DALLAS, Nov. 6, 2024
/PRNewswire/ -- EnLink Midstream, LLC (NYSE: ENLC) (EnLink)
today reported financial results for the third quarter of 2024.
Highlights
- Reported net income of $43.1
million and net cash provided by operating activities of
$260.1 million for the third quarter
of 2024.
- Generated adjusted EBITDA, net to EnLink, of $345.0 million for the third quarter of
2024.
- Delivered $122.4 million of free
cash flow after distributions (FCFAD) for the third quarter of
2024.
- Repurchased approximately $45.4
million[1] of common units in the third quarter of 2024.
EnLink has repurchased approximately $145
million of common units through the first nine months of
2024.
- Contracted an additional 200,000 million British thermal units
per day (MMBtu/d) of long-term transportation capacity delivering
natural gas to end users in Louisiana.
- Subsequent to the quarter, EnLink continued to simplify its
capital structure with the redemption of all remaining Series C
preferred units.
- Subsequent to the ONEOK transaction closing, S&P Global
Ratings upgraded EnLink's credit rating to "BBB" from "BBB-."
EnLink remains on "Credit Watch Positive" at Fitch Ratings Inc.
with a "BBB-" credit rating.
"EnLink delivered a very strong third quarter due to the
consistent execution of our strategy," EnLink President and Chief
Executive Officer Jesse Arenivas
said. "In Louisiana, we continue to move forward with our natural
gas capacity expansions and storage projects, and, in the Permian,
where we completed our third plant relocation earlier this year, we
see consistent producer activity that will drive our next phase of
growth. While we execute these growth strategies, we remain focused
on our primary goal of creating unitholder value and financial
flexibility by generating solid free cash flow after
distributions."
Adjusted EBITDA and FCFAD used in this press release are
non-GAAP measures and are explained in greater detail under
"Non-GAAP Financial Information" below.
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|
|
|
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1 Includes
$20.4 million of common units repurchased from GIP pursuant to our
Unit Repurchase Agreement, which settled on October 2, 2024. The
Unit Repurchase Agreement was terminated on October 2,
2024.
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Third Quarter 2024 Financial Results and
Highlights
|
$MM, unless
noted
|
Third Quarter
2024
|
Second Quarter
2024
|
Third Quarter
2023
|
|
Net Income
(1)
|
43
|
67
|
66
|
|
Adjusted EBITDA, net to
EnLink
|
345
|
306
|
342
|
|
Net Cash Provided by
Operating
Activities
|
260
|
163
|
274
|
|
Capex, Plant Relocation
Costs, net to
EnLink & Investment Contributions
|
78
|
103
|
126
|
|
Free Cash Flow After
Distributions
|
122
|
53
|
66
|
|
Debt to Adjusted
EBITDA, net to EnLink (2)
|
3.3x
|
3.3x
|
3.4x
|
|
Common Units
Outstanding (3)
|
457,073,081
|
461,449,461
|
456,851,424
|
|
(1) Net
income is before non-controlling interest.
|
|
(2)
Calculated according to credit facility leverage
covenant.
|
|
(3)
Outstanding common units as of October 31, 2024,
August 1, 2024, and October 26, 2023,
respectively.
|
2024 Financial Guidance Update
EnLink remains on pace to achieve the midpoint of its previously
announced 2024 adjusted EBITDA guidance range of $1.31 billion to $1.41
billion. Capital expenditures, plant relocation costs, net
to EnLink, and investment contributions are expected to be near the
midpoint of the guidance range of $435
million to $485 million. FCFAD
is on pace to achieve the upper end of the 2024 guidance range of
$265 million to $315 million.
Third Quarter 2024 Segment Updates
Permian Basin:
- Segment profit for the third quarter of 2024 was $142.9 million, including operating expenses
related to plant relocation of $2.1
million and unrealized derivative gains of $2.6 million. Excluding plant relocation
operating expenses and unrealized derivative activity, segment
profit in the third quarter of 2024 grew approximately 28%
sequentially and grew approximately 26% over the third quarter of
2023.
- Average natural gas gathering volumes for the third quarter of
2024 were flat compared to the second quarter of 2024 but were
approximately 10% higher compared to the third quarter of
2023.
