Market Overview

Enable Midstream Announces Second Quarter 2018 Financial and Operating Results, Quarterly Distributions

Share:
  • Achieved an all-time high for quarterly natural gas gathered, natural
    gas processed, natural gas liquids produced and crude oil gathered
    volumes
  • Placed Project Wildcat into service during the second quarter,
    providing a key Enable customer immediate access to premium North
    Texas markets
  • Contracted or extended over 1 million dekatherms per day (Dth/d) of
    transportation capacity during the second quarter
  • Anticipate performance at or above the midpoint of the previously
    provided 2018 outlook for net income attributable to common units,
    Adjusted EBITDA and distributable cash flow (DCF)
  • Declared a quarterly cash distribution of $0.318 per unit on all
    outstanding common units and $0.625 on all Series A Preferred Units

Enable Midstream Partners, LP (NYSE:ENBL) (Enable) today announced
financial and operating results for second quarter 2018.

Net income attributable to limited partners was $95 million for second
quarter 2018 and 2017. Net income attributable to common units was $86
million for second quarter 2018 and 2017. Net cash provided by operating
activities was $239 million for the second quarter 2018, an increase of
$13 million compared to $226 million for second quarter 2017. Adjusted
EBITDA for second quarter 2018 was $245 million, an increase of $30
million compared to $215 million for second quarter 2017. DCF for second
quarter 2018 was $171 million, an increase of $15 million compared to
$156 million for second quarter 2017.

For second quarter 2018, DCF exceeded declared distributions to common
unitholders by $33 million, resulting in a distribution coverage ratio
of 1.24x.

For additional information regarding the non-GAAP financial measures
Gross margin, Adjusted EBITDA and DCF, please see "Non-GAAP Financial
Measures."

MANAGEMENT PERSPECTIVE

"Enable's assets continue to shine," said Enable Midstream President and
CEO Rod Sailor. "We have the right assets in the right places, and our
investments are building on our preferred position. We placed Project
Wildcat into service on time and under budget in the second quarter,
bringing critical processing capacity and market access to growing
Anadarko Basin production. We also signed several key transportation
contracts in the second quarter, further affirming the critical role
Enable's pipelines play in connecting natural gas supply and demand."

BUSINESS HIGHLIGHTS

During second quarter 2018, per-day natural gas gathered volumes grew
for the 10th consecutive quarter as a result of strong rig activity
across Enable's footprint. During second quarter 2018, Enable also
achieved the highest per-day crude oil gathered volumes since the
partnership's formation in May 2013. As of July 23, 2018, there were 42
rigs across Enable's footprint that were drilling wells expected to be
connected to Enable's gathering systems. Thirty-one of those rigs were
in the Anadarko Basin, nine were in the Ark-La-Tex Basin, one was in the
Arkoma Basin and one was in the Williston Basin.

Producers continue to achieve strong well results in the Anadarko Basin.
During second quarter 2018, Enable connected 20 new wells in the SCOOP
and STACK plays with peak one-day natural gas flows of greater than 10
million cubic feet per day. Volume growth in the Anadarko Basin is
supported by Enable's Project Wildcat, a rich natural gas takeaway
solution that was placed into service in the second quarter of 2018 and
is now operating at its fully contracted capacity.

During second quarter 2018, Enable contracted or extended 590,000 Dth/d
of capacity on the Enable Gas Transmission, LLC (EGT) system and over
510,000 Dth/d of capacity on the Enable Mississippi River Transmission,
LLC (MRT) system. On the MRT system, MRT recontracted transportation
capacity with its largest customer, St. Louis-based Spire Inc., at
existing contract demand levels of 437,240 Dth/d for one year. In
addition, after the previously announced Line CP open season, EGT
entered into a seven-year, 300,000 Dth/d contract with a producer for
capacity between Carthage, Texas, and Perryville, Louisiana, which
requires no additional capital investment.

