- Fully funded the partnership’s business plan in 2020, including
capital and distributions, while reducing total debt levels
- Achieved record annual Ark-La-Tex Basin natural gas gathered
volumes and Anadarko Basin crude oil gathered volumes
- Recent contracting successes demonstrate the long-term value of
Enable’s transportation assets
- Gulf Run Pipeline project continues to progress and is
well-positioned to serve growing liquefied natural gas markets
Enable Midstream Partners, LP (NYSE: ENBL) today announced
financial and operating results for fourth quarter and year-end
2020.
Net income attributable to limited partners was $96 million for
fourth quarter 2020, an increase of $78 million compared to $18
million of net income for fourth quarter 2019. Net income
attributable to common units was $87 million for fourth quarter
2020, an increase of $78 million compared to $9 million of net
income for fourth quarter 2019. Net cash provided by operating
activities was $214 million for fourth quarter 2020, a decrease of
$37 million compared to $251 million for fourth quarter 2019.
Adjusted EBITDA was $249 million for fourth quarter 2020, a
decrease of $25 million compared to $274 million for fourth quarter
2019. Distributable cash flow (DCF) was $161 million for fourth
quarter 2020, a decrease of $16 million compared to $177 million
for fourth quarter 2019.
Net income attributable to limited partners was $88 million for
full-year 2020, a decrease of $308 million compared to $396 million
of net income for full-year 2019. Net income attributable to common
units was $52 million for full-year 2020, a decrease of $308
million compared to $360 million of net income for full-year 2019.
Enable’s net income for full-year 2020 was impacted by a $225
million non-cash other than temporary impairment on its investment
in Southeast Supply Header, LLC (SESH) in the third quarter of
2020. Net cash provided by operating activities was $757 million
for full-year 2020, a decrease of $185 million compared to $942
million for full-year 2019. Adjusted EBITDA was $988 million for
full-year 2020, a decrease of $159 million compared to $1,147
million for full-year 2019. DCF was $670 million for full-year
2020, a decrease of $114 million compared to $784 million for
full-year 2019.
For fourth quarter 2020, DCF exceeded declared distributions to
common unitholders by $89 million, resulting in a distribution
coverage ratio of 2.24x. For full-year 2020, DCF exceeded declared
distributions to common unitholders by $382 million, resulting in a
distribution coverage ratio of 2.33x.
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
“I am proud of our team’s accomplishments in 2020, from
maintaining safe and reliable operations through the collapse in
crude prices and global pandemic to generating solid financial and
operational results,” said Rod Sailor, president and CEO. “Our
team’s strength and dedication were further on display during
Winter Storm Uri as Enable employees across the company immediately
went to work around the clock to maximize vital natural gas
deliveries.”
BUSINESS HIGHLIGHTS
Enable contracted over 2,000,000 Dth/d of firm transportation
capacity in 2020. These contracting efforts have extended the firm
transportation volume-weighted-average remaining contract life for
Enable Gas Transmission, LLC, Enable Mississippi River
Transmission, LLC (MRT) and Enable Oklahoma Interstate Transmission
(EOIT) from 4.1 years at year-end 2019 to 4.7 years at year-end
2020, further demonstrating the long-term value of Enable’s
transportation assets. Enable’s SESH joint venture also recently
renewed 200,000 Dth/d of firm capacity with an electric utility
customer through 2030.
The Gulf Run Pipeline project is progressing on schedule. Enable
has responded to all Federal Energy Regulatory Commission (FERC)
data requests and remains optimistic the project will receive its
final certificate in the coming months. The project is backed by a
20-year commitment for 1.1 billion cubic feet per day (Bcf/d) from
cornerstone shipper Golden Pass LNG and is expected to be placed
into service in late 2022, subject to FERC approval. While the
currently filed project scope provides for capacity in excess of
Golden Pass’s firm commitment, Enable continues to review the scope
in light of current contracting levels, commercial dialogue and
construction costs.
Construction continues on EGT’s MASS project, and the project is
still anticipated to be placed into service during the second
quarter of 2021. The MASS project is underpinned by a firm,
five-year commitment, and the project is 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.
