Equitrans Midstream Corp (ETRN) 2023 Q1 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 First Quarter 2023 Earnings Conference Call. (Operator Instructions) I would now like to turn the conference over to Nate Tetlow. Please go ahead.

你好，謝謝你的支持。我叫 Regina，今天我將擔任你們的會議接線員。此時，我想歡迎大家參加 Equitrans Midstream 2023 年第一季度收益電話會議。 （操作員說明）我現在想將會議轉交給 Nate Tetlow。請繼續。

Good morning, and welcome to the First Quarter 2023 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. The conference ID is 6625542.

早上好，歡迎來到 Equitrans Midstream Corporation 的 2023 年第一季度收益電話會議。從今天晚上開始，將重播此電話會議的 14 天。重播的電話號碼是 (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, 2022, and as updated by Form 10-Q for factors that could cause the actual results to differ materially from these forward-looking statements.

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 10-K 表格中截至 2022 年 12 月 31 日止年度的風險因素，以及 10-Q 表格更新的可能導致實際結果與這些前瞻性陳述存在重大差異的因素。

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.

今天的電話會議可能包含某些非 GAAP 財務指標。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 財務措施的調節。

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.

今天的電話會議是董事長兼首席執行官 Tom Karam； Diana Charletta，總裁兼首席運營官；柯克奧利弗，高級副總裁兼首席財務官；天然氣系統規劃和工程高級副總裁 Justin Macken； Brian Pietrandrea，副總裁兼首席會計官；和副總裁兼財務主管 Janice Brenner。在準備好發言後，我們將開始提問。

With that, I will turn it over to Tom.

有了這個，我會把它交給湯姆。

Thanks, Nate. Good morning, everyone. Today, we reported first quarter 2023 results ahead of expectations, including net income of $106 million, adjusted EBITDA of $300 million and deferred revenue of $77 million. Kirk will provide details on the financial results in a few minutes.

謝謝，內特。大家，早安。今天，我們公佈了超出預期的 2023 年第一季度業績，包括 1.06 億美元的淨收入、3 億美元的調整後 EBITDA 和 7700 萬美元的遞延收入。柯克將在幾分鐘內提供財務結果的詳細信息。

As you know, we have approximately 4 to 5 months of construction remaining to complete Mountain Valley Pipeline. What you may not know is that we are now more than 100 months from the project's initial filing with FERC, more than 100 months of analysis, reviews and scrutiny and repeated reissuances of permits. We are now on our third biological opinion.

如您所知，我們還有大約 4 到 5 個月的施工時間才能完成 Mountain Valley 管道。您可能不知道的是，從該項目最初向 FERC 提交文件到現在，我們已經過了 100 多個月，經過 100 多個月的分析、審查和審查以及反復重新頒發許可證。我們現在得出第三個生物學意見。

The seemingly endless loop of permit challenges and court action is causing more negative environmental impact than allowing MVP to simply complete construction. The adverse impact on our regional energy security and reliability and affordability is real. And so is the negative impact on our employees, communities and customers. We certainly empathize with the many landowners along the right of way, who simply want us off their property.

與允許 MVP 簡單地完成施工相比，看似無窮無盡的許可挑戰和法院訴訟循環造成了更多的負面環境影響。對我們地區能源安全、可靠性和可負擔性的不利影響是真實存在的。對我們的員工、社區和客戶的負面影響也是如此。我們當然同情沿路的許多地主，他們只是想讓我們離開他們的財產。

As I said, the best way to protect the environment is to finish the project, get off landowners' property and permanently restore the right of way. And our view has been supported time and again by federal and state agencies that are best positioned to evaluate this project and its impacts. And so notwithstanding setbacks and continued risks, we are continuing to pursue the permitting path available under the law. Let's talk about that path for a minute.

