ETRN - Equitrans Midstream: Doubling Down As Their Dividends Get Safer

• Despite their flagship Mountain Valley Pipeline project facing another setback, Equitrans Midstream still sustained its high 7% dividend yield.
• Whilst positive, at the time risks still remained, the bigger of which stemmed from their credit facility covenant that saw its leverage ratio limit decrease following the end of 2022.
• They risked breaching this limit but thankfully, they have now been provided relief from their lenders with a new higher limit that they should not breach.
• When looking elsewhere, they saw a weak start to 2022 but given their decent guidance for the full year, this does not appear too concerning.
• Since the bigger of the risks is now resolved, I believe that upgrading to a strong buy rating is appropriate as I consider doubling down on my investment.

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