ENBL - Earnings call transcript Q3 2019 | Enable Midstream Partners, LP

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Operator

Good morning and welcome to the Enable Midstream Partners Third Quarter 2019 Earnings Conference Call and Webcast. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Enable's Senior Director of Investor Relations, Matt Beasley. Please go ahead.

Matt Beasley

Thank you, and good morning, everyone. call Laws, Sailor, our morning's CEO; President this John and Chief on are our Rod and Presenting Financial Officer.

other to have the also members management the We team room today answer questions. your of in

we morning, XX-Q Form SEC. filed the this press release issued Earlier with and our earnings our

Our release, of section our filing Form and accompanies presentation that Relations earnings call the are Investor press this all XX-Q the available in website.

a replay of call also will website. be posting We to today's the

the statements a be forward-looking to Actual within that include securities will of from and laws. projections found could meaning projections, could discussion filings. SEC discussion materially differ can Today's our differ from results results the factors in cause our actual of

reconciled to nearest in also today's We statements appendix presentation measures be presentation. the to non-GAAP financial the forward-looking both will this you and disclaimers on in referencing non-GAAP the have measures. to today's for review invite measures GAAP We we financial call, which

over turn we'll get that, With call started, Sailor. I will the to and Rod

Rod Sailor

Thanks, strong a Matt. quarter expansion quarter X.X coverage funding and another of us of joining portion the as reflect results Enable's for of today's ratio you call. capital flow achieved for spending a third generation times, we distribution Good our for quarter. significant cash thank morning,

the We as year's last Velocity our in we Basin. another condensate also business volumes achieved volume driven by acquisition in quarter crude reported growth and gathering Williston of growth continued gathered record crude and

on discussions in have I key call. and the MRT in On MRT are we settlement details pleased the provide progress transportation side, with later more will made the very rate case with we customers

during transportation transportation a recently for signed MASS precedent quarter XXX,XXX In gas dekatherms addition, over and or we per the natural day the agreement of project. contracted capacity extended

to producers gathering around drilling system. expected remain Turning on gathering gathering next XX with currently processing highlights Enable's wells connected active rigs to be footprint and slide, the to our Enable's

in rigs all STACK drilling solid Basin connected the wells with plays XX% be share expected system. active in remains Anadarko the gathering market to SCOOP Our of and Enable's to

Anadarko Basin the the sentiment, Anadarko and the to in some significant with the challenged favorable of continue STACK areas allocate deliver the gathering on and focus that our crude producers' Basin condensate results. drilling, are to we capital partnered the SCOOP plays gather on and and expect faces our assets approximately operators to footprint SCOOP oil While With best the crude XX% core crude continued in active we directed from rigs play. of

gathered the volumes our drilling, see directed will by that crude and believe continued quarter. natural to crude condensate quarter. X% were with we of were for the volumes approximately will have XX% than benefit for approximately areas, higher from for we gas from volumes demonstrated Furthermore, month Even results by gathered systems natural volumes the sound focus these on gas evidenced average momentum average that well that September continue September than as higher we the the seen for which Anadarko as volumes the

pads total play multi-well in per of XX day of over XXX the over In per recently pads multi-well in Enable play connected volumes MMcf with and SCOOP addition, total STACK with the day. volumes MMcf

MVC contracts In Ark-La-Tex strong final These and for the nearly activity in the in in volume of commitment margin Haynesville, the a expiring the as contracts of minimum portion the XXXX. quarter gross represented the of approximately results of MVC recognized half third the of XX% year XXXX. for volumes significant in contracts Ark-La-Tex contract Basin, well result total were levels producer threshold during

of following dedication on the for these contracts quarter years other MVCs The large The until MVCs. Haynesville remains five will remain of the XXXX. completion in second with effect the contracts acreage

high remain drilling record Basin, saw activity driven alleviated during continued of be as that the XXXX. by to gathered In result volumes quarter gas infrastructure Duct crude in oil Williston Enable by a expect we constraints counts the natural XTO.

