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A Look at Enable’s Leverage Position

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Enable Midstream Partners’ outstanding debt

Enable Midstream Partners (ENBL) ended 2Q17 with a total outstanding debt of $3.1 billion, which is 1.3% higher than its debt outstanding at the end of 2016. The slight increase in the partnership’s outstanding debt could be attributed to the funding of organic projects. ENBL had $1.8 billion in liquidity under its credit facility as of June 30, 2017. The partnership does not plan to access capital markets for the $300 million acquisition of Align Midstream.

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Enable Midstream Partners’ leverage

Enable Midstream Partners’ net debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) multiple stood at 3.41x at the end of 2Q17, lower than its multiple of 3.44x at the end of 2016. ENBL’s leverage is within industry standards. MLPs generally target a ratio between 4.0x to 4.5x. ENBL’s leverage position is better than that of peers EnLink Midstream Partners (ENLK), Boardwalk Pipeline Partners (BWP), and DCP Midstream (DCP). In the next article, we’ll analyze Enable Midstream Partners’ current valuation.

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