Equitrans Midstream shares make record gains on US debt ceiling deal (updated)

Equitrans Midstream

30/05/2023 21:41

(Adds past lawsuits over pipeline and background in paragraphs
3-6)
    By Chibuike Oguh
       NEW YORK, May 30 (Reuters) - Shares of Equitrans
Midstream Corp  ETRN.N  jumped on Tuesday after the U.S. debt
ceiling deal contained specific proposals that would allow the
U.S. energy company to obtain permits for the Mountain Valley
Pipeline (MVP).
    Equitrans Midstream rose nearly 35% to $8.21 per share,
making it a record one-day percentage gain in the company's
history. RBC Capital Markets had upgraded the stock to
"outperform" from "sector perform" based on the likelihood of
Equitrans Midstream securing permits for the $6.2 billion
pipeline project.
   In April, a federal appeals court nullified a water permit
needed by Equitrans Midstream to restart construction on the
MVP, marking the latest setback for the project.
   The pipeline, which would carry natural gas between West
Virginia and Virginia, has been the subject of numerous lawsuits
by environmental groups and landowners. 
   "The debt ceiling deal surprisingly contains specific
language to essentially fast track the Mountain Valley Pipeline
(MVP), which is currently held up in the courts," RBC analysts
wrote in a note to investors. 
   U.S. lawmakers have started considering possibly passing a
bipartisan deal to raise the deal ceiling that would stave off a
default on the federal government's obligations.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Mountain Valley Pipeline's West Virginia water permit tossed by
court     urn:newsml:reuters.com:*:nL1N3661JN
Top US Republican McCarthy urges support for debt ceiling deal
ahead of key vote     urn:newsml:reuters.com:*:nL1N37R10J
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 (Reporting by Chibuike Oguh in New York; Editing by Lance
Tupper, Marguerita Choy and Lisa Shumaker)
 ((Chibuike.Oguh@thomsonreuters.com; +332-219-1834; Reuters
Messaging: chibuike.oguh.thomsonreuters.com@reuters.net))