Quarterly / Earnings Reports | Third Quarter (3Q) Update | Financial Results | Capital Markets

Enable Midstream Third Quarter 2021 Results

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Enable Midstream Partners, LP announced financial and operating results for third quarter 2021.

Net income attributable to limited partners was $116 million for third quarter 2021, an increase of $280 million compared to $164 million of net loss for third quarter 2020. Net income attributable to common units was $107 million for third quarter 2021, an increase of $280 million compared to $173 million of net loss for third quarter 2020. 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. Net cash provided by operating activities was $265 million for third quarter 2021, an increase of $33 million compared to $232 million for third quarter 2020. Adjusted EBITDA was $269 million for third quarter 2021, an increase of $40 million compared to $229 million for third quarter 2020. Distributable cash flow (DCF) was $193 million for third quarter 2021, an increase of $46 million compared to $147 million for third quarter 2020.

For third quarter 2021, DCF exceeded declared distributions to common unitholders by $121 million, resulting in a distribution coverage ratio of 2.68x.

Rod Sailor, president and CEO, said: “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. 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.

“As the expected close date of the Enable and Energy Transfer merger draws near, I want to thank everyone who has partnered with us over the years, including our employees and their families, our customers, our investors and all of the communities across our footprint.”

Highlights:

• Achieved higher net income attributable to limited partners, Adjusted EBITDA and DCF for third quarter 2021 compared to third quarter 2020, primarily as a result of higher commodity prices and higher natural gas gathering and processing volumes as compared to production curtailments experienced during the third quarter of 2020
• Fully funded the partnership’s capital program and distributions for third quarter 2021 while reducing leverage, with total debt to Adjusted EBITDA now at approximately 3.7x on a trailing twelve-month basis
• 17 rigs were drilling wells across Enable’s footprint expected to be connected to Enable’s gathering systems as of Oct. 25, 2021, an increase of 7 rigs compared to July 28, 2021; 11 rigs are currently operating in the Anadarko Basin, 5 rigs are currently operating in the Ark-La-Tex Basin and 1 rig is currently operating in the Arkoma Basin
• Continued to advance the Gulf Run Pipeline project
  • Filed an Implementation Plan Aug. 24, 2021, in compliance with the Federal Energy Regulatory Commission’s (FERC) June 1, 2021 order
  • Received an individual, project-specific permit from the U.S. Army Corps of Engineers
  • Received a Notice to Proceed with Construction from FERC Oct. 19, 2021, granting approval to proceed with construction activities for the project
  • Selected a general contractor for construction of the project
  • Expect the project to be operational to serve customers by late 2022, with construction activities commencing in early 2022
  • Expect the project to have an initial capacity of approximately 1.7 billion cubic feet per day (Bcf/d), with the ability to expand to approximately 2.7 Bcf/d by adding additional compression
• Contracted or extended over 250,000 dekatherms per day (Dth/d) of transportation capacity during third quarter 2021 on Enable Gas Transmission, LLC (EGT), Enable Mississippi River Transmission, LLC (MRT) and Enable Oklahoma Intrastate Transmission, LLC (EOIT)
• Received FERC approval for firm park and loan (PAL) service on the EGT pipeline system, a service designed to provide firm physical supply during periods of critical need such as February’s winter storm event; currently working through contractual details with shippers who bid for capacity during a recent open season

Energy Transfer Update

Enable and Energy Transfer LP (NYSE: ET) continue to work with the Federal Trade Commission regarding the agency’s review under the Hart-Scott-Rodino Act of the proposed merger transaction. Enable expects the transaction will close by year-end 2021.

Quarterly Distributions

As previously announced, on Oct. 26, 2021, the board of directors of Enable’s general partner declared a quarterly cash distribution of $0.16525 per unit on all outstanding common units for the quarter ended Sept. 30, 2021. The distribution is unchanged from the previous quarter and represents Enable’s 30th consecutive quarterly distribution since the partnership’s initial public offering in April 2014. The quarterly cash distribution of $0.16525 per unit on all outstanding common units will be paid Nov. 17, 2021, to unitholders of record at the close of business Nov. 8, 2021.

As also previously announced, the board declared a quarterly cash distribution of $0.5403 per unit on all outstanding Series A Preferred Units for the quarter ended Sept. 30, 2021. The quarterly cash distribution of $0.5403 per unit on all outstanding Series A Preferred Units will be paid Nov. 12, 2021, to unitholders of record at the close of business Oct. 26, 2021.