Equitrans Midstream Corp. has significantly cut its 2021 financial forecast as Appalachian natural gas producers continue to curb spending and output.

Equitrans midstream assets

Equitrans, the third largest natural gas gatherer in the United States with operations in Ohio, Pennsylvania and West Virginia, this month cut its net income guidance for next year to $540-610 million. That’s down from the 2020 forecast that was issued at about the same time last year calling for $1.05-1.10 billion of net income. 

Appalachian pure-play EQT Corp., Equitrans’ largest upstream customer and the Lower 48’s biggest natural gas producer, renegotiated its midstream contracts for fee relief in the coming years that kicks in beginning in 2021. Meanwhile, producers across the country have continued to curb spending and...