also taking active steps toward achieving the targeted 50% reduction in Scope 1 and Scope 2 methane emissions by 2030. For example, last year, one of our methane reduction projects included the conversion of pneumatic controllers at some of our compressor stations. As we exit 2022, this pneumatic conversion project, together with additional methane reduction initiatives that we continue to implement are expected to result in an estimated 20% decrease in methane emissions relative to our 2019 baseline inventory. There are many highlights to be found in the report, including those around community partnerships and local giving, safety and environmental leadership, workplace culture initiatives and diversity inclusion. I encourage everyone to access the full report through our website at equitransmidstream.com to see the details of our ESG efforts.

正如我們的氣候政策所述，我們還在採取積極措施，以實現到 2030 年將範圍 1 和範圍 2 甲烷排放量減少 50% 的目標。例如，去年，我們的一個甲烷減排項目包括在我們的一些壓縮機站。隨著我們退出 2022 年，這個氣動轉換項目以及我們繼續實施的其他甲烷減排計劃預計將導致甲烷排放量相對於我們 2019 年的基線清單減少 20%。報告中有許多亮點，包括社區夥伴關係和當地捐贈、安全和環境領導、工作場所文化倡議和多元化包容性。我鼓勵大家通過我們的網站 equitransmidstream.com 訪問完整的報告，以查看我們 ESG 工作的詳細信息。

I'll now turn the call over to Kirk.

我現在把電話轉給柯克。

Thanks, Diana, and good morning, everyone. Today, we reported second quarter net income attributable to E-Train common shareholders of $55 million and earnings per diluted E-Train common share of $0.13. Net income was $74 million, adjusted EBITDA was $264 million and deferred revenue was $89 million. We also reported net cash provided by operating activities of $351 million and free cash flow of $184 million. Net income attributable to E-Train common shareholders was impacted by several items: first, by a $14 million unrealized gain on derivative instruments, which is reported within other income. This is related to the contractual provision entitling E-Train to receive cash payments from EQT, conditioned on specific NYMEX Henry Hub natural gas prices, exceeding certain thresholds post MVP's in-service and through 2024.

謝謝，戴安娜，大家早上好。今天，我們報告了第二季度歸屬於 E-Train 普通股股東的淨收入為 5500 萬美元，每股攤薄後 E-Train 普通股的收益為 0.13 美元。淨收入為 7400 萬美元，調整後的 EBITDA 為 2.64 億美元，遞延收入為 8900 萬美元。我們還報告了經營活動提供的淨現金為 3.51 億美元，自由現金流為 1.84 億美元。歸屬於 E-Train 普通股股東的淨收入受到幾個因素的影響：首先，衍生工具的 1400 萬美元未實現收益，在其他收入中報告。這與授權 E-Train 有權從 EQT 接收現金付款的合同條款有關，條件是特定的 NYMEX Henry Hub 天然氣價格，超過 MVP 投入使用後到 2024 年的某些閾值。

Second, by a $25 million loss on extinguishment of debt, which is related to the purchase of $1 billion of aggregate principal amount of EQM senior notes and tender offers. And lastly, by a $60 million reduction of valuation allowances because of decreases in deferred tax assets. This gets reported within the income tax expense line.

其次，2500 萬美元的債務清償損失與購買 10 億美元本金總額的 EQM 優先票據和要約收購有關。最後，由於遞延所得稅資產的減少，估值減免減少了 6000 萬美元。這將在所得稅費用行中報告。

After adjusting for these items, second quarter adjusted net income attributable to E-Train common shareholders was $47 million and adjusted earnings per diluted E-Train common share was $0.11. E-Train operating revenue for the second quarter of 2022 was lower compared to the same quarter of last year by $20 million. This was primarily from the impact of deferred revenue, lower gathered volumes and lower water services revenue. Operating expense for the second quarter of 2022 were $70 million lower than the same quarter last year, primarily as a result of a $56 million impairment of long-lived assets in the second quarter of 2021. The remaining decrease was from lower SG&A and O&M expenses. For the second quarter, E-Train will pay a quarterly cash dividend of $0.15 per common share on August 12 to common shareholders of record at the close of business on August 3.