正如我所說，保護環境的最好方法是完成項目，擺脫土地所有者的財產並永久恢復通行權。我們的觀點一再得到最有能力評估該項目及其影響的聯邦和州機構的支持。因此，儘管遇到挫折和持續的風險，我們仍在繼續尋求法律允許的途徑。讓我們花點時間談談這條道路。

The outstanding required permits are a right-of-way authorization to cross the Jefferson National Forest from the Forest Service and Bureau of Land Management. We expect to receive this authorization in about 2 weeks. Beyond the forest permit, we need a Water Quality Certification from West Virginia and the Individual Water Crossing permits from the U.S. Army Corps of Engineers. The Fourth Circuit vacated the previously issued West Virginia Water Quality Certification on April 3rd. This did not come as a surprise, as the oral argument last October foreshadowed the ruling. Since the ruling, we've been in close contact with West Virginia DEP and have a high degree of confidence that the issues raised in the ruling and will be adequately addressed. And lastly, once all permits are issued, we expect FERC will grant the necessary authorizations to resume full construction.

未完成的所需許可證是從林務局和土地管理局獲得穿越杰斐遜國家森林的通行權授權。我們預計將在大約 2 週內收到此授權。除了森林許可證，我們還需要西弗吉尼亞州的水質認證和美國陸軍工程兵團的個人渡水許可證。第四巡迴賽於 4 月 3 日取消了先前頒發的西弗吉尼亞州水質認證。這並不令人意外，因為去年 10 月的口頭辯論預示了裁決結果。自裁決以來，我們一直與西弗吉尼亞州 DEP 保持密切聯繫，並且高度相信裁決中提出的問題將得到充分解決。最後，一旦頒發了所有許可證，我們預計 FERC 將授予必要的授權以恢復全面建設。

We see a path to obtaining all approvals by early summer. And while narrow, this will give us the opportunity to complete construction in late 2023. All of this, of course, is contingent and no additional court interventions. Last week, project opponents did file a motion seeking a stay of the biological opinion. We are confident that the Fish and Wildlife Service produced a biological opinion that addresses the previous Court concerns and exceeds the standards required. We expect the Court to rule on the stay request in a few weeks.

我們看到了在初夏之前獲得所有批准的途徑。雖然範圍狹窄，但這將使我們有機會在 2023 年底完成建設。當然，所有這些都是偶然的，沒有額外的法院干預。上週，項目反對者確實提出了一項動議，要求擱置生物學觀點。我們相信，魚類和野生動物服務局提出的生物學意見解決了法院先前的擔憂並超出了要求的標準。我們預計法院將在幾週內對中止請求作出裁決。

In addition to the Fish and Wildlife, we're confident that all the state and federal agencies involved are producing permits that address previous Court concerns and exceed the standards required for each authorization. And as we've said before, projects like MVP that follow every required process and receive every required permit should prevail.

除了魚類和野生動物，我們相信所有相關的州和聯邦機構都在製作許可證，以解決法院先前的擔憂並超過每項授權所需的標準。正如我們之前所說，像 MVP 這樣遵循所有必需流程並獲得所有必需許可的項目應該佔上風。

Last week, the Secretary of Energy, Jennifer Granholm, sent a letter to the FERC commissioners highlighting the importance of energy infrastructure and, in particular, Mountain Valley Pipeline. The letter highlights the many benefits of MVP and natural gas infrastructure, including supporting the reliability of the electric system and enhancing regional and national energy security. We are grateful for the Biden administration's outward support of MVP.

上週，能源部長詹妮弗·格蘭霍姆 (Jennifer Granholm) 致信 FERC 委員，強調了能源基礎設施，尤其是山谷管道的重要性。這封信強調了 MVP 和天然氣基礎設施的諸多好處，包括支持電力系統的可靠性以及加強地區和國家能源安全。我們感謝拜登政府對外支持MVP。

MVP truly is a real-time case study supporting the critical need to pass permitting reform legislation. We believe permitting reform at a high level has the necessary bipartisan support to keep advancing and the differences between the political parties can and should be reconciled. We continue to urge both sides to come together to act on comprehensive permitting reform legislation.

MVP 確實是一個實時案例研究，支持通過許可改革立法的迫切需要。我們認為，在高層允許改革有必要的兩黨支持來繼續推進，政黨之間的分歧可以而且應該得到調和。我們繼續敦促雙方齊心協力，就全面的許可改革立法採取行動。

And now I'll turn it over 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. In the first quarter, we gathered about 7.4 Bcf per day. Given takeaway constraints, we continue to expect A-Basin volumes to be roughly flat. Our full year 2023 gathering CapEx guidance is $265 million at the midpoint and includes approximately $200 million of what we consider sustaining CapEx, that is estimated gathering CapEx to keep volumes flat this year. The remaining $65 million of capital is for various growth projects, primarily related to additional compression. Over the next few years, we expect the annual sustaining CapEx to trend lower as return to pad drilling increases.

