Equitrans creates value for our shareholders, as well as the communities in which we operate. We are proud of the beneficial economic impact we have on these communities through factors such as job creation and tax revenue generation.
Approach to Economic Impact
Explanation of the material topic and its Boundary
The management approach and its components
Evaluation of the management approach
Direct economic value generated and distributed
Significant indirect economic impacts
At Equitrans, we pursue a business strategy focused on smart investments with high growth potential that can bring value to all of our stakeholders and couple that with disciplined cost control. To understand the economic impacts of executing on our business strategy, we conduct an annual analysis of our direct and indirect economic impacts, commissioning an independent third party to analyze our year-end data.
In 2019, we contributed $2.66 billion in value-added contributions to the United States Gross Domestic Product (GDP), excluding activities related to the Mountain Valley Pipeline. For our business, 54.7 percent of this contribution is a result of our operational activities in our three primary operating states of Pennsylvania, Ohio, and West Virginia, with another 4.3 percent coming from operations elsewhere in the United States. The remaining 41.1 percent of our contribution is associated with our business with suppliers that provide the products and services we utilize in our operations.
Our direct business activities contributed $470 million to the GDP, while our indirect impact as a result of our business with our suppliers contributed $532 million to the GDP. Lastly, our total induced economic impact, or the personal spending of our employees, contractors, and suppliers, contributed $1,656 million to the GDP.
Our business activities supported 33,100 ancillary jobs in 2019, excluding any ancillary jobs related to the MVP project, in addition to our own 801 employees as of year-end 2019. These ancillary jobs include people who contribute to the successful operation of construction projects as well as our gathering, transmission and storage, and water services as contractors and suppliers.
Equitrans Economic Activities
Employee compensation (millions)
Capital expenditures (millions)
Rights-of-way payments (millions)†
Dividends, stock repurchases, and distributions (millions)
Equitrans Economic Contributions
Ancillary jobs supported
GDP contribution (billions)
Ancillary labor income (billions)
Average annual compensation per ancillary job supported
State and local tax revenues supported (millions)
*Equitrans had 770 total employees at the end of 2018; however, throughout the whole of 2018, ETRN had a total of 927 employees, which included terminated employees; and/or employees who worked for the midstream business unit but were transferred to the upstream business unit during the year; and/or paid interns. The IMPLAN model defines employment as including full- and part-time employees at equal weights; therefore, the economic analysis reflects direct employment of 927 and results include the compensation paid to 927 employees.
†Includes 45.7% of rights-of-way payments related to MVP, which is equivalent to EQM’s ownership interest in Mountain Valley Pipeline, LLC.
State & Local Taxes Supported
Our business generated millions in state and local tax revenues in 2019, excluding taxes related to the MVP project. These generated revenues support state and local governments and public resource enhancing operations, such as road construction and maintenance, and school funding. The table below represents the state and local tax revenues generated by Equitrans in 2019.
Rest of U.S.
Other Personal Taxes
Taxes on Production & Imports
Evaluating Our Approach to Economic Impact
At Equitrans, we closely track our economic impact to improve our understanding of the benefit we bring to our stakeholders and our communities. We seek ways to expand these benefits and better communicate them to both our shareholders and local communities, as well as other interested stakeholders. The primary way we accomplish this objective is through the production and review of our annual economic impact analysis. The analysis illustrates the economic benefits of our operations and investments for both Equitrans and the broader local, state, and national economies. Reviewing and acting on the analysis enables us to increase and broaden our impact.
Our ESG management practices are intrinsic and deliver value that goes beyond financial drivers. Today and in the future, trust and transparency are central to our approach.
Diana M. Charletta, President and Chief Operating Officer
Equitrans Opposes Federal Rollback of Methane Regulations
In September 2019, Equitrans publicly announced its support for the continuation of natural gas industry efforts to reduce methane emissions in light of a proposed rollback of regulations by the EPA. The rollback would affect 40 CFR Part 60 Subparts OOOO and OOOOa by removing methane sources in transmission and storage segments from regulation. Equitrans recognizes the great strides the natural gas industry has made in reducing methane emissions recently and as Diana Charletta, president and chief operating officer of Equitrans, stated “We believe methane controls and reductions should continue to evolve, rather than take steps backward.” We acknowledge that simply achieving regulatory compliance on methane emissions is not enough in order to address the global impacts of climate change. However, by proactively implementing best practices for methane emissions and reducing our overall carbon footprint, we can make a difference in the sustainability of our environment, communities, and business.