Enable submitted its rate case filing for MRT June 29, 2018. The rate
filing demonstrated an annual cost-of-service of $103.6 million, an
increase of approximately $19.6 million above the overall
cost-of-service established in the settlement that resolved MRT's last
general rate case. As directed by a recent Federal Energy Regulatory
Commission order, MRT plans to refile its rate case within 30 days of
July 31, 2018, to reflect, among other things, the elimination of an
income tax allowance. When coupled with a corresponding elimination of
accumulated deferred income taxes, MRT does not expect a significant
change to the previously-filed cost-of-service.

Enable's previously announced CaSE and Muskogee projects remain on
schedule. The CaSE project, a 205,000 Dth/d firm natural gas
transportation solution for growing Anadarko Basin production, achieved
a planned contractual increase in volumes to 135,000 Dth/d in the second
quarter of 2018 and is expected to grow to its fully contracted capacity
by the end of the fourth quarter of 2018. The Muskogee project, a
20-year, 228,000 Dth/d firm transportation service agreement with
Oklahoma Gas & Electric Company on the Enable Oklahoma Intrastate
Transmission, LLC (EOIT) system, is expected to commence service by the
end of the fourth quarter of 2018.

QUARTERLY DISTRIBUTIONS

On August 1, 2018, the board of directors of Enable's general partner
declared a quarterly cash distribution of $0.318 per unit on all
outstanding common units for the quarter ended June 30, 2018. The
distribution is unchanged from the previous quarter. The quarterly cash
distribution of $0.318 per unit on all outstanding common units will be
paid on August 28, 2018, to unitholders of record at the close of
business on August 21, 2018.

The board also declared a quarterly cash distribution of $0.625 on all
Series A Preferred Units for the quarter ended June 30, 2018. The
quarterly cash distribution of $0.625 on all Series A Preferred Units
outstanding will be paid on August 14, 2018, to unitholders of record at
the close of business on August 1, 2018.

KEY OPERATING STATISTICS

Natural gas gathered volumes were 4.43 trillion British thermal units
per day (TBtu/d) for second quarter 2018, an increase of 34 percent
compared to 3.31 TBtu/d for second quarter 2017. The increase was
primarily due to higher gathered volumes in the Anadarko and Ark-La-Tex
Basins.

Natural gas processed volumes were 2.33 TBtu/d for second quarter 2018,
an increase of 22 percent compared to 1.91 TBtu/d for second quarter
2017. The increase was primarily due to higher processed volumes in the
Anadarko and Ark-La-Tex Basins.

NGLs produced were 130.65 MBbl/d for second quarter 2018, an increase of
50 percent compared to 87.12 MBbl/d for second quarter 2017. The
increase was primarily due to higher natural gas processed volumes and
higher plant recoveries of ethane.

Crude oil gathered volumes were 30.55 MBbl/d for second quarter 2018, an
increase of 32 percent compared to 23.20 MBbl/d for second quarter 2017.
The increase was primarily due to the expansion of the Bear Den system
and the commissioning of multi-well pads on the Bear Den and Nesson
systems.

Interstate transportation firm contracted capacity was 5.72 Bcf/d for
second quarter 2018, a decrease of 8 percent compared to 6.21 Bcf/d for
second quarter 2017. The decrease was primarily due to lower contracted
firm transportation volumes between Carthage, Texas, and Perryville,
Louisiana.

Intrastate transportation average deliveries were 1.88 TBtu/d for second
quarter 2018, an increase of 2 percent compared to 1.84 TBtu/d for
second quarter 2017. The increase was primarily related to increased
supply in the Anadarko Basin.

SECOND QUARTER FINANCIAL PERFORMANCE

Revenues were $805 million for second quarter 2018, an increase of $179
million compared to $626 million for second quarter 2017. Revenues are
net of $113 million of intercompany eliminations for second quarter 2018
and $117 million of intercompany eliminations for second quarter 2017.