謝謝，湯姆。大家，早安。第一季度，我們每天收集約 7.4 Bcf。鑑於外賣限制，我們繼續預計 A-Basin 的交易量將大致持平。我們 2023 年全年收集資本支出的中點指導值為 2.65 億美元，其中包括我們認為維持資本支出的大約 2 億美元，估計收集資本支出以保持今年的銷量持平。剩餘的 6500 萬美元資金用於各種增長項目，主要與額外壓縮有關。在接下來的幾年裡，我們預計隨著恢復墊鑽的增加，每年的持續資本支出將呈下降趨勢。

Lastly, in the first quarter, we received a onetime cash payment of $5 million in exchange for the termination of a gathering contract that was subject to acreage dedication. It should be noted that we were not gathering any volumes under the terminated contract.

最後，在第一季度，我們收到了 500 萬美元的一次性現金付款，以換取終止一項受土地使用權約束的採集合同。應該指出的是，我們沒有根據終止的合同收集任何數量。

On the Transmission segment, we also benefited from the execution of a contract buyout in the first quarter. We received a onetime cash payment of approximately $24 million in exchange for the early termination of 200 million per day capacity that was set to fully expire in 2025. We then successfully completed an open season for this newly available capacity and entered into an agreement with the new shipper.

在傳輸部門，我們還受益於第一季度合同收購的執行。我們收到了大約 2400 萬美元的一次性現金付款，以換取提前終止定於 2025 年完全到期的每天 2 億的容量。然後我們成功地完成了這個新可用容量的開放季節，並與新托運人。

The capacity commitment commenced on April 1st for an average of 95 million per day through 2025 and an average of 58 million per day from 2026 through 2030. We are in active discussions with several potential shippers for the remaining available capacity.

運力承諾從 4 月 1 日開始，到 2025 年平均每天 9500 萬個，從 2026 年到 2030 年平均每天 5800 萬個。我們正在與幾個潛在的托運人積極討論剩餘的可用運力。

On the Ohio Valley Connector Expansion Project, we anticipate having all necessary approvals by midyear and expect to commence construction soon after. The expansion will add about 350 million 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. The incremental capacity is targeted for in-service in the first half of 2024.

在 Ohio Valley Connector 擴建項目中，我們預計在年中之前獲得所有必要的批准，並預計很快就會開始建設。擴建將使我們的俄亥俄河谷連接管道每天增加約 3.5 億的輸送能力，該管道通過俄亥俄州克拉靈頓的互連提供進入中大陸和墨西哥灣沿岸市場的通道。增量容量目標是在 2024 年上半年投入使用。

On the Water segment, strong-delivered volumes drove the solid financial results for the quarter. We are seeing producers continue to shift towards using more produced water in frac jobs. The shift is supported by our Hub and Spoke strategy for the mixed-use water system that includes direct access to produced water storage facilities and enhance connectivity between producing pads and new paths.

在水業務領域，強勁的交付量推動了本季度穩健的財務業績。我們看到生產商繼續轉向在壓裂作業中使用更多采出水。這一轉變得到了我們針對混合用途水系統的 Hub and Spoke 戰略的支持，該戰略包括直接進入采出水儲存設施並加強生產基地和新路徑之間的連通性。

Our second storage facility is expected to be placed in service early this month and will bring our total water storage capacity to 350,000 barrels. We are exploring several opportunities with producers to enhance the connectivity and scale of our mixed water system. As a result of our strong first quarter, we now forecast to be at the high end of our previous water EBITDA guidance of $45 million for 2023.

我們的第二個蓄水設施預計將於本月初投入使用，屆時我們的總蓄水量將達到 350,000 桶。我們正在與生產商探索多種機會，以增強混合水系統的連通性和規模。由於我們第一季度表現強勁，我們現在預測 2023 年水務 EBITDA 指導值將達到 4500 萬美元的高端。

Next, on ESG. In addition to continuing with mitigation efforts around our 2030 climate goals, the big focus items for this year are the implementation of an enhanced environmental management system and the development of our TCFD reporting framework.

