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Enable Midstream to Build New Pipeline, Facilitate Gas Export

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Enable Midstream to Build New Pipeline, Facilitate Gas Export

Enable Midstream (ENBL) has commenced a non-binding open season for the Enable Gulf Run Transmission pipeline, in order to garner additional shipping interests.

Enable Midstream Partners, LP ENBL recently announced its intention to build a 165-mile interstate natural gas shipment project, namely the Gulf Run Pipeline. The partnership’s wholly-owned unit, Enable Gulf Run Transmission, LLC will develop the pipeline, which will bring in gas supplies to the flourishing export markets in the Gulf Coast.

Notably, the project has already received support from an unnamed shipper, with a 20-year agreement of 1.1 billion cubic feet per day of transportation capacity. The partnership has commenced a non-binding open season for the pipeline to garner additional shipping interests.  The open season will close on Oct 26.

The pipeline project will enhance and diversify the partnership’s transportation footprint by making use of its existing shipping infrastructures like Enable Gas Transmission. The large-diameter pipeline will run from northern Louisiana to the U.S. Gulf Coast. It will collect gas from the prolific Mid-Continent region and Barnett, Haynesville, Marcellus and Utica shale plays. The partnership expects the project to come online in 2022.

With domestic prices remaining constrained on the back of abundant supplies, there is a big opportunity in selling U.S. natural gas production at higher prices overseas. Currently, natural gas price in the country is hovering around $3 per one million British Thermal Unit (MMBtu). The situation has led to a surge in natural gas exports from the United States to the growing economies, especially in Asia. Pipelines like Enable Gulf Run Transmission are expected to facilitate the exports.

Price Performance

Oklahoma City, OK-based Enable Midstream is a subsidiary of CenterPoint Energy, Inc. CNP, a public utility holding company. Enable Midstream has gained 5.4% in the past year against the 0.4% collective decline of its industry.

Zacks Rank & Stocks to Consider

Currently, Enable Midstream has a Zacks Rank #3 (Hold). Investors interested in the Oil and Gas sector can opt for some better-ranked stocks like Petroleo Brasileiro S.A. or Petrobras PBR and RGC Resources Inc. RGCO. While Petrobras sports a Zacks Rank #1 (Strong Buy), RGC Resources has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Rio de Janeiro, Brazil-based Petrobras is an integrated energy company. The company’s top line for 2018 is likely to improve 7.5% year over year. In the last four reported quarters, it delivered an average positive earnings surprise of 10.4%.

Roanoke, VA-based RGC Resources’ full-year earnings are expected to grow 5.8%. In the last reported quarter, the company delivered an earnings surprise of 40%.

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CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report
Enable Midstream Partners, LP (ENBL) : Free Stock Analysis Report
Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
RGC Resources Inc. (RGCO) : Free Stock Analysis Report
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