October 8, 2014
Mountain Valley Pipeline Moves Forward With Secure Capacity Commitments
PITTSBURGH, PA – Mountain Valley Pipeline, LLC, a joint venture between affiliates of EQT Corporation (NYSE: EQT) and NextEra Energy, Inc. (NYSE: NEE), today announced that through its current open season it has secured 2 Bcf per day of firm capacity commitments at 20-year terms for the Mountain Valley Pipeline project. In order to accommodate continued shipper interest, the binding open season was extended until Friday October 10, 2014. EQT, through one or more of its affiliates, including EQT Midstream Partners, LP (NYSE: EQM), will operate the pipeline and own a majority interest in the joint venture.
Virginia Governor Terry McAuliffe stated, “In order to compete globally to attract businesses and create jobs, Virginia must have world-class energy infrastructure that provides abundant access to low-cost energy sources. New natural gas pipelines, like the Mountain Valley Pipeline, will diversify our energy mix, reduce our Commonwealth’s carbon emissions, and help build a new Virginia economy.”
During the past few years, the energy industry has been an important economic boost to several states in the Appalachian Basin, including both Virginia and West Virginia, sustaining jobs, bringing in new manufacturing opportunities, and increasing tax revenues.
West Virginia Governor Earl Ray Tomblin said, "West Virginia continues to be one of our nation’s energy leaders, and the Mountain Valley Pipeline will help create new construction jobs for our workforce and identify markets for our state’s abundant supply of natural gas. We appreciate EQT's continued investments in our state and their willingness to work with local economic developers to provide natural gas service in areas that would benefit from both new industry and downstream growth. These investments have the potential to create good-paying jobs and by keeping key byproducts in our state, we have the opportunity to rejuvenate our manufacturing sector and create promising opportunities for future generations.”
With its connection to the existing Equitrans system in West Virginia, the Mountain Valley Pipeline (MVP) will deliver natural gas supply from vast resources located in the Marcellus and Utica shale development areas to the Transco Zone 5 compressor station 165 in Virginia. The estimated 300-mile pipeline will address producers’ growing infrastructure constraints, while more importantly offering critical supply diversity to meet the increasing demand for natural gas in the Mid-Atlantic and Southeast markets.
“As the demand for energy continues to grow in the southeast region of the U.S., we are proud to partner with NextEra Energy to develop a project that will deliver clean-burning, domestically produced natural gas to various manufacturing and consumer markets. Tapping our vast energy reserves is the first step in our nation’s drive for energy independence,” stated Randy Crawford, senior vice president, EQT Corporation; and chief operating officer, EQT Midstream Partners.
TJ Tuscai, president, NextEra US Gas Assets said, “We are pleased with the market response to the proposed Mountain Valley Pipeline open season. We look forward to working with the communities along the pipeline route and our partner EQT to bring a new reliable supply of natural gas to customers in the southeast United States.”
Mountain Valley Pipeline, LLC expects to begin the pre-filing process with FERC in October 2014, followed by community open houses later this year. As details are finalized, the dates, times, and locations of these open houses will be available at www.mountainvalleypipeline.info — along with additional information, including a project overview, the regulatory approval process, revisions to the proposed routing map, and frequently asked questions. Subject to approval by the Federal Energy Regulatory Commission (FERC), the Mountain Valley Pipeline is expected to be in-service during the fourth quarter of 2018.
About EQT Corporation
EQT Corporation is an integrated energy company with emphasis on Appalachian area natural gas production, gathering, and transmission. EQT is the general partner and significant equity owner of EQT Midstream Partners, LP. With more than 125 years of experience, EQT continues to be a leader in the use of advanced horizontal drilling technology – designed to minimize the potential impact of drilling-related activities and reduce the overall environmental footprint. Through safe and responsible operations, the Company is committed to meeting the country’s growing demand for clean-burning energy, while continuing to provide a rewarding workplace and enrich the communities where its employees live and work. Company shares are traded on the New York Stock Exchange as EQT.
Visit EQT Corporation at www.EQT.com.
About EQT Midstream Partners
EQT Midstream Partners, LP is a growth-oriented limited partnership formed by EQT Corporation to own, operate, acquire, and develop midstream assets in the Appalachian Basin. The Partnership provides midstream services to EQT Corporation and third-party companies through its strategically located transmission, storage, and gathering systems that service the Marcellus and Utica regions. The Partnership owns 700 miles and operates an additional 200 miles of FERC-regulated interstate pipelines; and also owns more than 1,600 miles of high- and low-pressure gathering lines.
Visit EQT Midstream Partners, LP at www.eqtmidstreampartners.com
About NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company with consolidated revenues of approximately $15.1 billion, approximately 42,500 megawatts of generating capacity, and approximately 13,900 employees in 26 states and Canada as of year-end 2013. Headquartered in Juno Beach, Fla., NextEra Energy’s principal subsidiaries are Florida Power & Light Company, which serves approximately 4.7 million customer accounts in Florida and is one of the largest rate-regulated electric utilities in the United States, and NextEra Energy Resources, LLC, which together with its affiliated entities is the largest generator in North America of renewable energy from the wind and sun. Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from eight commercial nuclear power units in Florida, New Hampshire, Iowa and Wisconsin. NextEra Energy has been recognized often by third parties for its efforts in sustainability, corporate responsibility, ethics and compliance, and diversity, and has been named No. 1 overall among electric and gas utilities on Fortune’s list of “World’s Most Admired Companies” for eight consecutive years, which is an unprecedented achievement in its industry.