接下來，關於 ESG。除了圍繞我們的 2030 年氣候目標繼續開展緩解措施外，今年的重點項目是實施增強的環境管理系統和開發我們的 TCFD 報告框架。

And last, with regard to the Rager Mountain storage well leak that occurred in the fourth quarter, we are progressing with the independent root-cause investigation and continue to closely coordinate with the Pennsylvania DEP and FINSA. In the first quarter, we incurred approximately $4.1 million of operating expense related to post-incident activities. And based on what we know today, for the full year, we expect to incur approximately $8 million to $10 million of expense and approximately $5 million to $10 million of CapEx.

最後，關於第四季度發生的 Rager Mountain 儲油井洩漏，我們正在進行獨立的根本原因調查，並繼續與賓夕法尼亞州 DEP 和 FINSA 密切協調。第一季度，我們產生了大約 410 萬美元的與事故後活動相關的運營費用。根據我們今天所知，我們預計全年將產生大約 800 萬至 1000 萬美元的費用和大約 500 萬至 1000 萬美元的資本支出。

Additionally, we are continuing a comprehensive review of all of our storage wells and storage field integrity. We will continue to work diligently throughout the review and expect to provide more information once the root-cause analysis is complete, which is expected to be this summer. At present, it's still premature to draw any conclusion, so we will again be very limited on what we say today beyond this brief update.

此外，我們將繼續對我們所有的儲存井和儲存場的完整性進行全面審查。我們將在整個審查過程中繼續努力工作，並期望在完成根本原因分析後（預計在今年夏天）提供更多信息。目前，下任何結論還為時過早，因此除了這次簡短的更新之外，我們今天所說的內容將再次非常有限。

I'll now turn the call over to Kirk.

我現在將電話轉給柯克。

Thanks, Diana, and good morning, everyone. Today, we reported first quarter net income attributable to ETRN common shareholders of $87 million and earnings per diluted ETRN common share of $0.20. Net income was $106 million, adjusted EBITDA was $300 million and deferred revenue was $77 million. We also reported net cash provided by operating activities of $225 million and free cash flow of $94 million.

謝謝，戴安娜，大家早上好。今天，我們報告了歸屬於 ETRN 普通股股東的第一季度淨收入為 8700 萬美元，稀釋後的 ETRN 普通股每股收益為 0.20 美元。淨收入為 1.06 億美元，調整後的 EBITDA 為 3 億美元，遞延收入為 7700 萬美元。我們還報告了 2.25 億美元的經營活動提供的淨現金和 9400 萬美元的自由現金流。

Net income attributable to ETRN common shareholders was impacted by 2 items: first, by an $8.5 million unrealized loss on derivative instruments, which is reported within other expense. This relates to the contractual provision entitling ETRN 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. And second, by the previously mentioned $4.1 million of operating expenses related to the Rager Mountain storage incident. After adjusting for these items, first quarter adjusted net income attributable to ETRN common shareholders was $96 million and adjusted earnings per diluted share was $0.22.

歸屬於 ETRN 普通股股東的淨收入受到 2 個項目的影響：首先，850 萬美元的衍生工具未實現虧損，這在其他費用中報告。這與 ETRN 有權從 EQT 收到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 投入使用後和 2024 年的某些門檻。其次，前面提到的 410 萬美元相關運營費用再到雷格山儲藏室事件。對這些項目進行調整後，第一季度歸屬於 ETRN 普通股股東的調整後淨收入為 9600 萬美元，調整後每股攤薄收益為 0.22 美元。

Operating revenue for the first quarter was higher compared to the same quarter last year by $34 million. The increase was driven primarily by the impact of the onetime transmission contract buyout of approximately $24 million, the onetime gathering contract buyout of $5 million, higher water services revenue and was partially offset by lower gathered volumes. Operating expenses for the first quarter of 2023 were $15 million higher than the first quarter of '22. The increase was driven by higher O&M, primarily from the Rager Mountain storage incident; and increased SG&A and depreciation expenses. The first quarter of 2023 was also favorably impacted by an income tax benefit, primarily driven by a $23 million reversal of valuation allowances on certain deferred tax assets.

