- On track to achieve the capital and cost reductions announced
earlier this year
- All wells that were shut-in due to depressed commodity prices
have been brought back online
- Recontracted approximately 190,000 dekatherms per day (Dth/d)
of transportation capacity during the quarter, bringing total
transportation recontracting for 2020 to nearly 1,450,000
Dth/d
- Recently received the Federal Energy Regulatory Commission’s
(FERC) Environmental Assessment for the Gulf Run Pipeline, a key
milestone for the project
- Released Enable’s inaugural sustainability report, highlighting
the partnership’s commitment to transparency and sustainable
business practices
- Declared a quarterly cash distribution of $0.16525 per unit on
all outstanding common units and $0.625 on all outstanding Series A
Preferred Units
Enable Midstream Partners, LP (NYSE: ENBL) today announced
financial and operating results for third quarter 2020.
Net loss attributable to limited partners was $164 million for
third quarter 2020, a decrease of $296 million compared to $132
million of net income for third quarter 2019. Net loss attributable
to common units was $173 million for third quarter 2020, a decrease
of $296 million compared to $123 million of net income for third
quarter 2019. Enable’s net loss for third quarter 2020 was due to a
$225 million non-cash other than temporary impairment on its
investment in Southeast Supply Header, LLC. Net cash provided by
operating activities was $232 million for third quarter 2020, a
decrease of $32 million compared to $264 million for third quarter
2019. Adjusted EBITDA was $229 million for third quarter 2020, a
decrease of $66 million compared to $295 million for third quarter
2019. Distributable cash flow (DCF) was $147 million for third
quarter 2020, a decrease of $55 million compared to $202 million
for third quarter 2019.
For third quarter 2020, DCF exceeded declared distributions to
common unitholders by $75 million, resulting in a distribution
coverage ratio of 2.04x.
For additional information regarding the non-GAAP financial
measures Gross margin, Adjusted EBITDA, DCF, Adjusted interest
expense and distribution coverage ratio, please see “Non-GAAP
Financial Measures.”
MANAGEMENT PERSPECTIVE
“We continue to focus on what we can control, optimizing our
capital deployment, providing safe and reliable operations and
implementing cost reductions while directing excess cash flow to
reducing debt,” said Rod Sailor, president and CEO. “I am very
proud of our employees for providing a high level of service during
these challenging times.
“In addition, we continue to deliver on other important
initiatives such as our recently released inaugural sustainability
report. Sustainable business practices are deeply embedded across
our business, and this report provides our stakeholders with a
transparent view of our progress and initiatives.”
BUSINESS HIGHLIGHTS
Enable’s inaugural sustainability report marks an important step
in the partnership’s sustainability journey. The report focuses on
environmental, social and governance issues and is aligned with the
voluntary Sustainability Accounting Standards Board (SASB)
reporting standards for midstream companies, allowing for better
comparisons of Enable’s sustainability performance. The report is
available on the partnership’s website at https://enablemidstream.com/sustainability.
As of Sept. 1, 2020, all wells that were shut-in due to
depressed commodity prices have been brought back online, and
Enable has not experienced any noticeable production performance
degradation from these wells. As of Oct. 28, 2020, there were six
rigs across Enable’s footprint that were drilling wells expected to
be connected to Enable’s gathering systems. Three of those rigs
were in the Anadarko Basin, and three were in the Ark-La-Tex
Basin.
Enable remains focused on contracting firm, fee-based
transportation capacity. Through Sept. 30, 2020, Enable has
contracted nearly 1,450,000 Dth/d of firm transportation capacity
at an average volume-weighted contract life of over five years.
During third quarter 2020, Enable contracted or extended
approximately 190,000 Dth/d of firm transportation capacity.
On Oct. 29, 2020, FERC issued an Environmental Assessment for
the Gulf Run Pipeline project. The deadline for other federal
agencies to provide authorization for the project is Jan. 27, 2021.