- Average natural gas processing volumes for the third quarter of
2024 were approximately 1% higher compared to the second quarter of
2024 and approximately 10% higher compared to the third quarter of
2023. EnLink continues to benefit from consistent producer drilling
and completion activity from its diversified customer mix of more
than 15 producers.
- Average crude gathering volumes for the third quarter of 2024
were approximately 2% higher compared to the second quarter of 2024
and approximately 11% higher compared to the third quarter of
2023.
Louisiana:
- Segment profit for the third quarter of 2024 was $99.7 million, including unrealized derivative
gains of $11.3 million. Excluding
unrealized derivative activity, segment profit in the third quarter
of 2024 grew approximately 12% sequentially but decreased 5%
compared to the third quarter of 2023.
- Average natural gas transportation volumes for the third
quarter of 2024 were approximately 9% lower compared to the second
quarter of 2024 but were approximately 4% higher compared to the
third quarter of 2023.
- Natural gas liquids (NGL) fractionation volumes for the third
quarter of 2024 were approximately 6% lower compared to the second
quarter of 2024 and 9% lower compared to the third quarter of
2023.
- EnLink continues to experience robust demand for last mile
delivery of natural gas to end users in southeast Louisiana. EnLink successfully executed
200,000 MMBtu/d of long-term transportation contracts, and the new
contracted capacity is expected to generate approximately
$15 million of incremental annual
cash flows beginning in the fourth quarter of 2024.
- EnLink expects to benefit from normal seasonal strength in the
NGL business in the fourth quarter of 2024.
Oklahoma:
- Segment profit for the third quarter of 2024 was $105.4 million, including unrealized derivative
gains of $3.0 million. Excluding
unrealized derivative activity, segment profit in the third quarter
of 2024 was flat sequentially but decreased approximately 6% over
the third quarter of 2023. The prior-year quarter comparison
reflects the impact of the previously disclosed one-time contract
reset in the first quarter of 2024.
- Average natural gas gathering volumes for the third quarter of
2024 were approximately 2% higher compared to the second quarter of
2024 and approximately 2% higher compared to the third quarter of
2023.
- Average natural gas processing volumes for the third quarter of
2024 were approximately 2% higher compared to the second quarter of
2024 and approximately 1% higher compared to the third quarter of
2023.
- Average crude gathering volumes during the third quarter of
2024 were approximately 1% lower compared to the second quarter of
2024 and approximately 19% lower compared to the third quarter of
2023.
North Texas:
- Segment profit for the third quarter of 2024 was $58.8 million, including unrealized derivative
gains of $1.1 million. Excluding
unrealized derivative activity, segment profit in the third quarter
of 2024 grew approximately 8% sequentially but decreased
approximately 17% compared to the third quarter of 2023. The
prior-year quarter comparison reflects the impact from the
previously disclosed one-time contract reset in the first quarter
of 2024.
- Average natural gas gathering and transportation volumes for
the third quarter of 2024 were approximately 3% higher compared to
the second quarter of 2024 but were approximately 3% lower compared
to the third quarter of 2023.
- Average natural gas processing volumes for the third quarter of
2024 were approximately 4% higher compared to the second quarter of
2024 but were approximately 3% lower compared to the third quarter
of 2023.
About EnLink Midstream
Headquartered in Dallas, EnLink
Midstream (NYSE: ENLC) provides integrated midstream infrastructure
services for natural gas, crude oil, and NGLs, as well as
CO2 transportation for carbon capture and sequestration
(CCS). Our large-scale, cash-flow-generating asset platforms are in
premier production basins and core demand centers, including the
Permian Basin, Louisiana,
Oklahoma, and North Texas. EnLink is focused on maintaining
the financial flexibility and operational excellence that enables
us to strategically grow and create sustainable value. Visit
www.EnLink.com to learn how EnLink connects energy to
life.
Non-GAAP Financial Information
This press release contains non-generally accepted accounting
principles financial measures that we refer to as adjusted EBITDA
and free cash flow after distributions (FCFAD).
