Uncovering Suspicion: Insider Trading Concerns Surrounding the Mountain Valley Pipeline Debt Ceiling Deal.

Introduction:

In a surprising turn of events, the approval of the Mountain Valley Pipeline was included in a recent debt ceiling deal. However, the circumstances surrounding the inclusion have raised suspicions of insider trading. Prior to the announcement, an unidentified trader purchased 100,000 call options on Equitrans Midstream Corporation, the pipeline's owner. This blog post delves into the details surrounding this mysterious trade, the subsequent price surge in Equitrans Midstream shares, and the growing concerns over potential insider trading.

The Debt Ceiling Deal and the Mountain Valley Pipeline:

As part of a debt ceiling deal, the approval of the Mountain Valley Pipeline project was unexpectedly included. The pipeline, spanning 304 miles from northwest West Virginia to southern Virginia, had faced significant obstacles in Congress. However, the debt ceiling bill now mandates action on permits, propelling the project forward. The inclusion of this provision came as a pet project of West Virginia Sen. Joe Manchin, further adding to the intrigue surrounding the mystery trader.

The Suspicious Trade:

Equitrans Midstream Corporation, the owner of the Mountain Valley Pipeline, had witnessed a decline in its shares, experiencing a 35% drop the previous year. However, a few days before the debt deal announcement, an unknown trader purchased 100,000 call options on Equitrans Midstream. These call options are essentially bets on the stock price increasing. Just three days after this trade, the debt deal was unveiled, and Equitrans Midstream shares surged by an impressive 49%. The timing and magnitude of these events have raised suspicions of insider trading.

Concerns and Calls for Investigation:

The remarkable coincidence between the mystery trader's actions and the subsequent positive outcome for Equitrans Midstream has sparked concerns among market observers. Bloomberg's analysis of trading data suggests that the trader may have already profited approximately $7.5 million, with the potential for further gains if the stock continues to rally. The lack of any public indication of the pipeline's inclusion in the debt deal raises questions about the source of this trader's information.

Responses from Involved Parties:

Equitrans Midstream Corporation and its executives have denied any involvement in the suspicious options trade. Similarly, Senator Joe Manchin, the driving force behind the Mountain Valley Pipeline project, claims to have no knowledge of the trade. The negotiations surrounding the debt deal were conducted discreetly between House Speaker Kevin McCarthy and the White House. In light of these circumstances, ethics watchdogs are demanding a thorough investigation into the possibility of insider trading.

Conclusion:

The inclusion of the Mountain Valley Pipeline in the debt ceiling deal has been overshadowed by suspicions of insider trading surrounding a substantial options trade on Equitrans Midstream Corporation. The apparent windfall for the mystery trader, the secrecy surrounding the pipeline's inclusion, and the lack of involvement from Equitrans Midstream and Senator Manchin have heightened concerns among market observers. With the potential violation of trading regulations, it is crucial that a comprehensive investigation takes place to determine whether any insider trading occurred and to uphold the integrity of the financial markets.