Enable Midstream offers terms of IPO

Enable Midstream Partners has begun selling 25 million common units representing limited partner interests.
By Jay F. Marks, Business Writer Modified: April 1, 2014 at 9:43 pm •  Published: April 2, 2014

Enable Midstream Partners LP on Tuesday detailed the terms of its planned initial public offering of 25 million common units representing limited partner interests in the pipeline firm formed last year by OGE Energy Corp. and Houston-based CenterPoint Energy Inc.

Enable said it plans to price the offering at between $19 and $21 per unit. Assuming a price of $20, the company said it expects to receive net proceeds of about $466 million.

The offering is being made only by means of prospectus from underwriters Morgan Stanley and Co. LLC, Barclays Capital Inc. and Goldman, Sachs and Co. Enable’s preliminary prospectus also is available from the U.S. Securities and Exchange Commission’s website.

The units, which are expected to trade on the New York Stock Exchange under the ticker symbol “ENBL,” represent a 6 percent limited partner interest in Enable. The underwriters have the option to buy an additional 3.75 million units, or 0.9 percent interest.

CenterPoint (54.7 percent) and OGE (26.7 percent) own the largest share of Enable units. Affiliates of ArcLight Capital Partners own 12.4 percent of the midstream partnership, although that percentage could drop to 11.5 percent if underwriters opt to exercise their purchase option.

Enable was formed last May when OGE's Enogex midstream division combined with CenterPoint’s interstate pipeline assets.

Enable owns, operates and develops natural gas and crude oil infrastructure assets, including more than 21,000 miles of pipelines, 12 major processing plants and eight storage facilities.

Enable has about 1,900 employees, with offices in Oklahoma City and Houston.