We define adjusted EBITDA as net income (loss) plus (less)
interest expense, net of interest income; depreciation and
amortization; impairments; (income) loss from unconsolidated
affiliate investments; distributions from unconsolidated affiliate
investments; (gain) loss on disposition of assets; (gain) loss on
extinguishment of debt; (gain) loss on litigation settlement;
unit-based compensation; income tax expense (benefit); unrealized
(gain) loss on commodity derivatives; costs associated with the
relocation of processing facilities; accretion expense associated
with asset retirement obligations; transaction costs; non-cash
expense related to changes in the fair value of contingent
consideration; (non-cash rent); and (non-controlling interest share
of adjusted EBITDA from joint ventures).
We define free cash flow after distributions as adjusted EBITDA,
net to ENLC, plus (less) (growth and maintenance capital
expenditures, excluding capital expenditures that were contributed
by other entities and relate to the non-controlling interest share
of our consolidated entities); (interest expense, net of interest
income); (distributions declared on common units); (cash
distributions earned by the Series B Preferred Units and the Series
C Preferred Units); (payment to redeem mandatorily redeemable
non-controlling interest); (costs associated with the relocation of
processing facilities, excluding costs that were contributed by
other entities and relate to the non-controlling interest share of
our consolidated entities); non-cash interest (income)/expense;
(contributions to investment in unconsolidated affiliates);
(payments to terminate interest rate swaps); (current income
taxes); (earnout payments related to the Amarillo Rattler
Acquisition and the Central Oklahoma Acquisition); (non-cash gain
associated with a lease modification); and proceeds from the sale
of equipment and land.
EnLink believes these measures are useful to investors because
they may provide users of this financial information with
meaningful comparisons between current results and
previously-reported results and a meaningful measure of the
company's cash flow after it has satisfied the capital and related
requirements of its operations. In addition, adjusted EBITDA is
used as a metric in our short-term incentive program for
compensating employees and in our performance awards for
executives.
Adjusted EBITDA and free cash flow after distributions, as
defined above, are not measures of financial performance or
liquidity under GAAP. They should not be considered in isolation or
as an indicator of EnLink's performance. Furthermore, they should
not be seen as a substitute for metrics prepared in accordance with
GAAP. Reconciliations of these measures to their most directly
comparable GAAP measures are included in the following tables. See
EnLink's filings with the Securities and Exchange Commission for
more information.
Other definitions and explanations of terms used in this
press release:
Segment profit (loss) is defined as revenues, less cost of sales
(exclusive of operating expenses and depreciation and
amortization), less operating expenses. Segment profit (loss)
includes non-cash compensation expenses reflected in operating
expenses. See "Item 8. Financial Statements and Supplementary Data
- Note 16 - Segment Information" in ENLC's Annual Report on Form
10-K for the year ended December 31, 2023, and, when
available, "Item 1. Financial Statements - Note 11—Segment
Information" in ENLC's Quarterly Report on Form 10-Q for the three
months ended September 30, 2024, for further information about
segment profit (loss).
The Ascension JV is a joint venture between a subsidiary of
EnLink and a subsidiary of Marathon Petroleum Corporation in which
EnLink owns a 50% interest and Marathon Petroleum Corporation owns
a 50% interest. The Ascension JV, which began operations in
April 2017, owns an NGL pipeline that
connects EnLink's Riverside
fractionator to Marathon Petroleum Corporation's Garyville refinery.
