Equitrans Midstream Corp (ETRN) 2023 Q3 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 Corporation Third Quarter 2023 Earnings Conference Call. (Operator Instructions)

您好，感謝您的支持。我叫雷吉娜，今天我將擔任你們的會議操作員。此時此刻，我歡迎大家參加 Equitrans Midstream Corporation 2023 年第三季財報電話會議。 （操作員說明）

I would now like to turn the conference over to Nate Tetlow. Please go ahead.

我現在想把會議交給內特·泰特洛。請繼續。

Good morning, and welcome to the Third 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，歡迎參加 Equitrans Midstream Corporation 的 2023 年第三季財報電話會議。從今天晚上開始，該電話會議將在 14 天內提供重播。重播電話號碼為 (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, 2022, 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.

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 2022 年 12 月 31 日的年度的風險因素，以及表格 10-Q 中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。今天的電話會議可能包含某些非公認會計準則財務指標。請參閱今天早上的新聞稿和我們的投資者介紹，以了解有關此類措施的重要揭露，包括與最具可比性的公認會計準則財務措施的調節。

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; Janice Brenner, Vice President and Treasurer; and Brian Pietrandrea, Chief Accounting Officer. After the prepared remarks, we will open the call to questions.

今天參加電話會議的是董事長兼執行長湯姆‧卡拉姆 (Tom Karam)；戴安娜‧查萊塔 (Diana Charletta)，總裁兼營運長； Kirk Oliver，資深副總裁兼財務長； Justin Macken，氣體系統規劃與工程資深副總裁；珍妮絲‧布倫納 (Janice Brenner)，副總裁兼財務長；和首席會計官 Brian Pietrandrea。在準備好發言後，我們將開始提問。

With that, I'll 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 third quarter 2023 results, including net income of $130 million, adjusted EBITDA of $250 million and deferred revenue of $83 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 2023 年第三季業績，其中淨利潤為 1.3 億美元，調整後 EBITDA 為 2.5 億美元，遞延收入為 8,300 萬美元。柯克將在幾分鐘內提供財務業績的詳細資訊。

Let me start with MVP. About two weeks ago, we revised our targeted completion to the first quarter of 2024 at a total project cost of approximately $7.2 billion, inclusive of a $120 million contingency. The revision was driven by multiple factors, including the unexpected difficulty in ramping up construction crews, particularly as a result of the history of court-related construction stops, including the nearly 3-week court stay in July. Additionally, it was more challenging than expected to source crews with the necessary experience, which was a critical factor, given our commitment to the unprecedented level of environmental protocols and safety measures being utilized.

讓我從 MVP 開始。大約兩週前，我們將目標完成時間修改為 2024 年第一季度，專案總成本約為 72 億美元，其中包括 1.2 億美元的應急費用。此次修訂是由多種因素推動的，包括在增加施工人員方面遇到意外困難，特別是由於歷史上與法院相關的施工停止，包括 7 月近 3 週的法院停留。此外，考慮到我們對所採用的環境協議和安全措施達到前所未有的水平，尋找具有必要經驗的工作人員比預期更具挑戰性，這是一個關鍵因素。

While it took longer than originally planned, by mid-October, we were able to reach about 4,500 people working on the right of way, which represents the full complement of workers, and we are making good progress every day. Over the next 8 to 9 weeks, we expect to complete the major boring activities and nearly all waterbody crossings. Closer to year-end, we anticipate the headcount to be reduced to about 1,500 as crews finish up and are released. We're confident in the plan and schedule and optimistic that MVP can still provide consumers some much-needed financial release this winter.

雖然花費的時間比原計劃要長，但到 10 月中旬，我們已經接觸到了大約 4,500 名在通行權上工作的人員，這代表了全部工人，而且我們每天都在取得良好進展。在接下來的 8 到 9 週內，我們預計將完成主要鑽孔活動和幾乎所有水體穿越。接近年底，隨著工作人員完成工作並被釋放，我們預計員工人數將減少至 1,500 人左右。我們對計劃和時間表充滿信心，並樂觀地認為 MVP 仍然可以在今年冬天為消費者提供一些急需的財務發布。

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

現在我將向戴安娜報告營運情況的最新情況，然後柯克將討論財務業績，最後我將發表一些總結評論。戴安娜？

Thanks, Tom. Good morning, everyone. In the third quarter, we gathered about 8 Bcf per day, representing 8% sequential quarter growth and 6% year-over-year growth. This quarter is a good demonstration of the capability of our system to quickly handle significant production increases.