highlights. and covers The transportation slide recent some next storage

remarks, I of for quarter, dekatherms service. opening on with and transportation XXX,XXX in As EGT affiliates mentioned firm per dekatherms Rockcliff per or during including day day XXX,XXX MRT we with of my contracting transportation per line of contracted Spire extended Energy XXX,XXX service contracting dekatherms EGT's the CP third firm over for day

storage to evaluate while X/XX we and We optimization continue sell ownership of our capital Bistineau undivided interest sale natural also opportunities Louisiana continued our improving contracted for approximately in our meet believe the for $XX to Enable's this agreed levels service will allow million. to gas to Enable asset facility recently in the We base facility efficiency.

contracts system, and re-contracting when portion pipeline EGT, years capacity, contract of Energy the that for Corporation, is by of substantial renewed EGT terms quarter the of Contracts X, largest of beginning largest EGT asset, the for majority the have executed with EGT customer, pipeline targeting or to executing a CERC, its first nine the capacity. for life XXXX. XXXX. extend EGT's will CERC, Resources applicable Enable's CenterPoint On agreed April

a on gas project season As transportation day the connecting dekatherms successful a by demand Enable's MASS a the limitations and natural project takeaway and mentioned project, centers today the markets. existing by leverages Anadarko to growing open per underpinned Southeast production infrastructure efficient result This access Gulf Enable points earlier, Coast to agreement. that with gas in delivery EGT announced to is XXX,XXX address is precedent five-year capital of natural

with FERC holding significant a when it on milestone MRT week of filed subscribed customers with cases the XX% this settle capacity the achieved rate firm transportation proposals system. to MRT the

to through of these rate proposed the XXXX. commitments extend capacity to MRT on addition most agreed customers In settlements,

maximum X% driven on case are last rate which was rates for MRT. non-settling the the remaining capacity filed subscribed parties, the need new by recourse week of was that to comprised the new firm establish transportation A of

recovering return historical our We in costs are to many and our towards with our of have MRT. we that earning progress able our been objective customers a we pleased we agreement significant investments so of reach have and believe made fulfilling on

progress access the of continue which project, Gulf cornerstone most Additionally, provide gas This prolific by is our natural Golden some to shipper LNG. pipeline Pass to Run Gulf producing we regions project will backed Coast US in expect into remains the formal Enable late we track for in approval. service XXXX. subject file by certificate placed on FERC application early to and project a it be to to the XXXX,

is contract new focused meaningful of and discussed the Enable today to the lives on and capacity will our to average extend all projects contract contracting our add pipelines assets. duration contracts

of and strength the demonstrates slide next transportation storage business. our The

key and two Enable additional major fee built has placed for achieved With margins. and customers underway, customers. our XXXX projects have footprint that We includes investment service market since firm based Bcf and projects X.X day and of a the many segment's markets significant production grade five covers base demand customer per high-quality on diverse solutions into

of As and Even continued we capital want including challenges I of with reiterate the I we another commercial I pleased expect current to how direction year just market my remarks, cost our to am remain environment to committed execution. with execution deployment. XXXX close for the company, Enable of the the efficient discipline strong be and

financial quarter discuss now outlook. John third XXXX With to that, further our will turn call over and results our and the operational to I

John Laws

metrics cover a Thank good I will financial for of few the operational and and you, Rod, everyone. quarter. now key our morning,

issued detailed morning. our XX-Q, and third both you this were in always, of quarter a in and financial our more results find comprehensive earnings which of earlier overview can operational release As our and

Turning volumes the which the to X% overview third Anadarko compared volumes flat relatively down remained volumes and of the were higher compared quarter slide, the lower Arkoma XXXX, performance processed partially the Basin, by a primarily operational in Basin. processed driven XXXX, natural result gas gas in in Natural Anadarko the quarter of volumes to volumes gathered to Ark-La-Tex Basins. by was of offset third lower processed

