Enable Midstream: 2018 EBITDA Surpasses $1 Billion

Enable Midstream Partners, LP (NYSE: ENBL) today announced financial and
operating results for fourth quarter and full-year 2018.

Net income attributable to limited partners was $174 million for fourth
quarter 2018, an increase of $66 million compared to $108 million for
fourth quarter 2017. Net income attributable to common units was $165
million for fourth quarter 2018, an increase of $66 million compared to
$99 million for fourth quarter 2017. Net cash provided by operating
activities was $286 million for fourth quarter 2018, an increase of $8
million compared to $278 million for fourth quarter 2017. Adjusted
EBITDA for fourth quarter 2018 was $271 million, an increase of $33
million compared to $238 million for fourth quarter 2017. DCF for fourth
quarter 2018 was $173 million, an increase of $27 million compared to
$146 million for fourth quarter 2017.

Net income attributable to limited partners was $521 million for
full-year 2018, an increase of $85 million compared to $436 million for
full-year 2017. Net income attributable to common units was $485 million
for full-year 2018, an increase of $85 million compared to $400 million
for full-year 2017. Net cash provided by operating activities was $924
million for full-year 2018, an increase of $90 million compared to $834
million for full-year 2017. Adjusted EBITDA for full-year 2018 was
$1,074 million, an increase of $150 million compared to $924 million for
full-year 2017. DCF for full-year 2018 was $760 million, an increase of
$100 million compared to $660 million for full-year 2017.

For fourth quarter 2018, DCF exceeded declared distributions to common
unitholders by $35 million, resulting in a distribution coverage ratio
of 1.26. For full-year 2018, DCF exceeded declared distributions to
common unitholders by $208 million, resulting in a distribution coverage
ratio of 1.38.

Enable uses derivatives to manage commodity price risk, and the gain or
loss associated with these derivatives is recognized in earnings.
Enable’s net income attributable to limited partners and net income
attributable to common units for fourth quarter 2018 includes a $49
million gain on derivative activity, compared to a $4 million loss on
derivative activity for fourth quarter 2017, resulting in an increase in
net income of $53 million. The increase of $53 million is comprised of
an increase related to the change in fair value of derivatives of $55
million and an increase in realized loss on derivatives of $2 million.
Enable’s net income attributable to limited partners and net income
attributable to common units for full-year 2018 includes an $11 million
gain on derivative activity, compared to a $19 million gain on
derivative activity for full-year 2017, resulting in a decrease in net
income of $8 million. The decrease of $8 million is comprised of a
decrease related to the change in fair value of derivatives of $2
million and an increase in realized loss on derivatives of $6 million.
Additional details on derivative instruments and hedging activities can
be found in Enable’s Annual Report on Form 10-K for the year ended Dec.
31, 2018.

For additional information regarding the non-GAAP financial measures
Gross margin, Adjusted EBITDA and DCF, please see “Non-GAAP Financial
Measures.”

MANAGEMENT PERSPECTIVE

“Enable executed at a high level in 2018, with record natural gas and
crude oil gathered volumes and natural gas processed volumes, which
drove financial performance that outpaced 2017,” said Rod Sailor,
president and CEO. “We expanded our footprint by completing
cost-effective, customer-focused expansion projects and strengthened our
foundation for the long term with our acquisition of the Velocity system
and announcement of the Gulf Run Pipeline project. For 2019, we will
remain a disciplined operator, focused on our customers, deploying
capital efficiently and building value for unitholders.”

BUSINESS HIGHLIGHTS

During fourth quarter 2018, per-day natural gas gathered volumes grew
for the 12th consecutive quarter as a result of strong rig activity
across Enable’s footprint. During fourth quarter 2018, Enable also
achieved the highest per-day crude oil and condensate gathered volumes
since its formation in May 2013. As of Feb. 12, 2019, there were
fifty-four rigs across Enable’s footprint that were drilling wells
expected to be connected to Enable’s gathering systems. Forty of those
rigs were in the Anadarko Basin, nine were in the Ark-La-Tex Basin, two
were in the Arkoma Basin and three were in the Williston Basin.

During fourth quarter 2018, Enable contracted or extended 600,000 Dth/d
of transportation capacity, bringing total 2018 contracting to over
2,000,000 Dth/d. On the Enable Oklahoma Intrastate Transmission, LLC
(EOIT) system, EOIT recontracted with its largest customer, OG&E, for
five years of approximately 336,000 Dth/d firm transportation service.
With this contract and EOIT's 228,000 Dth/d contract to serve OG&E's
Muskogee Power Plant, Enable will provide over 550,000 Dth/d of firm
transportation capacity to OG&E. During fourth quarter 2018, Enable
placed the Muskogee project in service on time and under budget and, as
previously announced, placed the CaSE project into full service.