第一季度的營業收入比去年同期高出 3400 萬美元。增長的主要原因是約 2400 萬美元的一次性輸電合同買斷、500 萬美元的一次性收集合同買斷、供水服務收入增加的影響，部分被收集量減少所抵消。 2023 年第一季度的運營費用比 22 年第一季度高出 1500 萬美元。這一增長是由更高的 O&M 推動的，主要來自 Rager Mountain 存儲事件；以及增加的 SG&A 和折舊費用。 2023 年第一季度也受到所得稅優惠的有利影響，這主要是由於某些遞延稅資產的 2300 萬美元估值準備金逆轉。

For the first quarter, ETRN will pay a quarterly cash dividend of $0.15 per common share on May 15th, to common shareholders of record at the close of business on May 5th. Today, we provided updated guidance, which, given the narrow path that Tom described for MVP, now assumes MVP completion by 12/31/2023. And accordingly, contractual obligations would commence January 1, 2024. The updated full year guidance includes: net income of $330 million to $410 million, adjusted EBITDA of $990 million to $1.07 billion, deferred revenue of $330 million to $335 million, total CapEx and capital contributions of $975 million to $1.075 billion, free cash flow of negative $175 million to negative $95 million, and retained free cash flow of negative $435 million to negative $355 million.

對於第一季度，ETRN 將在 5 月 15 日向 5 月 5 日營業結束時登記在冊的普通股股東支付每普通股 0.15 美元的季度現金股息。今天，我們提供了更新的指南，鑑於 Tom 描述的 MVP 路徑狹窄，現在假設 MVP 在 2023 年 12 月 31 日之前完成。因此，合同義務將於 2024 年 1 月 1 日開始。更新後的全年指導包括：淨收入 3.3 億美元至 4.1 億美元，調整後 EBITDA 9.9 億美元至 10.7 億美元，遞延收入 3.3 億美元至 3.35 億美元，資本支出和資本總額捐款 9.75 億美元至 10.75 億美元，自由現金流為負 1.75 億美元至負 9500 萬美元，保留自由現金流為負 4.35 億美元至負 3.55 億美元。

In addition, we provided capital and cash flow guidance in the event that forward construction of MVP is not commenced in 2023. In that scenario, capital expenditures and contributions would be lower by approximately $445 million and free cash flow and retained cash flow would each be higher by approximately $450 million.

此外，如果 MVP 的遠期建設未在 2023 年開始，我們提供了資本和現金流指導。在這種情況下，資本支出和貢獻將減少約 4.45 億美元，自由現金流和保留現金流將分別為增加了約 4.5 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. As we appropriately focus on MVP, the value of our base business and existing assets sometimes gets overshadowed. Today, we have a gathering business anchored by over 5 billion cubic feet per day of minimum volume commitment. Our gathering system traverses Tier 1 acreage across Southwestern Pennsylvania and Northern West Virginia. The significant scale of our systems, combined with system integrations and return to pad drilling, will drive a sustaining gathering CapEx lower over the coming years. We anticipate a steady stream of annual growth capital investments in compression, and we are positioned to capture new wellhead gathering and header opportunities from our many producers.

謝謝，柯克。當我們適當地關注 MVP 時，我們的基礎業務和現有資產的價值有時會被掩蓋。今天，我們的採集業務以每天超過 50 億立方英尺的最低流量承諾為基礎。我們的收集系統橫跨賓夕法尼亞西南部和西弗吉尼亞北部的一級土地。我們系統的巨大規模，加上系統集成和返回墊鑽，將在未來幾年推動持續的資本支出下降。我們預計壓縮領域的年度增長資本投資將源源不斷，我們有能力從我們的許多生產商那裡捕捉新的井口收集和集管機會。

Our nearly 4.5 Bcf per day transmission system offers unmatched optionality and flexibility for customers to reach long-haul takeaway pipelines and tap into local markets. High demand for available pipeline capacity was on display this quarter, when we saw a significant interest in our open season for newly available capacity. We've already secured 1 new commitment and are negotiating with several others.