Anadarko in gathering activity and quarter crude acquisition, as as Basin year result volumes the Williston primarily as for the of XTO. driven condensate XX% in was gathered increase drilling in same our by period substantial oil crude and condensate The Basin increase oil well volumes the ago by a continued compared system a to a gathered third our

prior case transported XX% result was capacity EGT, volumes and over from in the project. contracted Transportation our an new Storage on In volumes including a segment, EGT's our year increase of

for X% adjusted The by adjusted quarter by gas, our derivatives. an compared condensate XXXX. after gross lower adjusting higher slide, crude driven offset margin produced to by items, when the third realized and on gathering to Moving of volumes O&M decreased on noncash driven XXXX was our which higher gains financial fees oil than next the natural EBITDA results increased the for NGL water more higher natural and increase EBITDA in which and was and G&A, condensate gas and

adjusted of was rates. decrease service, by interest quarter of third was debt XXXX XXXX driven net the quarter prior year, decreased amortization and the by Velocity and compared by expense. lower in higher depreciation balances by higher The The was flow, additional and EBITDA for interest O&M acquisition, expenses, placed primarily associated higher and expense our adjusted higher for higher higher a when amortization XXXX. interest to higher cash primarily depreciation of with expense the decrease study. driven to and assets in the driven XXXX results and depreciation primarily The outstanding Distributable compared expense third income measures X%

million quarter Enable's gain and margin, the derivative effect partially gross of third gross on on a of The the activity. and quarter realized gains $XX decrease the was offset derivative on included for losses activity unrealized a to million for includes XXXX activity of derivative higher third $X loss by which our XXXX. compared margin

our times. expansion the our a capital the distribution sheet quarter, with X substantial for X.X balance considering metric distributions EBITDA times while generated declared, to than coverage and quarter of liquidity significant nearly After third maintaining which less of debt funded Enable strong XX% of

the proceeds notes repay offering X.XX% pre-fund debt the XXXX the quarter. borrowings a $XXX and term and our like maturity, used under paper reduce a program. of senior addition, to issued We balance at completed notes the In during opportunistically third quarter the commercial first highlight I'd loan to coupon our million we of

attributable EBITDA expansion and I anticipate to the upper adjusted view half Before the the for distributable remainder the would for capital. our that we we will and We net ranges will we of share our outlook, units income move flow. on be of at I that cash common achieve to And to expect our previously like end ranges our for of XXXX issued year. lower

be commodity our the these on in to recognized last on quarter partnership we hedges derivatives. result of not apply of lower accounting expect of hedge gains on income that range the mentioned as net call, a the the I fourth because at As end XXXX were does XXXX

issued third press reconciliations please Enable's presentation. XXXX guidance previously For and quarter associated to XXXX release earnings refer and non-GAAP

X.X the TBtu expect between Turning throughput expectations XXX,XXX X.X XXXX per X.X Haynesville be be in focus natural expect the per SCOOP we directed and natural gathering and as in day with between on for day activity and our gathered systems, crude day TBtu activity continued to XXX,XXX XXXX XXXX, producer processed X.X our continued a per expect and continued with between Anadarko be anticipated XXXX. and we Basin our volumes on volumes of our in we volumes gas and Williston result the gas oil barrels Basin plays, crude to to and crude our condensate to drilling

We also and XXXX interstate day. to X.X contracted expect per be BCf capacity X.X our between firm

and STACK Williston Regarding gathering and expansions gathering between natural and capital be systems The Basins. SCOOP, expenditures $XXX and and the plays Anadarko the to in estimate the million $XXX expansion we the support segment capital and in Haynesville gas for condensate primarily in gathering million. will XXXX, crude capital processing

As in we expenditures infrastructure Enable past, years as accordance optimize with ability has a in and gathering reminder, producer demonstrated to levels. have activity compression and the

and primarily projects. transportation segment, between capital expansion XXXX estimate million storage the to million to the and relates it Gulf be $XX related expenditures MASS we $XX to As and Run

to and We be to $XXX million XXXX. million our net income in expect units common $XXX attributable between

our while cash we expect $X.XX between adjusted $X.XX between to million distributable to generate flow. Additionally, we $XXX billion million $XXX of billion expect EBITDA be and and

