- Contracted or extended over 950,000 dekatherms per day (Dth/d)
of transportation capacity during second quarter 2020
- Received a firm, 80,000 Dth/d commitment for Enable Mississippi
River Transmission, LLC’s (MRT) Southbound Expansion project
- Achieved record quarterly Ark-La-Tex Basin natural gas gathered
volumes
- On track to achieve the capital and cost reductions announced
earlier this year
- Reaffirming 2020 financial outlook
- 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 second quarter 2020.
Net income attributable to limited partners was $44 million for
second quarter 2020, a decrease of $80 million compared to $124
million for second quarter 2019. Net income attributable to common
units was $35 million for second quarter 2020, a decrease of $80
million compared to $115 million for second quarter 2019. Net cash
provided by operating activities was $111 million for second
quarter 2020, a decrease of $101 million compared to $212 million
for second quarter 2019. Adjusted EBITDA was $224 million for
second quarter 2020, a decrease of $57 million compared to $281
million for second quarter 2019. Distributable cash flow (DCF) was
$148 million for second quarter 2020, a decrease of $49 million
compared to $197 million for second quarter 2019.
Enable uses derivatives to manage commodity price risk, and the
gain or loss associated with these derivatives is recognized in
earnings. Enable’s net income attributable to limited partners and
net income attributable to common units for second quarter 2020
included a $5 million loss on commodity derivative activity,
compared to a $16 million gain on commodity derivative activity for
second quarter 2019, resulting in a decrease in net income of $21
million. The decrease of $21 million is comprised of a decrease
related to the change in fair value of commodity derivatives of $23
million, partially offset by an increase in realized gain on
commodity derivatives of $2 million.
For second quarter 2020, DCF exceeded declared distributions to
common unitholders by $76 million, resulting in a distribution
coverage ratio of 2.06x.
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
“With producers bringing shut-in wells in oilier plays back to
our gathering systems earlier than anticipated, we saw less than
expected curtailment of crude-focused production during the second
quarter,” said Rod Sailor, president and CEO. “Highlighting the
strength of the Haynesville Shale play, the second quarter also saw
the highest quarter of natural gas gathered volumes in the
Ark-La-Tex Basin since the partnership’s inception. Enable
continues to operate at a high level of safety and reliability
through these uncertain times, and we remain on track to achieve
the capital and cost reductions announced in April of this
year.”
BUSINESS AND FINANCIAL
HIGHLIGHTS
During second quarter 2020, Enable contracted or extended over
950,000 Dth/d of firm transportation capacity, including previously
announced recontracted capacity with Enable Gas Transmission, LLC’s
(EGT) largest customer, CenterPoint Energy Resources Corp (CERC).
The contract term for most of the renewed CERC capacity is nine
years, and the effective date of the new contracts will be April 1,
2021.
On July 7, 2020, Federal Energy Regulatory Commission (FERC)
staff issued a revised schedule for the completion of the
environmental assessment for the Gulf Run Pipeline project. The
FERC’s current schedule anticipates an environmental assessment
will be issued by Oct. 29, 2020. The project is proceeding on
schedule and is expected to be placed into service in late 2022,
subject to FERC approval. EGT’s MASS project, a supply-driven
project 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, also remains on schedule
and is expected to be placed into service in the second quarter of
2021.
MRT recently received a five-year commitment for 80,000 Dth/d of
firm capacity for the pipeline’s Southbound Expansion project. The
project will provide transportation capacity from various receipt
points on MRT’s East Line to various delivery points in MRT’s
Market and Field Zones and is scheduled to go into service in the
fourth quarter of 2020.
As of July 29, 2020, there were seven 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, three were in the Ark-La-Tex Basin and one was in
the Williston Basin. The partnership’s Ark-La-Tex Basin natural gas
gathering system gathered record quarterly volumes for second
quarter 2020, driven by continued producer investment in the
Haynesville Shale play. Producers continue to bring shut-in natural
gas, crude oil and condensate volumes back online, and Enable has
not experienced a degradation in production from these wells.
