Enable Midstream Partners, LP - 2016 Tulsa MLP Conferencetulsamlp.com/2015/1ENBL.pdf · 2015-11-18 · Enable Midstream Partners, LP . ... other than statements of historical fact,

Enable Midstream Partners, LP

Forward-looking Statements

This presentation and the oral statements made in connection herewith may contain “forward-looking statements” within the

meaning of the securities laws. All statements, other than statements of historical fact, regarding Enable Midstream Partners’

(“Enable”) strategy, future operations, financial position, estimated revenues, projected costs, prospects, plans and objectives of

management are forward-looking statements. These statements often include the words “could,” “believe,” “anticipate,” “intend,”

“estimate,” “expect,” “project,” “forecast” and similar expressions and are intended to identify forward-looking statements, although

not all forward-looking statements contain such identifying words. These forward-looking statements are based on Enable’s current

expectations and assumptions about future events and are based on currently available information as to the outcome and timing of

future events. Enable assumes no obligation to and does not intend to update any forward-looking statements included

herein. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements

described under the heading “Risk Factors” included in our SEC filings. Enable cautions you that these forward-looking statements

are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond its control,

incident to the ownership, operation and development of natural gas and crude oil infrastructure assets. These risks include, but

are not limited to, contract renewal risk, commodity price risk, environmental risks, operating risks, regulatory changes and the other

risks described under “Risk Factors” in our SEC filings. Should one or more of these risks or uncertainties occur, or should

underlying assumptions prove incorrect, Enable’s actual results and plans could differ materially from those expressed in any

forward-looking statements.

2

Enable Highlights

► High-Quality Assets

► High degree of interconnectivity between assets and end markets

► Assets are located in four of the most prominent natural gas and crude oil producing basins in the country

► Strong Customer Relationships

► Long-term relationships with large-cap producers and utilities, many of whom are investment grade

► Significant and repeat business in highly competitive areas

► Solid Financial Position

► Favorable contract structure with significant fee-based and demand-fee margin

► Investment grade ratings and lower leverage than many peers

► Significant Growth Opportunities

► Up to $3.5 billion of expansion capital opportunities anticipated from 2015 to 20171

► Producer activity in Enable’s growth areas is driving opportunities across the midstream value chain

3

1. As of Enable’s third quarter 2015 earnings release on November 4, 2015

Interconnected, Diverse and Strategically Located

4

Diverse Set of Interconnected Assets in Ten States

Note: Data as of or for the year ended December 31, 2014, except for interstate and intrastate transportation pipeline mileage, Anadarko processing plants and processing capacity, and Enable’s ownership interest in SESH, which are as of September 30, 2015.

Enable provides operating reach and scale with complementary capabilities managing gas gathering

and processing services, intrastate and interstate transmission and storage for customers in the

Mid-Continent region and crude oil gathering services in the Bakken

Interstate MRT

• 1,665 miles

• 1.9 Bcf/d capacity

• 32.0 Bcf storage capacity

G&P: Arkoma

• 2,893 miles

• 139,620 Horsepower

• 0.77 Tbtu/d gathering volumes

• 1 processing plant

• 60 MMcf/d processing capacity

• 4.4 Mbbl/d NGLs produced

• 1.4 mm gross acres of

dedication

G&P: Ark-La-Tex

• 1,673 miles



• 2 processing plants

• 545 MMcf/d processing capacity

• 14,500 bbl/d fractionation capacity


• 0.7 mm gross acres of dedication

Intrastate EOIT

• 2,151 miles

• 1.9 Bcf/d peak throughput


G&P: Anadarko

• 7,345 miles



• 10 processing plants

• 1.645 Bcf/d processing capacity


• 4.3 mm gross acres of dedication

Interstate EGT

• 5,946 miles



G&P: Williston

• 19,500 Bbl/d crude oil

gathering system

• Additional 30,000 Bbl/d crude

gathering system currently

under construction

Interstate SESH

• Own 50.00% interest

• 286 miles


Enable Ownership Structure

5

18.3% LP

ownership

Enable Midstream Partners, LP

NYSE: ENBL

Transportation

and Storage

Gathering and

Processing

50% Management Interest /

60% Economic Interest 50% Management Interest /

40% Economic Interest

Incentive Distribution

Rights Public

Unitholders 26.3% LP ownership 55.4% LP ownership

Enable GP, LLC

► Sponsors CenterPoint Energy and OGE Energy have a substantial ownership interest in Enable

that represents a significant portion of their respective assets, supporting continued sponsor focus

going forward

Note: As of September 30, 2015

Large and Diverse Customer Base

6

High Quality Customers

Enable’s revenues are strengthened by a diverse, high-quality customer base, many of whom are

investment grade

(Investment Grade)

(Investment Grade)

(Investment Grade) (Investment Grade)

(Investment Grade)

(Investment Grade)

(Investment Grade) (Investment Grade)

QEP Resources, Inc.QEP Resources, Inc.

