Oklahoma City-based Enable Midstream Partners reports its 2nd quarter earnings dropped 49 percent compared to a year ago. The net income attributable to limited partners was $39 million, a drop of $38 million from the $77 million for the second quarter of 2015.
The company blamed the loss on “changes in the fair value of commodity derivatives related to Enable’s hedging program, lower commodity prices in the quarter, lower natural gas volumes sold and higher depreciation and amortization expense.”
Net cash provided by operating activities was $172 million for second quarter 2016, an increase of $76 million compared to $96 million for second quarter 2015. The increase in net cash provided by operating activities was primarily a result of a change in working capital.
Adjusted EBITDA for second quarter 2016 was $196 million, a decrease of $4 million, or 2 percent, compared to $200 million for second quarter 2015. The reduction in Adjusted EBITDA is primarily a result of lower commodity prices, lower natural gas volumes sold and lower distributions from SESH, partially offset by lower operation and maintenance and general and administrative expenses.
“We boosted our market-leading position in the SCOOP and STACK plays with the completion of our Bradley II Plant which doubles our processing capacity at our Bradley Processing Complex,” said Enable Midstream President and CEO Rod Sailor. “We remain the top processor in these plays with more than double the processing capacity of our closest peer.”
The board of directors of Enable’s general partner declared a quarterly cash distribution of $0.318 per unit on all outstanding common and subordinated units for the quarter ended June 30, 2016. The distribution is unchanged from the previous quarter and represents an increase of approximately 0.6 percent from the partnership’s second quarter 2015 distribution. The quarterly cash distribution of $0.318 per unit on all outstanding common and subordinated units will be paid August 23, 2016, to unitholders of record at the close of business on August 16, 2016.