Enable Midstream posts $108 million Q4 profit
Energy Editor awilmoth@oklahoman.com
Natural gas gathered volumes have increased for eight consecutive quarters at Oklahoma City-based Enable Midstream Partners LP as the partnership expanded its pipeline network and as companies increased drilling throughout the system, the company said Tuesday.
In the fourth quarter of 2017, Enable received a 10-year natural gas gathering contract for 138,000 acres of eastern Oklahoma’s Arkoma Basin, expanding the partnership’s network in the state. Enable’s pipeline system supports 49 drill rigs, including 35 in central and western Oklahoma’s Anadarko Basin.
“As a result of the strong producer activity across our footprint, our natural gas gathering volumes have increased for eight consecutive quarters and we are wellpositioned for continued growth,” CEO Rod Sailor said in a conference call with analysts Tuesday morning.
“We will look to build on our success in 2018, leveraging our strategically located assets and highly connected system. There is significant growth in both producer supply and expected market demand around our footprint over the next couple of years, and Enable is well positioned to service that growth.”
Enable gathered 4.11 trillion British thermal units per day of natural gas in the fourth quarter, up 29 percent from the year-ago period. The company processed 2.16 trillion BTUs per day, up 17 percent from one year ago.
Backed by the increased volumes, Enable in the fourth quarter of 2017 posted record profits attributable to limited partners of $108 million, up from $68 million one year ago. The profit translates to a net income attributable to common units of $99 million, or 23 cents a unit, up from $59 million, or 14 cents a unit, in the fourth quarter of 2016.
Revenues increased to $806 million, up from $614 million one year ago. Adjusted earnings before interest, taxes, depreciation and amortization was $238 million, up from $218 million in the fourth quarter of 2016. Distributable cash flow was $146 million, up from $132 million one year earlier.
For the full year, net income attributable to limited partners was $436 million, up from $312 million in 2016. Net income to common units was $400 million, or 92 cents a unit, up from $290 million, or 68 cents a unit, in 2016.
Adjusted EBITDA was $924 million, up from $873 million one year ago. Distributable cash flow was $660 million, up from $639 million in 2016.