謝謝，湯姆。大家，早安。第三季度，我們每天收集約 8 Bcf，季度環比成長 8%，年增 6%。本季很好地展示了我們的系統快速應對產量大幅成長的能力。

To give you some context, since late Q2, we had a customer turn in line 3 large pads, each pad producing at an initial flow rate above 200 million cubic feet per day and also added a producer that previously had no volumes on our system and had an average of over 100 million cubic feet per day in Q3.

為了給您一些背景信息，自第二季度末以來，我們有一位客戶投入了3 條大型墊片，每個墊片的初始流量超過每天2 億立方英尺，並且還添加了一家以前在我們的系統上沒有產量的生產商，第三季平均每天超過 1 億立方英尺。

Operationally, we have our backbone gathering and transmission systems in place, and these assets will provide direct upstream connectivity to MVP. Given this dynamic, combined with the growing demand in the Southeast, the ability to expand MVP capacity by 500 million cubic feet per day through compression and expected improvements to TETCO M2 pricing with MVP in service. We anticipate annual gathering volume growth in the mid-single digits for the years following MVP in service.

在營運方面，我們擁有骨幹收集和傳輸系統，這些資產將為 MVP 提供直接的上游連接。鑑於這種動態，再加上東南部不斷增長的需求，透過壓縮將 MVP 容量每天擴大 5 億立方英尺的能力以及預期在 MVP 投入使用時提高 TETCO M2 定價。我們預計在 MVP 投入使用後的幾年裡，每年的收集量將以中個位數成長。

On the Transmission segment, we commenced construction of the Ohio Valley Connector expansion project or OVCX, in the third quarter. OVCX is a $160 million capital project that will add about 350 million cubic feet per day of incremental capacity. The incremental capacity is targeted for in-service in the first half of 2024. Once the expansion is complete, our OVC pipeline will have the ability to move over 1.2 Bcf a day of gas to Clarington and can also provide backhaul capacity to reach MVP with the same 1.2 Bcf per day of capacity, enhancing basin liquidity and providing customers significant optionality.

在輸電領域，我們於第三季開始建造俄亥俄谷連接器擴建計畫（OVCX）。 OVCX 是一個耗資 1.6 億美元的資本項目，每天將新增約 3.5 億立方英尺的產能。增量產能的目標是在 2024 年上半年投入使用。擴建完成後，我們的 OVC 管道將能夠每天向克拉靈頓輸送超過 1.2 Bcf 的天然氣，並且還可以提供回程能力，以達到 MVP每天同樣1.2 Bcf的容量，增強了流域的流動性並為客戶提供了重要的選擇。

On the Water segment, we have completed the trunk line connecting our two aboveground storage facilities, which completes the majority of the backbone of our mixed-use water system. The system now allows for the delivery of over 140,000 barrels per day of mixed water to connected well pads and the ability to receive up to 750 trucks per day for offloading produced water into the system.

在水務領域，我們已經完成了連接兩個地上儲存設施的主幹線，這完成了我們混合用途水系統的大部分骨幹。該系統現在可以每天向連接的井場輸送超過 140,000 桶混合水，並且每天能夠接收多達 750 輛卡車將採出水卸載到系統中。

Moving on to an update on the Rager Mountain storage well incident that occurred in the fourth quarter last year. In August, we submitted the comprehensive root cause analysis to PHMSA. And in October, PHMSA approved our injection plan, and we began injections at the Rager storage field. In the third quarter, we incurred approximately $2.3 million of operating expense related to post-incident activities. And for the full year, we expect to incur approximately $10 million of expense and approximately $5 million to $10 million of capital related to the Rager incident.

