Approach to Economic Impact
At Equitrans, our business strategy is focused on smart investments with high growth potential that can bring value to all of our stakeholders, as well as a disciplined approach to cost control. To understand the economic impacts of our operations, we conduct an annual analysis of our direct and indirect economic impacts, commissioning an independent third party to analyze our year-end data. The analysis gathers data from all aspects of our business and assesses the net benefit Equitrans generates at the local, state, and national levels. By tracking our economic impact, Equitrans is better able to understand and improve the benefits we generate for our stakeholders and the local communities in which we operate.
National Economy
Equitrans contributed $1.15 billion value-added contributions to the United States Gross Domestic Product (GDP) in 2020, excluding activities related to the Mountain Valley Pipeline and MVP Southgate projects. At 57.1%, the majority of our GDP contributions came from operations in Pennsylvania, Ohio, and West Virginia, while approximately 18.2% of our contributions arose from other states where Equitrans employees are based. The remaining 24.7%, was associated with rights-of-way payments (ROW), payments to shareholders, and our business with suppliers that provide the products and services we utilize in our operations.
Our direct business activities contributed $199.9 million to the GDP, while our indirect impact, resulting from our business with contractors and suppliers, contributed $264.6 million to the GDP. Lastly, our total induced economic impact, or the personal spending of our employees, contractors, and suppliers, contributed $682.5 million to the GDP.
Labor Impacts
In addition to our 777 regular, full-time employees at year-end 2020, our business activities supported 13,460 ancillary jobs in 2020, excluding any ancillary jobs related to the MVP project. These ancillary jobs include contractors and suppliers who contribute to the successful operation of construction projects, as well as our natural gas gathering, transmission and storage, and water services businesses.
Equitrans Economic Activities |
As of December 31, 2020 |
Employees |
777 |
Employee gross wages (millions) |
$133 |
Capital expenditures (millions) |
$406 |
Rights-of-way payments (millions)† |
$32 |
Dividends, stock repurchases, and distributions (millions) |
$486 |
†Includes 46.2% of ROW payments related to MVP; 47.2% of those related to MVP Southgate; and 60% of those related to Eureka Midstream, which represents Equitrans’ ownership percentages as of year-end 2020 (see Equitrans Form 10-K, page 12)
Equitrans Economic Contributions |
2020 |
Ancillary jobs supported |
13,461 |
GDP contribution (billions) |
$1.15 |
Ancillary labor income (millions) |
$841 |
Average annual compensation per ancillary job supported |
$62,476 |
State and local tax revenues supported (millions) |
$169 |
Federal tax revenue supported (millions) |
$192 |
Employment Contributions |
2020 |
Direct employees |
777 |
Direct contractors |
3,980 |
Induced employment |
7,100 |
Supplier employment |
2,380 |
State & Local Taxes Supported
Equitrans generated millions in tax revenues during 2020, excluding taxes related to the Mountain Valley Pipeline and MVP Southgate projects. These generated revenues support state and local governments and public works project, such as road construction and maintenance, as well as funding for schools. The table below represents the state and local tax revenues generated by Equitrans in 2020.
Category (millions) |
Pennsylvania |
Ohio |
West Virginia |
Other States |
Rest of U.S. |
U.S. Total |
|
2020 |
2020 |
2020 |
2020 |
2020 |
2020 |
Property Taxes |
$23.7 |
$9.1 |
$19.4 |
$7.5 |
$8.6 |
$68.3 |
Income Taxes |
$11.9 |
$2.7 |
$3.1 |
$2.0 |
$3.7 |
$23.4 |
Sales Taxes |
$24.6 |
$10.6 |
$7.6 |
$7.4 |
$8.8 |
$59.1 |
Other Personal Taxes |
$1.5 |
$0.6 |
$0.5 |
$0.7 |
$0.8 |
$4.0 |
Taxes on Production & Imports |
$4.3 |
$0.7 |
$3.0 |
$1.3 |
$1.4 |
$10.7 |
Other |
$0.3 |
$1.3 |
$0.3 |
$0.8 |
$1.3 |
$4.0 |
Total |
$66.2 |
$25.1 |
$33.9 |
$19.7 |
$24.6 |
$169.5 |
Evaluating Our Approach to Economic Impact
We closely track our economic impact to ensure that our operations reflect the interests of our stakeholders and continue to yield positive impacts on the areas in which we operate. We seek ways to expand these benefits and better communicate them to both our shareholders and local communities, as well as other interested stakeholders. When analyzing our impact, we gain a better insight into the economic scope of our operations and investments and learn how we may increase and broaden our benefits.