Enable Midstream Partners LP, which develops and operates natural gas and crude oil infrastructure, on Tuesday launched an initial public offering (IPO) for 25 million common units, with expectations to raise up to $500 million at a price of $19.00-21.00.
At the midpoint of the proposed unit range, the Oklahoma City-based midstreamer (ENBL) would hold a market value of $8.4 billion. Dominion Resources Inc. earlier this week said it expects to receive close to $400 million by spinning off its natural gas infrastructure assets into Dominion Midstream Partners LP (see related story).
Enable officially was formed in May 2013 by affiliates of CenterPoint Energy Inc., OGE Energy Corp. and ArcLight Capital Partners LLC, and the proposed IPO was filed in November (see Daily GPI, Nov. 27, 2013; March 18, 2013).
Enable began with 8,400 miles of interstate pipelines and a bundle of infrastructure properties that included 2,300 miles of intrastate pipelines in Oklahoma, Arkansas, Texas and Louisiana. It now holds close to 11,000 miles of gathering pipelines, 11 major processing plants with 1.9 Bcf/d of processing capacity, 7,800 miles of interstate pipelines, 2,300 miles of intrastate pipelines and eight storage facilities comprising 86.5 Bcf of storage capacity.
In 2013 the company booked an estimated $3.1 billion in sales. Lynn L. Bourdon, an Enterprise Products Partners LP executive, was named CEO in February.
Enable Bakken Crude Services LLC in February launched a binding open season for capacity on a crude oil gathering and transportation pipeline system in the Bakken Shale. A month later the subsidiary signed a long-term agreement with ExxonMobil Corp.'s XTO Energy Inc. to gather crude through the new system and provide produced water services (see Shale Daily, March 17).
The common units being offered represent a 6% limited partner interest in Enable Midstream, or a 6.9% stake if the underwriters exercise full options. CenterPoint would own 54.7% of the company, while OGE would have a 26.7% stake. ArcLight affiliates would own 12.4% of the company, 11.5% if the full options are exercised. The partnership is managed by a general partner whose governance is shared jointly by CenterPoint and OGE.