Analyst Note| Stephen Ellis |
Equitrans shared as part of its first-quarter results that it plans to move forward with the Mountain Valley Pipeline (MVP) after discussions with regulators and other stakeholders. The firm now expects the pipeline to be in service in the second half of 2023 with a revised cost estimate of $6.6 billion. These estimates line up well with our own mid-2023 in-service date and $6.5 billion-$6.6 billion in costs, so we will maintain our $14 fair value estimate and narrow moat rating. We continue to believe there is substantial upside to the stock as the path forward for MVP becomes clearer and it addresses legal roadblocks.