Enable Midstream Partners LP (NYSE:ENBL) will conduct a binding open season to solicit commitments

Enable Midstream Partners LP (NYSE:ENBL) recently announced that Enable Gas Transmission, LLC (EGT), a wholly-owned subsidiary, will conduct a binding open season to solicit commitments for EGT’s Cana and STACK Expansion (CaSE). Together with existing EGT system capacity and EGT capacity on third-party pipelines, the CaSE project will provide residue takeaway solutions for growing production from the Cana Woodford play, as well as the Sooner Trend, Anadarko, Canadian and Kingfisher “STACK” region. EGT is uniquely positioned to provide scalable and flexible solutions for firm transportation service to access premium Southeast and Western markets. The proposed project provides transport options for volumes between 190,000 dth/d and 490,000 dth/d.

“The CaSE project is the latest initiative for EGT that was born from continual conversations with customers to understand their needs,” said Chris Ditzel, vice president commercial, transportation and storage at Enable Midstream. “This expansion is another example of our ability to utilize our existing footprint to serve our shippers and provide residue takeaway solutions for growing Oklahoma production and to provide our end-users access to ample supply.”

Enable Midstream Equity Analysis

Enable Midstream Partners LP (NYSE:ENBL) opened trading today as $8.90 and is trading in the range of 6.93-9.14 today. Enable Midstream’s current market cap stands at $3.76 billion.

Compared to other peers in the Oil & Gas Pipelines sector, Enable Midstream hasn’t performed in terms of quarterly revenue growth year over year at -0.20 vs. the industry average of 0.18. Enable Midstream’s earnings per share is currently at -1.65, which is below then the sector average of 0.66.

Enable Midstream is currently covered by 10 Wall Street analysts. The mean target price is $12.67 according to First Call. This presents a solid upside to the current price of the equity. The Mean Recommendation sits at 2.7 which is based on 2 Strong Buy, 1 Buy and 5 Hold ratings.

The most recent analyst actions consisted of Credit Suisse downgrading the stock on August 12th and Credit Suisse initiating coverage with an upgrade rating back in May.

The current quarter EPS consensus estimate is .20 with revenue estimates of 708.59M. Sales are expected to drop at a 3.60% rate. Enable Midstream reported actual earnings last quarter of -2.33 which fails to beat the .23 consensus estimate, a -1113.00% surprise.

Corporate Profile

Enable Midstream Partners, LP owns, operates, and develops natural gas and crude oil infrastructure assets in the United States. It operates through two segments, Gathering and Processing, and Transportation and Storage. The Gathering and Processing segment provides natural gas gathering, processing, and fractionation services, as well as crude oil gathering services in the Bakken Shale formation of the Williston Basin for its producer customers. The Transportation and Storage segment offers interstate and intrastate natural gas pipeline transportation and storage services to natural gas producers, utilities, and industrial customers. The company’s natural gas gathering and processing assets are located in the Anadarko, Arkoma, and Ark-La-Tex basins; and natural gas transportation and storage assets extend from western Oklahoma and the Texas Panhandle to Alabama, and from Louisiana to Illinois. As of December 31, 2014, its portfolio of energy infrastructure assets included approximately 11,900 miles of gathering pipelines, 12 processing plants with approximately 2.1 billion cubic feet per day of processing capacity, approximately 7,900 miles of interstate pipelines, approximately 2,300 miles of intrastate pipelines, and 8 storage facilities with approximately 87.5 billion cubic feet of storage capacity. The company is based in Oklahoma City, Oklahoma. Enable Midstream Partners, LP operates as a subsidiary of Centerpoint Energy Resources Corp.