Enable Midstream Partners, LP (ticker: ENBL) announced a new Anadarko Basin rich gas takeaway project and first quarter 2017 financial results.

PROJECT WILDCAT RICH GAS TAKEAWAY SOLUTION

Project Wildcat is a rich gas takeaway solution that further solidifies Enable’s market-leading midstream position in the Anadarko Basin, with over 1 billion cubic feet per day (Bcf/d) of recently contracted customer market solutions for growing SCOOP and STACK production. Pursuant to Project Wildcat, Enable has entered into an agreement to deliver approximately 400 MMcf/d of rich natural gas from the Anadarko Basin to north Texas, providing new market outlets for growing Anadarko Basin production.

Project Wildcat will provide an integrated gathering and processing solution with access to the Texas intrastate natural gas markets, including the Tolar Hub, by Enable contracting with an affiliate of Energy Transfer Partners, LP (ticker:ETP) for 400 MMcf/d of firm processing capacity at the Godley Plant in Johnson County, Texas. The project is expected in service by the end of the second quarter of 2018 and, once in service, to be accretive to distributable cash flow.

“Enable continues to enhance its market-leading midstream position in the Anadarko Basin by providing customers with tailored, cost-effective and timely solutions from the wellhead to end markets,” said Rod Sailor, Enable’s President and CEO. “Project Wildcat provides critical market access and additional processing capacity, positioning Enable to serve our customers’ growing production.”

FIRST QUARTER 2017 FINANCIAL HIGHLIGHTS

Net income attributable to limited partners was $120 million for first quarter 2017, an increase of $34 million, or 40 percent, compared to $86 million for first quarter 2016. Net income attributable to common and subordinated units was $111 million for first quarter 2017, an increase of $25 million, or 29 percent, compared to $86 million for first quarter 2016. The increase in both net income attributable to limited partners and net income attributable to common and subordinated units was primarily related to higher gross margin, partially offset by higher interest expense and higher depreciation and amortization expense. The increase in net income attributable to common and subordinated units was also partially offset by distributions on the Series A Preferred Units that were issued during first quarter 2016 but not recognized in income until second quarter 2016.

Net cash provided by operating activities was $156 million for first quarter 2017, an increase of $39 million compared to $117 million for first quarter 2016. The increase in net cash provided by operating activities was primarily due to an increase in net income, partially offset by a decrease related to the timing of cash receipts and disbursements and changes in other working capital assets and liabilities.

Adjusted EBITDA for first quarter 2017 was $221 million, an increase of $6 million, or 3 percent, compared to $215 million for first quarter 2016. The increase in Adjusted EBITDA was primarily a result of higher gross margin, partially offset by changes in the fair value of derivatives and higher distributions from equity method affiliates for first quarter 2016 as a result of a change from receiving quarterly distributions to monthly distributions from Southeast Supply Header, LLC (SESH) starting in first quarter 2016.

Distributable cash flow (DCF) for first quarter 2017 was $171 million, a decrease of $3 million, or 2 percent, compared to $174 million for first quarter 2016. The decrease in DCF was primarily a result of higher Adjusted interest expense due to higher interest rates on debt outstanding and higher distributions on the Series A Preferred Units as a result of a prorated first-quarter 2016 distribution. These DCF decreases were partially offset by higher Adjusted EBITDA.

 


Legal Notice