X.X expected coverage expected is target a times, This expansion program. a to total to is multiple From be significant X to of for approximately EBITDA a approximately year. our the times while we capital our standpoint, fund adjusted portion to of continue coverage debt leverage

budget. down operational we and MASS, drive business Run with look Enable's gross outlook levels Enable Turning aligning XXXX to represents expenses our our levels remains from as expenditures within environment expansion reduction projects, and and footprint. XXXX margin. of XXXX, key next laser expenses to capital focused and continue will takeaways on a slide, Gulf operating G&A we to as percentage on time around activity on and excellence, significant to executing the our and Enable our continue focus O&M capital on including growth announced a on the

approximately by expected underpinned based is to outlook margin is or profile that fee financial be hedged. a gross XXXX Our XX%

call remarks I now your concludes This for and my up the questions. will open

Operator

Shneur The [Operator Gershuni Instructions] first question comes UBS. from of

Shneur Gershuni

with can to of on bit sort any just little wanted Has Just partner how kind a to holistic now? covering been is the you're fund off XX.X% and fact right of we said if pure discussions has expansion a target basis. outstanding what that You're and XX%. shareholders understand that the the use play you back a done at to where that you about towards not about buying able there general Just that returning to is point think around a point here to of tagged think your to I Is this discussion are yield start your until a your The on able capital possibility just typical board of at more distribution, being and to units XX% trying capital. STACK? be get the some it. happened SCOOP you're as there be

Rod Sailor

you where spend would buyback. or If an on trying that as coverage know it ways clearly sustain to focused our start leverage we deploy then relates be looking think first our very had some best we the level at that cash anticipated coverage. current capital flow looking we'd spending as and that very get a strength. sheet at can think that to better turn as be place flow, our we We're on of I to excess And down we're via where's dollar? we're that at would focused working capital? are item a balance capital to cash our there foremost some on free what to levels, to I

we're don't levers performance unit very As help call, We to on on unit our and ideas and the think our current price, continuing represents yield. should evaluate we the to it last pulling be we business are said on yield. the of focused and our improve that price

Shneur Gershuni

two here, the indicated in you if a the core. Obviously of yourself know around drilling core gears being years rate the sensitivity But year out stopped Maybe share you've a if switching if had scenario, in a out? you completely, decline I and little bit would of with CLR? differentiated just draconian the what for CLR average was for us can do kind be wondering clearly or

Rod Sailor

-- put South you plays, operator what SCOOP probably call, core I Oklahoma. on number might we've also would time whether Continental, on STACK continue with good to that have a spent of that's premier very heard a capital and of What relationship about we a elsewhere. talking as lot or have say Yes, to not or be, are they continuing SCOOP, into the in lot publicly. acreage a depends and the call their It where think they in I is slowdown STACK that a it's Division

Shneur Gershuni

counterparty that Can One your this the there in you Haynesville on be final eye we maybe or an customer keeping you risk anything Is base? at question. talk have across about right date that now? should any

John Laws

so that eye future. set keep day of here to they they've year we've what's top We John. that's roll the sold time either customers, last contracts one lot in XX. year over out and acreage and those top about our XX expected of were on is side, on they've come some to last in was got as all certainly Chesapeake transportation us Over near roll the come our or or had questions of an that of respect and the with we a some out had This some last of on significantly

has there exposure our minimized been drastically. So

then cycle, we particular that we we fact meaningful otherwise aware other more of been we we're also cycle the have that again suffer Enable for is or that, through, think we're that that real not losses say talked is today. is than what's we're to that to don't any don't through I would meaningful And a And when think any customer back did or that experiencing than position what on of. any I in precarious look which harsh that footing more last exposures similar any we pattern but have aware there about went the

Operator

question Colton Tudor, next is Holt. Pickering, from The of Bean

Colton Bean

So different first just with maybe slightly a angle. the question to ask

Looking at coming the like guide million. $XXX you're $XXX the for retained next of it million cash year looks at and expecting program's about in capital

levers next to modestly you available moving continues lower speak with to the XXXX? beyond you are just to upstream So leverage EBITDA can manage if that pressure year,

Rod Sailor

can. sure I

Anadarko. got demonstrated, scale I in the we think think significant it was we've XXXX, in I

have of kind In it we Again, ability assets. is a times lot a customers our from around. areas are stretching too to We producer of core out dependent typically far the really where like the lot they this, some of on aren't move where capital drilling. have of

able capital been historically efficient with have We deployment like times be this. in to our very

so of lot in have capital environment. leverage in a price to of business, built of to spend we our have ability operating kind a And we lot minimize this

