We provide midstream services to EQT and multiple third parties across 22 counties in Pennsylvania and West Virginia through our two primary assets: the Equitrans Transmission and Storage System, which serves as a header system transmission pipeline; and the Equitrans Gathering System, which delivers natural gas from wells and other receipt points to transmission pipelines. The Company believes that its strategically located assets, combined with its working relationship with EQT, position it as a leading Appalachian Basin midstream energy company serving the Marcellus Shale region.
Equitrans Transmission and Storage System includes an approximately 700 mile Federal Energy Regulatory Commission (FERC)-regulated interstate pipeline system that connects to five interstate pipelines and multiple distribution companies. The system is supported by 14 associated natural gas storage reservoirs with approximately 400 million cubic feet (MMcf) per day of peak withdrawal capability, 32 billion cubic feet (Bcf) of working gas capacity, and 21 compressor units. As of December 31, 2012, the transmission assets had total throughput capacity of approximately 1.4 trillion British units (TBtu) per day. Revenues associated with the Company’s transmission and storage system represented approximately 88% and 85% of total revenues for the year ended December 31, 2012 and 2011, respectively. Approximately 1.0 TBtu per day of the Company’s transmission capacity and 19.9 TBtu of its storage capacity, respectively, were subscribed under firm transmission and storage contracts with a weighted average remaining contract life based on contracted revenues of approximately 9.7 years for transmission contracts and 3.0 years for storage contracts as of December 31, 2012.
Equitrans Gathering System consists of approximately 2,000 miles of FERC-regulated low-pressure gathering lines that have multiple delivery interconnects with transmission and storage systems. Revenues associated with the Company’s gathering system, all of which were generated under interruptible gathering service contracts, represented approximately 12% and 15% of total revenues for the year ended December 31, 2012 and 2011, respectively.
Our Strategy: Our principal business objective is to increase the quarterly cash distributions that we pay to our unitholders over time, while ensuring the ongoing stability of our business. We expect to achieve this objective through the following business strategies:
Our Competitive Strengths: We believe we are well-positioned to successfully execute our business strategies because of the following competitive strengths: