Enable Midstream sets transportation record

Booming oil and natural gas activity throughout central and northwestern Oklahoma led to record transportation volumes for Enable Midstream Partners in the first quarter.

The Oklahoma Citybased pipeline company said Wednesday it transported 4.28 million dekatherms per day in the first quarter, up 30 percent from 3.29 million dekatherms per day in the first quarter of 2017. One dekatherm is roughly equivalent to the heat energy released from the burning of 1,000 cubic feet of natural gas.

“We continue to build out our system to accommodate volumetric growth,” John Laws, Enable’s executive vice president, chief financial officer and treasurer, said Wednesday morning during a conference call with analysts.

“We will see additional growth as we continue to make investments in expanding the capacity of the system. We feel like we can accommodate the growth we’re expecting there.”

Transportation volumes increased for the ninth consecutive quarter at Enable, backed by 40 drilling rigs active across the company’s operating area.

Volume growth is likely to continue as the company this year has contracted or added more than 300,000 dekatherms per day of capacity on its interstate system and 75,000 dekatherms per day of capacity on its intrastate system.

Enable’s previously announced Wildcat CaSE and Muskogee projects also are expected online by the end of the year, boosting the company’s system capacity by a combined 833,000 dekatherms per day.

“With the strong firstquarter performance and expectations for continued strong business performance for 2018, we have updated our 2018 outlook,” CEO Rod Sailor said Wednesday.

For the full year, the company now is expected to gather between 4.1 million and 4.8 million dekatherms per day and process between 2.3 million and 2.8 million dekatherms per day.

Enable on Wednesday reported a first-quarter profit of $114 million, or 24 cents a share, down from $120 million, or 26 cents a share in the yearago period. Revenues increased to $748 million, up from $666 million in the first quarter of 2017.

Adjusted earnings before interest, taxes, depreciation and amortization was $257 million up from $221 million in the first quarter of 2017. Distributable cash flow increased to $196 million, up from $171 million one year ago.

Enable shares slipped 31 cents, or 2.1 percent, Wednesday to close at $14.15 on the New York Stock Exchange.