Backed by a 20-year commitment for 1.1 billion cubic feet per day
(Bcf/d) from cornerstone shipper Golden Pass LNG, the project is
proceeding on schedule and is expected to be placed into service in
late 2022, subject to FERC approval. While the currently filed
project scope provides for capacity in excess of Golden Pass’s firm
commitment, Enable continues to review the scope in light of
current contracting levels, commercial dialogue and construction
costs.
Underpinned by a firm, five-year commitment, Enable Gas
Transmission, LLC’s MASS project is designed to deliver gas from
the Anadarko and Arkoma Basins to delivery points with access to
emerging Gulf Coast markets and growing demand markets in the
Southeast. Project construction recently began following the
receipt of all regulatory approvals, and the project is expected to
be placed into service during second quarter 2021.
QUARTERLY DISTRIBUTIONS
On Nov. 3, 2020, 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,
2020. The distribution is unchanged from the previous quarter and
represents Enable’s 26th 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. 24, 2020, to unitholders of record
at the close of business Nov. 17, 2020.
The board declared a quarterly cash distribution of $0.625 per
unit on all outstanding Series A Preferred Units for the quarter
ended Sept. 30, 2020. The quarterly cash distribution of $0.625 per
unit on all outstanding Series A Preferred Units will be paid Nov.
13, 2020, to unitholders of record at the close of business Nov. 3,
2020.
KEY OPERATING STATISTICS
Natural gas gathered volumes were 4.07 trillion British thermal
units per day (TBtu/d) for third quarter 2020, a decrease of 9%
compared to 4.47 TBtu/d for third quarter 2019. The decrease was
primarily a result of lower production activity across all basins,
inclusive of continued producer shut-ins in the Anadarko Basin that
ended during third quarter 2020.
Natural gas processed volumes were 2.06 TBtu/d for third quarter
2020, a decrease of 17% compared to 2.49 TBtu/d for third quarter
2019. The decrease was due to lower processed volumes across all
basins.
Crude oil and condensate gathered volumes were 138.02 thousand
barrels per day (MBbl/d) for third quarter 2020, an increase of 4%
compared to 132.99 MBbl/d for third quarter 2019. The increase was
primarily due to an increase in crude oil and condensate gathered
volumes in the Anadarko Basin, partially offset by a decrease in
crude oil gathered volumes in the Williston Basin.
Transported natural gas volumes were 4.78 TBtu/d for third
quarter 2020, a decrease of 20% compared to 5.97 TBtu/d for third
quarter 2019. The decrease was primarily due to decreased
production in the Anadarko Basin, which contributed to lower
utilization of Enable’s interstate and intrastate pipelines.
Interstate transportation firm contracted capacity was 5.73
Bcf/d for third quarter 2020, a decrease of 5% compared to 6.02
Bcf/d for third quarter 2019. The decrease was primarily related to
contract expirations, including lower recontracted capacity on the
Enable Mississippi River Transmission, LLC (MRT) system.
Intrastate transportation average deliveries were 1.74 TBtu/d
for third quarter 2020, a decrease of 17% compared to 2.10 TBtu/d
for third quarter 2019. The decrease was primarily due to decreased
production activity in the Anadarko Basin, including continued
producer shut-ins that ended during third quarter 2020.
THIRD QUARTER FINANCIAL
PERFORMANCE
Revenues were $596 million for third quarter 2020, a decrease of
$103 million compared to $699 million for third quarter 2019.
Revenues are net of $72 million of intercompany eliminations for
third quarter 2020 and $77 million of intercompany eliminations for
third quarter 2019.