(Investment Grade)

(Investment Grade)

► Many of our customers rely on us for multiple midstream services across both G&P and T&S

► Loyal customer base through exemplary customer service and reliable project execution

Strong Financial Position ► Enable’s increase of its third quarter distribution represented the fifth consecutive quarterly

distribution increase since IPO

► Enable’s 2016 margin is approximately 90% fee-based or hedged

► The Transportation and Storage segment constitutes approximately 43% of Enable’s margin

► Certain gathering and processing contracts have provisions to protect against low commodity price

environments and volume decreases

1. LTM Financials represent the financials from fourth quarter, 2014 through third quarter, 2015 2. Growth represents growth from third quarter, 2014 to third quarter, 2015 3. As of September 30, 2015 4. Percentages in pie charts based on Gross Margin contribution

7

2016 Fee-Based Margin Profile4

54%

28%

8%

10%

53% 30% 11% 6% Firm/MVC Fee-based Other Fee-based

Commodity-based Hedged Commodity-based Unhedged

~90% fee-

based or

hedged

Gross Margin $1,369

Gathering and Processing $788

Transportation and Storage $581

Adjusted EBITDA $820

Distribution Growth2 5.1%

Market Cap 3 $5,341

LTM Financials1

$ in millions

Appendix Gathering and Processing Segment

8

► Enable has a strong Anadarko basin footprint covering a number of key active plays, including the

SCOOP, STACK, Cana Woodford, Cleveland Sands, Tonkawa, Marmaton and Mississippi Lime plays

9

Anadarko Basin Footprint, Current Activity and Key Plays*

Anadarko Basin

* Rig data per Drillinginfo as of October 28, 2015

► Anadarko “super-header” system connects

eight processing facilities, allowing Enable to

optimize natural gas processing economics

and improve system utilization and reliability

► Anadarko volume growth is driving

infrastructure investments

► 200 MMcf/d Bradley Plant started full

operations in the first quarter of 2015

► Additional 200 MMcf/d SCOOP-area

plant in Grady County, Oklahoma,

scheduled for a first quarter 2016

start-up

► Recently announced the Wildhorse

plant, a new 200 MMcf/d natural gas

processing plant in Garvin County,

Oklahoma, expected to be in service

during the first quarter of 2017

► SCOOP-area compression totals

approximately 181,000 horsepower

System Highlights

SCOOP Remains a Top Play

10

1. As of Enable’s third quarter 2015 earnings release on November 4, 2015

Source: Wood Mackenzie

► SCOOP breakeven prices estimated at $41-$47 per barrel for the SCOOP Core in Grady, Garvin and

Stephens Counties of Oklahoma

► Over $62 billion remaining to be spent in the SCOOP, STACK and Cana footprint through 2025 with

approximately $19 billion related to investments in the SCOOP Core

► SCOOP production expected to more than double over the next 10 years

► Enable has significant, long-term contracts and acreage dedications with the largest leaseholders and

most active operators in the play

► Currently, 10 – 12 rigs in the SCOOP area are drilling wells scheduled to be connected to Enable’s

gathering systems1

Remaining Producer Capex by Sub-play SCOOP Production Outlook

$ billions

$19

$13

$6 $7 $8

$5 $3 $3

$1

SC

OO

P C

ore

ST

AC

K

Cana W

DF

DC

ore

SC

OO

PA

rdm

ore

WD

FD

SC

OO

P W

DF

DC

onden

sate

SC

OO

PW

DF

D O

il

Cana W

DF

DD

ry G

as

SC

OO

PW

DF

D G

as

Cana W

DF

DLiq

uid

s-R

ich

0

200

400

600

800

1,000

1,200

1,400

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Pro

duction (

mboe/d

)

Gas NGL Crude & Condensate

Well-Positioned in the SCOOP Enable has positioned itself as a leading midstream provider in the area with strong customer

relationships

11

► Enable has connected 86% of the horizontal oil

and gas wells completed in Grady, Garvin and

Stephens counties in Oklahoma (Core SCOOP)

since January 1, 20141

► 9 of the top 10 producers by completed well count

in the Core SCOOP are Enable customers1

► Enable’s customers in the Core SCOOP include,

but are not limited to:

1. Includes information and data supplied by IHS Global Inc. and its affiliates; Copyright (2015) all rights reserved; percentage derived from all horizontal oil and gas wells completed from 1/1/2014 through 7/31/2015

