Oklahoma City’s Enable Midstream Partners, the company nearing completion of a merger with Energy Transfer announced a huge turnaround in its third quarter profits reporting $116 million in net income, an increase of $280 million compared to $164 million net loss a year ago.
The company said net income attributable to common units was $107 million for the quarter, an increase of $280 million compared to $173 million net loss for the third quarter 2020.
It also saw a $33 million increase in net cash from operating activities which totaled $265 million for the quarter. Adjusted EBITDA was $269 million, up $40 million from the $229 million a year earlier.
Enable’s third quarter 2020 results were impacted by a $225 million non-cash other than temporary impairment on its investment in Southeast Supply Header, LLC.
For third quarter 2021, distributable cash flow exceeded declared distributions to common unitholders by $121 million, resulting in a distribution coverage ratio of 2.68x.
“Enable’s third quarter results demonstrate the partnership’s operating leverage and position to capture the increasing activity across our footprint driven by stronger energy market fundamentals,” said Rod Sailor, president and CEO. “I am also pleased to announce that we have received all necessary approvals for our Gulf Run Pipeline project and plan to commence construction on the project early next year.
The company anticipates more possible revenue from expected business in its area of operations where 17 rigs were drilling wells in Enable’s footprint. It represents 7 more rigs compared to the end of July of this year. The activity includes 11 rigs operating in the Anadarko Basin, 5 in the Ark-La-Tex Basin and one in the Arkoma Basin.
Enable still anticipates closing its proposed merger with Energy Transfer by the end of the year.
Enable owns, operates and develops strategically located natural gas and crude oil infrastructure assets. Enable’s assets include approximately 14,000 miles of natural gas, crude oil, condensate and produced water gathering pipelines, approximately 2.6 Bcf/d of natural gas processing capacity, approximately 7,800 miles of interstate pipelines (including Southeast Supply Header, LLC of which Enable owns 50%), approximately 2,200 miles of intrastate pipelines and seven natural gas storage facilities comprising 84.5 billion cubic feet of storage capacity.
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