Gathering and processing segment revenues were $463 million for
third quarter 2020, a decrease of $79 million compared to $542
million for third quarter 2019. The decrease in gathering and
processing segment revenues was primarily due to:
- a decrease in natural gas gathering revenues due to lower
gathered volumes, inclusive of continued producer shut-ins in the
Anadarko Basin that ended during the third quarter, lower shortfall
fees associated with the expiration of certain minimum volume
commitment contracts in the Ark-La-Tex Basin and lower revenue
associated with the third quarter 2019 amendment of certain minimum
volume commitment contracts in the Arkoma Basin,
- a decrease in changes in the fair value of natural gas,
condensate and NGL derivatives,
- a decrease in revenues from natural gas sales due to lower
sales volumes, partially offset by higher average sales
prices,
- a decrease in processing service revenues due to lower
processed volumes under fee-based arrangements, partially offset by
higher consideration received from percent-of-proceeds,
percent-of-liquids and keep-whole processing arrangements due to an
increase in retained volumes at higher average market prices as
well as an increase in the recognition of certain annual minimum
processing fees,
- a decrease in realized gains on natural gas, condensate and NGL
derivatives and
- a decrease in intercompany management fees.
These decreases were partially offset by:
- an increase in revenues from natural gas liquids (NGL) sales
primarily due to an increase in the average realized sales price
from higher average market prices for all NGL products other than
natural gasoline and higher recoveries of ethane in the Anadarko
Basin, partially offset by lower sales in the Arkoma and Ark-La-Tex
Basin primarily due to lower processed volumes and
- an increase in crude oil, condensate and produced water
gathering revenues primarily due to an increase in gathered crude
oil volumes in the Anadarko Basin, partially offset by a decrease
in gathered crude oil volumes in the Williston Basin.
Transportation and storage segment revenues were $205 million
for third quarter 2020, a decrease of $29 million compared to $234
million for third quarter 2019. The decrease in transportation and
storage segment revenues was primarily due to:
- a decrease in revenues from natural gas sales primarily due to
lower sales volumes, partially offset by higher average sales
prices,
- a decrease in volume-dependent transportation and storage
revenues due to lower off-system intrastate transportation rates
and lower transported volumes due to decreased production activity
in the Anadarko Basin,
- a decrease in revenues from NGL sales due to lower average
sales prices and lower volumes and
- a decrease in firm transportation and storage services due to
lower interstate contracted capacity, partially offset by higher
recognized rates subsequent to the settlement of the MRT rate
case.
These decreases were partially offset by realized gains on
natural gas derivatives.
Gross margin was $346 million for third quarter 2020, a decrease
of $90 million compared to $436 million for third quarter 2019.
Gathering and processing segment gross margin was $219 million
for third quarter 2020, a decrease of $85 million compared to $304
million for third quarter 2019. The decrease in gathering and
processing segment gross margin was primarily due to:
- a decrease in natural gas gathering fees due to lower gathered
volumes, inclusive of continued producer shut-ins in the Anadarko
Basin that ended during the third quarter, lower shortfall fees
associated with the expiration of certain minimum volume commitment
contracts in the Ark-La-Tex Basin and lower revenue associated with
the third quarter 2019 amendment of certain minimum volume
commitment contracts in the Arkoma Basin,
- a decrease in revenues from natural gas sales due to lower
sales volumes, partially offset by higher average sales
prices,
- a decrease in changes in the fair value of natural gas,
condensate and NGL derivatives,
- a decrease in realized gains on natural gas, condensate and NGL
derivatives and
- a decrease in processing service revenues.
These decreases were partially offset by:
- an increase in revenues from NGL sales due to higher average
sales prices for all NGL products other than natural gasoline
and
- an increase in crude oil, condensate and produced water
gathering revenues primarily due to an increase in gathered crude
oil volumes in the Anadarko Basin, partially offset by a decrease
in gathered crude oil volumes in the Williston Basin.
