Enable Midstream Announces Third Quarter 2021 Financial and Operating Results

Enable Midstream Partners, LP (NYSE:ENBL) today announced financial and operating results for third quarter 2021.

Net income attributable to limited partners was $116 million for third quarter 2021, an increase of $280 million compared to $164 million of net loss for third quarter 2020. Net income attributable to common units was $107 million for third quarter 2021, an increase of $280 million compared to $173 million of net loss for third quarter 2020. Enable's third quarter 2020 results were impacted by a $225 million non-cash other than temporary impairment on its investment in Southeast Supply Header, LLC. Net cash provided by operating activities was $265 million for third quarter 2021, an increase of $33 million compared to $232 million for third quarter 2020. Adjusted EBITDA was $269 million for third quarter 2021, an increase of $40 million compared to $229 million for third quarter 2020. Distributable cash flow (DCF) was $193 million for third quarter 2021, an increase of $46 million compared to $147 million for third quarter 2020.

For third quarter 2021, DCF exceeded declared distributions to common unitholders by $121 million, resulting in a distribution coverage ratio of 2.68x.

For additional information regarding the non-GAAP financial measures Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense and distribution coverage ratio, please see "Non-GAAP Financial Measures."

MANAGEMENT PERSPECTIVE

"Enable's third quarter results demonstrate the partnership's operating leverage and position to capture the increasing activity across our footprint driven by stronger energy market fundamentals," said Rod Sailor, president and CEO. "I am also pleased to announce that we have received all necessary approvals for our Gulf Run Pipeline project and plan to commence construction on the project early next year.

"As the expected close date of the Enable and Energy Transfer merger draws near, I want to thank everyone who has partnered with us over the years, including our employees and their families, our customers, our investors and all of the communities across our footprint."

BUSINESS HIGHLIGHTS

• Achieved higher net income attributable to limited partners, Adjusted EBITDA and DCF for third quarter 2021 compared to third quarter 2020, primarily as a result of higher commodity prices and higher natural gas gathering and processing volumes as compared to production curtailments experienced during the third quarter of 2020
• Fully funded the partnership's capital program and distributions for third quarter 2021 while reducing leverage, with total debt to Adjusted EBITDA now at approximately 3.7x on a trailing twelve-month basis
• 17 rigs were drilling wells across Enable's footprint expected to be connected to Enable's gathering systems as of Oct. 25, 2021, an increase of 7 rigs compared to July 28, 2021; 11 rigs are currently operating in the Anadarko Basin, 5 rigs are currently operating in the Ark-La-Tex Basin and 1 rig is currently operating in the Arkoma Basin
• Continued to advance the Gulf Run Pipeline project
  • Filed an Implementation Plan Aug. 24, 2021, in compliance with the Federal Energy Regulatory Commission's (FERC) June 1, 2021 order
  • Received an individual, project-specific permit from the U.S. Army Corps of Engineers
  • Received a Notice to Proceed with Construction from FERC Oct. 19, 2021, granting approval to proceed with construction activities for the project
  • Selected a general contractor for construction of the project
  • Expect the project to be operational to serve customers by late 2022, with construction activities commencing in early 2022
  • Expect the project to have an initial capacity of approximately 1.7 billion cubic feet per day (Bcf/d), with the ability to expand to approximately 2.7 Bcf/d by adding additional compression
• Contracted or extended over 250,000 dekatherms per day (Dth/d) of transportation capacity during third quarter 2021 on Enable Gas Transmission, LLC (EGT), Enable Mississippi River Transmission, LLC (MRT) and Enable Oklahoma Intrastate Transmission, LLC (EOIT)
• Received FERC approval for firm park and loan (PAL) service on the EGT pipeline system, a service designed to provide firm physical supply during periods of critical need such as February's winter storm event; currently working through contractual details with shippers who bid for capacity during a recent open season

ENERGY TRANSFER TRANSACTION UPDATE

Enable and Energy Transfer LP (NYSE:ET) continue to work with the Federal Trade Commission regarding the agency's review under the Hart-Scott-Rodino Act of the proposed merger transaction. Enable expects the transaction will close by year-end 2021.