接下來介紹去年第四季發生的 Rager Mountain 儲油井事件的最新情況。 8 月，我們向 PHMSA 提交了全面的根本原因分析。 10 月份，PHMSA 批准了我們的注入計劃，我們開始在 Rager 儲存場注入。第三季度，我們產生了約 230 萬美元與事件後活動相關的營運費用。全年，我們預計將產生約 1000 萬美元的費用以及與 Rager 事件相關的約 500 萬至 1000 萬美元的資本。

Lastly, on ESG, we are making meaningful progress on incorporating an enterprise data collection framework, which will help standardize processes and improve the efficiency of data collection and reporting requirements.

最後，在 ESG 方面，我們在整合企業資料收集框架方面取得了有意義的進展，這將有助於標準化流程並提高資料收集和報告要求的效率。

I'll now turn the call over to Kirk.

我現在將把電話轉給柯克。

Thanks, Diana, and good morning, everyone. Today, we reported third quarter net income attributable to E-Train common shareholders of $113 million and earnings per diluted common share of $0.26. Net income was $130 million. Adjusted EBITDA was $250 million and deferred revenue was $83 million. We also reported net cash provided by operating activities of $202 million and free cash flow of negative $133 million.

謝謝戴安娜，大家早安。今天，我們報告第三季歸屬於 E-Train 普通股股東的淨利潤為 1.13 億美元，攤薄後普通股每股收益為 0.26 美元。淨利潤為 1.3 億美元。調整後 EBITDA 為 2.5 億美元，遞延營收為 8,300 萬美元。我們還報告稱，經營活動提供的淨現金為 2.02 億美元，自由現金流為負 1.33 億美元。

Net income attributable to E-Train common shareholders was impacted by several items. First, by a $7.8 million write-down of a contract asset in the Water segment; second, a $3.4 million unrealized loss on derivative instruments, which is reported within other income. This relates 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. And last, by the previously mentioned $2.3 million of operating expense related to the Rager Mountain storage incident.

歸屬於 E-Train 普通股股東的淨利受到多項因素的影響。首先，減記水務部門合約資產 780 萬美元；其次，衍生性工具的未實現損失為 340 萬美元，該損失在其他收入中報告。這涉及合約條款，該條款賦予E-Train 有權從EQT 接收現金付款，條件是特定的NYMEX、Henry Hub 天然氣價格在MVP 投入使用後至2024 年超過特定門檻。最後，之前提到的230 萬美元營運費用與雷格山儲存事件相關的費用。

After adjusting for these items, third quarter adjusted net income attributable to E-Train common shareholders was $123 million and adjusted earnings per diluted E-Train common share was $0.28. Additionally, we reported third quarter equity income of $73.8 million, which is primarily associated with AFUDC relating to MVP construction. Operating revenue for the third quarter of 2023 was $6.8 million higher compared to the same quarter of last year. The increase was primarily driven by increased transmission usage volumes and higher water volumes and was partially offset by lower gathering revenue.

在這些項目進行調整後，第三季調整後歸屬於 E-Train 普通股股東的淨利為 1.23 億美元，調整後每股稀釋 E-Train 普通股收益為 0.28 美元。此外，我們報告第三季股權收入為 7,380 萬美元，主要與 MVP 建設相關的 AFUDC 相關。 2023 年第三季營業收入比去年同期增加 680 萬美元。這一增長主要是由於輸電使用量增加和水量增加所推動的，但部分被收集收入減少所抵消。

Operating expenses for the third quarter 2023 were $30.8 million higher than third quarter 2022. The increase was primarily driven by the $7.8 million write-down of the contract asset in the Water segment, $7.5 million expense related to a onetime cash bonus awarded to Tom for his efforts in the inclusion of MVP provisions in the Fiscal Responsibility Act of 2023, $4.5 million of favorable net gas sales, which occurred in the third quarter 2022, $2.3 million of expenses associated with the Rager Mountain storage field incident and increased other operating and maintenance, selling, general and administrative expenses.