Transportation and storage segment gross margin was $127 million
for third quarter 2020, a decrease of $5 million compared to $132
million for third quarter 2019. The decrease in transportation and
storage segment gross margin was primarily due to:
- a decrease in volume-dependent transportation and storage
revenues due to lower off-system intrastate transportation rates
and lower transported volumes due to decreased production activity
in the Anadarko Basin,
- a decrease in firm transportation and storage services due to
lower interstate contracted capacity, partially offset by higher
recognized rates subsequent to the settlement of the MRT rate case
and
- a decrease due to incremental lower of cost or net realizable
value adjustments related to natural gas storage inventories.
These decreases were partially offset by an increase in system
management activities and an increase in realized gains on natural
gas derivatives.
Operation and maintenance and general and administrative
expenses were $124 million for third quarter 2020, a decrease of
$12 million compared to $136 million for third quarter 2019. The
decrease in operation and maintenance and general and
administrative expenses was primarily due to a decrease related to
claims settlement costs in the prior year with no comparable
activity in the current year, a decrease due to a reduction in the
estimated retirement loss previously recognized in 2019 related to
a physical property loss, a decrease in compressor rentals, a
decrease in professional services due to higher rate case costs in
the prior year and a decrease in payroll-related costs. These
decreases were partially offset by an increase in materials and
supplies and outside services due to pipeline safety and storage
integrity work under our pipeline safety program and to comply with
certain PHMSA regulations as well as the timing of routine
operation and maintenance activities and an increase due to lower
capitalized overhead costs.
Depreciation and amortization expense was $105 million for third
quarter 2020, a decrease of $3 million compared to $108 million for
third quarter 2019. The decrease in depreciation and amortization
expense was primarily related to new depreciation rates implemented
in the prior year, which resulted in higher depreciation expense in
2019 for certain assets with shorter remaining useful lives, as
compared to 2020, partially offset by additional assets placed in
service.
Interest expense was $43 million for third quarter 2020, a
decrease of $5 million compared to $48 million for third quarter
2019. The decrease was primarily due to lower interest rates on the
partnership’s short-term borrowings.
Capital expenditures were $50 million for third quarter 2020,
compared to $101 million for third quarter 2019. Expansion capital
expenditures were $19 million for third quarter 2020, compared to
$65 million for third quarter 2019. Maintenance capital
expenditures were $31 million for third quarter 2020, compared to
$36 million for third quarter 2019.
2020 OUTLOOK
As compared to the 2020 outlook presented in its first quarter
2020 financial results press release dated May 6, 2020, Enable
anticipates performing below the projected range for net income
attributable to common units due to the non-cash impairment of
equity method affiliates in third quarter 2020 and in the upper
half of the projected ranges for Adjusted EBITDA and DCF. Excluding
the third quarter 2020 non-cash impairment of equity method
affiliates, Enable would have anticipated performing in the upper
half of the first quarter’s anticipated range for net income
attributable to common units.
EARNINGS CONFERENCE CALL AND
WEBCAST
A conference call discussing third quarter results is scheduled
today at 10 a.m. EST (9 a.m. CST). The toll-free dial-in number to
access the conference call is 833-968-1938, and the international
dial-in number is 778-560-2726. The conference call ID is 8109667.
Investors may also listen to the call via Enable’s website at
https://investors.enablemidstream.com. Replays of the conference
call will be available on Enable’s website.
AVAILABLE INFORMATION
Enable files annual, quarterly and other reports and other
information with the U.S. Securities and Exchange Commission (SEC).
Enable’s SEC filings are also available at the SEC’s website at
https://www.sec.gov which contains information regarding issuers
that file electronically with the SEC. Information about Enable may
also be obtained at the offices of the NYSE, 20 Broad Street, New
York, New York 10005, or on Enable’s website at https://enablemidstream.com. On the Investor
Relations section of Enable’s website,
https://investors.enablemidstream.com, Enable makes available free
of charge a variety of information to investors. Enable’s goal is
to maintain the Investor Relations section of its website as a
portal through which investors can easily find or navigate to
pertinent information about Enable, including but not limited
to:
- Enable’s annual reports on Form 10-K, quarterly reports on Form
10-Q, current reports on Form 8-K and any amendments to those
reports as soon as reasonably practicable after Enable
electronically files that material with or furnishes it to the
SEC;
- press releases on quarterly distributions, quarterly earnings
and other developments;
- governance information, including Enable’s governance
guidelines, committee charters and code of ethics and business
conduct;
- information on events and presentations, including an archive
of available calls, webcasts and presentations;
- news and other announcements that Enable may post from time to
time that investors may find useful or interesting; and
- opportunities to sign up for email alerts and RSS feeds to have
information pushed in real time.
