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Enable Midstream Partners: Enable Midstream Reports Third Quarter 2015 Financial Results

The following excerpt is from the company's SEC filing.

Third quarter 2015 processed volumes increased 17 percent compared to third quarter 2014

Third quarter 2015 crude oil gathered volumes increased to 16.46 thousand barrels per day (MBbl/d), an increase of 11.95 MBbl/d compared to third quarter 2014

Awarded new long-term, fee-based business in both the Gathering and Processing and Transportation and Storage segments

Announced a quarterly distribution increase to $0.318 per unit

OKLAHOMA CITY--(BUSINESS WIRE)--November 4, 2015--Enable Midstream Partners, LP (NYSE: ENBL) today announced financial results for third quarter 2015. Net loss attributable to the partnership was $985 million for third quarter 2015, a decrease in earnings of $1,124 million compared to $139 million in net income attributable to the partnership for third quarter 2014.

The net loss attributable to the partnership for third quarter 2015 reflects a non-cash impairment of $1,105 million resulting from a $1,087 million non-cash impairment of goodwill and an $18 million non-cash impairment of long-lived assets. Excluding these items, adjusted net income attributable to the partnership was $120 million for third quarter 2015, a decrease of $20 million compared to $140 million in adjusted net income attributable to the partnership for third quarter 2014.

Adjusted EBITDA for third quarter 2015 was $221 million, a decrease of $10 million, or 4 percent, compared to $231 million for third quarter 2014.

Distributable cash flow (DCF) for third quarter 2015 was $153 million, a decrease of $8 million, or 5 percent, compared to $161 million for third quarter 2014.

Excluding the impact of the non-cash impairment, the decrease in net income attributable to the partnership, adjusted EBITDA and DCF is primarily a result of lower gross margin due to lower commodity prices.

MANAGEMENT PERSPECTIVE

“Enable Midstream continues to expand its gathering and processing footprint in the Anadarko basin through recently awarded long-term, fee-based gathering and processing business with dedications totaling approximately 380,000 gross acres,” said Enable Midstream President and CEO Pete Delaney. “Enable’s large market share in the prolific plays of the Anadarko basin continues to drive volume growth even in this low commodity price environment.”

“In the Transportation and Storage segment, Enable was recently awarded additional firm, fee-based natural gas transportation business serving a natural gas power plant and a large local distribution company. Enable is also focused on developing natural gas takeaway solutions for customers, including additional natural gas takeaway capacity out of the Anadarko basin.”

“As commodity environment challenges look to persist in the near-term, Enable is well positioned with a strong balance sheet, ample liquidity and significant fee-based cash flows and will remain financially disciplined with a focus on managing costs and deploying capital efficiently.”

PARTNERSHIP INCREASES QUARTERLY DISTRIBUTION

As previously announced by Enable, on October 22, 2015, the board of directors of the partnership’s general partner declared a quarterly cash distribution of $0.318 per unit on all outstanding common and subordinated units for the quarter ended September 30, 2015. The distribution represents the fifth consecutive quarterly distribution increase since Enable paid its first quarterly distribution for the second quarter of 2014 and will be paid November 13, 2015, to unitholders of record at the close of business on November 3, 2015.

BUSINESS HIGHLIGHTS

In the Gathering and Processing segment, Enable’s per day natural gas processed volumes have increased quarter over quarter for the sixth consecutive quarter driven by strong producer activity and results in the Anadarko Basin, which includes the SCOOP, STACK and Cana Woodford plays. Recently, Enable was awarded new long-term gathering and processing business with dedications totaling approximately 380,000 gross acres in the Oklahoma Deep Mississippi, SCOOP and Greater Granite Wash plays. The partnership remains on target to add two additional 200 MMcf/d natural gas processing facilities in the SCOOP to support growing production. A 200 MMcf/d plant located in Grady County, Oklahoma, is anticipated to be in service by the first quarter of 2016 and the 200 MMcf/d Wildhorse plant, located in Garvin County, Oklahoma, is anticipated to be in service by the first quarter of 2017. During the third quarter, the partnership also added 6,900 horsepower of compression in the SCOOP, bringing total compression horsepower in that area to approximately 181,000.

In the Bakken, crude gathered volumes on Enable’s 19.5 MBbl/d Bear Den crude gathering system are currently approaching the system’s stated capacity. Crude gathered volumes on the Nesson crude gathering system continue to increase with construction completion now anticipated in the second quarter of 2016.

In the Transportation and Storage segment, the partnership was recently awarded almost 300,000 Dth/d of additional firm, fee-based transportation business to serve a natural gas power plant and a large local distribution company. The previously announced Enable Gas Transmission (EGT) expansion related to the open season conducted earlier this year is expected to be in service during the second quarter of 2017. Currently, Enable has received shipper commitments in excess of 175,000 dekatherms per day (Dth/d) related to the open season. In addition, Enable’s Bradley Lateral, an EGT lateral serving growing Oklahoma production, is still expected to be completed in the fourth quarter of 2015.

The partnership targets fee-based contracts on a firm basis, when possible. For 2016, the partnership anticipates approximately 90 percent of gross margin will be either fee-based or hedged. Over the same period, the partnership anticipates that a 10 percent increase or decrease in the price of natural gas and ethane from forecasted levels would result in an increase or decrease of approximately $5 million in Adjusted EBITDA while a 10 percent increase or decrease in the price of NGLs (excluding ethane) and condensate from forecasted levels would result in an increase or decrease of approximately $3 million in Adjusted EBITDA.

KEY OPERATING STATISTICS

Natural gas gathered volumes were 3.17 trillion British thermal units per day (TBtu/d) for third quarter 2015, a decrease of 5 percent compared to 3.32 TBtu/d for third quarter 2014. The decrease was due primarily to lower gathered volumes in the Ark-La-Tex and Arkoma basins, partially offset by higher gathered volumes in the Anadarko basin. Much of the decrease in the Ark-La-Tex and Arkoma basins is expected to be offset by payments under minimum volume commitment contracts.

Natural gas processed volumes were 1.87 TBtu/d for third quarter 2015, an increase of 17 percent compared to 1.60 TBtu/d for third quarter 2014. The increase was primarily related to processed volume growth in the Anadarko basin, including growth from the liquids rich SCOOP play.

Gross NGL production was 83.80 MBbl/d for third quarter 2015, an increase of 23 percent compared to 68.11 MBbl/d for third quarter 2014. The increase was primarily related to increased...


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