As of Feb. 17, 2021, there were 11 rigs across Enable’s
footprint that were drilling wells expected to be connected to
Enable’s gathering systems. Five of those rigs were in the Anadarko
Basin, and six were in the Ark-La-Tex Basin. There remains an
inventory of drilled but uncompleted wells (DUCs) behind Enable’s
gathering systems with 75 DUCs in the Anadarko Basin, four DUCs in
the Ark-La-Tex Basin and 82 DUCs in the Williston Basin. These DUCs
provide an inventory of wells producers can complete without
investing drilling capital.
ENERGY TRANSFER
TRANSACTION
As previously announced, Energy Transfer LP (NYSE: ET) and
Enable have entered into a definitive merger agreement whereby
Energy Transfer will acquire Enable in an all-equity transaction
valued at approximately $7 billion. Under the terms of the
agreement, Enable common unitholders will receive 0.8595 ET common
units for each Enable common unit. In addition, each outstanding
Enable Series A preferred unit will be exchanged for 0.0265 Series
G preferred units of Energy Transfer. The transaction will include
a $10 million cash payment for Enable’s general partner. The
transaction is expected to close in mid-2021 and is subject to the
satisfaction of customary closing conditions, including Hart Scott
Rodino Act clearance. Upon closing, Enable unitholders are expected
to own approximately 12% of Energy Transfer’s outstanding common
units.
QUARTERLY DISTRIBUTIONS
As previously announced, on Feb. 12, 2021, 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 Dec. 31, 2020. The distribution is unchanged
from the previous quarter and represents Enable’s 27th consecutive
quarterly distribution since the partnership’s initial public
offering in April 2014. The quarterly cash distribution of $0.16525
per unit on all outstanding common units will be paid March 1,
2021, to unitholders of record at the close of business Feb. 22,
2021.
As also previously announced, the board declared a quarterly
cash distribution of $0.625 per unit on all outstanding Series A
Preferred Units for the quarter ended Dec. 31, 2020. The quarterly
cash distribution of $0.625 per unit on all outstanding Series A
Preferred Units was paid Feb. 12, 2021, to unitholders of record at
the close of business Feb. 12, 2021.
KEY OPERATING STATISTICS
Natural gas gathered volumes were 4.28 trillion British thermal
units per day (TBtu/d) for fourth quarter 2020, a decrease of 7%
compared to 4.62 TBtu/d for fourth quarter 2019. The decrease was
primarily a result of lower production activity across all
basins.
Natural gas processed volumes were 2.23 TBtu/d for fourth
quarter 2020, a decrease of 13% compared to 2.57 TBtu/d for fourth
quarter 2019. The decrease was due to lower processed volumes
across all basins.
Crude oil and condensate gathered volumes were 125.82 thousand
barrels per day (MBbl/d) for fourth quarter 2020, a decrease of 18%
compared to 153.06 MBbl/d for fourth quarter 2019. The decrease was
primarily due to a decrease in crude oil and condensate gathered
volumes in the Anadarko Basin, partially offset by an increase in
crude oil gathered volumes in the Williston Basin.
Transported natural gas volumes were 5.05 TBtu/d for fourth
quarter 2020, a decrease of 16% compared to 5.99 TBtu/d for fourth
quarter 2019. The decrease was primarily due to decreased
production in the Anadarko Basin, which contributed to lower
utilization of Enable’s interstate and intrastate pipelines.
Interstate transportation firm contracted capacity was 6.20
Bcf/d for fourth quarter 2020, a decrease of 2% compared to 6.30
Bcf/d for fourth quarter 2019. The decrease was primarily related
to contract expirations.
Intrastate transportation average deliveries were 1.70 TBtu/d
for fourth quarter 2020, a decrease of 19% compared to 2.09 TBtu/d
for fourth quarter 2019. The decrease was primarily due to
decreased production activity in the Anadarko Basin.
