Recently launched Enable Midstream Partners LP has filed with the U.S. Securities and Exchange Commission for a proposed initial public offering (IPO) of common units representing limited partner interests.
Enable Midstream was formed in March by CenterPoint Energy Inc., OGE Energy Corp. and ArcLight Capital Partners LLC (see Daily GPI,March 18). Centerpoint, based in Houston, and OGE in Oklahoma City, both have major electric utiity operations in their home areas.
The ongoing development of shale plays has stimulated midstream projects and the consolidation of midstream players. "The rise of the midstream sector is illustrated by the increase in its company valuations," said Deloitte Vice Chairman John England recently (see Shale Daily,Nov. 21). "Nearly 25 midstream companies have an enterprise value in excess of $5 billion, up from seven companies in 2006."
The Enable Midstream offering is expected to occur in the first quarter. The units will trade under the ticker symbol "ENBL" on the New York Stock Exchange. The number of units to be offered and their price have not yet been determined. Enable Midstream said it expects to receive gross proceeds from the offering of about $500 million, excluding proceeds from any exercise of the underwriters' over-allotment option to purchase additional common units. Proceeds are to be used primarily to fund expansion opportunities.
Enable Midstream owns, operates and develops natural gas and crude oil infrastructure assets. Initial assets include 11,000 miles of gathering pipelines, 11 major processing plants with 1.9 Bcf/d of capacity, 7,800 miles of interstate pipelines, 2,300 miles of intrastate pipelines and eight storage facilities comprising 86.5 Bcf capacity.