Colton Bean

And there? today then outlook offer largest feel just to the is with guidance, private. fairly volume Can your bit into about moving trajectory what XXXX. and counterparties the capacity positive with a comfortable more just so any hedge being looks the to borrowing two Haynesville how considering you of in context positions Ark-La-Tex's you in turning know impact you This

Rod Sailor

our adjust what again, Yes, with again, since from but our in really point recently to although drilling, our we are per the say to spoken some of capital towards upside we've very risk and they they're as efficient one hearing continue typically put they Haynesville. se, issues, aggressive continue we're we we private, But their talk about of coming the be the can't them customers always those on forecast, operators, are the their again, are on development and are very with numbers. out surprised The hedge producer good operators we levels. with pretty system that to I would

Operator

The next JP question is from of Morgan. Jeremy Tonet

Jeremy Tonet

on CapEx Rahul clarify you project behind Or wanted I Jeremy. it's mostly the call. or on itemized just for base side the it? is G&P range? you just drivers the touch here. that well on wanted your I of is color also Is occurred elaborate wide CapEx the the the the business the G&P on This there Appreciate please XXXX on if it things Could MASS in earlier portion on any to of the project other in And to connects? any contribution the have in side. plan? is building CapEx just think

John Laws

I'll address questions think here I inverse CapEx in order.

on So transportation for the our capital included. yes, fairly it's And MASS you're range, right, project is and storage tight.

With is ability respect range, to and adjust we a to the we've think it observed, activity see. to that you I amount fair levels G&P mentioned and got Rod as of our here, wider the as capital

be opportunities we current may may would given So because again little for with generally the be in in year us volumes. year bit year to that or capital and a that have ratchet any to of ratchet range wider capital there activity we for certainly try up of a subsequent down accommodate contemplation

things that excluding that XXXX or things may we're about of generally are a future, on too things think tight to XXXX, some that So the to we we out in working we that range ought to not so to require capital the some extent be. when the in we're we for like that provide otherwise have into those

Rod Sailor

is any XXXX. that have that the there contribution answer in MASS XXXX in might you come from is on asked think I And will to and

John Laws

the all right, That's that but [indiscernible]. capital

Rod Sailor

XXXX, yes. [indiscernible] into

Jeremy Tonet

one CapEx the in side, more part Bakken Midcon between like color the provide on on valuable Just some to there this follow-up to can G&P could be the just see range? the which sensitivity the and you

John Laws

tied it our not driven specific we by basin, environments it, capital generally biggest expect our in generally over has I think when aimed the which activity here the to Anadarko, going at [indiscernible]. been capital has to about last these to basin. most been years we're be to different, breakout generally wouldn't provide think although couple of are be I of type and going our But

bit of spend And the well. Just largest we'll certainly Williston the then first, a in basin have as Haynesville. little

Operator

Moreen next is Gabe The Mizuho. from question of

Gabe Moreen

had for you Increasing, level maybe about your Just decreasing, can guidance is questions same? a within couple to around XXXX? the embedded rig speak count what staying

John Laws

Gabe, thank the you question. for

once rig of efficiencies the Anadarko about think I Haynesville, Rod in operators in with the light of always we it's the general, that some observed as we've not the that count as and, think best or mentioned, was, rolling our that more in the on seen we've in number and of a XXXX indicator rigs even say active more first when out about XXXX sort were of the one-for-one or as it in system. talking were we on basis

second also expect where into and enhancement some in think this rig some we're say quarter we from today the to at increased that the to efficiencies. the we've seen the at it's from I we've to activity would we've of metrics level are fair So seen through some relative reach we pullback year third quarter the where put out. moment particular

Gabe Moreen

some of Maybe could volume on I Any of you completion. follow-up I and if ducts and in influence will the Williston think potentially your basins waiting kind down other outlook? think on ducts ducts where drawing I mentioned the just that,

John Laws

abilities could completion the crews well. system Not opportunities the added that as and inventory necessarily grown be for or necessarily, without although frac enhance duct to in has rigs. on our There the Anadarko are needing volumes