The rate case originally filed by Enable Mississippi River Transmission,
LLC (MRT) June 29, 2018, continues to advance at the Federal Energy
Regulatory Commission (FERC). As of Jan. 1, 2019, MRT’s proposed rate
increase is being billed to customers, subject to refund depending upon
the outcome of the case. MRT remains focused on ensuring that the
pipeline’s rates appropriately reflect historical investments and
current costs.

On Nov. 8, 2018, Southeast Supply Header, LLC (SESH), Enable’s joint
venture with Enbridge Inc., filed FERC Form 501-G, a one-time report
required by the FERC in response to the reduction in the income tax rate
and the Commission’s Revised Policy Statement on Master Limited
Partnerships. SESH stated in the 501-G filing that it would submit a
limited Natural Gas Act (NGA) section 4 filing to reduce its maximum
tariff rates by 3.1 percent. The rate reduction is not expected to
impact SESH’s current revenues, and current contract rates are
significantly below the new maximum tariff rates. On Dec. 20, 2018, the
Commission accepted SESH’s revised tariff records effective Jan. 1,
2019, as proposed, and found that SESH will not be subject to an NGA
section 5 investigation for three years from the date the proposed rate
reduction became effective, that is, from Jan. 1, 2019, through Jan. 1,
2022.

On Feb. 5, 2019, Enable announced that an affiliate of Golden Pass LNG
(Golden Pass) is the cornerstone shipper for the Gulf Run Pipeline
project. Enable’s announcement followed an announcement from Golden Pass
that it had made a positive final investment decision for the liquefied
natural gas (LNG) facility to be served by the Gulf Run Pipeline
project. Golden Pass is a joint venture between affiliates of Qatar
Petroleum and ExxonMobil. Following the final investment decision from
Golden Pass and its 20-year cornerstone shipper commitment, Enable plans
to continue advancing the project to meet the anticipated late 2022
in-service date, including filing for the required FERC approval.

On Jan. 29, 2019, Enable announced that it had entered into a $1 billion
three-year unsecured term loan agreement. Enable has initially borrowed
$200 million under the agreement, and a delayed-draw feature provides
Enable the flexibility to make up to $800 million in additional
borrowings for up to 180 days from Jan. 29, 2019. Under the term loan
agreement, Enable can borrow at an interest rate based on the London
Interbank Offered Rate (LIBOR) plus an incremental rate determined by
Enable's credit ratings. The incremental rate for LIBOR borrowings is
currently 125 basis points, 25 basis points less than the current
incremental borrowing rate for LIBOR borrowings under Enable's revolving
credit facility. The term loan can be prepaid at any time, in whole or
in part, without penalty and includes two, one-year extension options,
subject to lender approval. The term loan also contains substantially
the same covenants as those contained in Enable's existing revolving
credit agreement.

2019 OUTLOOK

Enable reaffirms the 2019 outlook presented in its third quarter 2018
financial results press release dated Nov. 7, 2018.

KEY OPERATING STATISTICS

Natural gas gathered volumes were 4.62 trillion British thermal units
per day (TBtu/d) for fourth quarter 2018, an increase of 12 percent
compared to 4.11 TBtu/d for fourth quarter 2017. The increase was
primarily due to higher gathered volumes in the Anadarko and Ark-La-Tex
Basins.

Natural gas processed volumes were 2.57 TBtu/d for fourth quarter 2018,
an increase of 19 percent compared to 2.16 TBtu/d for fourth quarter
2017. The increase was primarily due to higher processed volumes in the
Anadarko Basin.

NGLs produced were 136.74 thousand barrels per day (MBbl/d) for fourth
quarter 2018, an increase of 26 percent compared to 108.18 MBbl/d for
fourth quarter 2017. The increase was primarily due to higher natural
gas processed volumes and increased recoveries of ethane.

Crude oil and condensate gathered volumes were 76.59 MBbl/d for fourth
quarter 2018, an increase of 165 percent compared to 28.86 MBbl/d for
fourth quarter 2017. The increase was primarily due to the recent
acquisition of Velocity Holdings, LLC's crude oil and condensate
gathering system in the Anadarko Basin (the Velocity Acquisition).

Interstate transportation firm contracted capacity was 6.24 Bcf/d for
fourth quarter 2018, an increase of 8 percent compared to 5.79 Bcf/d for
fourth quarter 2017. The increase was primarily due to new contracted
capacity on Enable Gas Transmission, LLC (EGT), including volumes from
EGT’s CaSE project.

