Big 4th Quarter for OKC’s Enable Midstream Partners

Oklahoma City’s Enable Midstream Partners, LP reported a big fourth quarter earnings report showing a $40 million increase in earnings from a year ago.

Netcome from limited partners for the fourth quarter 2017 totaled $108 million, far more than the $68 million reported in December 2016. The company also reported net income for common units was $99 million compared to $59 for the fourth quarter 2016.

For the year, net income from limited partners totaled $436 million, an increase of $124 million from a year earlier. Net income attributable to the common units for the year was $400 million, an increase of $110 million.

“2017 marked an exceptional year of financial and operational performance, driven by our high-quality customer base, strategically-located midstream assets and dedicated employees,” said Enable Midstream President and CEO Rod Sailor. “For 2017, we exceeded our guidance for net income, Adjusted EBITDA and DCF while funding a meaningful portion of our capital investment program with internally generated cash flows.

Enable reported growth in its per-day natural gas gathered volumes in the fourth quarter of 2017. As of Feb. 5, 2018, the company had 49 rigs across the company’s footprint drilling wells expected to soon be connected to Enable’s gathering systems. Thirty-five rigs were in the Anadarko Basin, 10 in the Ark-La-Tex Basin, two in the Arkoma Basin and two in the Williston Basin.

Enable was recently awarded a 10-year, fee-based natural gas gathering contract with approximately 138,000 gross acres of dedication in the Arkoma Basin. This contract will support drilling activity that is primarily focused on dry gas areas of the Arkoma Woodford Shale.

Enable Gas Transmission, LLC (EGT) entered into a 3-year, 100,000 dekatherms per day (Dth/d) firm transportation agreement with an Anadarko Basin producer. This transportation agreement provides access to delivery points on the west side of the EGT system that connect to downstream markets in the West and Midwest. The new contract contributes to Enable’s 1.1 billion cubic feet per day (Bcf/d) of contracted market solutions for growing SCOOP and STACK production since 2015, including the CaSE, Line AD Expansion and Bradley Lateral projects on EGT and Project Wildcat in Enable’s Gathering and Processing segment. Intrastate transportation deliveries also increased in the fourth quarter of 2017 as a result of the continued supply growth in the Anadarko Basin.

Enable’s previously announced Wildcat, CaSE and Muskogee projects remain on schedule. Project Wildcat, a 400 million cubic feet per day (MMcf/d) rich natural gas takeaway solution from the Anadarko Basin to North Texas, is expected to be in service by the end of the second quarter of 2018. The CaSE project, a 205,000 Dth/d firm natural gas transportation solution for growing Anadarko Basin production, is expected to be fully in service by the fourth quarter of 2018. The Muskogee project, a 20-year, 228,000 Dth/d firm transportation service agreement with Oklahoma Gas and Electric on the Enable Oklahoma Intrastate Transmission (EOIT) system, is expected to commence service in late 2018.

Revenues were $806 million for fourth quarter 2017, an increase of $192 million compared to $614 million for fourth quarter 2016. Revenues included $163 million of intercompany eliminations for fourth quarter 2017 and $119 million of intercompany eliminations for fourth quarter 2016.

Higher average NGL prices and processed volumes in the Anadarko Basin and the Ark-La-Tex Basins led to increased revenues from the gathering and processing segment. It totaled $657 million for the ending quarter, an increase of $192 million from a year earlier.

Transportation and Storage segment revenues increased $44 million reaching $312 million for the quarter. The cmopany credited higher natural gas sales associated with higher sales volumes.


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