ENBL - Embedded Expectations Analysis - 2021 05 05
Enable Midstream Partners, LP (ENBL:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with an 11.6x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and management may have concerns about the Energy Transfer transaction, O&M and G&A costs, and further regulatory headwindsSpecifically, management may lack confidence in their ability to sustain O&M and G&A cost savings and limit further asset impairments. Furthermore, they may be exaggerating their focus on sustainability, the quality of their pipeline system and production basin assets, and the potential synergies from being acquired by Energy Transfer. In addition, management may lack confidence in their ability to close the Energy Transfer transaction by mid-2021 and continue to serve southeastern markets through their SESH joint venture. Finally, they may have concerns about regulatory headwinds and further production setbacks with Continental
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