FOURTH QUARTER FINANCIAL
PERFORMANCE
Revenues were $704 million for fourth quarter 2020, a decrease
of $27 million compared to $731 million for fourth quarter 2019.
Revenues are net of $110 million of intercompany eliminations for
fourth quarter 2020 and $84 million of intercompany eliminations
for fourth quarter 2019.
Gathering and processing segment revenues were $555 million for
fourth quarter 2020, a decrease of $24 million compared to $579
million for fourth 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 driven by lower sales due to lower processed volumes,
partially offset by higher recoveries of ethane,
- a decrease in natural gas gathering revenues due to lower
gathered volumes in the Anadarko Basin and lower shortfall fees
associated with the expiration of certain minimum volume commitment
contracts in the Ark-La-Tex Basin,
- a decrease in realized gains on natural gas, condensate and NGL
derivatives,
- a decrease in processing service revenues due to lower
processed volumes under fee-based arrangements, partially offset by
higher consideration received from percent-of-proceeds,
percent-of-liquids and keep-whole processing arrangements due to an
increase in retained volumes at higher average market prices
and
- a decrease in crude oil, condensate and produced water
gathering revenues primarily due to a decrease in gathered crude
oil volumes in the Anadarko Basin, partially offset by an increase
in gathered crude oil volumes in the Williston Basin and by
customer project reimbursements.
These decreases were partially offset by:
- an increase in revenues from natural gas sales due to higher
average sales prices, partially offset by lower sales volumes
and
- an increase in changes in the fair value of natural gas,
condensate and NGL derivatives.
Transportation and storage segment revenues were $259 million
for fourth quarter 2020, an increase of $23 million compared to
$236 million for fourth quarter 2019. The increase in
transportation and storage segment revenues was primarily due
to:
- an increase in revenues from natural gas sales primarily due to
higher sales volumes and higher average sales prices and
- an increase in firm transportation and storage services due to
higher recognized rates subsequent to the settlement of the MRT
rate case, partially offset by lower interstate contracted
capacity.
These increases were partially offset by:
- 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 and
- a decrease in realized gain on natural gas derivatives.
Gross margin was $392 million for fourth quarter 2020, a
decrease of $18 million compared to $410 million for fourth quarter
2019.
Gathering and processing segment gross margin was $250 million
for fourth quarter 2020, a decrease of $21 million compared to $271
million for fourth quarter 2019. The decrease in gathering and
processing segment gross margin was primarily due to:
- a decrease in natural gas gathering fees due to lower gathered
volumes and lower shortfall fees associated with the expiration of
certain minimum volume commitment contracts in the Ark-La-Tex
Basin,
- a decrease in revenues from natural gas sales due to lower
sales volumes, partially offset by higher average sales
prices,
- a decrease in realized gains on natural gas, condensate and NGL
derivatives,
- a decrease in processing service revenues due to lower
processed volumes under fee-based arrangements, partially offset by
higher consideration received from percent-of-proceeds,
percent-of-liquids and keep-whole processing arrangements due to an
increase in retained volumes at higher average market prices
and
- a decrease in crude oil, condensate and produced water
gathering revenues primarily due to a decrease in gathered crude
oil volumes in the Anadarko Basin, partially offset by an increase
in gathered crude oil volumes in the Williston Basin and by
customer project reimbursements.
These decreases were partially offset by:
- an increase in revenues from NGL sales due to higher recoveries
of ethane at higher average market prices and
- an increase in changes in the fair value of natural gas,
condensate and NGL derivatives.
Transportation and storage segment gross margin was $142 million
for fourth quarter 2020, an increase of $3 million compared to $139
million for fourth quarter 2019. The increase in transportation and
storage segment gross margin was primarily due to:
- an increase in firm transportation and storage services due to
higher recognized rates subsequent to the settlement of the MRT
rate case, partially offset by lower interstate contracted
capacity,
- an increase due to write-downs to lower of cost or net
realizable value adjustments related to natural gas storage
inventories for fourth quarter 2019 with none for fourth quarter
2020 and
- an increase in changes in the fair value of natural gas
derivatives.
