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Why Institutional Investors are Bearish on Enable Midstream

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Sep. 19 2017, Updated 9:36 a.m. ET

Recent institutional activity in ENBL

In the recent quarter, Enable Midstream Partners (ENBL) saw a total addition of 1.7 million positions, while 2.1 million positions were sold, which could indicate a bearish sentiment. However, among the top institutional holders of ENBL, 0.2 million positions were added. Fidelity Management & Research and Brookfield Investment Management were the biggest ENBL sellers, with 0.58 million and 0.55 million shares sold, while Advisory Research and TPH Asset Management were the biggest ENBL buyers, with 0.52 million and 0.39 million shares bought.

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Why institutional investors are bearish on ENBL

Institutional investors’ bearishness towards ENBL could be attributed to the following factors:

  • lower interstate firm contract capacity
  • an expected YoY (year-over-year) fall in its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) and distributable cash flow, which is expected to drive ENBL’s distribution coverage lower
  • increased volatility in crude oil and natural gas prices

Top five holders

ArcLight Capital Partners, Advisory Research, ClearBridge Investments, Cushing Asset Management, and Center Coast Capital Advisors are the top five institutional holders of ENBL. ArcLight Capital Partners continues to be the top institutional holder, with 19.3% in the partnership. In the next article, we’ll look at recent analyst recommendations for Enable Midstream Partners.

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