  • Gathering and processing segment revenues were $641 million for second
    quarter 2018, an increase of $161 million compared to $480 million for
    second quarter 2017. The increase in gathering and processing segment
    revenues was primarily due to an increase in revenues from NGL sales
    resulting from higher average NGL prices, higher processed volumes and
    higher plant recoveries of ethane in the Anadarko and Ark-La-Tex
    Basins, an increase in processing service revenues resulting from
    higher processed volumes primarily under fixed fee processing
    arrangements, an increase in natural gas gathering revenues due to
    higher fees and gathered volumes in the Anadarko and Ark-La-Tex
    Basins, and an increase in crude oil and water gathering revenues due
    to an increase in gathered volumes. These increases were partially
    offset by a decrease in revenues from changes in the fair value of
    natural gas, condensate and NGL derivatives and a decrease in natural
    gas sales primarily driven by a decrease due to the implementation of
    ASC 606, a newly effective revenue recognition standard.
  • Transportation and storage segment revenues were $277 million for
    second quarter 2018, an increase of $14 million compared to $263
    million for second quarter 2017. The increase in transportation and
    storage segment revenues was primarily due to an increase in revenues
    from natural gas sales associated with higher sales volumes, an
    increase in revenues from other firm contracted capacity due to new
    intrastate contracts, an increase from volume-dependent transportation
    revenues primarily due to an increase in commodity fees from new
    contracts and an increase in off-system transportation due to
    increases in volumes at higher rates. These increases were partially
    offset by a decrease in revenues from changes in the fair value of
    natural gas derivatives and a decrease in firm transportation services
    between Carthage, Texas, and Perryville, Louisiana, due to contract
    expirations in the second quarter of 2017.

Gross margin was $361 million for second quarter 2018, an increase of
$14 million compared to $347 million for second quarter 2017.

  • Gathering and processing segment gross margin was $230 million for
    second quarter 2018, an increase of $19 million compared to $211
    million for second quarter 2017. The increase in gathering and
    processing segment gross margin was primarily due to an increase in
    processing service fees due to higher processed volumes in the
    Anadarko and Ark-La-Tex Basins, an increase in natural gas gathering
    fees due to increased gathered volumes in the Anadarko and Ark-La-Tex
    Basins, an increase in crude oil and water gathering fees as a result
    of an increase in gathered volumes, an increase in revenues from
    natural gas sales less the cost of natural gas primarily due to higher
    sales volumes, and an increase in revenues from NGL sales less the
    cost of NGLs resulting from higher average NGL prices and higher
    processed volumes in the Anadarko and Ark-La-Tex Basins. These
    increases were partially offset by a decrease in gross margin from
    changes in the fair value of natural gas, condensate and NGL
    derivatives.
  • Transportation and storage segment gross margin was $130 million for
    second quarter 2018, a decrease of $6 million compared to $136 million
    for second quarter 2017. The decrease in transportation and storage
    segment gross margin was primarily due to a decrease in gross margin
    from changes in the fair value of natural gas derivatives and a
    decrease in firm transportation services between Carthage, Texas, and
    Perryville, Louisiana, due to contract expirations in the second
    quarter of 2017. These decreases were partially offset by an increase
    in other firm transportation and storage services due to new
    intrastate transportation contracts and an increase in
    volume-dependent transportation primarily due to an increase in
    commodity fees from new contracts and an increase in off-system
    transportation due to increases in volumes at higher rates.

Operation and maintenance and general and administrative expenses were
$123 million for second quarter 2018, an increase of $3 million compared
to $120 million for second quarter 2017. The increase in operation and
maintenance and general and administrative expenses was primarily due to
an increase in payroll-related costs, compressor rental expenses due to
increased rental units and an increase in materials and supplies and
contract services costs as a result of additional assets in service.
These increases were partially offset by an increase in capitalized
overhead costs.

Depreciation and amortization expense was $96 million for second quarter
2018, an increase of $7 million compared to $89 million for second
quarter 2017. The increase in depreciation and amortization expense was
due to additional assets placed in service primarily as a result of the
Align Midstream, LLC acquisition in the fourth quarter of 2017.

Taxes other than income tax were $16 million for second quarter 2018 and
2017.