在對這些項目進行調整後，第二季度調整後歸屬於 E-Train 普通股股東的淨收入為 4700 萬美元，調整後每股攤薄後 E-Train 普通股收益為 0.11 美元。與去年同期相比，E-Train 2022 年第二季度的營業收入減少了 2000 萬美元。這主要是由於遞延收入、收集量減少和供水服務收入減少的影響。 2022 年第二季度的運營費用比去年同期減少 7,000 萬美元，主要是由於 2021 年第二季度長期資產減值 5,600 萬美元。其餘減少是由於 SG&A 和 O&M 費用減少.對於第二季度，E-Train 將於 8 月 12 日向 8 月 3 日收盤時登記在冊的普通股股東支付每股普通股 0.15 美元的季度現金股息。

In June, we successfully accessed the bond market to address near-term debt maturities. We issued $1 billion of new senior notes, split between a 5-year tranche and an 8-year tranche. Net proceeds were used to purchase $500 million of the outstanding 2023 notes, $200 million of the outstanding 2024 notes and $300 million of the outstanding 2025 notes. In early July, EQT elected to receive $196 million cash payment to forgo approximately $235 million of future rate relief. We have ample availability under the revolver to make the payment because we no longer will be providing the $235 million of rate relief under the gas gathering agreement, the average gathering rate used for GAAP reporting will increase by approximately $0.01. This slight increase in the average gathering rate means we'll be deferring less revenue into future periods. This update is reflected in the financial guidance provided today. As mentioned on the heels of a strong Q2, we have increased our full year guidance.

6 月，我們成功進入債券市場以應對近期到期的債務。我們發行了 10 億美元的新優先票據，分為 5 年期和 8 年期。淨收益用於購買 5 億美元的 2023 年未償票據、2 億美元的 2024 年未償票據和 3 億美元的 2025 年未償票據。 7 月初，殷拓選擇接受 1.96 億美元的現金支付，以放棄約 2.35 億美元的未來利率減免。由於我們將不再根據天然氣採集協議提供 2.35 億美元的費率減免，因此我們有充足的可用餘地來支付款項，用於 GAAP 報告的平均採集費率將增加約 0.01 美元。平均收集率的這種小幅增加意味著我們將減少未來期間的收入。這一更新反映在今天提供的財務指導中。正如在強勁的第二季度之後提到的那樣，我們提高了全年指導。

For the full year 2022, we now forecast net income of $255 million to $325 million, adjusted EBITDA of $1.015 billion to $1.085 billion and deferred revenue of approximately $340 million.

對於 2022 年全年，我們現在預測淨收入為 2.55 億美元至 3.25 億美元，調整後 EBITDA 為 10.15 億美元至 10.85 億美元，遞延收入約為 3.4 億美元。

I'll now hand the call back to Tom.

我現在將電話轉回給湯姆。

Thanks, Kirk. So in summary, the base business and operations remain resilient. We've added a compression growth project that will enhance our core business, we've addressed near-term debt maturities and we are working hard on completing the MVP permitting process. It remains clear that our abundant domestic natural gas reserves must be developed and transported to meet the world's increasing demand for reliable energy. It's also clear that MVP would not only provide reliable energy, will also play a key role in our energy security as the geopolitical unrest continues.

謝謝，柯克。因此，總而言之，基礎業務和運營仍然具有彈性。我們增加了一個壓縮增長項目，這將增強我們的核心業務，我們已經解決了近期債務到期問題，我們正在努力完成 MVP 許可流程。很明顯，我們必須開發和運輸我們豐富的國內天然氣儲備，以滿足世界對可靠能源日益增長的需求。同樣清楚的是，隨著地緣政治動蕩的持續，MVP 不僅將提供可靠的能源，還將在我們的能源安全中發揮關鍵作用。

As we work toward the reissuance of permits, Mountain Valley recently completed its updated supplement to the biological assessment, which was submitted to the U.S. Fish and Wildlife Service on July 29. We believe this comprehensive document, which far exceeds the legal and regulatory standards for the issuance of biological opinions, will address the concerns outlined in the Fourth Circuit's decision to vacate and remand our previously approved 2020 biological opinion as well as issues raised by project opponents.