2. Rig data per Drillinginfo as of October 28, 2015

ENBL Assets in Core SCOOP2

Core

SCOOP

Ark-La-Tex and Arkoma Basins

12

► The Ark-La-Tex and Arkoma basins are primarily fee-based basins with significant minimum

volume commitment and guaranteed return contracts

► In the Haynesville, new entrants are driving increased drilling activity with expectations for

additional activity in the future

► In the Arkoma basin, producers are active in eastern Oklahoma resulting in the increased

utilization of existing capacity, and additional gathering and processing infrastructure may be

needed should activity continue

Ark-La-Tex System Map

System Highlights

Arkoma System Map

Williston Basin

13

► Enable’s first crude gathering system, a

19,500 Bbl/d system located in Dunn and

McKenzie counties in North Dakota, is

fully operational as of the first quarter

2015 with recent volumes approaching

the system’s capacity1

► The 30,000 Bbl/d Nesson system,

located in Williams and Mountrail

counties in North Dakota, has started

initial operations and is anticipated to be

fully in service by the second quarter of

2016

► Enable continues to add origin points and

is looking to bring non-system barrels

onto existing systems

► Over 90% of the active rigs in North

Dakota are active in counties in which

the partnership operates or is

constructing assets2

► XTO, Enable’s top customer in the

Bakken, is one of the most active

producers in North Dakota2

System Map System Highlights

1. As of Enable’s third quarter 2015 earnings release on November 4, 2015 2. Per North Dakota’s Department of Mineral Resources website as of October 22, 2015

Appendix Transportation and Storage Segment

14

Enable Gas Transmission (EGT)

15

► 5,946-mile interstate pipeline serving the

Arkoma, Ark-La-Tex and Anadarko basins

in Oklahoma, Texas, Arkansas, Louisiana

and Kansas

► Shippers on EGT have the ability to

access almost every major natural gas-

consuming market east of the Mississippi

River

► EGT’s primary customers include LDCs,

gas producers and gas-fired power

generators

► Recently implemented an update to

EGT’s Enhanced Firm Transportation

(EFT) service offering to electric power

generators

► EGT well-positioned to serve increasing

Oklahoma production

► Recently announced a system

expansion involving new shipper

commitments from the EGT open

season in excess of 175,000 Dth/d

► Bradley Lateral pipeline will serve

SCOOP volume growth

Pipeline Map Pipeline Highlights

Note: Pipeline miles are as of September 30, 2015.

Mississippi River Transmission (MRT)

16

► 1,665-mile interstate pipeline in Texas,

Arkansas, Louisiana, Missouri and

Illinois

► MRT’s primary delivery points are to

local distribution companies and

industrial markets in the St. Louis

market area

► MRT offers shippers competitive

rates and access to diverse

supply points

► MRT has an 86-year relationship with

Laclede, MRT’s largest customer



Southeast Supply Header (SESH)

17

► 286-mile interstate natural gas pipeline

that runs from the Perryville Hub in

Louisiana to connections with Florida

markets in southeastern Alabama

► Joint venture with Spectra Energy

► Enable acquired an additional 0.1%

interest in SESH from CenterPoint

Energy in June 2015, bringing

Enable’s total ownership of SESH to

50%

► SESH’s primary customers are electric

utilities in the Florida market area

► 100% of contracts with

investment grade counterparties



Enable Oklahoma Intrastate Transmission (EOIT)

18

► 2,151-mile intrastate transportation

pipeline system in Oklahoma

► Connected to the EGT system and 12

third-party natural gas pipelines

through 66 interconnect points

► Major transportation customers are

OG&E, Enable’s affiliate, and Public

Service Company of Oklahoma (PSO),

an affiliate of AEP, the two largest

electric utilities in Oklahoma

► EOIT provides gas transmission

delivery services to all of

OG&E’s and PSO’s natural gas-

fired electric generation facilities

in Oklahoma

► Positioned to serve SCOOP, STACK,

Cana Woodford, Mississippi Lime and

Greater Granite Wash production



T&S Well-Positioned for Growth

19

Growth Highlights

► Announced an EGT system expansion involving new shipper commitments from the EGT open

season in excess of 175,000 Dth/d

► Enable was recently awarded almost 300,000 Dth/d of firm natural gas transportation business as

lower natural gas prices continue to drive demand for natural gas transportation infrastructure

► The EOIT intrastate system in Oklahoma continues to see increased interruptible transportation fees

as a result of increased Oklahoma production

► Enable is currently responding to requests for proposals for end user projects developing around

Enable’s transportation system

Power Plants Near Enable’s Footprint1 Market Update

► Power plant and LDC loads account for over 5.0

Bcf/d on Enable’s transportation systems

► Enable is well-positioned to capture additional

demand with over 45 coal-fired plants located

within a 50-mile radius of Enable’s pipelines

► Within a 50 mile radius are another 60+ units

totaling 6+ Bcf/d of gas fired capacity that is not

connected to Enable

1. Power Plant locations per the EIA

Appendix Growth Strategy

20

Growth Strategy

21

► Capture organic growth

opportunities in our core basins

► Extend the value chain from

wellhead to end users in our core

commodities of gas, NGLs and

crude

► Establish a presence in high-growth

basins

► Develop a meaningful and

competitive position in any basin

where we participate

► Capture additional market demand

on and around our system

► Maximize earnings stability by

increasing fee-based margin

Documents

Enable Midstream Partners, LP - 2016 Tulsa MLP Conferencetulsamlp.com/2015/1ENBL.pdf · 2015-11-18 · Enable Midstream Partners, LP . ... other than statements of historical fact,