Net cash grows for Enable Midstream but net income slips

Enable Midstream Partners, LP reported a drop in its third quarter 2019 net income while at the same time it saw record oil production in some of its operations.

The Oklahoma City company had net income of $132 million attributable to limited partners which was $6 million less than in the third quarter of 2018. Net income attributable to common units totaled $123 million, also $6 million less than a year ago.

However, the company’s net cash from operating activities was $264 million for the quarter, an increase of $31 million over the third quarter 2018.

Adjusted EBITDA was $295 million for third quarter 2019, a decrease of $6 million compared to $301 million for third quarter 2018. The discounted cash flow was $202 million for third quarter 2019, a decrease of $18 million compared to $220 million for third quarter 2018.

 

As of Oct. 28, 2019, there were thirty-one rigs across Enable’s footprint that were drilling wells expected to be connected to Enable’s gathering systems. Twenty-two of those rigs were in the Anadarko Basin, six were in the Ark-La-Tex Basin and three were in the Williston Basin. In the Williston Basin, Enable’s crude oil gathering system gathered record quarterly volumes for third quarter 2019.

Enable’s Anadarko Basin crude and condensate midstream platform achieved gathered volumes of over 91 thousand barrels per day (MBbl/d) during third quarter 2019, and Enable expects to gather crude or condensate from wells drilled by nearly 90 percent of the rigs currently active on Enable’s gathering footprint in the SCOOP play.

Following a successful open season, Enable Gas Transmission signed a 5-year, 100,000 Dth/d precedent agreement in October 2019 for the MASS natural gas transportation project. This project expands Enable’s existing infrastructure to address current natural gas takeaway limitations by connecting production in the Anadarko and Arkoma basins to delivery points with access to emerging Gulf Coast markets and the growing demand markets in the Southeast. The capital expenditures associated with this project are estimated to be approximately $30 million, and the project is expected to be placed into service in the second half of 2021, subject to Federal Energy Regulatory Commission (FERC) approval.

Enable’s Mississippi River Transmission Co. filed proposals with FERC Nov. 5, 2019, to settle rate cases with customers holding 97 percent of the firm subscribed transportation capacity on the MRT system. In addition to the proposed rate settlements with these customers, most of these customers agreed to extend capacity commitments on MRT through 2024. A new rate case was filed Oct. 30, 2019, that was necessitated by the customers representing the remaining 3 percent of the firm subscribed transportation capacity on MRT to establish new maximum recourse rates for the non-settling parties.

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