During second quarter 2020, the partnership repurchased
approximately $22 million aggregate principal amount of senior
notes in the open market for approximately $17 million plus accrued
interest. These repurchases resulted in a $5 million gain on
extinguishment of debt. The partnership will continue to evaluate
opportunistic note repurchases based on market conditions and
available liquidity.
QUARTERLY DISTRIBUTIONS
On Aug. 4, 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 June 30,
2020. The distribution is unchanged from the previous quarter. The
quarterly cash distribution of $0.16525 per unit on all outstanding
common units will be paid Aug. 25, 2020, to unitholders of record
at the close of business Aug. 18, 2020.
The board declared a quarterly cash distribution of $0.625 per
unit on all outstanding Series A Preferred Units for the quarter
ended June 30, 2020. The quarterly cash distribution of $0.625 per
unit on all outstanding Series A Preferred Units will be paid Aug.
14, 2020, to unitholders of record at the close of business Aug. 4,
2020.
KEY OPERATING STATISTICS
Natural gas gathered volumes were 4.14 trillion British thermal
units per day (TBtu/d) for second quarter 2020, a decrease of 10%
compared to 4.62 TBtu/d for second quarter 2019. The decrease was
primarily due to shut-in production in the Anadarko Basin,
partially offset by higher gathered volumes in the Ark-La-Tex
Basin.
Natural gas processed volumes were 2.04 TBtu/d for second
quarter 2020, a decrease of 20% compared to 2.54 TBtu/d for second
quarter 2019. The decrease was due to lower processed volumes
across all basins.
Crude oil and condensate gathered volumes were 84.68 thousand
barrels per day (MBbl/d) for second quarter 2020, a decrease of 29%
compared to 119.34 MBbl/d for second quarter 2019. The decrease was
primarily due to a decrease in crude oil and condensate gathered
volumes as a result of shut-in production in the Anadarko and
Williston Basins.
Transported volumes were 5.40 TBtu/d for second quarter 2020, a
decrease of 11% compared to 6.04 TBtu/d for second quarter 2019.
The decrease was primarily due to lower transported volumes due to
decreased production in the Anadarko Basin.
Interstate transportation firm contracted capacity was 5.78
billion cubic feet per day (Bcf/d) for second quarter 2020, a
decrease of 9% compared to 6.38 Bcf/d for second quarter 2019. The
decrease was primarily related to contract expirations, including
lower recontracted capacity on the MRT system.
Intrastate transportation average deliveries were 1.67 TBtu/d
for second quarter 2020, a decrease of 19% compared to 2.06 TBtu/d
for second quarter 2019. The decrease was primarily due to
decreased production in the Anadarko Basin.
SECOND QUARTER FINANCIAL
PERFORMANCE
Revenues were $515 million for second quarter 2020, a decrease
of $220 million compared to $735 million for second quarter 2019.
Revenues are net of $59 million of intercompany eliminations for
second quarter 2020 and $104 million of intercompany eliminations
for second quarter 2019.
Gathering and processing segment revenues were $391 million for
second quarter 2020, a decrease of $196 million compared to $587
million for second quarter 2019. The decrease in gathering and
processing segment revenues was primarily due to:
- a decrease in revenues from natural gas liquids (NGL) sales
primarily due to lower average market prices for NGL products and
lower processed volumes as well as a decrease in revenues from
natural gas sales due to lower average sales prices and lower sales
volumes,
- a decrease in processing service revenues due to lower
processed volumes under fee-based arrangements, partially offset by
the recognition of certain annual minimum processing fees,
- a decrease in changes in the fair value of natural gas,
condensate and NGL derivatives,
- a decrease in crude oil, condensate and produced water
gathering revenues primarily due to a decrease in gathered
volumes,
- a decrease in natural gas gathering revenues due to lower
gathered volumes in the Anadarko and Arkoma Basins and lower
shortfall payments associated with the expiration of certain
minimum volume commitment contracts in the Ark-La-Tex and Arkoma
Basins, partially offset by higher revenue associated with the
third quarter 2019 amendment of certain minimum volume commitment
contracts in the Arkoma Basin and
- a decrease in intercompany management fees.