QUARTERLY DISTRIBUTIONS

As previously announced, on Oct. 26, 2021, the board of directors of Enable's general partner declared a quarterly cash distribution of $0.16525 per unit on all outstanding common units for the quarter ended Sept. 30, 2021. The distribution is unchanged from the previous quarter and represents Enable's 30th consecutive quarterly distribution since the partnership's initial public offering in April 2014. The quarterly cash distribution of $0.16525 per unit on all outstanding common units will be paid Nov. 17, 2021, to unitholders of record at the close of business Nov. 8, 2021.

As also previously announced, the board declared a quarterly cash distribution of $0.5403 per unit on all outstanding Series A Preferred Units for the quarter ended Sept. 30, 2021. The quarterly cash distribution of $0.5403 per unit on all outstanding Series A Preferred Units will be paid Nov. 12, 2021, to unitholders of record at the close of business Oct. 26, 2021.

AVAILABLE INFORMATION

Enable files annual, quarterly and other reports and other information with the U.S. Securities and Exchange Commission (SEC). Enable's SEC filings are also available at the SEC's website at https://www.sec.gov which contains information regarding issuers that file electronically with the SEC. Information about Enable may also be obtained at the offices of the NYSE, 20 Broad Street, New York, New York 10005, or on Enable's website at https://enablemidstream.com. On the Investor Relations section of Enable's website, https://investors.enablemidstream.com, Enable makes available free of charge a variety of information to investors. Enable's goal is to maintain the Investor Relations section of its website as a portal through which investors can easily find or navigate to pertinent information about Enable, including but not limited to:

• Enable's annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports as soon as reasonably practicable after Enable electronically files that material with or furnishes it to the SEC;
• press releases on quarterly distributions, quarterly earnings and other developments;
• governance information, including Enable's governance guidelines, committee charters and code of ethics and business conduct;
• information on events and presentations, including an archive of available calls, webcasts and presentations;
• news and other announcements that Enable may post from time to time that investors may find useful or interesting; and
• opportunities to sign up for email alerts and RSS feeds to have information pushed in real time.

ABOUT ENABLE MIDSTREAM PARTNERS

Enable owns, operates and develops strategically located natural gas and crude oil infrastructure assets. Enable's assets include approximately 14,000 miles of natural gas, crude oil, condensate and produced water gathering pipelines, approximately 2.6 Bcf/d of natural gas processing capacity, approximately 7,800 miles of interstate pipelines (including Southeast Supply Header, LLC of which Enable owns 50%), approximately 2,200 miles of intrastate pipelines and seven natural gas storage facilities comprising 84.5 billion cubic feet of storage capacity. For more information, visit https://enablemidstream.com.

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100%) of Enable's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Enable's distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate. Brokers and nominees, and not Enable, are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.

NON-GAAP FINANCIAL MEASURES

Enable has included the non-GAAP financial measures Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense and distribution coverage ratio in this press release based on information in its consolidated financial statements.

Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense and distribution coverage ratio are supplemental financial measures that management and external users of Enable's financial statements, such as industry analysts, 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 press release includes a reconciliation of Gross margin to total revenues, Adjusted EBITDA and DCF 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, DCF, Adjusted interest expense and distribution coverage ratio provides information useful to investors in assessing its financial condition and results of operations. Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense and distribution coverage ratio should not be considered as alternatives to net income, operating income, total revenue, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense 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, DCF, Adjusted interest expense and distribution coverage ratio may be defined differently by other companies in Enable's industry, its definitions of these measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

FORWARD-LOOKING STATEMENTS

Some of the information in this press release may contain forward-looking statements. Forward-looking statements give our current expectations and 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," "estimate," "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 press release include statements pertaining to our pending merger with Energy Transfer LP and our expectations of plans, strategies, objectives, growth and anticipated financial and operational performance, as updated by this press release. In particular, our statements with respect to continuity plans and preparedness measures we have implemented in response to the novel coronavirus (COVID-19) pandemic and its expected impact on our business, operations, earnings and results are forward-looking statements. 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 press release and our Annual Report on Form 10-K for the year ended Dec. 31, 2020 (Annual Report). Those risk factors and other factors noted throughout this press release and in our Annual 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.

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