Interest expense was $36 million for second quarter 2018, an increase of
$5 million compared to $31 million for second quarter 2017. The increase
was primarily due to an increase in the amount of debt outstanding and
higher interest rates on outstanding debt as a result of a long-term
debt issuance in May 2018, the proceeds of which were used for the
repayment of amounts outstanding under a 2015 term loan agreement and
Enable's commercial paper program.

Enable's net income attributable to limited partners and net income
attributable to common units for second quarter 2018 includes a $14
million loss on derivative activity, compared to a $9 million gain on
derivative activity for second quarter 2017, resulting in a decrease in
net income of $23 million. The decrease of $23 million is comprised of a
decrease related to the change in fair value of derivatives of $21
million and an increase in realized loss on derivatives of $2 million.
Additional details on derivative instruments and hedging activities can
be found in Enable's Quarterly Report on Form 10-Q for the period ended
June 30, 2018.

Capital expenditures were $185 million for second quarter 2018, compared
to $87 million for second quarter 2017. Expansion capital expenditures
were $159 million for second quarter 2018, compared to $70 million for
second quarter 2017. Maintenance capital expenditures were $26 million
for second quarter 2018 and $17 million for second quarter 2017.

2018 OUTLOOK

Enable anticipates performance at or above the midpoint of the 2018
outlook issued May 2, 2018, for net income attributable to common units,
Adjusted EBITDA and DCF.

EARNINGS CONFERENCE CALL AND WEBCAST

A conference call discussing second quarter results is scheduled today
at 10 a.m. Eastern. The dial-in number to access the conference call is
800-860-2442, and the conference call ID is Enable Midstream Partners.
Investors may also listen to the call via Enable's website at http://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). Any materials
Enable files with the SEC are available to read and copy at the SEC's
Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549.
Please call the SEC at 1-800-732-0330 for further information on their
Public Reference Room. Enable's SEC filings are also available at the
SEC's website at http://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 http://www.enablemidstream.com.
On the investor relations tab of Enable's website, http://investors.enablemidstream.com,
Enable makes available free of charge a variety of information to
investors. Enable's goal is to maintain the investor relations tab 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 over 13,300
miles of natural gas and crude oil gathering pipelines, approximately
2.6 Bcf/d of processing capacity, approximately 7,800 miles of
interstate pipelines (including Southeast Supply Header, LLC of which
Enable owns 50 percent), approximately 2,200 miles of intrastate
pipelines and eight storage facilities comprising 86.0 billion cubic
feet of storage capacity. For more information, visit http://www.enablemidstream.com.

NON-GAAP FINANCIAL MEASURES

Enable has included the non-GAAP financial measures Gross margin,
Adjusted EBITDA, Adjusted interest expense, DCF and distribution
coverage ratio in this press release based on information in its
condensed consolidated financial statements.

Gross margin, Adjusted EBITDA, Adjusted interest expense, DCF 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,
Adjusted interest expense, DCF and distribution coverage ratio provides
information useful to investors in assessing its financial condition and
results of operations. Gross margin, Adjusted EBITDA, Adjusted interest
expense, DCF 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, Adjusted interest expense, DCF 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, Adjusted
interest expense, DCF 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, 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 revenue projections,
capital expenditures and tax position. 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, in our Annual Report on Form 10-K for the year
ended Dec. 31, 2017 ("Annual Report"), and in our Quarterly Report on
Form 10-Q for the quarterly period ended March 31, 2018 ("Quarterly
Report"). Those risk factors and other factors noted throughout this
press release, in our Annual Report and in our Quarterly 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