Mountain Valley Pipeline, LLC Cautionary Statements
Disclosures in this news release contain certain forward-looking statements that do not relate strictly to historical or current facts and are forward-
looking. Without limiting the generality of the foregoing, forward-looking statements contained in this news release specifically include the expectations of plans, strategies, objectives and growth, and anticipated financial and operational performance of Mountain Valley Pipeline, LLC, including guidance regarding the proposed Mountain Valley Pipeline (MVP) and joint venture, such as the projected length of the MVP; the EQT affiliate to own and/or operate the MVP; the MVP’s expected interconnections with facilities and pipelines; existing customer commitments; the timing of development and construction for the MVP; and the expected in-service date for the MVP. The forward-looking statements included in this news release are subject to risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Mountain Valley Pipeline, LLC has based these forward-looking statements on current expectations and assumptions about future events. While Mountain Valley Pipeline, LLC considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, and other risks and uncertainties, most of which are difficult to predict and are beyond its control. The risks and uncertainties that may affect the operations, performance, and results of MVP and forward-looking statements include, but are not limited to:
The business, financial condition, results of operations and prospects could suffer if Mountain Valley Pipeline, LLC does not proceed with projects under development or is unable to complete the construction of, or capital improvements to its facilities on schedule or within budget.
The ability to complete construction of, and capital improvement projects and other facilities on schedule and within budget may be adversely affected by escalating costs for materials and labor and regulatory compliance, inability to obtain or renew necessary licenses, rights-of-way, permits or other approvals on acceptable terms or on schedule, disputes involving contractors, labor organizations, land owners, governmental entities, environmental groups, Native American and aboriginal groups, and other third parties, negative publicity, transmission interconnection issues, and other factors. If any development project or construction or capital improvement project is not completed, is delayed or is subject to cost overruns, certain associated costs may not be approved for recovery or recoverable through regulatory mechanisms that may otherwise be available, and Mountain Valley Pipeline, LLC could become obligated to make delay or termination payments or become obligated for other damages under contracts, could experience the loss of tax credits or tax incentives, or delayed or
diminished returns, and could be required to write-off all or a portion of its investment in the project. Any of these events could have a material adverse effect on Mountain Valley Pipeline, LLC’s business, financial condition, results of operations and prospects.
Mountain Valley Pipeline, LLC may face risks related to project siting, financing, construction, permitting, governmental approvals and the negotiation of project development agreements that may impede its development and operating activities.
Mountain Valley Pipeline, LLC must periodically apply for licenses and permits from various local, state, federal and other regulatory authorities and abide by their respective conditions. Should Mountain Valley Pipeline, LLC be unsuccessful in obtaining necessary licenses or permits on acceptable terms, should there be a delay in obtaining or renewing necessary licenses or permits or should regulatory authorities initiate any associated investigations or enforcement actions or impose related penalties or disallowances on Mountain Valley Pipeline, LLC, Mountain Valley Pipeline, LLC’s business, financial condition, results of operations and prospects could be materially adversely affected. Any failure to negotiate successful project development agreements for new facilities with third parties could have similar results.
Mountain Valley Pipeline, LLC’s gas infrastructure facilities and other facilities are subject to many operational risks. Operational risks could result in, among other things, lost revenues due to prolonged outages, increased expenses due to monetary penalties or fines for compliance failures, liability to third parties for property and personal injury damage, a failure to perform under applicable sales agreements and associated loss of revenues from terminated agreements or liability for liquidated damages under continuing agreements. The consequences of these risks which could have a material adverse effect on Mountain Valley Pipeline, LLC’s business, financial condition, results of operations and prospects.
Uncertainties and risks inherent in operating and maintaining Mountain Valley Pipeline, LLC's facilities include, but are not limited to risks associated with facility start-up operations, such as whether the facility will achieve projected operating performance on schedule and otherwise as planned:
Mountain Valley Pipeline, LLC’s business, financial condition, results of operations and prospects can be materially adversely affected by weather conditions, including, but not limited to, the impact of severe weather.
Threats of terrorism and catastrophic events that could result from terrorism, cyber-attacks, or individuals and/or groups attempting to disrupt Mountain Valley Pipeline, LLC’s business, or the businesses of third parties, may materially adversely affect Mountain Valley Pipeline, LLC’s business, financial condition, results of operations and prospects.
Any forward-looking statement speaks only as of the date on which such statement is made and Mountain Valley Pipeline, LLC does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.
EQT media inquiries:
Natalie Cox – Corporate Director, Communications 412.395.3941
NextEra Energy media contact:
Media Line: (561) 694-4442
EQT analyst inquiries:
Patrick Kane – Chief Investor Relations Officer
EQT Midstream Partners analyst inquiries:
Nate Tetlow – Investor Relations Director
Source: EQT Corporation (EQT-IR)