The Delaware Basin JV is a
joint venture between EnLink and an affiliate of NGP Natural
Resources XI, L.P. ("NGP") in which EnLink owns a 50.1% interest
and NGP owns a 49.9% interest. The Delaware Basin JV, which was formed in
August 2016, owns the Lobo processing
facilities and the Tiger processing plant located in the
Delaware Basin in Texas.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. Although these
statements reflect the current views, assumptions and expectations
of our management, the matters addressed herein involve certain
assumptions, risks and uncertainties that could cause actual
activities, performance, outcomes and results to differ materially
from those indicated herein. Therefore, you should not rely on any
of these forward-looking statements. All statements, other than
statements of historical fact, included in this press release
constitute forward-looking statements, including, but not limited
to statements identified by the words "forecast," "may," "believe,"
"will," "shall," "should," "plan," "predict," "anticipate,"
"intend," "estimate," "expect," "continue," and similar
expressions. Such forward-looking statements include, but are not
limited to, statements about ONEOK's pursuit of a Public Unit
Transaction (as defined herein), guidance, projected or forecasted
financial and operating results, future results and growth of our
CCS business, potential financial arrangements with CCS
counterparties, acquisitions, or growth capital expenditures,
timing for completion of construction or expansion projects,
results in certain basins, cost savings or operational,
environmental, and climate change initiatives, profitability,
financial or leverage metrics, repurchases of common or preferred
units, our future capital structure and credit ratings, objectives,
strategies, expectations, and intentions, and other statements that
are not historical facts. Factors that could result in such
differences or otherwise materially affect our financial condition,
results of operations, or cash flows include, without limitation
(a) potential conflicts of interest of ONEOK, with us and the
potential for ONEOK to compete with us or favor ONEOK's own
interests to the detriment of our other unitholders, (b) adverse
developments in the midstream business that may reduce our ability
to make distributions, (c) competition for crude oil, condensate,
natural gas, and NGL supplies and any decrease in the availability
of such commodities, (d) decreases in the volumes that we gather,
process, fractionate, or transport, (e) our ability or our
customers' ability to receive or renew required government or third
party permits and other approvals, (f) increased federal, state,
and local legislation, and regulatory initiatives, as well as
government reviews relating to hydraulic fracturing resulting in
increased costs and reductions or delays in natural gas production
by our customers, (g) climate change legislation and regulatory
initiatives resulting in increased operating costs and reduced
demand for the natural gas and NGL services we provide, (h) changes
in the availability and cost of capital, (i) volatile prices and
market demand for crude oil, condensate, natural gas, and NGLs that
are beyond our control, (j) debt levels that could limit our
flexibility and adversely affect our financial health or limit our
flexibility to obtain financing and to pursue other business
opportunities, (k) operating hazards, natural disasters,
weather-related issues or delays, casualty losses, and other
matters beyond our control, (l) reductions in demand for NGL
products by the petrochemical, refining, or other industries or by
the fuel markets, (m) our dependence on significant customers for a
substantial portion of the natural gas and crude that we gather,
process, and transport, (n) construction risks in our major
development projects, (o) challenges we may face in connection with
our strategy to build a CCS transportation business and to enter
into other new lines of business related to the energy transition,
(p)our ability to effectively integrate and manage assets we
acquire through acquisitions, (q) the impact of the coronavirus
(COVID-19) pandemic (including the impact of any new variants of
the virus) and similar pandemics, (r) impairments to goodwill,
long-lived assets and equity method investments, (s) the effects of
existing and future laws and governmental regulations, and other
uncertainties and (t) whether ONEOK is able to consummate its
publicly announced intention to pursue an acquisition of the
remaining ENLC common units not held by it (a "Public Unit
Transaction"). These and other applicable uncertainties, factors,
and risks are described more fully in EnLink Midstream, LLC's
filings with the Securities and Exchange Commission, including
EnLink Midstream, LLC's Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q, and Current Reports on Form 8-K. EnLink
assumes no obligation to update any forward-looking
statements.
The EnLink management team based the forecasted financial
information included herein on certain information and assumptions,
including, among others, the producer budgets / forecasts to which
EnLink has access as of the date of this press release and the
projects / opportunities expected to require capital expenditures
as of the date of this press release. The assumptions, information,
and estimates underlying the forecasted financial information
included in the guidance information in this press release are
inherently uncertain and, though considered reasonable by the
EnLink management team as of the date of its preparation, are
subject to a wide variety of significant business, economic, and
competitive risks and uncertainties that could cause actual results
to differ materially from those contained in the forecasted
financial information. Accordingly, there can be no assurance that
the forecasted results are indicative of EnLink's future
performance or that actual results will not differ materially from
those presented in the forecasted financial information. Inclusion
of the forecasted financial information in this press release
should not be regarded as a representation by any person that the
results contained in the forecasted financial information will be
achieved.