Intrastate transportation average deliveries were 2.21 TBtu/d for fourth
quarter 2018, an increase of 14 percent compared to 1.94 TBtu/d for
fourth quarter 2017. The increase was primarily related to increased
gathered volumes in the Anadarko Basin.

FOURTH QUARTER FINANCIAL PERFORMANCE

Revenues were $950 million for fourth quarter 2018, an increase of $144
million compared to $806 million for fourth quarter 2017. Revenues are
net of $183 million of intercompany eliminations for fourth quarter 2018
and $163 million of intercompany eliminations for fourth quarter 2017.

• Gathering and processing segment revenues were $808 million for fourth
  quarter 2018, an increase of $151 million compared to $657 million for
  fourth quarter 2017. The increase in gathering and processing segment
  revenues was primarily due to an increase in revenues from changes in
  the fair value of natural gas, condensate and NGL derivatives, an
  increase in revenues from natural gas sales due to higher sales
  volumes inclusive of an increase due to the implementation of
  Accounting Standards Codification 606 (Revenue From Contracts With
  Customers) (ASC 606), an increase in processing service revenues
  resulting from higher processed volumes primarily under fixed
  processing arrangements in the Anadarko Basin, inclusive of an
  increase due to the implementation of ASC 606, an increase in revenues
  from NGL sales resulting from higher processed volumes and increased
  recoveries of ethane in the Anadarko Basin, inclusive of a decrease
  due to the implementation of ASC 606, partially offset by lower
  average NGL prices, an increase in natural gas gathering revenues due
  to higher fees and gathered volumes in the Anadarko and Ark-La-Tex
  Basins, inclusive of a decrease due to the implementation of ASC 606,
  and an increase in crude oil and condensate gathering revenues due to
  the Velocity Acquisition. These increases were partially offset by a
  decrease in revenues due to an intercompany management fee.
• Transportation and storage segment revenues were $325 million for
  fourth quarter 2018, an increase of $13 million compared to $312
  million for fourth quarter 2017. The increase in transportation and
  storage segment revenues was primarily due to an increase in revenues
  from firm transportation and storage services due to new interstate
  and intrastate transportation contracts, an increase in
  volume-dependent transportation revenues driven by an increase in
  commodity fees from new contracts, an increase in off-system
  transportation due to increases in volumes at higher rates and from
  natural gas sales primarily due to higher sales prices. These
  increases were partially offset by a decrease in revenues from natural
  gas sales primarily due to the implementation of ASC 606.

Gross margin was $466 million for fourth quarter 2018, an increase of
$105 million compared to $361 million for fourth quarter 2017. Gross
margin is net of $2 million of intercompany eliminations for fourth
quarter 2018 and $3 million for fourth quarter 2017.

• Gathering and processing segment gross margin was $329 million for
  fourth quarter 2018, an increase of $94 million compared to $235
  million for fourth quarter 2017. The increase in gathering and
  processing segment gross margin was primarily due to an increase in
  gross margin from changes in the fair value of natural gas, condensate
  and NGL derivatives, an increase in processing service fees due to
  higher processed volumes primarily under fixed processing arrangements
  in the Anadarko Basin, inclusive of an increase due to the
  implementation of ASC 606, an increase in natural gas gathering fees
  due to higher fees and gathered volumes in the Anadarko Basin,
  inclusive of a decrease due to the implementation of ASC 606, an
  increase in revenues from NGL sales less the cost of NGLs primarily
  driven by higher processed volumes in the Anadarko and Ark-La-Tex
  Basins, partially offset by lower average NGL prices, inclusive of a
  decrease due to the implementation of ASC 606, and an increase in
  crude oil and condensate gathering revenues due to the Velocity
  Acquisition. These increases were partially offset by a decrease in
  revenues from natural gas sales less the cost of natural gas primarily
  due to an increase in fuel costs due to higher gathered volumes,
  inclusive of an increase due to the implementation of ASC 606.
• Transportation and storage segment gross margin was $135 million for
  fourth quarter 2018, an increase of $6 million compared to $129
  million for fourth quarter 2017. The increase in transportation and
  storage segment gross margin was primarily due to an increase in firm
  transportation and storage services due to new interstate and
  intrastate transportation contracts and an increase in gross margin
  from volume-dependent transportation primarily due to an increase in
  commodity fees from new contracts and an increase in off-system
  transportation due to increases in volumes at higher rates. These
  increases were partially offset by a decrease in system management
  activities.