These decreases were partially offset by an
increase in realized gains on natural gas, condensate and NGL
derivatives.
Transportation and storage segment revenues were $183 million
for second quarter 2020, a decrease of $69 million compared to $252
million for second 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 and lower average sales prices,
- a decrease in firm transportation and storage services due to
lower interstate contracted capacity and lower rates on certain
contracts for intrastate service with power generators, partially
offset by higher recognized rates subsequent to the settlement of
the MRT rate cases,
- 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 due to realized losses on natural gas
derivatives.
Gross margin was $338 million for second quarter 2020, a
decrease of $80 million compared to $418 million for second quarter
2019.
Gathering and processing segment gross margin was $215 million
for second quarter 2020, a decrease of $75 million compared to $290
million for second quarter 2019. The decrease in gathering and
processing segment gross margin was primarily due to:
- a decrease in revenues from natural gas sales due to lower
average sales prices and lower sales volumes,
- a decrease in changes in the fair value of natural gas,
condensate and NGL derivatives,
- a decrease in revenues from NGL sales due to lower average
sales prices for NGL products,
- a decrease in crude, condensate and produced water gathering
revenues primarily due to a decrease in gathered volumes,
- a decrease in natural gas gathering fees due to lower gathered
volumes in the Anadarko and Arkoma Basins and lower shortfall
payments associated with the expiration of certain minimum volume
commitment contracts in the Ark-La-Tex and Arkoma Basins, partially
offset by higher revenue associated with the third quarter 2019
amendment of certain minimum volume commitment contracts in the
Arkoma Basin and
- a decrease in intercompany management fees.
These decreases were partially offset by an
increase in realized gains on natural gas, condensate and NGL
derivatives.
Transportation and storage segment gross margin was $124 million
for second quarter 2020, a decrease of $5 million compared to $129
million for second quarter 2019. The decrease in transportation and
storage segment gross margin was primarily due to:
- a decrease in firm transportation and storage services due to
lower interstate contracted capacity and lower rates on certain
contracts for intrastate service with power generators, partially
offset by higher recognized rates subsequent to the settlement of
the MRT rate case,
- 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,
- an increase in realized losses on natural gas derivatives,
and
- a decrease in revenues from NGL sales due to lower average
sales prices and lower volumes.
These decreases were partially offset by an
increase in system management activities and a reduction in lower
of cost or net realizable value adjustments related to natural gas
storage inventories.
Operation and maintenance and general and administrative
expenses were $136 million for second quarter 2020, an increase of
$12 million compared to $124 million for second quarter 2019. The
increase in operation and maintenance and general and
administrative expenses was primarily due to a loss on retirement
of an Ark-La-Tex gathering system in 2020, partially offset by a
decrease in compressor rentals and a decrease in materials and
supplies due to the timing of operation and maintenance activities
and lower maintenance on treating plants as compared to the prior
year.
Depreciation and amortization expense was $105 million for
second quarter 2020, a decrease of $5 million compared to $110
million for second 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.
Interest expense was $46 million for second quarter 2020, a
decrease of $2 million compared to $48 million for second quarter
2019. The decrease was primarily due to lower interest rates on the
partnership’s short-term borrowings.
Capital expenditures were $48 million for second quarter 2020,
compared to $109 million for second quarter 2019. Expansion capital
expenditures were $26 million for second quarter 2020, compared to
$83 million for second quarter 2019. Maintenance capital
expenditures were $22 million for second quarter 2020, compared to
$26 million for second quarter 2019.
2020 OUTLOOK
Enable reaffirms the 2020 outlook presented in its first quarter
2020 financial results press release dated May 6, 2020.
EARNINGS CONFERENCE CALL AND
WEBCAST
A conference call discussing second quarter results is scheduled
today at 10 a.m. EDT (9 a.m. CDT). 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 7684665.