ABOUT ENABLE MIDSTREAM
PARTNERS
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. For more information, visit
https://enablemidstream.com.
This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Brokers and nominees should treat
one hundred percent (100.0%) of Enable’s distributions to foreign
investors as being attributable to income that is effectively
connected with a United States trade or business. Accordingly,
Enable’s distributions to foreign investors are subject to federal
income tax withholding at the highest applicable effective tax
rate. Brokers and nominees, and not Enable, are treated as the
withholding agents responsible for withholding on the distributions
received by them on behalf of foreign investors.
NON-GAAP FINANCIAL
MEASURES
Enable has included the non-GAAP financial measures Gross
margin, Adjusted EBITDA, DCF, Adjusted interest expense and
distribution coverage ratio in this press release based on
information in its consolidated financial statements.
Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense
and distribution coverage ratio are supplemental financial measures
that management and external users of Enable’s financial
statements, such as industry analysts, investors, lenders and
rating agencies may use, to assess:
- Enable’s operating performance as compared to those of other
publicly traded partnerships in the midstream energy industry,
without regard to capital structure or historical cost basis;
- The ability of Enable’s assets to generate sufficient cash flow
to make distributions to its partners;
- Enable’s ability to incur and service debt and fund capital
expenditures; and
- The viability of acquisitions and other capital expenditure
projects and the returns on investment of various investment
opportunities.
This press release includes a reconciliation of Gross margin to
total revenues, Adjusted EBITDA and DCF to net income attributable
to limited partners, Adjusted EBITDA to net cash provided by
operating activities and Adjusted interest expense to interest
expense, the most directly comparable GAAP financial measures as
applicable, for each of the periods indicated. Distribution
coverage ratio is a financial performance measure used by
management to reflect the relationship between Enable’s financial
operating performance and cash distributions. Enable believes that
the presentation of Gross margin, Adjusted EBITDA, DCF, Adjusted
interest expense and distribution coverage ratio provides
information useful to investors in assessing its financial
condition and results of operations. Gross margin, Adjusted EBITDA,
DCF, Adjusted interest expense and distribution coverage ratio
should not be considered as alternatives to net income, operating
income, total revenue, cash flow from operating activities or any
other measure of financial performance or liquidity presented in
accordance with GAAP. Gross margin, Adjusted EBITDA, DCF, Adjusted
interest expense and distribution coverage ratio have important
limitations as analytical tools because they exclude some but not
all items that affect the most directly comparable GAAP measures.
Additionally, because Gross margin, Adjusted EBITDA, DCF, Adjusted
interest expense and distribution coverage ratio may be defined
differently by other companies in Enable’s industry, its
definitions of these measures may not be comparable to similarly
titled measures of other companies, thereby diminishing their
utility.
FORWARD-LOOKING
STATEMENTS
Some of the information in this press release may contain
forward-looking statements. Forward-looking statements give our
current expectations and contain projections of results of
operations or of financial condition, or forecasts of future
events. Words such as “could,” “will,” “should,” “may,” “assume,”
“forecast,” “position,” “predict,” “strategy,” “expect,” “intend,”
“plan,” “estimate,” “anticipate,” “believe,” “project,” “budget,”
“potential,” or “continue,” and similar expressions are used to
identify forward-looking statements. Without limiting the
generality of the foregoing, forward-looking statements contained
in this press release include our expectations of plans,
strategies, objectives, growth and anticipated financial and
operational performance, including our 2020 outlook presented in
our first quarter 2020 financial results press release dated May 6,
2020, as updated by this press release. In particular, our
statements with respect to continuity plans and preparedness
measures we have implemented in response to the novel coronavirus
(COVID-19) pandemic and its expected impact on our business,
operations, earnings and results are forward-looking statements.
