Enable posts profit on increased volumes
Enable Midstream Partners LP recorded a third-quarter profit of $113 million as the company expanded its pipeline network and recorded the seventh consecutive quarter of increased volumes.
The Oklahoma Citybased natural gas transportation and processing company’s gathering volumes increased 11 percent from the yearago quarter while processing volumes grew by 7 percent, the company said.
“The third quarter marked the partnership’s highest quarter for natural gas gathered volumes, crude oil gathered volumes and intrastate transportation average deliveries,” CEO Rod Sailor said during a conference call with analysts Tuesday morning.
Enable started the fourth quarter by completing its previously announced $300 million purchase of Align Midstream LLC and its natural gas gathering and processing facilities in the Cotton Valley and Haynesville plays of the Ark-La-Tex Basin. The deal includes 190 miles of natural gas gathering pipelines in east Texas and northwest Louisiana.
“The integration of these assets will allow us to optimize our midstream platform in the basin and will give us the ability to offer our customers an expanded suite of midstream services,” Sailor said.
The company also has announced plans to expand capacity in Oklahoma with Project Wildcat and the Cana and STACK Expansion (CaSE) project. Together, the projects are designed to transport up to 600 million cubic feet of natural gas per day.
Enable’s system supported 40 drilling rigs as of Oct. 26, the company said.
Strong gathering and processing volumes contributed to Enable’s third-quarter profit of $113 million, or 24 cents a share, compared to a net income of $119 million, or 26 cents a share, in the year-ago period.
Revenues were $542 million, up from $455 million one year ago. Gross margin was $346 million, down from $352 million one year ago.
Adjusted earnings before interest, taxes, depreciation and amortization was $250 million, up from $244 million one year ago. Distributable cash flow was $187 million compared to $189 million in the year-ago quarter.
Enable directors on Wednesday declared a quarterly distribution of 31.8 cents per common unit payable Nov. 32 to unit holders as of Nov. 14. Directors also declared a distribution of 62.5 cents per Series A preferred unit, payable Nov. 14 to unit holders as of Oct. 31.
Enable shares gained 34 cents, or 2.3 percent, Wednesday to close at $15.43.