These increases were partially offset by:
- 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 and
- a decrease in realized gain on natural gas derivatives.
Operation and maintenance and general and administrative
expenses were $130 million for fourth quarter 2020, a decrease of
$7 million compared to $137 million for fourth quarter 2019. The
decrease in operation and maintenance and general and
administrative expenses was primarily due to a decrease in
materials and supplies and outside services due to the timing of
operation and maintenance activities, a decrease in field equipment
rentals, a decrease in professional services due to higher rate
case costs in the prior year, a decrease in office and travel
expenses due to travel restrictions and employees working remotely
and a decrease due to collection of previously reserved customer
collectibles. These decreases were partially offset by an increase
in payroll-related costs primarily driven by the voluntary
retirement program, an increase in losses on retirement of assets
and an increase in remediation costs associated with our Williston
Basin operations.
Depreciation and amortization expense was $106 million for
fourth quarter 2020, a decrease of $4 million compared to $110
million for fourth 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, partially offset by
additional assets placed in service.
Interest expense was $42 million for fourth quarter 2020, a
decrease of $6 million compared to $48 million for fourth quarter
2019. The decrease was primarily due to lower interest rates on the
partnership’s short-term borrowings.
Capital expenditures were $63 million for fourth quarter 2020,
compared to $79 million for fourth quarter 2019. Expansion capital
expenditures were $25 million for fourth quarter 2020, compared to
$39 million for fourth quarter 2019. Maintenance capital
expenditures were $38 million for fourth quarter 2020, compared to
$40 million for fourth 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 fourth quarter 2020
included a $5 million gain on commodity derivative activity,
compared to a $2 million gain on commodity derivative activity for
fourth quarter 2019, resulting in an increase in net income of $3
million. The increase of $3 million is comprised of an increase
related to the change in fair value of commodity derivatives of $12
million and a decrease in realized gain on commodity derivatives of
$9 million. Enable’s net income attributable to limited partners
and net income attributable to common units for full-year 2020
included a $10 million gain on commodity derivative activity,
compared to a $16 million gain on commodity derivative activity for
full-year 2019, resulting in a decrease in net income of $6
million. The decrease of $6 million is comprised of a decrease
related to the change in fair value of commodity derivatives of $2
million and a decrease in realized gain on commodity derivatives of
$4 million.
EARNINGS CONFERENCE CALL AND
WEBCAST
A conference call discussing fourth quarter and year-end results
is scheduled today at 10 a.m. EST (9 a.m. CST). 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 2070646. 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.
ANNUAL REPORT
Enable today filed its Annual Report on Form 10-K with the U.S.
Securities and Exchange Commission (SEC).
The Form 10-K is available to view, print or download from the
SEC filings page under the Investor Relations section on the Enable
Midstream website at https://investors.enablemidstream.com.
Unitholders may order a printed copy of the Form 10-K by
contacting Enable Midstream Investor Relations at 405-558-4600 or
ir@enablemidstream.com.