Forward-looking statements can be affected by assumptions used or
by known or unknown risks or uncertainties. Consequently, no
forward-looking statements can be guaranteed.
A forward-looking statement may include a statement of the
assumptions or bases underlying the forward-looking statement. We
believe that we have chosen these assumptions or bases in good
faith and that they are reasonable. However, when considering these
forward-looking statements, you should keep in mind the risk
factors and other cautionary statements in this press release, our
Quarterly Report on Form 10-Q for the three months ended March 31,
2020 (March 31 Quarterly Report), and our Annual Report on Form
10-K for the year ended Dec. 31, 2019 (Annual Report). Those risk
factors and other factors noted throughout this press release and
in our March 31 Quarterly Report and Annual Report could cause our
actual results to differ materially from those disclosed in any
forward-looking statement. You are cautioned not to place undue
reliance on any forward-looking statements.
Any forward-looking statements speak only as of the date on
which such statement is made, and we undertake no obligation to
correct or update any forward-looking statement, whether as a
result of new information or otherwise, except as required by
applicable law.
ENABLE MIDSTREAM PARTNERS,
LP
CONSOLIDATED STATEMENTS OF
INCOME
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
2020
2019
(In millions, except per unit
data)
Revenues (including revenues from
affiliates):
Product sales
$
280
$
320
$
764
$
1,156
Service revenue
316
379
995
1,073
Total Revenues
596
699
1,759
2,229
Cost and Expenses (including expenses
from affiliates):
Cost of natural gas and natural gas
liquids (excluding depreciation and amortization shown
separately)
250
263
653
958
Operation and maintenance
96
105
313
307
General and administrative
28
31
73
82
Depreciation and amortization
105
108
314
323
Impairments of property, plant and
equipment and goodwill
—
—
28
—
Taxes other than income tax
17
17
52
52
Total Cost and Expenses
496
524
1,433
1,722
Operating Income
100
175
326
507
Other Income (Expense):
Interest expense
(43
)
(48
)
(136
)
(142
)
Equity in earnings (loss) of equity method
affiliate, net
(222
)
5
(211
)
12
Other, net
2
1
7
2
Total Other Expense
(263
)
(42
)
(340
)
(128
)
Income Before Income Tax
(163
)
133
(14
)
379
Income tax benefit
—
—
—
(1
)
Net Income (Loss)
$
(163
)
$
133
$
(14
)
$
380
Less: Net income (loss) attributable to
noncontrolling interest
1
1
(6
)
2
Net Income (Loss) Attributable to
Limited Partners
$
(164
)
$
132
$
(8
)
$
378
Less: Series A Preferred Unit
distributions
9
9
27
27
Net Income (Loss) Attributable to
Common Units
$
(173
)
$
123
$
(35
)
$
351
Basic earnings (loss) per unit
Common units
$
(0.40
)
$
0.28
$
(0.08
)
$
0.81
Diluted earnings (loss) per
unit
Common units
$
(0.40
)
$
0.28
$
(0.08
)
$
0.81
ENABLE MIDSTREAM PARTNERS,
LP
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
2020
2019
(In millions)
Reconciliation of Gross margin to Total
Revenues:
Consolidated
Product sales
$
280
$
320
$
764
$
1,156
Service revenue
316
379
995
1,073
Total Revenues
596
699
1,759
2,229
Cost of natural gas and natural gas
liquids (excluding depreciation and amortization)
250
263
653
958
Gross margin
$
346
$
436
$
1,106
$
1,271
Reportable Segments
Gathering and Processing
Product sales
$
271
$
294
$
739
$
1,096
Service revenue
192
248
592
663
Total Revenues
463
542
1,331
1,759
Cost of natural gas and natural gas
liquids (excluding depreciation and amortization)
244
238
631
895
Gross margin
$
219
$
304
$
700
$
864
Transportation and Storage
Product sales
$
79
$
100
$
213
$
381
Service revenue
126
134
409
421
Total Revenues
205
234
622
802