在我們努力重新頒發許可證的過程中，Mountain Valley 最近完成了對生物評估的更新補充，該補充於 7 月 29 日提交給美國魚類和野生動物管理局。我們認為這份全面的文件遠遠超過了生物學意見的發布，將解決第四巡迴法院決定撤銷和退回我們先前批准的 2020 年生物學意見中概述的擔憂以及項目反對者提出的問題。

In addition, as part of MVP's certificate extension process, we were extremely pleased with the support letters that were filed with FERC by several Southeast utilities and many Appalachian Basin producers. These companies offer the best real-world insights into the consequences of inadequate access to natural gas supplies and further highlight the critical need for MVP. And last, as it relates to the proposed Federal Permitting Reform and Jobs Act announced yesterday, the need for this proposed bill should be crystal clear. By creating a very defined set of rules, this proposed legislation provides for a continued thorough review and approval process that is led by the expertise of federal agencies and provides best practices for public participation. It addresses and ensures our nation's ability to produce and deliver our vast domestic energy resources, including renewables and is absolutely essential for our nation's energy security.

此外，作為 MVP 證書擴展過程的一部分，我們對東南部的幾家公用事業公司和許多阿巴拉契亞盆地生產商向 FERC 提交的支持信非常滿意。這些公司對天然氣供應不足的後果提供了最好的真實見解，並進一步強調了對 MVP 的迫切需求。最後，由於它與昨天宣布的擬議的聯邦許可改革和就業法案有關，因此該擬議法案的必要性應該非常明確。通過制定一套非常明確的規則，這項擬議的立法提供了由聯邦機構的專業知識領導的持續徹底的審查和批准程序，並為公眾參與提供了最佳實踐。它解決並確保了我們國家生產和提供包括可再生能源在內的大量國內能源資源的能力，對我們國家的能源安全至關重要。

It enhances our ability to construct export facilities to deliver energy to our allies as well as our ability to effectively transition to a lower carbon future. This proposed permitting reform is essential to address issues that have presented costly and time-consuming delays in the construction of energy infrastructure and supports Americans demands to execute a timely transition to clean energy, while at the same time ensuring energy reliability and affordability.

它增強了我們建設出口設施以向我們的盟友輸送能源的能力，以及我們有效過渡到低碳未來的能力。這項擬議的許可改革對於解決在能源基礎設施建設方面造成代價高昂和耗時的問題至關重要，並支持美國人及時向清潔能源過渡的要求，同時確保能源的可靠性和可負擔性。

A perfect case in point is our MVP project, which has been collateral damage as a result of an uncertain permitting review process and judicial system. Most importantly, this comprehensive reform goes far beyond MVP. It is about furthering our nation's role as a leading energy producer for both natural and renewable resources in support of our national security and our allies. While MVP is nearing the end of its long and delayed permitting process, this proposed legislation will benefit an MVP expansion and the MVP Southgate project as well as other energy infrastructure projects by providing a timely and certain permitting process, which is just as important for renewable energy infrastructure projects as it is for oil and gas.

一個完美的例子是我們的 MVP 項目，由於不確定的許可審查程序和司法系統，該項目已造成附帶損害。最重要的是，這種全面的改革遠遠超出了MVP。這是為了進一步發揮我們國家作為天然和可再生資源領先能源生產國的作用，以支持我們的國家安全和我們的盟友。雖然 MVP 即將結束其漫長而延遲的許可流程，但這項擬議的立法將通過提供及時和確定的許可流程，使 MVP 擴建和 MVP Southgate 項目以及其他能源基礎設施項目受益，這對於可再生能源同樣重要能源基礎設施項目，如石油和天然氣。

We look forward to further developments relating to this important and timely legislation, and we applaud the steadfast leadership and resolve of Senator Manchin in spearheading this legislation.

我們期待與這項重要而及時的立法有關的進一步發展，我們讚賞曼欽參議員在帶頭立法方面的堅定領導和決心。

With that, we are happy to take your questions.

有了這個，我們很高興回答您的問題。

(Operator Instructions) Our first question will come from the line of Jeremy Tonet with JPMorgan.