Gabe Moreen

your to rates, At here Is guidance this in transportation rate then the update the finalized? and as you those And settlement. t shifting storage point, guidance? case that are terms any have the rate reflected in to chance case segment gears might new on of gets your

John Laws

our we've settle contemplated the case guidance in is I believe think for certainly expectations will rate where out. we what

the XX% roughly system mentioned, capacity today. we demand firm settlement that's of we've the for got on contract As contracts

would ultimately. necessarily reaching meaningful our guidance where change settlement anticipate as a So we result of to we're expecting a not a

Gabe Moreen

lot could, then more last prices. you're hedging, just commodity clearly I one a if open in around on And XXXX

go a how are rest here own hedging? trough upside the viewpoint for from Be forward going you -- is hedging, NGLs on strategy about in to and you of exposure it and the that your XXXX? are open Just only just

John Laws

Yes, similar has to will to go-forward I been. think approach our basis be a on hedging what it

point observation time year. looking less particular last correct. At this forward this time in we hedged than we were point this Your in is year at are

tend tends show part relatively the forward think that to you not value, curve levels. trading same see and where less to that today the type observe of I commodities low is for we even given we're at liquid of

And that hedging not commodity far liquid on and about hedge the we out where more of way. and we're don't in into same we so items we're heavily a those also that it's really just trade. the program expected prognosticators commodity values at of and out the But think less don't commodities, our it's are go time, or we typically for particular when seeing future on aided today reflection, where as to opposed the the backward trading to a reflection that nearly think liquidity the

Operator

The of Goldman is next Michael from Sachs. question Lapides

Michael Lapides

date beyond a they the where out pushed Pass? Golden the How you. of The FERC to you're at filing question connect made Pass in for project doing pipeline impact potentially XXXX. service would Golden that owner to the Easy that does

Rod Sailor

or in our be expect and paid date. Run getting later in service worked more of X, we've question. to a but said that that filing optionality. XXXX their Golden same, Gulf to that Thanks That we're service is try start again, said, for to the has of on XXXX Pass we actually preserve we some track, on January the late schedule regulatory clarify still was to the

they hasn't with haven't they now it Pass clarified really our construction. about about really as Golden right conversations changed so that think internally thinking And anything changed that and their

Michael Lapides

then a weighted systems? this as somebody I'll And and Or of within the kind and sense MMcf question or the you average -- likely transportation leaving on case case Do the asked a about given as you settlements? kind see well. decline, amount overall rate rate the storage ask of MMBtu a flat on per of capacity

Rod Sailor

contracts we're those on proposed said. anticipate to should Again, shortly, we have now we higher got on out mentioned, settlement that of so rate settled the be MRT the settled. where can't we've Actually John we as finalized and FERC openly the case be in very really the numbers, But with much front and comment here earning our revenue came we happy on as that. numbers

earnings a And my So costs costs, return in transcript have and will our accomplish goal on believe to our I I we earn were recover our believe and turn release, there. even though our also back, recover our investment in experiencing and that. we was

Michael Lapides

last in one, bolts. there One big anything quarter, or forward we transportation the this is segment, Is as and sequentially In a of pretty that million and storage just run and step $XX going year-over-year. in a nuts of up at O&M that was should the assume kind unusual rate?

Rod Sailor

and time million We the had there -- us going one wouldn't hit some wouldn't quarter in charges forward. third we that $X and we anticipate that seeing

Operator

Ross Fargo Securities. Wells from is Payne question next of The

Ross Payne

bit with look you down give acreage QX to little like of coming rig your some guidance us alluded this on QX, rig can but kind counts expect a for counts rather earlier, to to you where You've notably XXXX? on

Rod Sailor

necessary count mentioned so depends always John Clearly in the think targeting. uptick our here a frankly that of we XXXX. program, put guidance. through We're little I again, is kind to still think that. as confident their cautious we into that XXXX good and producers, we they well on it we'll what we rig today. I activity achieve it that that may slide relates we a as feel think anticipating sit or we're in pretty about -- we XXXX But what producers put guidance where we about anticipate in to that are areas and Again, say seeing a around see the are going out the exactly budgeting count what as we see that

Ross Payne

kind that to just basically and more of the is to that focused starting get rigs we're base natural heart of oil the sequential we stability. show the So gas into saw repeat? decrease Is rigs the

