Oklahoma City’s Enable Midstream Partners LP reported a decline of overall revenues for the second quarter 2019 but an increase in net income.
The company had total revenues of $735 million, a decline of $70 million compared to the $805 million reported in the second quarter of 2018. Net income attributable to limited partners was $124 million for the second quarter 2019, an increase of $29 million compared to $95 million for the second quarter of 2018.
Net cash provided by operating activities was $212 million for second quarter 2019, a decrease of $27 million compared to $239 million for second quarter 2018. Adjusted EBITDA was $281 million for second quarter 2019, an increase of $36 million compared to $245 million for second quarter 2018.
“We are pleased to announce that we are increasing our common unit distribution, returning additional cash to investors as a result of the company’s continued strong operational and financial performance,” said Rod Sailor, President and CEO. “Enable is uniquely positioned for long-term value creation with our financial strength and integrated midstream platform that is a critical link between growing production and downstream markets.”
As of Aug. 5, 2019, there were forty-four rigs across Enable’s footprint that were drilling wells expected to be connected to Enable’s gathering systems. Thirty-three of those rigs were in the Anadarko Basin, eight were in the Ark-La-Tex Basin and three were in the Williston Basin. Enable’s Anadarko Basin crude and condensate midstream platform achieved gathered volumes of nearly 80 thousand barrels per day (MBbl/d) during second quarter 2019, and Enable expects to gather crude or condensate from wells drilled by over 70 percent of the rigs currently active on Enable’s Anadarko footprint.
During second quarter 2019, Enable contracted or extended over 600,000 Dth/d of natural gas transportation capacity. On the Enable Gas Transmission, LLC (EGT) system, EGT extended a long-term contract with Arkansas Electric Cooperative Corporation for 110,000 Dth/d. On the Enable Mississippi River Transmission, LLC (MRT) system, MRT extended a contract with Ameren Illinois for 80,000 Dth/d of transportation capacity.
Enable and CenterPoint Energy Resources Corp. (CERC) previously signed precedent agreements outlining the terms and conditions for extending EGT pipeline contracts, which currently expire March 31, 2021. CERC has received the required regulatory approvals from the applicable state regulatory commissions for these extensions, and EGT is preparing the definitive long-term contracts.
The rate case originally filed by MRT June 29, 2018, continues to advance at the Federal Energy Regulatory Commission (FERC). As of Jan. 1, 2019, MRT’s proposed rate increase is being billed to customers. This proposed rate increase does not increase current earnings because the rates are subject to refund, depending upon the outcome of the case. MRT remains focused on ensuring that the pipeline’s rates appropriately reflect historical investments and current costs.
On Aug. 2, 2019, the board of directors of Enable’s general partner declared a quarterly cash distribution of $0.3305 per unit on all outstanding common units for the quarter ended June 30, 2019, an increase of approximately 4 percent compared to the previous quarter’s distribution. The quarterly cash distribution of $0.3305 per unit on all outstanding common units will be paid Aug. 27, 2019, to unitholders of record at the close of business Aug. 20, 2019.