CenterPoint Energy 2015 Annual Report Download - page 27

Our cash flows will be adversely impacted if we receive less cash distributions from Enable than we currently expect.
BothCERCCorp.andOGEholdtheirlimitedpartnershipinterestsinEnableintheformofbothcommonunitsandsubordinatedunits.Enableisexpectedto
payaminimumquarterlydistributionof$0.2875perunit,or$1.15perunitonanannualizedbasis,onitsoutstandingunitstotheextentithassufficientcashfrom
operations after establishment of cash reserves and payment of fees and expenses, including payments to its general partner and its affiliates (referred to as
“available cash”). The principal difference between Enable’s common units and subordinated units is that in any quarter during the applicable subordination
period,holdersofthesubordinatedunitsarenotentitledtoreceiveanydistributionofavailablecashuntilthecommonunitshavereceivedtheminimumquarterly
distributionplusanyarrearagesinthepaymentoftheminimumquarterlydistributiononcommonunitsfrompriorquarters.IfEnabledoesnotpaydistributionson
its subordinated units, its subordinated units will not accrue arrearages for those unpaid distributions. Accordingly, if Enable is unable to pay its minimum
quarterlydistribution,theamount of cash distributions wereceivefromEnable may be adversely affected. Enablemaynot have sufficient available cash each
quartertoenableittopaytheminimumquarterlydistribution.TheamountofcashEnablecandistributeonitsunitswillprincipallydependupontheamountof
cashitgeneratesfromitsoperations,whichwillfluctuatefromquartertoquarterbasedon,amongotherthings:
• thefeesandgrossmarginsitrealizeswithrespecttothevolumeofnaturalgas,NGLsandcrudeoilthatithandles;
• thepricesof,levelsofproductionof,anddemandfornaturalgas,NGLsandcrudeoil;
• thevolumeofnaturalgas,NGLsandcrudeoilitgathers,compresses,treats,dehydrates,processes,fractionates,transportsandstores;
• therelationshipamongpricesfornaturalgas,NGLsandcrudeoil;
• cashcallsandsettlementsofhedgingpositions;
•marginrequirementsonopenpriceriskmanagementassetsandliabilities;
• thelevelofcompetitionfromothermidstreamenergycompanies;
• adverseeffectsofgovernmentalandenvironmentalregulation;
• thelevelofitsoperationandmaintenanceexpensesandgeneralandadministrativecosts;and
• prevailingeconomicconditions.
Inaddition,theactualamountofcashEnablewillhaveavailablefordistributionwilldependonotherfactors,including:
•thelevelandtimingofitscapitalexpenditures;
• thecostofacquisitions;
•itsdebtservicerequirementsandotherliabilities;
• fluctuationsinitsworkingcapitalneeds;
• itsabilitytoborrowfundsandaccesscapitalmarkets;
• restrictionscontainedinitsdebtagreements;
• theamountofcashreservesestablishedbyitsgeneralpartner;and
• otherbusinessrisksaffectingitscashlevels.
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