Cost of natural gas and natural gas
liquids (excluding depreciation and amortization)
78
102
215
394
Gross margin
$
127
$
132
$
407
$
408
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
2020
2019
(In millions, except
Distribution coverage ratio)
Reconciliation of Adjusted EBITDA and
DCF to net income (loss) attributable to limited partners and
calculation of Distribution coverage ratio:
Net income (loss) attributable to limited
partners
$
(164
)
$
132
$
(8
)
$
378
Depreciation and amortization expense
105
108
314
323
Interest expense, net of interest
income
43
48
135
141
Income tax benefit
—
—
—
(1
)
Distributions received from equity method
affiliate in excess of equity earnings
1
(1
)
9
8
Impairment of equity method affiliate
investment
225
—
225
—
Non-cash equity-based compensation
3
4
10
13
Change in fair value of derivatives
(1)
15
2
17
3
Other non-cash losses (2)
1
2
23
9
Impairments of property, plant and
equipment and goodwill
—
—
28
—
Gain on extinguishment of debt
—
—
(5
)
—
Noncontrolling Interest Share of Adjusted
EBITDA
—
—
(9
)
(1
)
Adjusted EBITDA
$
229
$
295
$
739
$
873
Series A Preferred Unit distributions
(3)
(9
)
(9
)
(27
)
(27
)
Distributions for phantom and performance
units (4)
—
(1
)
(1
)
(10
)
Adjusted interest expense (5)
(42
)
(47
)
(134
)
(143
)
Maintenance capital expenditures
(31
)
(36
)
(69
)
(86
)
Current income taxes
—
—
1
—
DCF
$
147
$
202
$
509
$
607
Distributions related to common
unitholders (6)
$
72
$
144
$
216
$
426
Distribution coverage ratio (7)
2.04
1.40
2.36
1.42
___________________
(1)
Change in fair value of derivatives
includes changes in the fair value of derivatives that are not
designated as hedging instruments.
(2)
Other non-cash losses includes write-downs
and net loss on sale and retirement of assets.
(3)
Represents the quarterly cash
distributions on the Series A Preferred Units declared for the
three and nine months ended September 30, 2020 and 2019. In
accordance with the Partnership Agreement, the Series A Preferred
Unit distributions are deemed to have been paid out of available
cash with respect to the quarter immediately preceding the quarter
in which the distribution is made.
(4)
Distributions for phantom and performance
units represent distribution equivalent rights paid in cash.
Phantom unit distribution equivalent rights are paid during the
vesting period and performance unit distribution equivalent rights
are paid at vesting.
(5)
See below for a reconciliation of Adjusted
interest expense to Interest expense.
(6)
Represents cash distributions declared for
common units outstanding as of each respective period. Amounts for
2020 reflect estimated cash distributions for common units
outstanding for the quarter ended September 30, 2020.
(7)
Distribution coverage ratio is computed by
dividing DCF by Distributions related to common unitholders.
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
2020
2019
(In millions)
Reconciliation of Adjusted EBITDA to
net cash provided by operating activities:
Net cash provided by operating
activities
$
232
$
264
$
543
$
691
Interest expense, net of interest
income
43
48
135
141
Noncontrolling interest share of cash
provided by operating activities
(1
)
(1
)
(3
)
(2
)
Current income taxes
—
—
1
—
Other non-cash items (1)
(2
)
—
—
4
Proceeds from insurance
1
—
1
—
Changes in operating working capital which
(provided) used cash:
Accounts receivable
3
41
(27
)
(16
)
Accounts payable
(24
)
(2
)
46
110
Other, including changes in noncurrent
assets and liabilities
(39
)
(56
)
17
(66
)
Return of investment in equity method
affiliate
1
(1
)
9
8
Change in fair value of derivatives
(2)
15
2
17
3
Adjusted EBITDA
$
229
$
295
$
739
$
873
____________________
(1)
Other non-cash items includes write-downs
of assets.