（操作員說明）我們的第一個問題來自摩根大通的 Jeremy Tonet。

Just wanted to kind of follow up with some of your points at the end there. There's been media reports that have indicated a separate side bill that Senator Manchin has proposed that could directly aid MVP pipeline permitting. Just wondering if you're familiar with these initiatives and if you can provide any thoughts there?

只是想在最後跟進你的一些觀點。有媒體報導表明，參議員曼欽提出了一項單獨的附帶法案，該法案可以直接幫助 MVP 管道許可。只是想知道您是否熟悉這些舉措以及您是否可以在那裡提供任何想法？

Yes, Jeremy, thanks for the question. The proposed legislation that I referenced, the Federal Permitting Reform and Jobs Act is a comprehensive permitting reform bill that includes the direct treatment for MVP. So there is no additional side built to that. That is the proposed legislation. And as you might have suspected, we've been engaging actively with Democratic and Republican senators for quite some time now, not only on MVP specific issues, but the broader reform issues. And we think much of what was disclosed yesterday addresses those permitting reform issues that would be beneficial to all energy infrastructure, as I highlighted, oil and natural gas infrastructure as well as renewable energy infrastructure.

是的，傑里米，謝謝你的提問。我提到的擬議立法，聯邦許可改革和就業法案是一項全面的許可改革法案，其中包括對 MVP 的直接處理。所以沒有額外的方面。這就是擬議的立法。正如您可能已經猜到的那樣，我們已經與民主黨和共和黨參議員積極接觸了很長一段時間，不僅在 MVP 特定問題上，而且在更廣泛的改革問題上。我們認為昨天披露的大部分內容都解決了那些對所有能源基礎設施有利的改革問題，正如我所強調的，石油和天然氣基礎設施以及可再生能源基礎設施。

Got it. And if this bill were to be passed, how might that impact the expected time line for MVP at this point?

知道了。如果該法案獲得通過，這將如何影響 MVP 的預期時間線？

Yes. It's too early to tell. And it all depends on the timing of the legislation itself. But suffice it to say that we're clearly pleased with this proposed legislation, and we're cautiously optimistic that it will be passed in the near term. And once we get those data points, we'll be able to revise our guidance as needed.

是的。現在說還為時過早。而這一切都取決於立法本身的時機。但只要說我們顯然對這項擬議的立法感到滿意就足夠了，我們對它會在短期內獲得通過持謹慎樂觀的態度。一旦我們獲得這些數據點，我們將能夠根據需要修改我們的指導。

Your next question comes from the line of John Mackay with Goldman Sachs.

您的下一個問題來自高盛的 John Mackay。

I wanted to pick up, if I can, on just those last couple of questions. Are you -- and understanding it's early days, are you comfortable with this potential legislation getting you through kind of, let's say, all the remaining issues for MVP. And I'm specifically thinking of the ongoing Fourth Circuit cases. Just wondering if you can comment on that.

如果可以的話，我想回答最後幾個問題。您是否 - 並且了解它還處於早期階段，您是否對這項潛在的立法感到滿意，可以讓您通過 MVP 的所有剩餘問題。我特別想到了正在進行的第四巡迴法院案件。只是想知道您是否可以對此發表評論。

Yes, so John, let me respond. This is Tom. Let me respond in 2 ways. We're comfortable and confident in the ordinary course process that we're going through right now with the reissuance of the biological opinion and our efforts to get the Army Corps and through the Fourth Circuit. We have a high degree of confidence that all of our submissions on our work far exceed any of the thresholds to have those permits issued and withstand judicial review. So that's answer A. Answer B is, yes, we are confident that the proposed legislation and what's included in there would provide the requisite certainty around MVP.

是的，所以約翰，讓我回應一下。這是湯姆。讓我以兩種方式回應。隨著生物學意見的重新發布以及我們爭取陸軍軍團和通過第四巡迴賽的努力，我們現在對我們正在經歷的普通課程過程感到舒適和自信。我們非常有信心，我們所有關於我們工作的提交都遠遠超過了獲得這些許可證並經受司法審查的任何門檻。這就是答案 A。答案 B 是，是的，我們相信擬議的立法和其中包含的內容將為 MVP 提供必要的確定性。

All right. That's great and that's clear. Maybe let me just pick up the last one. Let's say, we do still have to kind of go normal course for this, do you mind just sharing some thoughts on what you think of for the timing in terms of getting the federal permits and also hearing back from the FERC on the time line extension?

