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Enable Midstream CEO mum on potential sale amid strategic review from SNL Daily Gas Report Enable Midstream CEO mum on potential sale amid strategic reviewByline: Allison Good After Enable GP LLC beefed up its board with two former Anadarko Petroleum Corp. executives, the head of Enable Midstream Partners' general partner declined to speculate whether those appointments indicate that majority owner CenterPoint Energy Inc. is gearing up to sell the midstream partnership. CenterPoint, which holds 53.7% of common units representing limited partner interests in Enable Midstream and 50% of the management interests in Enable GP, formed a committee in May to evaluate the role of the company's utility businesses as well as its stake in Enable Midstream. But while CenterPoint said it has no interest in putting Enable Midstream on the market right now, some industry experts think the firm is already up for grabs after it slashed its distribution 50% earlier this year. "I think that's a question better asked of CenterPoint and their management," Enable Midstream President and CEO Rod Sailor said during an Aug. 5 second-quarter earnings conference call with investors and analysts, responding to questions about the utility's intentions regarding its investment in the pipeline master limited partnership. CenterPoint previously explored exiting its stake in Enable Midstream but dropped those plans in late 2017 after not being able to reach a "mutually acceptable" agreement. The new committee is expected to make its recommendations to the board by October and update stakeholders on its strategic business plan at an investor day in early 2021. OGE Energy Corp. owns the other half of Enable GP. Sailor also reassured investors that Enable Midstream is not concerned that any potential customer bankruptcies could negatively affect the partnership's credit profile. "While some producers have faced credit challenges in the current commodity price environment, we have not experienced any meaningful credit losses during this cycle," he said. "In our gathering and processing segment, we are typically a net payer for our natural gas processing customers, which helps mitigate our credit exposure, and we generally have the right to request adequate assurance from non-creditworthy counterparties." Enable Midstream on Aug. 5 separately reported second-quarter adjusted EBITDA of $224 million, a decrease from $281 million a year earlier. The S&P Capital IQ consensus adjusted EBITDA estimate for the second quarter was $207.5 million. The partnership's distributable cash flow for the quarter came in at $148 million, down from $197 million in the prior-year period. |
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