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://www.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://www.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, which was reaffirmed in 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 June
30,
Six Months Ended June
30,
2020
2019
2020
2019
(In millions, except per unit
data)
Revenues (including revenues from
affiliates):
Product sales
$
196
$
393
$
484
$
836
Service revenue
319
342
679
694
Total Revenues
515
735
1,163
1,530
Cost and Expenses (including expenses
from affiliates):
Cost of natural gas and natural gas
liquids (excluding depreciation and amortization shown
separately)
177
317
403
695
Operation and maintenance
115
99
217
202
General and administrative
21
25
45
51
Depreciation and amortization
105
110
209
215
Impairments
—
—
28
—
Taxes other than income tax
17
17
35
35
Total Cost and Expenses
435
568
937
1,198
Operating Income
80
167
226
332
Other Income (Expense):
Interest expense
(46
)
(48
)
(93
)
(94
)
Equity in earnings of equity method
affiliate
5
4
11
7
Other, net
5
1
5
1
Total Other Expense
(36
)
(43
)
(77
)
(86
)
Income Before Income Tax
44
124
149
246
Income tax benefit
—
—
—
(1
)
Net Income
$
44
$
124
$
149
$
247
Less: Net (loss) income attributable to
noncontrolling interest
—
—
(7
)
1
Net Income Attributable to Limited
Partners
$
44
$
124
$
156
$
246
Less: Series A Preferred Unit
distributions
9
9
18
18
Net Income Attributable to Common
Units
$
35
$
115
$
138
$
228
Basic earnings per unit
Common units
$
0.08
$
0.26
$
0.32
$
0.52
Diluted earnings per unit
Common units
$
0.08
$
0.26
$
0.30
$
0.52
ENABLE MIDSTREAM PARTNERS,
LP
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
(In millions)
Reconciliation of Gross margin to Total
Revenues:
Consolidated
Product sales
$
196
$
393
$
484
$
836
Service revenue
319
342
679
694
Total Revenues
515
735
1,163
1,530
Cost of natural gas and natural gas
liquids (excluding depreciation and amortization)
177
317
403
695
Gross margin
$
338
$
418
$
760
$
835
Reportable Segments
Gathering and Processing
Product sales
$
193
$
379
$
468
$
802
Service revenue
198
208
400
415
Total Revenues
391
587
868
1,217
Cost of natural gas and natural gas
liquids (excluding depreciation and amortization)
176
297
387
657
Gross margin
$
215
$
290
$
481
$
560
Transportation and Storage
Product sales
$
59
$
114
$
134
$
281
Service revenue
124
138
283
287
Total Revenues
183
252
417
568
Cost of natural gas and natural gas
liquids (excluding depreciation and amortization)
59
123
137
292
Gross margin
$
124
$
129
$
280
$
276
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
(In millions, except
Distribution coverage ratio)
Reconciliation of Adjusted EBITDA and
DCF to net income attributable to limited partners and calculation
of Distribution coverage ratio:
Net income attributable to limited
partners
$
44
$
124
$
156
$
246
Depreciation and amortization expense
105
110
209
215
Interest expense, net of interest
income
45
47
92
93
Income tax benefit
—
—
—
(1
)
Distributions received from equity method
affiliate in excess of equity earnings
4
—
8
9
Non-cash equity-based compensation
3
5
7
9
Change in fair value of derivatives
(1)
12
(11
)
2
1
Other non-cash losses (2)
17
6
22
7
Impairments
—
—
28
—
Gain on extinguishment of debt
(5
)
—
(5
)
—
Noncontrolling Interest Share of Adjusted
EBITDA
(1
)
—
(9
)
(1
)
Adjusted EBITDA
$
224
$
281
$
510
$
578
Series A Preferred Unit distributions
(3)
(9
)
(9
)
(18
)
(18
)
Distributions for phantom and performance
units (4)
(1
)
—
(1
)
(9
)
Adjusted interest expense (5)
(45
)
(49
)
(92
)
(96
)
Maintenance capital expenditures
(22
)
(26
)
(38
)
(50
)
Current income taxes
1
—
1
—
DCF
$
148
$
197
$
362
$
405
Distributions related to common
unitholders (6)
$
72
$
144
$
144
$
282
Distribution coverage ratio (7)
2.06
1.37
2.51
1.44
____________________
(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)
This amount represents the quarterly cash
distributions on the Series A Preferred Units declared for the
three and six months ended June 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 June 30, 2020.