好的。這很好，很清楚。也許讓我拿起最後一個。比方說，我們仍然必須為此走正常路線，您是否介意分享一些您對獲得聯邦許可的時間的看法，以及 FERC 關於時間線延長的回复?

So we have outstanding guidance that says second half of 2023 is when we expect to put MVP in service. That incorporates the ordinary course, if you will, process to complete with the permitting and get through the Fourth Circuit. So that's already within our guidance.

因此，我們有出色的指導，即 2023 年下半年是我們期望將 MVP 投入使用的時候。如果您願意，這包括普通課程，通過許可完成並通過第四巡迴賽。所以這已經在我們的指導範圍內。

With the permits probably is coming by the end of this year, so you can start construction early next year. Is that still the right way to think about it?

許可證可能會在今年年底到來，所以你可以在明年年初開始建設。這仍然是正確的思考方式嗎？

Correct. We provided our supplemental to the Fish and Wildlife. We expect to act timely in that. We don't have an exact date as to when they would issue the actual opinion. But we expect to have all of those permits in hand by year-end.

正確的。我們提供了對魚類和野生動物的補充。我們希望在這方面及時採取行動。我們沒有確切的日期，說明他們何時會發表實際意見。但我們預計到年底將獲得所有這些許可證。

Your next question comes from the line of Neel Mitra with Bank of America.

您的下一個問題來自美國銀行的 Neel Mitra。

Wanted to understand just the current process right now. So can you describe where you are in the process with the Fourth Circuit on the West Virginia and Virginia water permits. And then when you would file for the Jefferson National Forest permit, I'm assuming you need the biological opinion first.

現在想了解當前的過程。那麼你能描述一下你在西弗吉尼亞州第四巡迴賽和弗吉尼亞州水許可證的處理過程中的位置嗎？然後，當您申請杰斐遜國家森林許可證時，我假設您首先需要生物學意見。

So Neel, the biological opinion is like the gatekeeper for the other agencies to actually issue their permits. That would be the Forest Service as well as the Army Corps Engineers. The 401 litigation as it relates to Virginia and West Virginia is ongoing through the Fourth Circuit, and I think that should run through the fall toward the end of this year. So again, all of those things are in process. We're confident that we're going to prevail and exceed all statutory requirements for the sustained permits.

所以尼爾，生物學意見就像其他機構實際發放許可證的守門人。那將是林務局以及陸軍工程兵團。與弗吉尼亞州和西弗吉尼亞州有關的 401 訴訟正在第四巡迴法院進行，我認為這應該會在今年年底的秋季進行。再說一遍，所有這些事情都在進行中。我們有信心，我們將勝過並超過持續許可的所有法定要求。

Okay. And then I did want to ask a question about the proposed legislation. So I wanted to understand kind of the interplay between legislation and the judicial branch. Is there a way for legislation to be passed so that the Fourth Circuit can't intervene on past issues, like things in progress like the water permits as well as future issues. And there's also other media reports saying that it could be pushed to the DC circuit rather than the Fourth Circuit. So I was just wondering how that would fit together, the legislation and the court cases there because the -- obviously, the Fourth Circuit has been the major issue in terms of moving the project forward.

好的。然後我確實想問一個關於擬議立法的問題。所以我想了解立法和司法部門之間的相互作用。有沒有辦法通過立法，使第四巡迴法院不能干預過去的問題，比如水許可證等正在進行的事情以及未來的問題。還有其他媒體報導說它可以推到直流電路而不是第四電路。所以我只是想知道這將如何結合在一起，立法和法院案件因為 - 顯然，第四巡迴賽一直是推動項目前進的主要問題。

Neel, I want to be careful not to swim outside my lane and talk about things that we can't state with confidence and certainty. What I can tell you is that the proposed legislation provides the certainty that we need at MVP in a manner that is consistent within Congress' purview.