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://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://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%) 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 statements pertaining to our pending
merger with Energy Transfer LP and our expectations of plans,
strategies, objectives, growth and anticipated financial and
operational performance, as updated by 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
Annual Report on Form 10-K for the year ended Dec. 31, 2020 (Annual
Report). Those risk factors and other factors noted throughout this
press release and in our 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 December
31,
Year Ended December
31,
2020
2019
2020
2019
(In millions, except per unit
data)
Revenues (including revenues from
affiliates):
Product sales
$
368
$
377
$
1,132
$
1,533
Service revenue
336
354
1,331
1,427
Total Revenues
704
731
2,463
2,960
Cost and Expenses (including expenses
from affiliates):
Cost of natural gas and natural gas
liquids (excluding depreciation and amortization shown
separately)
312
321
965
1,279
Operation and maintenance
105
116
418
423
General and administrative
25
21
98
103
Depreciation and amortization
106
110
420
433
Impairments of property, plant and
equipment and goodwill
—
86
28
86
Taxes other than income tax
17
15
69
67
Total Cost and Expenses
565
669
1,998
2,391
Operating Income
139
62
465
569
Other Income (Expense):
Interest expense
(42
)
(48
)
(178
)
(190
)
Equity in earnings (loss) of equity method
affiliate, net
1
5
(210
)
17
Other, net
(1
)
1
6
3
Total Other Expense
(42
)
(42
)
(382
)
(170
)
Income Before Income Tax
97
20
83
399
Income tax benefit
—
—
—
(1
)
Net Income
$
97
$
20
$
83
$
400
Less: Net income (loss) attributable to
noncontrolling interest
1
2
(5
)
4
Net Income Attributable to Limited
Partners
$
96
$
18
$
88
$
396
Less: Series A Preferred Unit
distributions
9
9
36
36
Net Income Attributable to Common
Units
$
87
$
9
$
52
$
360
Basic and diluted earnings per
unit
Basic
$
0.20
$
0.02
$
0.12
$
0.83
Diluted
$
0.19
$
0.02
$
0.12
$
0.82
ENABLE MIDSTREAM PARTNERS,
LP
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
Three Months Ended December
31,
Year Ended December
31,
2020
2019
2020
2019
(In millions)
Reconciliation of Gross margin to Total
Revenues:
Consolidated
Product sales
$
368
$
377
$
1,132
$
1,533
Service revenue
336
354
1,331
1,427
Total Revenues
704
731
2,463
2,960
Cost of natural gas and natural gas
liquids (excluding depreciation and amortization)
312
321
965
1,279
Gross margin
$
392
$
410
$
1,498
$
1,681
Reportable Segments
Gathering and Processing
Product sales
$
348
$
353
$
1,087
$
1,449
Service revenue
207
226
799
889
Total Revenues
555
579
1,886
2,338
Cost of natural gas and natural gas
liquids (excluding depreciation and amortization)
305
308
936
1,203
Gross margin
$
250
$
271
$
950
$
1,135
Transportation and Storage
Product sales
$
127
$
106
$
340
$
487
Service revenue
132
130
541
551
Total Revenues
259
236
881
1,038
Cost of natural gas and natural gas
liquids (excluding depreciation and amortization)
117
97
332
491
Gross margin
$
142
$
139
$
549
$
547
Three Months Ended December
31,
Year Ended December
31,
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
$
96
$
18
$
88
$
396
Depreciation and amortization expense
106
110
420
433
Interest expense, net of interest
income
42
47
177
188
Income tax benefit
—
—
—
(1
)
Distributions received from equity method
affiliate in excess of equity earnings
(1
)
—
8
8
Impairment of investment in equity method
affiliate
—
—
225
—
Non-cash equity-based compensation
3
3
13
16
Change in fair value of derivatives
(1)
(4
)
8
13
11
Other non-cash losses (2)
8
3
31
12
Impairments of property, plant and
equipment and goodwill
—
86
28
86
Gain on extinguishment of debt
—
—
(5
)
—
Noncontrolling Interest Share of Adjusted
EBITDA
(1
)
(1
)
(10
)
(2
)
Adjusted EBITDA
$
249
$
274
$
988
$
1,147
Series A Preferred Unit distributions
(3)
(9
)
(9
)
(36
)
(36
)
Distributions for phantom and performance
units (4)
—
—
(1
)
(10
)
Adjusted interest expense (5)
(41
)
(48
)
(175
)
(191
)
Maintenance capital expenditures
(38
)
(40
)
(107
)
(126
)
Current income tax
—
—
1
—
DCF
$
161
$
177
$
670
$
784
Distributions related to common
unitholders (6)
$
72
$
144
$
288
$
570
Distribution coverage ratio (7)
2.24
1.23
2.33
1.38
___________________
(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)
Represents the quarterly cash
distributions on the Series A Preferred Units declared for the
three and nine months ended December 31, 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 December 31, 2020.
(7)
Distribution coverage ratio is computed by
dividing DCF by Distributions related to common unitholders.