2023 年第三季的營運費用比2022 年第三季高出3,080 萬美元。這一增長主要是由於水務部門合約資產減記了780 萬美元，其中750 萬美元與授予Tom 的一次性現金獎金相關。他努力將 MVP 條款納入 2023 年財政責任法案，2022 年第三季度實現 450 萬美元的有利淨天然氣銷售，與 Rager Mountain 儲油田事件相關的 230 萬美元費用以及其他運營和維護的增加、銷售、一般和管理費用。

In October, we entered into an amendment to the EQM credit facility, extending the maturity by one year to April of 2026. As of today, the revolver size is $1.55 billion and reduced to $1.45 billion in April of 2025. For the third quarter, E-Train will pay a quarterly cash dividend of $0.15 per common share on November 14 to shareholders of record at the close of business on November 3. And last, we updated our 2023 guidance to reflect revised MVP timing and project cost estimates. The full year guidance is available in today's third quarter earnings release.

10 月，我們對 EQM 信貸安排進行了修訂，將期限延長一年至 2026 年 4 月。截至目前，循環規模為 15.5 億美元，並於 2025 年 4 月減少至 14.5 億美元。第三季度， E -Train 將於11 月14 日向11 月3 日收盤時記錄在案的股東支付每股普通股0.15 美元的季度現金股息。最後，我們更新了2023 年指南，以反映修訂後的MVP 時間安排和項目成本估算。全年指引可在今天發布的第三季財報中找到。

I'll now hand the call back to Tom.

我現在將把電話轉回給湯姆。

Thanks, Kirk. As you know, Diana will be taking over as CEO on January 1, and I'll be moving to the Executive Chair role. So this will mark my final earnings call. Diana is respected by our colleagues and across the midstream industry. She displays an unrelenting work ethic and has undoubtedly earned this role.

謝謝，柯克。如您所知，戴安娜將於 1 月 1 日接任首席執行官，而我將擔任執行主席。這將是我最後一次財報電話會議。戴安娜受到我們的同事和整個中游行業的尊重。她表現出了不懈的職業道德，毫無疑問地贏得了這個角色。

Looking back on the last 5 years, I can say with near certainty that no company, management team or Board of Directors has handled adversity as well as this group. I'm honored to be associated with all of them.

回顧過去五年，我幾乎可以肯定地說，沒有一家公司、管理團隊或董事會能夠像這個團隊一樣處理逆境。我很榮幸能與他們所有人合作。

When you focus on our core business, you see an integrated system that gathered and safely moved 8 Bcf per day in Q3 or about 8% of the total daily production in the United States. This really didn't happen by accident. It took an amazing team effort to construct, integrate and operate the assets, while at the same time, maintaining much needed financial flexibility, and all of this done with safety and environmental stewardship as top priorities.

當您關注我們的核心業務時，您會看到一個整合系統在第三季度每天收集並安全運輸 8 Bcf，約占美國每日總產量的 8%。這確實不是偶然發生的。我們需要驚人的團隊努力來建造、整合和營運這些資產，同時保持急需的財務靈活性，而這一切都是以安全和環境管理為首要任務來完成的。

So in closing, it's been an eventful last 5 years, filled with many successes and challenges, and I could not have had a better team or Board by my side. I look forward to serving as Executive Chair and to the future success under Diana's leadership.

最後，過去的五年是多事之秋，充滿了許多成功和挑戰，我身邊沒有比這更好的團隊或董事會了。我期待著擔任執行主席，並期待未來在戴安娜的領導下取得成功。

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

因此，我們很樂意回答您的問題。

(Operator Instructions) Our first question will come from the line of Spiro Dounis with Citigroup.

（操作員指示）我們的第一個問題將來自花旗集團的 Spiro Dounis 線。

This is Chad on for Spiro. I guess just starting off, just want to talk about the risking of the latest MVP time line and the security there. I believe you mentioned that the construction crews are sufficient now to hit that 1Q '24 target. But just wanted to see if there's any underlying assumptions that need to change in order for that time line to be achievable? Or are you kind of status quo continues, you should be able to hit 1Q '24?

