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Enable Midstream Partners' (ENBL) CEO Peter Delaney on Q2 2015 Results - Earnings Call Transcript


Welcome to the Enable Midstream Partners Second Quarter 2015 Earnings Conference Call and Webcast. At this time all participants is in placed in a listen-only mode and the floor will be open for your questions following the presentation. [Operator Instructions]. Today’s call is being recorded. [Operator Instructions]. It's now my pleasure to turn the floor over to Enable Senior Director of Investor Relations, Mr. Matt Beasley. Sir, you may begin.

Matt Beasley - Director, IR

Thanks, Kevin. Good morning and welcome to Enable Midstream Partners second quarter 2015 earnings call. I'm joined on today's call by our President and CEO, Pete Delaney; our Chief Financial Officer, Rod Sailor; our Chief Commercial Officer, Paul Weissgarber, as well as other members of management.

Statements made during this call that include Enable Midstream's expectations or predictions should be considered forward-looking statements and are covered by the Safe Harbor Provision of the securities act of 1933 and 1934. Actual results could differ materially from our projections and a discussion of factors that could cause actual results to differ from our projections can be found in our SEC filings. Also, please see the appendix of the presentation for reconciliation of non-GAAP financial measures.

With that, we'll get started and I'll turn the call over to Pete Delaney.

Peter Delaney - Chief Financial Officer and CEO

Thank you, Matt. Good morning and thank you for joining us on today's call. The second quarter was another solid quarter of growth for Enable Midstream. We reporting double-digit volume growth and processing at 7% gathered volume growth outside of our minimum volume commitments, 12% volume growth in our intrastate transportation system and while we are reporting a decline -- volume decline in our intrastate system from a contract exploration, we’re also announcing new shipper requirements on EGT as a result of our open season.

Reflecting these conditions Enable recently announced a second quarter 2015 distribution of $0.3106 per unit representing a 1.1% increase over our first quarter 2015 distribution and a 10% increase over the partnerships minimum quarter distribution.

Enable remains focused on growing our distributions to unit-holders through sustain business growth superior customer service operational excellence and cost discipline, Rod will detail later, we are reaffirming our 2015 distribution growth guidance and we are providing guidance for continued distribution growth through 2017.

Enable’s natural gas gathering a processing business continues to be driven by strong producer activity and well reserves, as producers reassess or reallocate resource and is low commodity price environment they continue to put significant capital work into prolific plays around our footprint including the SCOOP, STACK Cana Woodford and Cleveland Sands plays.

In fact we have connect more wells year-to-date through July of 2015 that we did year-to-date through July of 2014. We’re also seeing strong results from our producer customer as they focused on technical resource is on a smaller number on active rigs. In the SCOOP area, Enables now gathering approximately 500 million cubic feet per day of natural gas, it's a significant amount of natural gas specially given at the SCOOP as a play was announced in less than three years ago.

Excluding the areas covered by our minimum volume commitments gathering volumes were up 7% in the second quarter of 2015 compared to the second quarter of 2014. We are also continue to be the encourage by the uptick in producer activities in the leaner gas areas, currently benefiting from the minimum volume protection.