Operation and maintenance and general and administrative expenses were
$131 million for fourth quarter 2018, an increase of $15 million
compared to $116 million for fourth quarter 2017. Operation and
maintenance and general and administrative expenses are net of $1
million of intercompany eliminations in fourth quarter 2018 and net of
$2 million of intercompany eliminations in fourth quarter 2017. The
increase in operation and maintenance and general and administrative
expenses was primarily due to an increase in expenses related to
maintenance on treating plants as a result of increased Ark-La-Tex Basin
activity, an increase in compressor rental expenses due to increased
rental units, an increase in materials and supplies and contract
services costs as a result of additional assets in service and an
increase acquisition-related costs. These increases were partially
offset by a decrease in payroll-related costs.

Depreciation and amortization expense was $106 million for fourth
quarter 2018, an increase of $7 million compared to $99 million for
fourth quarter 2017. The increase in depreciation and amortization
expense was primarily due to the Velocity Acquisition in fourth quarter
2018 and additional assets placed in service.

Taxes other than income tax were $17 million for fourth quarter 2018 and
2017.

Interest expense was $43 million for fourth quarter 2018, an increase of
$12 million compared to $31 million for fourth quarter 2017. The
increase was primarily due to an increase in the amount of debt
outstanding and higher interest rates on outstanding debt as a result of
a long-term debt issuance in May 2018, the proceeds of which were used
for the repayment of the remaining amount outstanding under Enable’s
2015 term loan agreement and additional amounts outstanding under its
commercial paper program.

Capital expenditures were $620 million for fourth quarter 2018, compared
to $464 million for fourth quarter 2017. Expansion capital expenditures
were $576 million for fourth quarter 2018, compared to $416 million for
fourth quarter 2017. Maintenance capital expenditures were $44 million
for fourth quarter 2018 and $48 million for fourth quarter 2017.

QUARTERLY DISTRIBUTIONS

As previously announced, on Feb. 8, 2019, the board of directors of
Enable’s general partner declared a quarterly cash distribution of
$0.318 per unit on all outstanding common units for the quarter ended
Dec. 31, 2018. The distribution is unchanged from the previous quarter.
The quarterly cash distribution of $0.318 per unit on all outstanding
common units will be paid Feb. 26, 2019, to unitholders of record at the
close of business Feb. 19, 2019.

Also, as previously announced, the board declared a quarterly cash
distribution of $0.625 per unit on all Series A Preferred Units for the
quarter ended Dec. 31, 2018. The quarterly cash distribution of $0.625
per unit on all Series A Preferred Units outstanding was paid Feb. 14,
2019, to unitholders of record at the close of business Feb. 8, 2019.

EARNINGS CONFERENCE CALL AND WEBCAST

A conference call discussing fourth quarter results is scheduled today
at 10 a.m. EST (9 a.m. CST). The toll-free dial-in number to access the
conference call is 833-535-2200, and the international dial-in number is
412-902-6730. The conference call ID is Enable Midstream Partners.
Investors may also listen to the call via Enable’s website at http://investors.enablemidstream.com.
Replays of the conference call will be available on Enable’s website.

ANNUAL REPORT

Enable today filed its annual report on the Form 10-K with the U.S.
Securities and Exchange Commission.

The Form 10-K is available to view, print or download from the SEC
filings page under the Investor Relations section on the Enable
Midstream website at http://investors.enablemidstream.com.

Unitholders may order a printed copy of the Form 10-K by contacting
Enable Midstream Investor Relations at 405-558-4600 or ir@enablemidstream.com.

AVAILABLE INFORMATION

Enable files annual, quarterly and other reports and other information
with the U.S. Securities and Exchange Commission (SEC). Enable’s SEC
filings are also available at the SEC’s website at http://www.sec.gov
which contains information regarding issuers that file electronically
with the SEC. Information about Enable may also be obtained at the
offices of the NYSE, 20 Broad Street, New York, New York 10005, or on
Enable’s website at https://www.enablemidstream.com.
On the investor relations tab of Enable’s website, https://investors.enablemidstream.com,
Enable makes available free of charge a variety of information to
investors. Enable’s goal is to maintain the investor relations tab of
its website as a portal through which investors can easily find or
navigate to pertinent information about Enable, including but not
limited to:

• Enable’s annual reports on Form 10-K, quarterly reports on Form 10-Q,
  current reports on Form 8-K, and any amendments to those reports as
  soon as reasonably practicable after Enable electronically files that
  material with or furnishes it to the SEC;
• press releases on quarterly distributions, quarterly earnings and
  other developments;
• governance information, including Enable’s governance guidelines,
  committee charters and code of ethics and business conduct;
• information on events and presentations, including an archive of
  available calls, webcasts and presentations;
• news and other announcements that Enable may post from time to time
  that investors may find useful or interesting; and
• opportunities to sign up for email alerts and RSS feeds to have
  information pushed in real time.

