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
103-1
Explanation of the material topic and its Boundary
103-2
The management approach and its components
103-3
Evaluation of the management approach
201-1
Direct economic value generated and distributed
203-2
Significant indirect economic impacts
103-1
103-2
103-3
201-1
203-2
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.
National Economy
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
2018
2019
Employees
927*
801
Employee compensation (millions)
$123
$149
Capital expenditures (millions)
$885
$941
Rights-of-way payments (millions)†
$65
$47
Dividends, stock repurchases, and distributions (millions)
$737
$879
Equitrans Economic Contributions
2018
2019
Ancillary jobs supported
22,000
33,100
GDP contribution (billions)
$2.03
$2.88
Ancillary labor income (billions)
$1.26
$2.06
Average annual compensation per ancillary job supported
$57,200
$62,000
State and local tax revenues supported (millions)
$227
$312
Employment Contributions
2018
2019
Direct employees
927*
801
Direct contractors
6,191
10,900
Induced employment
12,113
16,700
Supplier employment
3,715
4,600
*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.
Category (millions)
Pennsylvania
Ohio
West Virginia
Other States
Rest of U.S.
U.S.
Property Taxes
$42.3
$12.7
$16.6
$4.0
$43.0
$118.6
Income Taxes
$24.0
$5.8
$1.8
$0.9
$11.0
$43.5
Sales Taxes
$44.3
$14.6
$5.8
$3.7
$42.8
$111.2
Other Personal Taxes
$4.0
$1.2
$0.3
$0.3
$5.1
$11
Taxes on Production & Imports
$7.6
$1.2
$2.3
$0.4
$8.1
$19.6
Other
$0.6
$1.4
$0.2
$0.2
$5.8
$8.2
Total
$127.7
$37.0
$27.1
$9.6
$115.8
$312.1
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.
