Equitrans Midstream Corporation has recently provided detailed information to the Pipeline and Hazardous Materials Safety Administration (PHMSA) concerning the investigation and analysis of the incident that took place at the Rager Mountain Storage facility in November 2022. To ensure an unbiased evaluation, an independent third-party company, specializing in reservoir management, as well as well and corrosion engineering, conducted a comprehensive root cause analysis (RCA). This RCA followed a systematic and evidence-based approach, involving three distinct phases.
The initial phase involved a thorough examination of Equitrans’ Storage Integrity Management Plan (SIMP) and all associated processes. This allowed for a comprehensive understanding of the company’s protocols and procedures related to storage facilities. The second phase focused on the collection and analysis of physical evidence, enabling a closer examination of the incident site and the factors contributing to the event. Finally, the Apollo RCA method was employed, integrating various forms of data, including previous well logging information, drilling analysis, well deliverability and kill attempts, failure analysis, metallurgical observations, microbiological assessments, and reviews of Equitrans’ internal standards and regulatory guidelines.
Through this meticulous analysis, it was determined that the root cause of the venting from Rager well #2244 was primarily attributed to corrosion induced by water and oxygen on the outer surface of the top joint of the well. Additionally, the infiltration of organic and inorganic materials into the corrosion pits further exacerbated the issue. As a result, the damaged casing on well 2244 has been replaced, and temporary plugging measures have been implemented to ensure the safety and integrity of the well.
This thorough investigation and subsequent actions taken by Equitrans demonstrate their commitment to maintaining the highest standards of safety and operational excellence within their facilities. By addressing the root cause of the incident and implementing necessary measures, Equitrans aims to prevent similar occurrences in the future, safeguarding both their employees and the surrounding environment.
Equitrans Midstream Corporation
ETRN
Strong Buy
Updated on: 04/12/2023
Financial Health
Very Healthy
Debt to equity ratio: Strong Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
ETRN Stock: Mixed Performance on August 24, 2023 with Projected Earnings Growth and Market Capitalization of $4.2 Billion
On August 24, 2023, ETRN stock displayed a mixed performance. ETRN’s previous close on August 23, 2023, was $9.72. The stock opened at $9.67 on August 24, 2023, showing a slight decrease from the previous close. Throughout the day, ETRN’s stock price fluctuated within a range of $9.63 to $9.80. The trading volume for the day was 2,903,743 shares, which is lower than the average volume of 7,069,562 shares over the past three months. ETRN has a market capitalization of $4.2 billion. The earnings growth for the previous year was +77.23%, and the earnings growth for the current year is +9.49%. The earnings growth for the next five years is projected to be +7.85%. ETRN also experienced revenue growth in the previous year, with a growth rate of +3.09%. The P/E ratio for ETRN is listed as NM. The price/sales ratio for ETRN is 2.14, and the price/book ratio is 4.52. ETRN operates within the industrial services sector in the oil and gas pipelines industry. The next reporting date for ETRN is scheduled for November 7, 2023, with analysts forecasting earnings per share (EPS) of $0.10 for the current quarter. In the previous year, ETRN reported annual revenue of $1.4 billion and a net loss of -$269.3 million. The net profit margin for the company was -19.84%.
ETRN Stock Performance on August 24, 2023: Stable with Potential Increase, Analysts Recommend Holding
ETRN stock performance on August 24, 2023, was relatively stable, with a median target price of $11.00. The high estimate was $14.00, while the low estimate was $6.00. This median estimate represents a 14.11% increase from the last price of $9.64.
The consensus among 13 polled investment analysts is to hold stock in Equitrans Midstream Corp. This rating has remained steady since August.
Looking at the current quarter, Equitrans Midstream Corp reported earnings per share of $0.10 and sales of $317.3 million. The reporting date for these figures was November 7.
Overall, Equitrans Midstream Corp’s stock performance on August 24, 2023, was stable, with analysts predicting a potential increase in the stock price. The consensus among investment analysts is to hold the stock, suggesting a cautious approach. Investors should monitor future earnings reports and the company’s performance to make informed investment decisions.
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