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 
  Three Months Ended June 30,   Six Months Ended June 30,
2018   2017 2018   2017
(In millions, except per unit data)
Revenues (including revenues from affiliates):
Product sales $ 501 $ 354 $ 944 $ 740
Service revenue   304     272     609     552  
Total Revenues   805     626     1,553     1,292  
Cost and Expenses (including expenses from affiliates):
Cost of natural gas and natural gas liquids (excluding depreciation
and amortization shown separately)
444 279 819 587
Operation and maintenance 97 97 191 186
General and administrative 26 23 53 48
Depreciation and amortization 96 89 192 177
Taxes other than income tax   16     16     33     32  
Total Cost and Expenses   679     504     1,288     1,030  
Operating Income   126     122     265     262  
Other Income (Expense):
Interest expense (36 ) (31 ) (69 ) (58 )
Equity in earnings of equity method affiliate 7 7 13 14
Other, net   (2 )   (1 )        
Total Other Expense   (31 )   (25 )   (56 )   (44 )
Income Before Income Tax 95 97 209 218
Income tax expense       1         2  
Net Income $ 95 $ 96 $ 209 $ 216
Less: Net income attributable to noncontrolling interest       1         1  
Net Income Attributable to Limited Partners $ 95 $ 95 $ 209 $ 215
Less: Series A Preferred Unit distributions   9     9     18     18  
Net Income Attributable to Common and Subordinated Units(1) $ 86   $ 86   $ 191   $ 197  
 
Basic earnings per unit
Common units $ 0.20 $ 0.20 $ 0.44 $ 0.45
Subordinated units(1) $ $ 0.20 $ $ 0.46
Diluted earnings per unit
Common units $ 0.20 $ 0.20 $ 0.44 $ 0.45
Subordinated units(1) $ $ 0.20 $ $ 0.46
 

___________________

(1) All outstanding subordinated units converted into common units on a
one-for-one basis on August 30, 2017.

 

ENABLE MIDSTREAM PARTNERS, LP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

 

 

  Three Months Ended June 30,   Six Months Ended June 30,
2018   2017 2018   2017
(In millions)
Reconciliation of Gross margin to Total Revenues:
Consolidated
Product sales $ 501 $ 354 $ 944 $ 740
Service revenue   304   272   609   552
Total Revenues 805 626 1,553 1,292
Cost of natural gas and natural gas liquids (excluding depreciation
and amortization)
  444   279   819   587
Gross margin $ 361 $ 347 $ 734 $ 705
 
Reportable Segments
Gathering and Processing
Product sales $ 465 $ 336 $ 883 $ 687
Service revenue   176   144   349     284
Total Revenues 641 480 1,232 971
Cost of natural gas and natural gas liquids (excluding depreciation
and amortization)
  411   269   769   555
Gross margin $ 230 $ 211 $ 463 $ 416
 
Transportation and Storage
Product sales $ 149 $ 134 $ 289 $ 287
Service revenue   128   129   267   270
Total Revenues 277 263 556 557
Cost of natural gas and natural gas liquids (excluding depreciation
and amortization)
  147   127   286   267
Gross margin $ 130 $ 136 $ 270 $ 290
 
   
Three Months Ended June 30, Six Months Ended June 30,
2018   2017 2018   2017
(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 $ 95 $ 95 $ 209 $ 215
Depreciation and amortization expense 96 89 192 177
Interest expense, net of interest income 36 31 69 58
Income tax expense 1 2
Distributions received from equity method affiliate in excess of
equity earnings
1 1 8 5
Non-cash equity-based compensation 3 4 8 8
Change in fair value of derivatives 10 (11 ) 12 (35 )
Other non-cash losses(1)   4     5     4     6  
Adjusted EBITDA $ 245 $ 215 $ 502 $ 436
Series A Preferred Unit distributions(2) (9 ) (9 ) (18 ) (18 )
Distributions for phantom and performance units(3) (1 ) (1 ) (4 ) (1 )
Adjusted interest expense(4) (38 ) (32 ) (73 ) (59 )
Maintenance capital expenditures   (26 )   (17 )   (40 )   (31 )
DCF $ 171   $ 156   $ 367   $ 327  
 
Distributions related to common and subordinated unitholders(5) $ 138   $ 138   $ 276   $ 275  
 
Distribution coverage ratio   1.24     1.13     1.33     1.19  
 

___________________

(1) Other non-cash losses includes loss on sale of assets and
write-downs of materials and supplies.

