Equitrans Midstream Shares Make Record Gains on US Debt Ceiling Deal
(Reuters) — Shares of Equitrans Midstream Corp. 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.
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