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Enable's Gulf Run pipeline project still on the table, with increasing interest from SNL Daily Gas Report Enable's Gulf Run pipeline project still on the table, with increasing interestByline: Allison Good Enable Midstream Partners is optimistic that the Gulf Run natural gas pipeline project connecting Haynesville Shale supplies to the Golden Pass LNG export terminal in Louisiana will find enough shippers to fill its 1.65 million-Dth/d capacity, the head of the company's general partner said. "It's been an exercise with potential customers that we've had a lot of activity, and then it slowed to nothing, and now we've seen another pickup of activity around potential interest," President, CEO and Director Rod Sailor said during the midstream company's first-quarter earnings conference call on May 6. "We still have some ability to move our time around and make all of our regulatory and construction deadlines." In abbreviated applications filed with the Federal Energy Regulatory Commission on March 2, Enable subsidiaries said they are planning for a Jan. 1, 2023, in-service date, but the collapse of oil prices just days later prompted some equity analysts to speculate about a potential delay for the project. The pipeline partnership in April slashed its 2020 total expansion capital expenditures by $115 million and reduced investor payouts by 50% in response to deteriorating market conditions. In a May 4 note to clients, analysts at Mizuho Securities USA LLC said a second distribution cut is "less likely." Enable on May 6 posted first-quarter adjusted EBITDA of $286 million, down from $297 million a year earlier. The S&P Global Market Intelligence consensus adjusted EBITDA estimate for the first quarter was $274.3 million. The partnership's distributable cash flow for the quarter was $214 million, an increase from $208 million in the year-earlier period. Enable also updated its 2020 adjusted EBITDA outlook to between $900 million and $960 million, down from the previous outlook of $1.05 billion to $1.15 billion. DCF guidance is between $585 million and $645 million, a change from the original guidance of $720 million to $800 million. |
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