Enable Midstream Partners, LP First Quarter 2018 Conference Call May 2, 2018
Forward-looking Statements Some of the information in this presentation 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,” “estim ate ,” “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 presentation include our expectations of plans, strategies, objectives, growth 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 presentation and in our Annual Report on Form 10- K for the year ended December 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 t his presentation and in our Annual Report and 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. 2
Non-GAAP Financial Measures Gross margin, Adjusted EBITDA, Adjusted interest expense, Distributable cash flow and Distribution coverage ratio are not financial measures presented in accordance with GAAP. Enable has included these non-GAAP financial measures in this presentation based on information in its condensed consolidated financial statements. Gross margin, Adjusted EBITDA, Adjusted interest expense, Distributable cash flow and Distribution coverage ratio are supplemental financial measures that management and external users of Enable’s financial statements, such as industry analyst s, 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 presentation includes a reconciliation of Gross margin to total revenues, Adjusted EBITDA and Distributable cash flow 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, Distributable cash flow 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, Distributable cash flow and Distribution coverage ratio should not be considered as alternatives to net income, operating income, revenue, cash flow from operating activities, interest expense or any other measure of financial performance or liquidity presented in accordance with GAAP. Gross margin, Adjusted EBITDA, Adjusted interest expense, Distributable cash flow 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, Distributable cash flow and Distribution coverage ratio may be defined differently by other companies in Enable’s industry and Enable’s definitions of these measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. 3
Enable Highlights Record quarterly natural gas gathered • volumes, processed volumes, natural gas liquids (NGLs) production and intrastate transported volumes 1 Record quarterly Adjusted EBITDA and • DCF 1,2 Updated 2018 outlook as a result of • strong business performance expectations for 2018 Enable does not expect to access the • equity markets in 2018 Declared quarterly cash distributions of • $0.318 per unit on all outstanding common units and $0.625 on all Series A Preferred Units Since Enable’s formation in May 2013 1. 4 2. Gross margin, Adjusted EBITDA and Distributable Cash Flow (DCF) are non-GAAP measures and are reconciled to the nearest GAAP financial measures on slides 23-25
Premier Wellhead-to-End User Midstream Provider Fully Integrated Assets Provide Significant Scale & Operating Leverage Uniquely positioned assets drive opportunities across the value chain Significant drilling activity continues around Enable’s footprint Developing solutions for substantial supply growth and market demand Business Mix 1 Gathering & 38% Processing Transportation 62% & Storage Note: Map as of April 23, 2018; Completion of the announced Wildhorse plant has been deferred 1. Per Gross Margin for the 12 months ended December 31, 2017; Gross margin is a non-GAAP measure and is reconciled to the nearest GAAP 5 financial measure on slide 23
SCOOP & STACK Driving Anadarko Basin Growth Overview Anadarko Gathered & Processed Volumes Enable’s SCOOP and STACK assets provide Gathered Volumes (TBtu/d) +25% 2.02 1.99 significant scale and operating leverage 1.78 1.75 1.72 1.67 1.66 1.62 1.61 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Processed Volumes (TBtu/d) +29% 1.82 1.75 1.58 1.57 1.54 1.52 1.50 1.44 1.41 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Highlights & Recent Developments • 26 rigs drilling wells to be connected to Enable’s gathering systems in the Anadarko Basin as of April 25, 2018, with 13 in the SCOOP and 12 in the STACK • Leading SCOOP & STACK position, with 1.485 Bcf/d of processing capacity 1 plus additional 0.4 Bcf/d of processing capacity from Project Wildcat; Project Wildcat remains on track for a second quarter 2018 in-service • On April 26, Continental Resources (CLR) issued a press release announcing its 400 million cubic feet per day commitment to Project Wildcat • Recently awarded two long-term, fee-based gas G&P contracts for multi-well, infill projects in the liquids-rich windows of the SCOOP Note: Map as of April 23, 2018 and rigs are per DrillingInfo as of April 25, 2018; Completion of the announced Wildhorse plant has been deferred 1. Processing capacity in the SCOOP and STACK plays; SCOOP designated as Caddo, Carter, Cleveland, Comanche, Garvin, Grady, Jefferson, Love, 6 McClain, Murray and Stephens counties of Oklahoma; STACK designated as Blaine, Canadian, Custer, Dewey, Garfield, Kingfisher, Logan, Major, Oklahoma and Woodward counties of Oklahoma
Ark-La-Tex Basin Growth Trend Continues Overview Ark-La-Tex Gathered Volumes Gathered Volumes (TBtu/d) Enable’s assets are well -positioned to support +109% 1.71 1.58 continued growth in the Ark-La-Tex Basin 1.27 0.99 0.97 0.94 0.89 0.82 0.83 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Highlights & Recent Developments • 9 rigs drilling wells on Enable’s gathering systems in the Ark -La-Tex Basin as of April 25, 2018 • Trend of robust growth continues, as Q1-18 gathered volumes represent a 109% increase over Q1-16 and a 76% increase over Q1- 17 • Strong well performance as a result of improved completion techniques and longer laterals • Due to producer activity and strong well performance, gathered volumes on one of the Haynesville gathering systems are forecast to exceed MVC levels for the current annual measurement period • Project to connect Align Midstream assets is underway and enables further optimization of midstream platform across both G&P and T&S Note: Map as of April 23, 2018 and rigs are per DrillingInfo as of April 25, 2018 7
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