Enable Midstream Announces Third Quarter 2016 Financial Results, Contract Updates, Quarterly Distributions And 2017 Guidance

Enable Midstream Partners, LP (NYSE:ENBL) today announced financial results for third quarter 2016 and that the board of directors of its general partner declared quarterly cash distributions for the quarter ended September 30, 2016.

In October 2016, Enable entered into a new 10-year gas gathering and processing contract with one of the most active producers in the STACK play. This new contract replaces an existing contract with a POP processing arrangement, reduces Enable's commodity exposure and increases Enable's acreage dedications in the play by 61,400 gross acres with rates that support continued capital deployment at returns consistent with the partnership's objectives. Additionally, in the third quarter of 2016, Enable extended interstate transportation contracts expiring in 2017 with Laclede Gas Company through 2020 on Mississippi River Transmission, LLC (MRT).

Net income attributable to limited partners was $119 million for third quarter 2016 compared to the net loss attributable to limited partners of $985 million for third quarter 2015. The $985 million net loss attributable to limited partners 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.

Net cash provided by operating activities was $209 million for third quarter 2016, an increase of $2 million compared to $207 million for third quarter 2015. The increase in net cash provided by operating activities was primarily a result of a change in working capital.

Adjusted EBITDA for third quarter 2016 was $244 million, an increase of $22 million, or 10 percent, compared to $222 million for third quarter 2015. The increase in Adjusted EBITDA was primarily a result of cost reduction efforts that have reduced operation and maintenance and general and administrative expenses.

DCF for third quarter 2016 was $189 million, an increase of $35 million, or 23 percent, compared to $154 million for third quarter 2015. The increase in DCF was primarily a result of higher Adjusted EBITDA and lower maintenance capital expenditures due to lower information technology, compressor maintenance and pipe replacement spend, partially offset by the cash distributions for the Series A Preferred Units.

If you liked this article you might like

Energy M&A Weekly: More Midstream IPOs Expected in 2017

Credit Suisse Downgrades CenterPoint on Strategic Review Woes

3 Hold-Rated Dividend Stocks: GSBD, ENBL, NNA

Three Power Companies to Watch This Earnings Season

3 Hold-Rated Dividend Stocks: APLP, ENBL, HTGC