From Market Realist

Antero Midstream Partners

Antero Midstream Partners (ticker: AM) has the highest capital spending targets among the selected peers in this series, and it expects to spend $800 million on growth projects in 2017. The partnership increased its 2017 growth capex following the recent JV (joint venture) announcement with MarkWest Energy Partners, the wholly owned subsidiary of MLPX LP (ticker: MPLX).

The JV plans to pursue processing and fractionation expansion opportunities in the liquids-rich Marcellus region. For more details on this initiative, please read Antero Midstream Announces Joint Venture with MPLX.

Apart from the new capex spending plans, the partnership had earlier planned to spend on “Marcellus and Ohio Utica Shale gathering, compression, fresh water and advanced wastewater treatment infrastructure,” as noted in a related press release.

EQT Midstream Partners

EQT Midstream Partners (ticker: EQM) follows Antero Midstream and expects to spend $695 million–$725 million on expansion projects in 2017. EQM should continue to invest in gathering- and compression-related projects for EQT Corporation (ticker: EQT) and third-party producers.

EQM expects to spend $200 million–$230 million on gathering-related projects in 2017. Apart from this, a major portion of its spending is expected to go toward the MVP (Mountain Valley Pipeline) project.

Rice Midstream Partners

Rice Midstream Partners (ticker: RMP) announced its planned capex of $315 million for 2017. This is high compared to the partnership’s 2016 spending but low compared to its peers.

On February 22, 2017, Daniel J. Rice IV, RMP’s CEO, stated, “We believe Rice Midstream Partners is unique in that it combines the low capital requirements resulting from strong asset concentration with high throughput growth attributable to its core footprint and technically-leading customers. We think this is reflected in our 2017 capital budget and throughput projections.”

Cone Midstream Partners

Cone Midstream Partners (ticker: CNNX) expects to spend between $65 million–$75 million in 2017, out of which $17 million–$18 million would be spent as maintenance expenditure. Despite its low leverage, CNNX’s low capital guidance could reflect insufficient expansion opportunities.


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