這是斯皮羅的查德。我想這只是開始，只是想談談最新 MVP 時間線的風險和那裡的安全性。我相信您提到施工人員現在足以實現 24 年第一季的目標。但只是想看看是否需要改變任何基本假設才能實現該時間表？或者您會繼續維持現狀，您應該能夠達到 24 年第一季的目標？

Yes. So we should be able to hit 1Q '24. We're making steady progress right now. Last week, we passed over the halfway point for number of water crossings. The weather has been cooperative. So our current schedule was developed considering the full complement of crews based on their productivity over the last 60 days or so and certainly considering the heightened environmental protocols that we've been talking about. The labor issues behind us. We're prioritizing more of that difficult work first, while we have more daylight and more favorable weather.

是的。所以我們應該能夠達到 24 年第一季的目標。我們現在正在穩步取得進展。上週，我們的過水次數已經過了一半。天氣一直很配合。因此，我們目前的時間表是根據過去 60 天左右的工作效率來製定的，考慮到了全體工作人員的編制，當然也考慮了我們一直在討論的強化環境協議。我們身後的勞工問題。我們會優先考慮更多的困難工作，同時我們有更多的日光和更有利的天氣。

We expect to have the majority of construction complete by year-end. We'll still have a handful of crossings to complete and we may be finishing up some bores, but -- and maybe some upland work, but largely January, we'll be commissioning.

我們預計大部分建設工作將在年底前完成。我們仍然需要完成一些交叉口，我們可能會完成一些鑽孔，但是 - 也許還有一些高地工作，但主要是在一月份，我們將進行調試。

Okay. Okay. That's helpful. And I guess, just following up. I know that you mentioned the MVP -- a potential MVP expansion in the opening remarks. I guess just thinking about it once the mainline comes online, how quickly could that opportunity emerge? And how -- any kind of details that you can give there [on time]?

好的。好的。這很有幫助。我想，只是跟進。我知道您在開場白中提到了 MVP——潛在的 MVP 擴展。我想只要主線上線之後，這個機會多久就會出現呢？您可以[按時]提供哪些詳細資訊？

So it is a small and more compact project in the mainline. It's more simplistic when it comes to regulatory and permits that we need. We need about 12 months. After we get an open season, everybody ready for the regulatory process and then about 12 months for construction. And we should -- we're working -- we've seen a lot of demand from both producer and demand pull customers for that expansion, and we'll go out -- you'll see us go out for an open season when we feel like the time is right, but we are -- customers are asking.

所以它是主線中一個小而更緊湊的項目。當涉及到我們需要的監管和許可時，情況就更加簡單了。我們大約需要12個月。在我們迎來開放季節後，每個人都為監管流程做好準備，然後是大約 12 個月的施工時間。我們應該——我們正在努力——我們已經看到生產者和需求拉動客戶的大量需求進行擴張，我們會出去——你會看到我們出去度過一個開放季節我們覺得時機成熟，但我們——客戶正在要求。

Your next question comes from the line of [Burgan Severo with] Wolfe Research.

您的下一個問題來自沃爾夫研究中心的 [Burgan Severo]。

On the listed factors for the MVP cost increase, would you be able to identify any in particular as the largest? Is it the workforce issues or items from the PHMSA agreement or any others?

在列出的 MVP 成本增加因素中，您能找出其中最大的因素嗎？是勞動力問題還是 PHMSA 協議中的條款或任何其他問題？

So it was an item from the PHMSA agreement. We were largely aligned and had largely planned to do the things that were outlined in the order before the agreement was done. I would say more than half of the increase was linked to the slow ramp in crews that we didn't foresee and the challenges to construction in part due to the heightened environmental protocol. That's the largest.

所以這是 PHMSA 協定中的一項。我們基本上是一致的，基本上計劃在協議達成之前完成訂單中概述的事情。我想說，一半以上的成長與我們沒有預見的人員數量緩慢增加以及施工面臨的挑戰有關，部分原因是環境協議的加強。這是最大的。

And is the anticipated mid-single-digit growth specific to just the gathering system or across all the assets and also the 350 million cubic feet step up and the firm capacity gathering volumes, is that from any new MVCs that were signed?

