Rover Pipeline helps AR and RRC

[dan_s]

From TPH: Rover Receives FERC Approval for Partial Phase 2 Start-up

In-line timing supportive of guided Q2'18 full project in-service

Sector: Midstream | Ticker: ETP | Recommendation: BUY | Target: $25 | Close: $18.20

FERC issues approval for partial Rover Phase 2 start-up, namely Mainline Compressor Station 3 and 50 mile portion of Mainline B between Compressors 2 and 3. Order represents partial approval of previously-requested authorization for Mainline and Defiance compressor stations, Market Segment and partial Mainline B segment. Current Rover Phase 1A and 1B flows have averaged approximately 1.7bcfd and are expected to build with addition of remaining 1.25bcfd of Phase 2 capacity, comprised of Mainline B and Market Segment. Expect NE production ramp from committed shippers Antero (800 mmcfd), Range (400 mmcfd), and EQT/RICE (250 mmcfd) as NE debottlenecking takes hold. Full project in-service improves ETP cash flow profile as existing IDR waivers are set to roll in 2018.