我們每天近 4.5 Bcf 的傳輸系統為客戶提供無與倫比的可選性和靈活性，以連接長途外賣管道並進入當地市場。本季度對可用管道容量的高需求表現出來，當時我們看到人們對新可用容量的開放季節表現出濃厚的興趣。我們已經獲得 1 項新承諾，並且正在與其他幾項進行談判。

Beyond leveraging our latent capacity, we're focused on developing projects to extend and expand the system. The OVCX project is a good example as it will add incremental capacity into REX and Rover pipelines. In addition to the many growth opportunities, the transmission business is supported by a weighted average contract life of 12 years and a very stable cash flow profile. In fact, in 2022, more than 90% of transmission revenues were generated from firm reservation fees.

除了利用我們的潛在能力外，我們還專注於開發項目來擴展和擴展系統。 OVCX 項目是一個很好的例子，因為它將增加 REX 和 Rover 管道的容量。除了許多增長機會外，傳輸業務還得到 12 年的加權平均合同期限和非常穩定的現金流狀況的支持。事實上，到 2022 年，超過 90% 的傳輸收入來自公司預訂費。

And lastly, the Water team is developing what I believe will become the premier mixed-use water system in the basin, a system that all nearby producers will want and need access to. The team took a business that was primarily a freshwater delivery service, recognized where the market was headed and executed a strategy that maximizes the reuse of produced water. Not only does this create attractive investment opportunities and growth, but it also has significant environmental advantages by reducing freshwater utilization and the need for trucking.

最後，Water 團隊正在開發我認為將成為流域內首屈一指的混合用途供水系統，附近所有生產商都希望並需要使用該系統。該團隊開展了一項主要是淡水輸送服務的業務，認識到市場的發展方向，並執行了一項最大限度地重複利用采出水的戰略。這不僅創造了有吸引力的投資機會和增長，而且還通過減少淡水使用和卡車運輸需求而具有顯著的環境優勢。

In closing, be assured that we are doing everything within our control to get MVP across the goal line. And at the same time, we are focused and executing on the base business that is as strong as ever.

最後，請放心，我們正在竭盡全力讓 MVP 越過球門線。與此同時，我們專注於並執行一如既往強大的基礎業務。

With that, we're happy to take your questions.

有了這個，我們很樂意回答您的問題。

(Operator Instructions) Our first question comes from the line of TJ Schultz with RBC Capital.

（操作員說明）我們的第一個問題來自 RBC Capital 的 TJ Schultz。

Appreciate all the information. Just first on MVP. So to start construction by this summer, I guess the question is what's the next critical hurdle for you all to clear? Is it just a function of the West Virginia DEP addressing the issues raised by the Court? Maybe how quickly you think they can turn that around? And then at a high level, your comment was that this is all contingent on no additional Court intervention, which just seems unlikely from where I sit. So does that mean something from a legislative standpoint is needed to start work this summer? You highlighted the Granholm letter in (inaudible).

感謝所有信息。就在 MVP 上。所以要在今年夏天開始建設，我想問題是你們要清除的下一個關鍵障礙是什麼？它只是西弗吉尼亞州 DEP 的職能，負責解決法院提出的問題嗎？也許你認為他們能多快扭轉局面？然後在較高的層面上，您的評論是這一切都取決於沒有額外的法院干預，從我的立場來看這似乎不太可能。那麼，這是否意味著從立法的角度來看，需要在今年夏天開始工作？您在（聽不清）中突出顯示了 Granholm 字母。

TJ, thanks for the question. I think the road map of permits and required reissuance of permits is pretty clear, and it's on the federal dashboard. I forget the name of it. But we expect all of those permits to be reissued and valid over the next couple months, beginning in a couple weeks when we expect the forest service and BLM. Each of those would be required in order for us to commence construction.

TJ，謝謝你的提問。我認為許可證的路線圖和重新頒發許可證的要求非常明確，並且在聯邦儀表板上。我忘記了它的名字。但我們預計所有這些許可證將在接下來的幾個月內重新頒發並生效，從幾週後開始，屆時我們將期待森林服務和 BLM。為了讓我們開始建設，每一個都需要。

I understand your skepticism on the Fourth Circuit. I don't know that I share that dire a position. Going back to my comments, this is -- for most of the permits, the third round of permits, each time the agencies, both state and federal, went back and put more man hours, more analysis, more work behind them to far exceed what the standards are to withstand litigation. And I am a believer that when you do the right thing and that you follow the law and the rules, the law should be on your side. So it's our position that while we understand skepticism out there, that we have done everything required of us under the law, and these permits should be durable and withstand litigation.

我理解你對第四巡迴賽的懷疑。我不知道我是否也有這種可怕的處境。回到我的評論，這是——對於大多數許可證，第三輪許可證，每次州和聯邦機構都回去投入更多的工時、更多的分析、更多的工作，遠遠超過經得起訴訟的標準是什麼。我堅信，當你做正確的事並遵守法律和規則時，法律應該站在你這一邊。因此，我們的立場是，雖然我們理解外界的懷疑，但我們已經按照法律要求完成了一切，並且這些許可證應該是持久的並且經得起訴訟。

Okay. Understood. But specifically, on the permit that was vacated last month, it sounds like you're in close contact with the DEP that's addressing those issues. I mean how -- maybe if you can get a little more granular on kind of what they've got to get through. Is it reasonable that they can get through that within the next couple months?

好的。明白了。但具體來說，就上個月被取消的許可證而言，聽起來您正在與解決這些問題的 DEP 保持密切聯繫。我的意思是如何——也許如果你能更詳細地了解他們必須通過的事情。他們可以在接下來的幾個月內解決這個問題是否合理？

Well, it's pretty reasonable that all of the issues have been identified, that the Court cited in terms of the vacatur of the permit. And we've been in close contact with them in terms of understanding the issues around curing those things. But I can't speak for the DEP as to timing. We're just optimistic that the timing will fall within our schedule to complete the project by the end of the year and get mobilized sometime later this summer.

好吧，所有問題都已被確定是非常合理的，法院在許可證的撤銷方面引用了這些問題。在了解解決這些問題的問題方面，我們一直與他們保持密切聯繫。但我不能代表 DEP 關於時間安排。我們只是樂觀地認為，時間將符合我們的計劃，在今年年底完成該項目，並在今年夏天晚些時候動員起來。

Okay. That makes sense. Just lastly for me, on the dividend, just given the uncertainty on MVP. Was there consideration to eliminate the payout until the path forward is more clear? Or how do you view sustaining that, if you don't start construction on MVP this summer?

好的。這就說得通了。最後對我來說，關於股息，只是考慮到 MVP 的不確定性。在前進的道路更加清晰之前，是否考慮過取消支出？或者，如果您今年夏天不開始構建 MVP，您如何看待維持這種情況？

Yes, TJ, this is Kirk. Obviously, we're acutely focused and aware of the stress that these delays have put on the balance sheet, but we're not going to speculate at this time on any kind of actions around the dividend.

是的，TJ，這是柯克。顯然，我們非常專注並意識到這些延遲給資產負債錶帶來的壓力，但我們目前不會推測圍繞股息採取的任何行動。

(Operator Instructions) Our next question comes from the line of Brian Reynolds with UBS.

（操作員說明）我們的下一個問題來自瑞銀集團的 Brian Reynolds。

Maybe just to touch on the guidance update, some moving pieces between EBITDA, deferred revenue and free cash flow, obviously, going to the upside. Just kind of curious if you can just talk us through the moving pieces, perhaps on maybe the base business. Was there any change in gathering of transmission assumptions just given the headline in that gas? And just given what's happened in the Fourth Circuit, should we -- what are the potential differences between the with MVP and without MVP guidance at this point, given that year-end '23 is pretty tight at this point?

也許只是為了觸及指導更新，EBITDA、遞延收入和自由現金流之間的一些移動部分，顯然是向上的。只是有點好奇你是否可以通過移動部分與我們交談，也許是關於基礎業務。鑑於該氣體的標題，傳輸假設的收集是否有任何變化？考慮到第四巡迴賽發生的事情，我們是否應該 - 考慮到 23 年年底在這一點上非常緊張，此時有 MVP 和沒有 MVP 指導之間的潛在差異是什麼？

Yes, Brian, this is Tom. So just going back to what we've put out there, right? Q1 had the benefit of the gathering contract buyout and the transmission contract buyout. Q1 also benefits from the simple seasonality in transmission. And then we had a pretty strong first quarter in the Water business. We don't necessarily expect that same level in the second quarter or for it to be linear throughout the year. We do expect improvement in the business and growth in the business, but it won't be linear. So there are some moving parts and then you have to always factor in because the -- for modeling purposes, MVP is now later in the year, that affects the deferred revenue calculation.