預期的中個位數成長是否僅針對收集系統或所有資產，以及 3.5 億立方英尺的增量和固定的容量收集量，是否來自簽署的任何新的 MVC？

The 350 OVC? Is that...

350 OVC？就是它...

MVC.

MVC。

Yes.

是的。

Yes, I think there was -- I think, largely associated with the new customer on the gathering.

是的，我認為，很大程度上與聚會上的新客戶有關。

And then your first question on the mid-single-digit growth. I mean, yes, that's -- that would be on the gathering systems. We do have a pretty integrated system with the transmission, so we would expect to see related growth in the transmission system as well as those gathered volumes, some of them move on the transmission as well. But that mid-single digit was related to gathering -- gathered volume growth.

然後是關於中個位數成長的第一個問題。我的意思是，是的，那就是——那將在收集系統上。我們確實有一個與變速箱相當整合的系統，因此我們預計變速箱系統以及這些聚集的數量會出現相關增長，其中一些也會在變速箱上移動。但這個中個位數與聚集量成長有關。

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

你的下一個問題來自高盛的約翰麥凱。

I wanted to just touch on some on the last couple of answers you've given. Could you confirm that if, let's say, we got very wet weather and construction slipped in the second quarter, what an incremental quarter of construction work equal the same cost increase that we saw for this last kind of quarter delay?

我想談談您最後給出的幾個答案。您能否確認一下，如果天氣非常潮濕，第二季度施工進度下滑，那麼季度施工增量與我們在上一季延誤中看到的成本增量是多少？

No. So what you're going to see is we're at 4,500 workers in the field right now, which I think Tom mentioned in his opening comments. We will step down in December -- at the end of December to 1,500 people. And as we keep completing work, we get to January, and we're at 560 people, right? So if we have some weather issues and we have less and less people on location, then there's less risk of that same type of cost increase.

不。所以你會看到我們現在有 4,500 名工作人員在現場，我想湯姆在他的開場白中提到了這一點。我們將在 12 月下台——12 月底將員工人數減少到 1,500 人。當我們不斷完成工作時，到了 1 月份，我們的員工人數已達到 560 人，對吧？因此，如果我們遇到一些天氣問題，而且現場人員越來越少，那麼同樣類型的成本增加的風險就會較小。

All right. That's awesome. Maybe a quick follow-up. Just on EQT's announcements of their new firm sales agreements now starting in 2027. Obviously, they still hold the capacity until we get there. Could you just share any updated thoughts you have on -- and I know it doesn't matter necessarily for the pipe earnings itself, but it could matter for the rest of your gathering and transmission footprint, just what you're expecting for kind of flows on to MVP once it's in service? And again, maybe how that 2027 time line for them impacts that?

好的。棒極了。也許是快速跟進。就在 EQT 宣布從 2027 年開始實施新的固定銷售協議時。顯然，在我們到達那裡之前，他們仍然保持著產能。您能分享您的任何最新想法嗎？我知道這對於管道收入本身並不一定重要，但對於您其餘的收集和傳輸足跡可能很重要，這正是您所期望的一旦投入使用，是否會繼續成為MVP？再說一次，也許 2027 年的時間表對他們有何影響？

Yes. So I think, first of all, it's great news, right? It's evidence -- those contracts are evidence of the long-term appetite and the support for demand in the Southeast. It also supports the data points we've been seeing for both producer and demand pull interest an MVP expansion, like we just talked about and expansions on Southgate.

是的。所以我認為，首先，這是個好消息，對吧？這是證據——這些合約證明了東南部地區的長期需求和需求支持。它還支持我們看到的生產者和需求拉動對 MVP 擴展的興趣的數據點，就像我們剛才談到的關於索斯蓋特的擴展。

The market dynamics initially are going to dictate the flows on MVP. But our fundamental view is that Appalachia volumes will grow and displace that Northeast more expensive gas coming from the Northeast giving the Southeast demand customers access to the lower cost gas in Appalachia. So even if there is just modest growth in the basin, we're uniquely positioned with the only access into the inlet of MVP to capture a disproportionate amount of that growth on our pipes. So I think they were -- that announcement was really good, and it's just another data point that adds to the fundamentals that are going to happen on the pipe.