Three Months Ended December
31,
Year Ended December
31,
2020
2019
2020
2019
(In millions)
Reconciliation of Adjusted EBITDA to
net cash provided by operating activities:
Net cash provided by operating
activities
$
214
$
251
$
757
$
942
Interest expense, net of interest
income
42
47
177
188
Noncontrolling interest share of cash
provided by operating activities
(2
)
(2
)
(5
)
(4
)
Current income tax
—
—
1
—
Other non-cash items (1)
—
(2
)
—
2
Proceeds from insurance
—
1
1
1
Changes in operating working capital which
(provided) used cash:
Accounts receivable
22
(21
)
(5
)
(37
)
Accounts payable
(37
)
(32
)
9
78
Other, including changes in noncurrent
assets and liabilities
15
24
32
(42
)
Return of investment in equity method
affiliate
(1
)
—
8
8
Change in fair value of derivatives
(2)
(4
)
8
13
11
Adjusted EBITDA
$
249
$
274
$
988
$
1,147
____________________
(1)
Other non-cash losses 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 December
31,
Year Ended December
31,
2020
2019
2020
2019
(In millions)
Reconciliation of Adjusted interest
expense to Interest expense:
Interest expense
$
42
$
48
$
178
$
190
Interest income
—
(1
)
(1
)
(2
)
Amortization of premium on long-term
debt
—
2
1
6
Capitalized interest on expansion
capital
—
1
2
2
Amortization of debt expense and
discount
(1
)
(2
)
(5
)
(5
)
Adjusted interest expense
$
41
$
48
$
175
$
191
ENABLE MIDSTREAM PARTNERS,
LP
OPERATING DATA
Three Months Ended December
31,
Year Ended December
31,
2020
2019
2020
2019
Operating Data:
Natural gas gathered volumes—TBtu
394
426
1,558
1,666
Natural gas gathered volumes—TBtu/d
4.28
4.62
4.26
4.56
Natural gas processed volumes—TBtu (1)
205
236
802
925
Natural gas processed volumes—TBtu/d
(1)
2.23
2.57
2.19
2.53
NGLs produced—MBbl/d (1)(2)
127.74
128.45
123.66
128.58
NGLs sold—MBbl/d (2)(3)
130.61
131.9
128.40
131.59
Condensate sold—MBbl/d
6.42
7.56
6.48
7.41
Crude oil and condensate gathered
volumes—MBbl/d
125.82
153.06
124.84
128.46
Transported volumes—TBtu
462
551
1,993
2,254
Transported volumes—TBtu/d
5.05
5.99
5.45
6.18
Interstate firm contracted
capacity—Bcf/d
6.20
6.30
6.05
6.31
Intrastate average deliveries—TBtu/d
1.70
2.09
1.79
2.14
____________________
(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 December
31,
Year Ended December
31,
2020
2019
2020
2019
Anadarko
Gathered volumes—TBtu/d
2.14
2.42
2.07
2.34
Natural gas processed volumes—TBtu/d
(1)
1.96
2.19
1.87
2.10
NGLs produced—MBbl/d (1)(2)
115.75
116.78
110.91
113.20
Crude oil and condensate gathered
volumes—MBbl/d
91.46
122.23
95.44
92.70
Arkoma
Gathered volumes—TBtu/d
0.41
0.44
0.42
0.47
Natural gas processed volumes—TBtu/d
(1)
0.06
0.08
0.08
0.09
NGLs produced—MBbl/d (1)(2)
3.65
4.04
3.88
5.42
Ark-La-Tex
Gathered volumes—TBtu/d
1.73
1.76
1.77
1.75
Natural gas processed volumes—TBtu/d
0.21
0.30
0.24
0.34
NGLs produced—MBbl/d (2)
8.34
7.63
8.87
9.96
Williston
Crude oil gathered volumes—MBbl/d
34.36
30.83
29.40
35.76
__________________
(1)
Includes volumes under third-party
processing arrangements.
(2)
Excludes condensate.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210224005256/en/
Media Leigh Ann Williams (405) 553-6947
Investor Matt Beasley (405) 558-4600
Grafico Azioni Enable Midstream Partners (NYSE:ENBL)
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