Rod Sailor

SCOOP Yes, more STACK, especially our from that's to seeing. and move in a of we we've out. it good we're anticipated see be repeat, the the the Anadarko relates where a If targeting more oilier gas there's out to maybe that's what what put the XXXX, again, as in prices. exactly said activity upside guidance upside in we've some any we would some STACK would that higher it's to But areas

the we're think transcript, and But our seeing we those. off really crude of as I we're the in producers is we're XX% about targeting oilier the Anadarko seeing earnings consistently in more areas said gathering wells what

accomplish absolutely So we're oilier that. seeing to and We're into areas transition correct. now that a you're able -- more to capture or

John Laws

just comments it Ross, the SCOOP, leave and areas but implicit oil in yours additional pad we of unsaid, is on the it's also so see focus as don't development. directed and driven we Yes Rod's

larger efficient are that count. way generally more rig reducing relates these directly in it So to units as

Rod Sailor

can And side. lower to lead our spending capital also it on

Ross Payne

And you gas gas start rise me, level producers natural to is natural that rigs here, as levels, are At the foresee from forward on strip. add the prices what do last all? if think current from you at

John Laws

of activity. allocate what get lot our to on to hedge on around down, that for to an many -- exactly some side, see the footprint. gas, decide of in we especially hard Again, on can't but where they Frankly would aggressive depending spikes we We really us up a do to speak that private depending know very that increased of and on expect in. that. to they say level I their capital, there's see try producers,

Operator

of Alex question next Kania Research. The Wolf from is

AlexKania

questions. of couple a Just

just to guidance level thinking of relative high kind is volumes. overall First about

some a revenue in kind about that kind rolling overall, EBITDA. half a Is of of slight in primary drivers there the prices? kind of the kind commodity but of an assumption decent think to back of up XXXX? function decline kind off tick MVC in of that of of Is volumes trying Just

John Laws

Yes, you'll side. This both a G&P of little impacting things of bit at is where see on we're John. those the

I think also BP. storage that roll of on contracts interstate primarily well. got some as in pipelines, the on transportation We've XXXX on side some we'll and the

what's all to volumes. to So a for at a expected those commodity I realized you quarter, impact being as the in bit when the it's our exposed for reduced be of three items. you look that and commodity, total fourth little date at think will relative EBITDA mix look each going of our have of equal XXXX guidance some else XXXX We'll to of prices

Haynesville drop second did we'll have Then we contracts the in portion this one, as next the can from position good have XX% into said the higher we then be so when we're mentioned, we're That we've that in but storage in very the see, roles in necessarily quarter, expire were piece XXXX, big there as third third expect MVC large MVC volume in the the of rolled of expire as And while of it XXXX there, another two expire and we year. -- differences so element. the MVC lastly, shortfall expecting contract amount Haynesville. don't a would we year one the a off you got transportation the about mentioned, I as

Alex Kania

as scope kind a to Run, LNG kind that I coast able finalize, ultimately. play or if then underway? of does the is just back terms to think to to find in how to kind you're else. to wondering with I'm more process sizeable of volumes of in to the based get clarity And it scope some if something it FERC trying have turning filing on for bit trying of on just about a kind when easy either maybe increase waiting kind update on Gulf just make other a you process the guess, either is down were How there of of about little I demand, guess projects what decision you here I'm into

Rod Sailor

be update scope to there of we scope of XXXX were why the We'd nail really quarter targeting the have that down that. of to is so because to that is around a continuing continue talking active we folks lot to area there But about of primarily the be size kind pretty ways on and to increase development first out flexibility some pipeline. to

Operator

Christopher The Barclays. next question from of is Tillett

Christopher Tillett

you? the in, or how should for guidance risk Just in cycle to wondering expect insight about flow I early are producers at telling insight than wondering all. on, so any think guess adjusted to better we We're results here what and if year, maybe of still on which maybe in as come pretty we kind de-risked of through guidance next sort provide you could have the or what any you your extent provide you worse the looking just

Rod Sailor

in. wants it's and we get we'll look we he start forecasts, I'll feel those at John jump if to necessary add something Now can When down. producer them. We risk adjust