是的，布賴恩，這是湯姆。那麼回到我們在那裡發布的內容，對嗎？ Q1 受益於採集合同買斷和輸電合同買斷。 Q1 還受益於傳輸中的簡單季節性。然後我們在水務業務的第一季度表現非常強勁。我們不一定期望第二季度達到相同水平或全年呈線性。我們確實期望業務的改善和業務的增長，但這不會是線性的。所以有一些移動部件，然後你必須始終考慮因素，因為 - 出於建模目的，MVP 現在在今年晚些時候，這會影響遞延收入的計算。

So there weren't any step changes as it relates to the guidance and our performance in our gathering or transmission business. It's just those -- the nuances of the deferred revenue, sliding the in-service date a quarter for MVP and then some of the seasonality around our Water business and those 2 onetime buyouts in Q1 of the gathering and transmission contract.

因此，與我們在收集或傳輸業務中的指導和表現有關，沒有任何步驟變化。只是那些 - 遞延收入的細微差別，將 MVP 的服務日期推遲一個季度，然後是我們水業務的一些季節性因素以及收集和傳輸合同第一季度的那兩次一次性收購。

And then as a quick follow-up, it seems like deferred revenue could maybe slightly move up if MVP was pushed into '24. And then on CapEx, it's fair to assume that free cash flow could increase for '23, just given CapEx difference in the '24 in that scenario?

然後作為快速跟進，如果 MVP 被推到 24 年，遞延收入似乎可能會略有上升。然後在資本支出上，假設 23 年的自由現金流可能會增加是公平的，只是考慮到那種情況下 24 年的資本支出差異？

Yes, those are fair assumptions.

是的，這些都是合理的假設。

Okay. And then as a follow-up on just the -- with the Rager Mountain leak, $4 million OpEx in 1Q, some incremental costs looking ahead. Just kind of curious, I know there's still some incidents being resolved into the root cause, but how should we think about potential future liabilities related to the Rager Mountain leak?

好的。然後作為對 Rager Mountain 洩漏的後續行動，第一季度的運營支出為 400 萬美元，未來會增加一些成本。只是有點好奇，我知道仍有一些事件正在解決根本原因，但我們應該如何考慮與 Rager Mountain 洩漏相關的潛在未來責任？

So we have worked into guidance $8 million to $10 million of expense for this year. We think we're there at that range as far as what we know now, and there's about $5 million to $10 million of capital on total for this year as well.

因此，我們已經制定了今年 800 萬至 1000 萬美元的支出指導。據我們所知，我們認為我們在這個範圍內，今年的總資本也約為 500 萬至 1000 萬美元。

And is that related to just cleanup costs? Or is that related to potential -- mechanic or potential fines? And is there an estimate around that from...

這與清理成本有關嗎？或者這與潛在的——機械或潛在的罰款有關？是否有關於……的估計？

We did account for potential fines last year. So there was about an $8 million expense for the incident last year. And our reserve for fines as far as what we know right now are in that number.

去年我們確實考慮了潛在的罰款。因此，去年該事件的費用約為 800 萬美元。據我們目前所知，我們的罰款準備金就是這個數字。

And there are no further questions at this time. I'll turn the call back over to you Tom Karam for any closing remarks.

目前沒有其他問題。我會把電話轉給你 Tom Karam 以聽取任何結束語。

Thank you all for joining us today and hope everybody has a good week. Thank you. Bye.

感謝大家今天加入我們，希望大家度過愉快的一周。謝謝。再見。

Ladies and gentlemen, that will conclude today's meeting. Thank you all for joining. You may now disconnect.

女士們，先生們，今天的會議到此結束。謝謝大家的加入。您現在可以斷開連接。