市場動態最初將決定 MVP 的流量。但我們的基本觀點是，阿巴拉契亞天然氣產量將會成長，並取代來自東北地區的東北地區更昂貴的天然氣，使東南需求客戶能夠獲得阿巴拉契亞地區成本較低的天然氣。因此，即使流域內的增長量不大，我們也擁有獨特的地理位置，擁有進入 MVP 入口的唯一通道，可以捕獲管道上不成比例的增長量。所以我認為他們——這個公告真的很好，這只是另一個數據點，增加了管道上將要發生的基本面。

(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集團 (UBS) 的布萊恩雷諾茲 (Brian Reynolds)。

It looks like E-Train is appearing to have line of sight to free cash flow inflection at E-Train. So kind of curious if we can think about future return of capital opportunities. First, debt reduction is clearly the first priority, but kind of curious if you can just refresh us on whether 4x is the right leverage target? And if you can provide us a time line on when you expect to reach this leverage target, which could open up for further return of capital opportunities down the road?

看起來 E-Train 似乎有能力實現 E-Train 的自由現金流變動。很好奇我們是否可以考慮未來的資本回報機會。首先，削減債務顯然是首要任務，但有點好奇您是否可以向我們介紹 4 倍是否是正確的槓桿目標？如果您能為我們提供預計何時達到槓桿目標的時間表，這可能會為未來進一步的資本回報機會帶來機會？

Yes, Brian, this is Kirk. I would say 2 years after MVP in service, we'll be crossing that 4x threshold. And 4x remains kind of the target for us. And as we approach and we can see that glide path, we'll be evaluating what the different allocation of capital opportunities are to us at the time, and we'll be considering what we might do.

是的，布萊恩，這是柯克。我想說，在獲得 MVP 兩年後，我們將跨越 4 倍的門檻。 4x 仍然是我們的目標。當我們接近並看到這條下滑路徑時，我們將評估當時不同的資本機會分配對我們來說是什麼，我們將考慮我們可能會做什麼。

Great. Makes sense. And as my follow-up, a counterparty on MVP talked about some downstream contracts to fill up some of its contracts on Mountain Valley Pipeline. So maybe just as a clarification, will this impact E-Train cash flows at all as it relates to its [GMP] or transmission-based business?

偉大的。說得通。作為我的後續行動，MVP 上的一位交易對手談到了一些下游合同，以填補其在 Mountain Valley Pipeline 上的一些合約。因此，也許只是澄清一下，這是否會影響 E-Train 現金流，因為它與其 [GMP] 或基於傳輸的業務相關？

And then second, I think you touched a little bit on MVP Southgate opportunities. But kind of curious if any of these downstream commitments could ultimately flow through to further growth on MVP there?

其次，我認為你談到了 MVP 索斯蓋特的機會。但有點好奇這些下游承諾是否最終能夠促進 MVP 的進一步成長？

So the answer to your first question is no. And as far as Southgate, yes, I think extending into different areas from the end of MVP then gives other customers access to that gas and then help with growth on the pipe.

所以你的第一個問題的答案是否定的。就索斯蓋特而言，是的，我認為從 MVP 結束延伸到不同的領域，然後讓其他客戶能夠獲得該天然氣，然後幫助管道的成長。

We have no further questions at this time. I'll turn the call back to Tom Karam for any closing remarks.

目前我們沒有進一步的問題。我會將電話轉回給湯姆·卡拉姆（Tom Karam），讓他作結束語。

Well, thank you all for joining us today. And we hope everybody has a safe and fruitful day. Thank you.

好的，謝謝大家今天加入我們。我們希望每個人都度過安全而富有成效的一天。謝謝。

That will conclude today's meeting. We thank you all for joining. You may now disconnect.

今天的會議到此結束。我們感謝大家的加入。您現在可以斷開連線。