Sometimes risk adjusted we've even those up.

their I environment, haven't right producers capital yet think when of your price we'd final made -- the you're decisions in in caution now of one around thing this is that XXXX. kind again, on kind we

it we serious think confidence. consistent felt always And make be do discussed time. to this done we so we've give our we maybe because to And had have to that at whether XXXX before I guidance we historically put We out but sense wait, guidance. consideration would

And there are smaller all got we their within we better as were somewhere lay in plans our it and of seen more a producers focused will the when certain come we've that we and range put more forward with capitalized Again, on feel XXXX here that down rigs financially. they today we've as and of the guidance factored range some sit and and both like volumetrically we players.

Operator

The next Baramov Ned from Wells Fargo. question of is

Ned Baramov

future to so definitive a non-core EBITDA in thinking monetized potential the by mentioned You agreement assets storage facility, generated of range interest gas could asset ownership the is initiatives, an what time? that about be optimization over approximate sell

Rod Sailor

sense always at EBITDA probably I not we around are guide do that, for to to going own. any not looking but would us of that say make to think we assets kind

some very are I say but would small, there is assets amount decisions on. we that Sometimes they annually make some of

customers optimize we?ll that pressures efficiently this, storage we ways asset. because of aggressive own can times redeploy we one at was cost serve to we're assets our under again, in But could we when more our about activity, assets. think And capital. around and Bistineau that like where look and even we're always rationalization more Now with how reduced of again, the not

Ned Baramov

contract? the that And now I gathering point, customer the and fee has there one MVCs, part the contract at your under on that paid this MVC a change in to of paying expired is the then is Haynesville the relative presume volumetric fee it's strictly

Rod Sailor

No, the longer extend the the past five time another years five extend Haynesville another They past MVCs are years valid. contracts for those no contracts.

Ned Baramov

MASS project, the could a And it last And me, return? in that maybe then seems year talk expected then date half leverages is away. and about it one for you existing the a on new infrastructure yet service the

to of maybe commissioned? is items need done you So that project before walk dated can through the some the get longer

Rod Sailor

months. less year. it be would next it's expect XX We half Yes, in service would back say probably I to than of

return is You're transportation going pipeline have we're that and absolutely correct, able contract further Arkansas the very on and higher infrastructure see Louisiana. as continue it and transport's It -- to does we normally when than significant to to producers valuable we the would that a see leverage in -- some we be STACK. again, gas uptick develop we or start think producers in prices Oklahoma,

Operator

next Markets. is Juvane of Danilo from The question Capital BMO

Danilo Juvane

Most my couple asked have of but a did of been questions answered I have and follow-ups.

updates scope could the trying still any be get down, Firstly, we're to on on the project ultimate Run, CapEx but Gulf realize there? what

Rod Sailor

within Nothing put we that we it's still out the originally. that range --

Danilo Juvane

around $XXX range And was precise, to million? that be

Rod Sailor

correct. That's

Danilo Juvane

you your Williston. made be? And think expand out on remarks what the that in natural please takeaway can I of you of gas mention Can potential secondly, project prepared

Rod Sailor

just delay got around there, is in of of don't was that comment the crude for had the I growth natural why crude rate of infrastructure gas slowed us, guided we've growth gas had our there relative on commentary any the while initially think around customers, more in past had to bringing natural XXXX. what the a we really the for we new handle rate This in to we've the infrastructure.

impede gas us bringing more really for natural that with expect that growth But they only particular systems, the not third of to processing rate or slowdown project abate seen we've on the so for of infrastructure. our additional and around And the on us. facilities those the lack infrastructure parties a some commentary other of was there,

Operator

session. over conference concludes This answer like to I would remarks. to Sailor turn for Mr. closing our back question and the

Rod Sailor

everybody I you thank for you. to employees I'd like recognize everybody work and their on of to call have ask Thank in day. safe a in I closing hard would all thank your the for to Well And much, want Enable. very interest and dedication. And our

Operator

conference now for today's concluded. attending The Thank you presentation. has

may You now disconnect.

Enable Midstream Partners (ENBL) 8 Nov 192019 Q3 Earnings call transcript