(7)
Distribution coverage ratio is computed by
dividing DCF by Distributions related to common unitholders.
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
(In millions)
Reconciliation of Adjusted EBITDA to
net cash provided by operating activities:
Net cash provided by operating
activities
$
111
$
212
$
311
$
427
Interest expense, net of interest
income
45
47
92
93
Noncontrolling interest share of cash
provided by operating activities
(1
)
—
(2
)
(1
)
Current income taxes
1
1
1
—
Other non-cash items (1)
(2
)
4
2
4
Changes in operating working capital which
(provided) used cash:
Accounts receivable
30
(28
)
(30
)
(57
)
Accounts payable
12
57
70
112
Other, including changes in noncurrent
assets and liabilities
12
(1
)
56
(10
)
Return of investment in equity method
affiliate
4
—
8
9
Change in fair value of derivatives
(2)
12
(11
)
2
1
Adjusted EBITDA
$
224
$
281
$
510
$
578
____________________
(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 June
30,
Six Months Ended June
30,
2020
2019
2020
2019
(In millions)
Reconciliation of Adjusted interest
expense to Interest expense:
Interest expense
$
46
$
48
$
93
$
94
Interest income
(1
)
(1
)
(1
)
(1
)
Amortization of premium on long-term
debt
—
2
1
3
Capitalized interest on expansion
capital
1
—
1
1
Amortization of debt expense and
discount
(1
)
—
(2
)
(1
)
Adjusted interest expense
$
45
$
49
$
92
$
96
ENABLE MIDSTREAM PARTNERS,
LP
OPERATING DATA
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Operating Data:
Natural gas gathered volumes—TBtu
377
420
788
829
Natural gas gathered volumes—TBtu/d
4.14
4.62
4.33
4.58
Natural gas processed volumes—TBtu (1)
185
231
408
460
Natural gas processed volumes—TBtu/d
(1)
2.04
2.54
2.24
2.54
NGLs produced—MBbl/d (1)(2)
112.78
130.10
116.82
134.13
NGLs sold—MBbl/d (2)(3)
122.99
136.34
122.15
138.20
Condensate sold—MBbl/d
5.68
7.60
6.96
7.97
Crude oil and condensate gathered
volumes—MBbl/d
84.68
119.34
112.97
113.65
Transported volumes—TBtu
495
554
1,092
1,154
Transported volumes—TBtu/d
5.40
6.04
5.98
6.36
Interstate firm contracted
capacity—Bcf/d
5.78
6.38
6.13
6.45
Intrastate average deliveries—TBtu/d
1.67
2.06
1.87
2.19
____________________
(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 June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Anadarko
Gathered volumes—TBtu/d
1.89
2.33
2.09
2.34
Natural gas processed volumes—TBtu/d
(1)
1.73
2.08
1.90
2.10
NGLs produced—MBbl/d (1)(2)
100.34
112.19
103.46
116.30
Crude oil and condensate gathered
volumes—MBbl/d
61.40
79.96
87.94
78.26
Arkoma
Gathered volumes—TBtu/d
0.39
0.49
0.41
0.49
Natural gas processed volumes—TBtu/d
(1)
0.08
0.10
0.08
0.10
NGLs produced—MBbl/d (1)(2)
4.05
7.02
3.97
6.63
Ark-La-Tex
Gathered volumes—TBtu/d
1.86
1.80
1.83
1.75
Natural gas processed volumes—TBtu/d
0.23
0.36
0.26
0.34
NGLs produced—MBbl/d (2)
8.39
10.89
9.39
11.20
Williston
Crude oil gathered volumes—MBbl/d
23.28
39.38
25.03
35.39
____________________
(1)
Includes volumes under third-party processing arrangements.
(2)
Excludes condensate.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200805005290/en/
Media Leigh Ann Williams (405) 553-6947
Investor Matt Beasley (405) 558-4600
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