Oklahoma City’s Enable Midstream Partners, LP announced its third quarter earnings on Wednesday, showing net income was $138 million, an increase of $25 million compared to the $113 million reported in the third quarter of 2017.
Net cash from operating activities came to $233 million which was up $59 million from a year earlier. Adjusted EBITDA for the quarter was $301 million or $51 million more than the third quarter of last year.
“Our third quarter financial and operational results clearly demonstrate the critical role Enable’s assets play in connecting growing supply to premium markets,” said Enable Midstream President and CEO Rod Sailor. “We continue to expand our footprint and market-leading position in some of the most active basins in the country and are excited about our recently completed projects, new transportation opportunities and expansion of our crude business.”
Enable recently announced two major expansions of the company’s crude oil midstream business. On Nov. 1, 2018, Enable closed on the acquisition of Velocity Holdings, LLC, an integrated crude oil and condensate gathering and transportation company in the SCOOP and Merge plays, for $442 million.
The Velocity acquisition builds on Enable’s market-leading natural gas gathering and processing infrastructure position in the prolific SCOOP and Merge plays that have attracted substantial producer activity with some of the best well economics in the country.
In the Williston Basin, Enable has entered into new contractual commitments with ExxonMobil subsidiary XTO Energy Inc. for a substantial expansion of Enable’s crude and water gathering systems supported by over 90,000 gross acres of dedication. Subject to future drilling plans, Enable will add up to 72,000 barrels per day (bpd) of crude oil gathering design capacity, increasing total Williston Basin crude gathering capacity to up to approximately 130,000 bpd.
During third quarter 2018, per-day natural gas gathered volumes grew for the 11th consecutive quarter as a result of strong rig activity across Enable’s footprint. During third quarter 2018, Enable also achieved the highest per-day crude oil gathered volumes since the partnership’s formation in May 2013. As of Nov. 1, 2018, there were 47 rigs across Enable’s footprint that were drilling wells expected to be connected to Enable’s gathering systems. Thirty-eight of those rigs were in the Anadarko Basin, six were in the Ark-La-Tex Basin, and three were in the Williston Basin.
Enable announced on Sept. 24, 2018, the development of the Gulf Run Pipeline project, an interstate pipeline designed to connect abundant U.S. natural gas supplies to growing liquefied natural gas export markets on the Gulf Coast. The project, backed by a precedent agreement with a cornerstone shipper for 1.1 billion cubic feet per day, received significant interest from additional prospective shippers during a non-binding open season that closed Oct. 26, 2018. Negotiations to secure binding commitments are currently underway.
On Nov. 6, 2018, the board of directors of Enable’s general partner declared a quarterly cash distribution of $0.318 per unit on all outstanding common units for the quarter ended Sept. 30, 2018. The distribution is unchanged from the previous quarter. The quarterly cash distribution of $0.318 per unit on all outstanding common units will be paid on Nov. 29, 2018, to unitholders of record at the close of business on Nov. 16, 2018.
The board also declared a quarterly cash distribution of $0.625 on all Series A Preferred Units for the quarter ended Sept. 30, 2018. The quarterly cash distribution of $0.625 on all Series A Preferred Units outstanding will be paid on Nov. 14, 2018, to unitholders of record at the close of business on Nov. 6, 2018.
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