Enable Midstream Partners LP’s (NYSE: ENBL) just-announced Project Wildcat will deliver about 400 MMcf/d of Anadarko Basin rich gas to North Texas when it goes into operation in second-quarter 2018, the company said on May 3.
Enable also announced first-quarter financial results, which showed an increase in net income attributable to limited partners of $34 million, or 40%, compared to first-quarter 2016. Net income attributable to common and subordinated units increased by $25 million, or 29%, compared to first-quarter 2016.
In a statement, Enable attributed the increases to higher gross margin, partially offset by higher interest expense and higher depreciation and amortization expense. The increase in net income attributable to common and subordinated units was also partially offset by distributions on the Series A Preferred Units issued during first-quarter 2016 but not recognized in income until second-quarter 2016.
Project Wildcat is intended to solidify Enable’s midstream position in the Anadarko Basin, providing an integrated gathering and processing solution with access to Texas intrastate natural gas markets, including the Tolar Hub, via contract with an affiliate of Energy Transfer Partners, LP (NYSE: ETP) for 400 MMcf/d of firm processing capacity at the Godley Plant in Johnson County, Texas.
“Enable continues to enhance its market-leading midstream position in the Anadarko Basin by providing customers with tailored, cost-effective and timely solutions from the wellhead to end markets,” said Rod Sailor, Enable’s president and CEO, in the statement. “Project Wildcat provides critical market access and additional processing capacity, positioning Enable to serve our customers’ growing production.”
Enable’s adjusted EBITDA for first-quarter 2017 was $221 million, an increase of $6 million, or 3%, over first-quarter 2016. The increase resulted from higher gross margin, partially offset by changes in the fair value of derivatives and higher distributions from equity method affiliates for first quarter 2016 as a result of a change from receiving quarterly distributions to monthly distributions from Southeast Supply Header LLC (SESH) starting in first-quarter 2016.
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