(2)
Change in fair value of derivatives
includes changes in the fair value of derivatives that are not
designated as hedging instruments.
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
2020
2019
(In millions)
Reconciliation of Adjusted interest
expense to Interest expense:
Interest expense
$
43
$
48
$
136
$
142
Interest income
—
—
(1
)
(1
)
Amortization of premium on long-term
debt
—
1
1
4
Capitalized interest on expansion
capital
1
—
2
1
Amortization of debt expense and
discount
(2
)
(2
)
(4
)
(3
)
Adjusted interest expense
$
42
$
47
$
134
$
143
ENABLE MIDSTREAM PARTNERS,
LP
OPERATING DATA
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
2020
2019
Operating Data:
Natural gas gathered volumes—TBtu
374
411
1,164
1,240
Natural gas gathered volumes—TBtu/d
4.07
4.47
4.25
4.54
Natural gas processed volumes—TBtu (1)
190
229
597
689
Natural gas processed volumes—TBtu/d
(1)
2.06
2.49
2.18
2.52
NGLs produced—MBbl/d (1)(2)
133.11
117.78
122.29
128.62
NGLs sold—MBbl/d (2)(3)
138.55
118.29
127.66
131.49
Condensate sold—MBbl/d
5.58
6.16
6.50
7.36
Crude oil and condensate gathered
volumes—MBbl/d
138.02
132.99
121.38
120.17
Transported volumes—TBtu
440
549
1,532
1,703
Transported volumes—TBtu/d
4.78
5.97
5.58
6.22
Interstate firm contracted
capacity—Bcf/d
5.73
6.02
6.00
6.31
Intrastate average deliveries—TBtu/d
1.74
2.10
1.83
2.16
____________________
(1)
Includes volumes under third-party
processing arrangements.
(2)
Excludes condensate.
(3)
NGLs sold includes volumes of NGLs
withdrawn from inventory or purchased for system balancing
purposes.
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
2020
2019
Anadarko
Gathered volumes—TBtu/d
1.94
2.27
2.04
2.32
Natural gas processed volumes—TBtu/d
(1)
1.76
2.04
1.85
2.07
NGLs produced—MBbl/d (1)(2)
120.80
103.53
109.29
111.99
Crude oil and condensate gathered
volumes—MBbl/d
104.93
91.58
93.65
82.75
Arkoma
Gathered volumes—TBtu/d
0.41
0.46
0.42
0.48
Natural gas processed volumes—TBtu/d
(1)
0.08
0.10
0.08
0.10
NGLs produced—MBbl/d (1)(2)
3.94
4.42
3.96
5.89
Ark-La-Tex
Gathered volumes—TBtu/d
1.72
1.74
1.79
1.74
Natural gas processed volumes—TBtu/d
0.22
0.35
0.25
0.35
NGLs produced—MBbl/d (2)
8.37
9.83
9.04
10.74
Williston
Crude oil gathered volumes—MBbl/d
33.09
41.41
27.73
37.42
__________________
(1)
Includes volumes under third-party
processing arrangements.
(2)
Excludes condensate.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201104005081/en/
Media Leigh Ann Williams (405) 553-6947
Investor Matt Beasley (405) 558-4600
Enable Midstream Partners (NYSE:ENBL)
Historical Stock Chart
From Apr 2024 to May 2024
Enable Midstream Partners (NYSE:ENBL)
Historical Stock Chart
From May 2023 to May 2024