尼爾，我要小心，不要游到我的車道外，談論我們無法自信和確定地陳述的事情。我可以告訴你的是，擬議的立法以在國會職權範圍內一致的方式提供了我們在 MVP 中所需的確定性。

Your next question comes from the line of Michael Blum with Wells Fargo.

您的下一個問題來自富國銀行的 Michael Blum。

Just wanted to first just clarify one of your earlier comments. Are you saying that the -- what the media is reporting as a "side deal" between Manchin and leadership. It actually just the Federal Permitting Reform and Jobs Act or -- did I hear that correctly?

只是想首先澄清您之前的評論之一。你是說——媒體報導的曼欽和領導層之間的“附帶協議”。它實際上只是聯邦許可改革和就業法案，或者——我沒聽錯嗎？

I'm not commenting on any characterization, Michael. Good morning, by the way. The only thing that I can respond to is the pieces of legislation that we're aware of are the Inflation Reduction Act and the Federal Permitting Reform and Jobs Act. They're the only 2 pieces of proposed legislation that we are aware of. And within the Federal Permitting Reform and Jobs Act, many of the permitting reforms that our industry as well as the renewable industry is really anxious to have passed, and within the body of that proposed legislation is the direct focus on MVP.

邁克爾，我不評論任何特徵。早上好，順便說一句。我唯一能回應的是我們所知道的立法是《降低通貨膨脹法》和《聯邦許可改革和就業法》。它們是我們所知道的僅有的兩項擬議立法。在《聯邦許可改革和就業法案》中，我們的行業以及可再生能源行業非常渴望通過的許多許可改革，並且在該擬議立法的主體內，直接關注 MVP。

Okay. Got it. Understood. Appreciate that. Just have another unrelated question. Just curious if you're seeing any change in messaging or tone from your producer customers around drilling activity or plans to change drilling activity in light of the higher natural gas price environment we're seeing?

好的。知道了。明白了。感謝。只是有另一個無關的問題。只是好奇您是否看到生產商客戶在鑽井活動方面的信息或語氣有任何變化，或者鑑於我們所看到的較高天然氣價格環境而計劃改變鑽井活動？

Yes. Look, we can't speak to the production forecast of our customers. It's up to them to speak publicly about that. What we can point you to are public statements that I think some and maybe all of them have made about the takeaway capacity constraints within the basin. And that the need for additional takeaway capacity is one of the limiting factors and the ability for the basin to grow.

是的。聽著，我們不能談論客戶的生產預測。他們有責任公開談論這件事。我們可以向您指出的是公開聲明，我認為其中一些甚至可能全部都針對流域內的外賣能力限製做出了公開聲明。而對額外外賣能力的需求是限制因素之一，也是流域增長的能力。

Your next question comes from the line of Alex Kania with Wolfe Research.

您的下一個問題來自 Wolfe Research 的 Alex Kania。

Just a question on -- in the press release, you mentioned there's a discussion on kind of rescoping the Southgate extension. I was wondering if you could provide a little bit more color on what that could entail? And then maybe, again, maybe putting cart before the horse, just if there's been any kind of evolving discussions that you've been having with entities just on trying to boost, egress beyond what's in -- what's going forward already cited under MVP for all these other uses of gas for export in particular?

只是一個問題——在新聞稿中，你提到有一個關於重新界定索斯蓋特擴展的討論。我想知道你是否可以提供更多的顏色來說明這可能意味著什麼？然後也許，再一次，也許是本末倒置，就像你一直在與實體進行的任何類型的不斷發展的討論，只是為了試圖提升，超出現有範圍的出口 - MVP 中已經引用的未來發展尤其是所有這些用於出口的天然氣的其他用途？

Yes. So this is Diana. We don't have an update right now on Southgate. We do continue to have constructive conversations and discussions with our existing customers and potential customers. So I think the news and the environment that we're in right now is positive, and we continue to have those discussions to fit exactly what they need when they need it.

是的。這就是戴安娜。我們現在沒有關於索斯蓋特的更新。我們確實繼續與現有客戶和潛在客戶進行建設性的對話和討論。所以我認為我們現在所處的新聞和環境是積極的，我們將繼續進行這些討論，以在他們需要時準確地滿足他們的需要。

(Operator Instructions) Your next question will come from the line of Brian Reynolds with UBS.

