Enable Midstream Partners has offered an update on its Energy Transfer merger while reporting its Q1 figures.
Adjusted pe-tax earnings for the Oklahoma City-based company was $328m for the first quarter of 2021, an increase of $42m compared to $286 million for first quarter 2020.
The company advised that on April 7, 2021, the Securities and Exchange Commission (SEC) declared effective the Form S-4 registration statement filed in connection with Energy Transfer’s merger with Enable. CenterPoint Energy and OGE Energy collectively own approximately 79% of Enable’s outstanding common units and have each delivered written consents to approve the merger. While the consents of both companies are sufficient to approve the transaction, all unitholders as of the record date can return written consents before the consent deadline.
The transaction is expected to close in mid-2021, subject to the satisfaction of customary closing conditions. “Looking to the future, Enable continues to be well-positioned to benefit from improving commodity prices and the pending merger with Energy Transfer. Teams from both companies are currently working hard to plan for a seamless integration,” said Rod Sailor, Enable’s president and CEO.
While Enable experienced production curtailments during first quarter 2021 due to Winter Storm Uri, substantially all production impacted by the storm is back online, and average daily March natural gas gathered volumes were approximately 4% higher than the average daily natural gas gathered volumes for first quarter 2021.
As of April 26, 2021, there were 10 rigs across Enable’s footprint that were drilling wells expected to be connected to Enable’s gathering systems. Four of those rigs were in the Anadarko Basin, five were in the Ark-La-Tex Basin and one was in the Williston Basin. Producers have an inventory of drilled but uncompleted wells (DUCs) behind Enable’s gathering systems with 88 DUCs in the Anadarko Basin, 11 DUCs in the Ark-La-Tex Basin and 82 DUCs in the Williston Basin. These 181 DUCs provide an inventory of wells producers can complete without investing drilling capital.
In the transportation and storage segment, Enable contracted or extended over 250,000 dekatherm per day (Dth/d) of firm transport capacity in the first quarter of 2021 at a volume-weighted average contract life of over four years. Backed by a five-year commitment, Enable Gas Transmission’s MASS project was placed into service April 1, 2021. The project transports natural gas from the Anadarko and Arkoma Basins to delivery points with access to emerging Gulf Coast markets and growing demand markets in the Southeast.
Enable continues to advance its Gulf Run Pipeline project, a project designed to move US natural gas supplies from northern Louisiana to the Gulf Coast. The planned 42” pipeline scope provides for approximately 1.7 billion cubic feet per day (Bcf/d) of capacity, allowing for contracting upside potential beyond the cornerstone shipper’s 1.1 Bcf/d commitment. The cost for the project is currently estimated at approximately $540m. The contractor bidding process is expected to begin in the second quarter of 2021, and the project is anticipated to be placed into service in late 2022.
“Our first quarter results highlight the strength of Enable’s fully integrated midstream platform, which is a vital link between sources of production and downstream markets,” said Enable’s Sailor. “This was demonstrated during Winter Storm Uri when Enable employees worked with producers and end-users to ensure that natural gas supply continued to serve demand in critical areas.”
For more information visit: www.enablemidstream.com
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