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 January 29, 2016 - 6:45 AM EST
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Enable Midstream Partners Announces Preferred Equity Investment and Updated 2016 Expansion Capital Outlook

  • CenterPoint Energy, Inc. agrees to purchase $363 million of preferred equity
  • 2016 expansion capital outlook reduced to approximately $375 million
  • Transactions will improve credit metrics, reduce equity needs and eliminate a 2017 debt maturity

Enable Midstream Partners, LP (NYSE:ENBL) announced today that it has signed a definitive agreement with CenterPoint Energy, Inc. (NYSE: CNP) under which CenterPoint Energy, Inc. or one of its wholly owned subsidiaries will purchase $363 million of 10% Series A Fixed-to-Floating Non-Cumulative Redeemable Perpetual Preferred Units. In addition, Enable will repay $363 million of notes scheduled to mature in 2017 payable to a subsidiary of CenterPoint Energy Resources Corp. These transactions were approved by Enable’s board of directors and the Conflicts Committee of the board of directors, and are expected to close prior to the end of the first quarter.

Enable also announced today an updated outlook for 2016 expansion capital of approximately $375 million. This updated outlook is a reduction of approximately 66 percent from the midpoint of Enable’s previous 2016 expansion capital outlook. As part of this planned capital reduction, Enable has delayed the in-service date for the 200 million cubic feet per day Wildhorse Processing Plant until late 2017. Enable will provide additional information on its 2016 outlook on its upcoming fourth quarter 2015 earnings call on February 17, 2016.

“I believe these announcements are an effective response to today’s challenging market conditions,” said Rod Sailor, President and Chief Executive Officer. “These transactions combined with the reduction of our 2016 expansion capital reduce the need to issue common equity in this market and further strengthen Enable’s balance sheet, improving our credit metrics and eliminating a 2017 debt maturity.”


Distributions on the preferred units are non-cumulative and will be payable quarterly from and including the date of original issue. The initial distribution rate of 10.00% per annum of the stated liquidation preference of $25.00 will change to an annual floating rate equal to the three-month LIBOR plus a spread of 8.50% on and after the five-year anniversary of the issuance of the preferred units. After the two-year anniversary of the issuance of the preferred units, if the preferred units are transferred to a non-affiliate of CenterPoint Energy, Inc., the distributions accumulate from the later of the date of transfer or the second anniversary of the issuance of the preferred units.

The purchase of the preferred units is subject to the completion of CenterPoint Energy, Inc.’s review of Enable’s audited financial statements and Form 10-K for the year ended December 31, 2015, and certain customary closing conditions.


Enable owns, operates and develops strategically located natural gas and crude oil infrastructure assets. Enable’s assets include approximately 12,300 miles of gathering pipelines, 13 major processing plants with approximately 2.3 billion cubic feet per day of processing capacity, approximately 7,900 miles of interstate pipelines (including Southeast Supply Header, LLC of which Enable owns 50 percent), approximately 2,200 miles of intrastate pipelines and eight storage facilities comprising 87.5 billion cubic feet of storage capacity. For more information, visit

The securities offered in the private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the Securities Act and applicable state laws.

This press release is neither an offer to sell nor a solicitation of an offer to purchase the securities described herein.


This press release may contain “forward-looking statements” within the meaning of the securities laws. All statements, other than statements of historical fact, regarding Enable Midstream Partners’ strategy, future operations, financial position, estimated revenues, projected costs, prospects, plans and objectives of management, including statements regarding consummation of the purchase, repayment of indebtedness and expansion capital spending, are forward-looking statements. These statements often include the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “forecast” and similar expressions and are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on Enable Midstream’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Enable Midstream assumes no obligation to and does not intend to update any forward-looking statements included herein. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under the heading “Risk Factors” included in our SEC filings. Enable Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond its control, incident to the ownership, operation and development of natural gas and crude oil infrastructure assets. These risks include, but are not limited to, contract renewal risk, commodity price risk, environmental risks, operating risks, regulatory changes and the other risks described under “Risk Factors” in our SEC filings. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, Enable Midstream’s actual results and plans could differ materially from those expressed in any forward-looking statements.

Enable Midstream Partners, LP
Brian Alford, 405-553-6984
Matt Beasley, 405-558-4600

Source: Business Wire (January 29, 2016 - 6:45 AM EST)

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