(2) This amount represents the quarterly cash distributions on the
Series A Preferred Units declared for the three and six months ended
June 30, 2018 and 2017. 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.

(3) 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.

(4) See below for a reconciliation of Adjusted interest expense to
Interest expense.

(5) Represents cash distributions declared for common and subordinated
units outstanding as of each respective period. Amounts for 2018 reflect
estimated cash distributions for common units outstanding for the
quarter ended June 30, 2018.

   
Three Months Ended June 30, Six Months Ended June 30,
2018   2017 2018   2017
(In millions)
Reconciliation of Adjusted EBITDA to net cash provided by
operating activities:
Net cash provided by operating activities $ 239 $ 226 $ 405 $ 382
Interest expense, net of interest income 36 31 69 58
Net income attributable to noncontrolling interest (1 ) (1 )
Other non-cash items(1) 5 1 4 2
Proceeds from insurance 1 1
Changes in operating working capital which (provided) used cash:
Accounts receivable 35 (18 ) 12 (28 )
Accounts payable (41 ) (9 ) 19 46
Other, including changes in noncurrent assets and liabilities (41 ) (5 ) (28 ) 7
Return of investment in equity method affiliate 1 1 8 5
Change in fair value of derivatives   10     (11 )   12     (35 )
Adjusted EBITDA $ 245   $ 215   $ 502   $ 436  
 

____________________

(1) Other non-cash items include amortization of debt expense, discount
and premium on long-term debt and write-downs of materials and supplies.

   
Three Months Ended June 30, Six Months Ended June 30,
2018   2017 2018   2017
(In millions)
Reconciliation of Adjusted interest expense to Interest expense:
Interest Expense $ 36 $ 31 $ 69 $ 58
Amortization of premium on long-term debt 2 2 3 3
Capitalized interest on expansion capital 2 4
Amortization of debt expense and discount   (2 )   (1 )   (3 )   (2 )
Adjusted interest expense $ 38   $ 32   $ 73   $ 59  
 
 

ENABLE MIDSTREAM PARTNERS, LP

OPERATING DATA

 
  Three Months Ended June 30,   Six Months Ended June 30,
2018   2017 2018   2017
Operating Data:
Gathered volumes—TBtu 403 301 788 597
Gathered volumes—TBtu/d 4.43 3.31 4.35 3.30
Natural gas processed volumes—TBtu 212 174 412 342
Natural gas processed volumes—TBtu/d 2.33 1.91 2.27 1.89
NGLs produced—MBbl/d(1) 130.65 87.12 120.44 83.46
NGLs sold—MBbl/d(1)(2) 130.07 86.51 119.79 82.61
Condensate sold—MBbl/d 6.72 5.04 6.84 5.26
Crude Oil—Gathered volumes—MBbl/d 30.55 23.20 27.70 22.19
Transported volumes—TBtu 473 445 983 938
Transported volumes—TBtu/d 5.16 4.86 5.41 5.17
Interstate firm contracted capacity—Bcf/d 5.72 6.21 5.89 6.72
Intrastate average deliveries—TBtu/d 1.88 1.84 1.92 1.84
 

____________________

(1) Excludes condensate.

(2) 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,
2018   2017 2018   2017
Anadarko
Gathered volumes—TBtu/d 2.14 1.78 2.08 1.77
Natural gas processed volumes—TBtu/d 1.91 1.58 1.87 1.56
NGLs produced—MBbl/d(1) 113.75 74.14 104.77 70.74
Arkoma
Gathered volumes—TBtu/d 0.56 0.54 0.55 0.55
Natural gas processed volumes—TBtu/d 0.11 0.09 0.10 0.09
NGLs produced—MBbl/d(1) 7.60 4.60 6.29 4.72
Ark-La-Tex
Gathered volumes—TBtu/d 1.73 0.99 1.72 0.98
Natural gas processed volumes—TBtu/d 0.31 0.24 0.30 0.24
NGLs produced—MBbl/d(1) 9.30 8.38 9.38 8.00
 

__________________

(1) Excludes condensate.

View Comments and Join the Discussion!