（操作員說明）您的下一個問題將來自瑞銀的 Brian Reynolds。

As a follow-up on the Manchin side deal, there's a revision of the Clean Water Act is included in the Federal Permitting Reform Act. Ultimately, kind of curious if this would have any impact on MVP time line and whether any changes in the ultimate permitting process could unintentionally impact the existing time line for the buy up U.S. Army Corps and water permit, et cetera.

作為曼欽方面交易的後續行動，對清潔水法的修訂包含在聯邦許可改革法中。最終，有點好奇這是否會對 MVP 時間線產生任何影響，以及最終許可過程中的任何變化是否會無意中影響購買美國陸軍軍團和水許可證等的現有時間線。

So I don't think there's going to be any impact on the timing as it relates to anything that's in the proposed permitting provisions. I don't think this is a side deal. I think this is a necessary piece of proposed legislation to make the industry, both the oil and gas industry and the renewable energy industry more efficient in constructing infrastructure. And if you talk to anyone in the industry, we've been hoping that we could get such reforms. So I think this is a very important piece of legislation that both sides of the aisle have been supporting and now is the time for it to get passed because there was a piece of leverage that may or may not have played into it. But for us, this is a critical piece of legislation for this country's ability to remain energy secure and independent and to provide for an orderly transition over time. So first part of your question is no, there's no impacts on the timing as it relates to what's proposed in this legislation; and secondly, this is a very important piece of legislation.

因此，我認為不會對時間產生任何影響，因為它與擬議的許可條款中的任何內容有關。我不認為這是一個附帶交易。我認為這是一項必要的立法提案，可以使石油和天然氣行業以及可再生能源行業在基礎設施建設方面更有效率。如果你和業內的任何人交談，我們一直希望我們能夠進行這樣的改革。因此，我認為這是兩黨一直支持的一項非常重要的立法，現在是通過它的時候了，因為它可能會或可能不會發揮作用。但對我們來說，這是該國保持能源安全和獨立的能力的關鍵立法，並隨著時間的推移提供有序的過渡。因此，您的問題的第一部分是否定的，對時間安排沒有影響，因為它與本立法中提出的內容有關；其次，這是一項非常重要的立法。

Understood. And then as a follow-up, I appreciate the color from an energy permitting perspective. But maybe to switch to the tax side, there are proposals as it relates to the corporate minimum tax in addition to impact of prior NOLs, I was curious if you could just speak to E-Train's exposure to potentially not being able to offset future earnings with prior NOLs given MVP delays from the prior years.

明白了。然後作為後續，我從能量允許的角度欣賞顏色。但也許要轉向稅收方面，除了先前 NOL 的影響之外，還有一些與公司最低稅相關的建議，我很好奇你是否可以談談 E-Train 可能無法抵消未來收益的風險鑑於前幾年的 MVP 延遲，之前的 NOL。

Yes. This is Kirk, Brian. Yes, we've looked at that. We don't think it's going to have any impact on us. Obviously, we'll keep an eye on the language, if anything changes, we'll keep everyone updated. But as it stands right now, we don't see any impact on us.

是的。這是柯克，布賴恩。是的，我們已經看過了。我們認為這不會對我們產生任何影響。顯然，我們會密切關注語言，如果有任何變化，我們會及時通知每個人。但就目前而言，我們看不到對我們有任何影響。

With that, I'll turn the conference back over to management for any closing remarks.

有了這個，我將把會議交還給管理層，以便發表任何結束語。

Thank you very much for joining us today. We're very pleased with the results of our quarter. Our business remains strong. We hope that all of you on the call today will support this proposed energy permitting reform legislation and let everybody that you talk to know that this is critically important for the industry. With that, everybody have a safe day and enjoy your weekend to come. Thank you.

非常感謝您今天加入我們。我們對本季度的結果感到非常滿意。我們的業務依然強勁。我們希望今天電話會議上的所有人都支持這項擬議的能源許可改革立法，並讓與您交談的每個人都知道這對行業至關重要。有了這個，每個人都度過了安全的一天，並享受即將到來的周末。謝謝你。

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

女士們先生們，今天的電話會議到此結束。謝謝大家的加入。您現在可以斷開連接。