ABOUT ENABLE MIDSTREAM PARTNERS

Enable owns, operates and develops strategically located natural gas and
crude oil infrastructure assets. Enable’s assets include approximately
13,900 miles of natural gas, crude oil, condensate and produced water
gathering pipelines, approximately 2.6 Bcf/d of processing capacity,
approximately 7,800 miles of interstate pipelines (including Southeast
Supply Header, LLC of which Enable owns 50 percent), approximately 2,300
miles of intrastate pipelines and eight storage facilities comprising
84.5 billion cubic feet of storage capacity. For more information, visit http://www.enablemidstream.com.

NON-GAAP FINANCIAL MEASURES

Enable has included the non-GAAP financial measures Gross margin,
Adjusted EBITDA, Adjusted interest expense, DCF and distribution
coverage ratio in this press release based on information in its
consolidated financial statements.

Gross margin, Adjusted EBITDA, Adjusted interest expense, DCF and
distribution coverage ratio are supplemental financial measures that
management and external users of Enable’s financial statements, such as
industry analysts, investors, lenders and rating agencies may use, to
assess:

• Enable’s operating performance as compared to those of other publicly
  traded partnerships in the midstream energy industry, without regard
  to capital structure or historical cost basis;
• The ability of Enable’s assets to generate sufficient cash flow to
  make distributions to its partners;
• Enable’s ability to incur and service debt and fund capital
  expenditures; and
• The viability of acquisitions and other capital expenditure projects
  and the returns on investment of various investment opportunities.

This press release includes a reconciliation of Gross margin to total
revenues, Adjusted EBITDA and DCF to net income attributable to limited
partners, Adjusted EBITDA to net cash provided by operating activities
and Adjusted interest expense to interest expense, the most directly
comparable GAAP financial measures as applicable, for each of the
periods indicated. Distribution coverage ratio is a financial
performance measure used by management to reflect the relationship
between Enable’s financial operating performance and cash distributions.
Enable believes that the presentation of Gross margin, Adjusted EBITDA,
Adjusted interest expense, DCF and distribution coverage ratio provides
information useful to investors in assessing its financial condition and
results of operations. Gross margin, Adjusted EBITDA, Adjusted interest
expense, DCF and distribution coverage ratio should not be considered as
alternatives to net income, operating income, total revenue, cash flow
from operating activities or any other measure of financial performance
or liquidity presented in accordance with GAAP. Gross margin, Adjusted
EBITDA, Adjusted interest expense, DCF and distribution coverage ratio
have important limitations as analytical tools because they exclude some
but not all items that affect the most directly comparable GAAP
measures. Additionally, because Gross margin, Adjusted EBITDA, Adjusted
interest expense, DCF and distribution coverage ratio may be defined
differently by other companies in Enable’s industry, its definitions of
these measures may not be comparable to similarly titled measures of
other companies, thereby diminishing their utility.

FORWARD-LOOKING STATEMENTS

Some of the information in this press release may contain
forward-looking statements. Forward-looking statements give our current
expectations, contain projections of results of operations or of
financial condition, or forecasts of future events. Words such as
“could,” “will,” “should,” “may,” “assume,” “forecast,” “position,”
“predict,” “strategy,” “expect,” “intend,” “plan,” “estimate,”
“anticipate,” “believe,” “project,” “budget,” “potential,” or
“continue,” and similar expressions are used to identify forward-looking
statements. Without limiting the generality of the foregoing,
forward-looking statements contained in this press release include our
expectations of plans, strategies, objectives, growth and anticipated
financial and operational performance, including revenue projections,
capital expenditures and tax position. Forward-looking statements can be
affected by assumptions used or by known or unknown risks or
uncertainties. Consequently, no forward-looking statements can be
guaranteed.

A forward-looking statement may include a statement of the assumptions
or bases underlying the forward-looking statement. We believe that we
have chosen these assumptions or bases in good faith and that they are
reasonable. However, when considering these forward-looking statements,
you should keep in mind the risk factors and other cautionary statements
in this press release and in our Annual Report on Form 10-K for the year
ended Dec. 31, 2018 (“Annual Report”). Those risk factors and other
factors noted throughout this press release and in our Annual Report
could cause our actual results to differ materially from those disclosed
in any forward-looking statement. You are cautioned not to place undue
reliance on any forward-looking statements.

Any forward-looking statements speak only as of the date on which such
statement is made and we undertake no obligation to correct or update
any forward-looking statement, whether as a result of new information or
otherwise, except as required by applicable law.

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