|
EnLink Midstream,
LLC
|
|
Selected Financial
Data
|
|
(All amounts in
millions except per unit amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Total
revenues
|
$ 1,608.4
|
|
$ 1,746.2
|
|
$ 4,807.4
|
|
$ 5,043.8
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of sales,
exclusive of operating expenses and depreciation
and amortization
|
1,067.6
|
|
1,244.7
|
|
3,280.6
|
|
3,535.6
|
|
Operating
expenses
|
134.0
|
|
143.3
|
|
441.8
|
|
412.5
|
|
Depreciation and
amortization
|
186.1
|
|
163.8
|
|
514.0
|
|
489.5
|
|
Impairments
|
71.0
|
|
20.7
|
|
85.2
|
|
20.7
|
|
(Gain) loss on
disposition of assets
|
0.7
|
|
(0.6)
|
|
(0.1)
|
|
(1.8)
|
|
General and
administrative
|
30.0
|
|
30.4
|
|
115.4
|
|
87.8
|
|
Total operating costs
and expenses
|
1,489.4
|
|
1,602.3
|
|
4,436.9
|
|
4,544.3
|
|
Operating
income
|
119.0
|
|
143.9
|
|
370.5
|
|
499.5
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
(67.7)
|
|
(67.9)
|
|
(199.8)
|
|
(205.2)
|
|
Gain on extinguishment
of debt
|
9.5
|
|
—
|
|
9.5
|
|
—
|
|
Income (loss) from
unconsolidated affiliate investments
|
(11.6)
|
|
1.0
|
|
(12.1)
|
|
(3.7)
|
|
Other income
(expense)
|
0.9
|
|
(0.6)
|
|
5.2
|
|
(0.2)
|
|
Total other
expense
|
(68.9)
|
|
(67.5)
|
|
(197.2)
|
|
(209.1)
|
|
Income before
non-controlling interest and income taxes
|
50.1
|
|
76.4
|
|
173.3
|
|
290.4
|
|
Income tax
expense
|
(7.0)
|
|
(10.6)
|
|
(13.2)
|
|
(40.5)
|
|
Net income
|
43.1
|
|
65.8
|
|
160.1
|
|
249.9
|
|
Net income attributable
to non-controlling interest
|
29.1
|
|
36.3
|
|
93.5
|
|
107.9
|
|
Net income attributable
to ENLC
|
$
14.0
|
|
$
29.5
|
|
$
66.6
|
|
$
142.0
|
|
Net income attributable
to ENLC per unit:
|
|
|
|
|
|
|
|
|
Basic common
unit
|
$
(0.03)
|
|
$
0.06
|
|
$
0.08
|
|
$
0.31
|
|
Diluted common
unit
|
$
(0.03)
|
|
$
0.06
|
|
$
0.08
|
|
$
0.30
|
|
|
|
|
|
|
|
|
|
Weighted average common
units outstanding (basic)
|
458.6
|
|
459.3
|
|
453.8
|
|
464.1
|
|
Weighted average common
units outstanding (diluted)
|
458.6
|
|
463.9
|
|
456.4
|
|
468.4
|
|
EnLink Midstream,
LLC
|
|
Reconciliation of
Net Income to Adjusted EBITDA
|
|
(All amounts in
millions)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income
|
$
43.1
|
|
$
65.8
|
|
$
160.1
|
|
$
249.9
|
|
Interest expense, net
of interest income
|
67.7
|
|
67.9
|
|
199.8
|
|
205.2
|
|
Depreciation and
amortization
|
186.1
|
|
163.8
|
|
514.0
|
|
489.5
|
|
Impairments
|
71.0
|
|
20.7
|
|
85.2
|
|
20.7
|
|
(Income) loss from
unconsolidated affiliate investments
|
11.6
|
|
(1.0)
|
|
12.1
|
|
3.7
|
|
Distributions from
unconsolidated affiliate investments
|
—
|
|
0.1
|
|
—
|
|
2.4
|
|
(Gain) loss on
disposition of assets
|
0.7
|
|
(0.6)
|
|
(0.1)
|
|
(1.8)
|
|
Gain on extinguishment
of debt
|
(9.5)
|
|
—
|
|
(9.5)
|
|
—
|
|
Loss on litigation
settlement (1)
|
—
|
|
—
|
|
23.0
|
|
—
|
|
Unit-based
compensation
|
5.7
|
|
5.7
|
|
16.5
|
|
14.2
|
|
Income tax
expense
|
7.0
|
|
10.6
|
|
13.2
|
|
40.5
|
|
Unrealized (gain) loss
on commodity derivatives
|
(18.0)
|
|
22.9
|
|
4.1
|
|
19.0
|
|
Costs associated with
the relocation of processing facilities (2)
|
2.1
|
|
2.9
|
|
28.3
|
|
5.0
|
|
Other (3)
|
0.1
|
|
0.1
|
|
1.6
|
|
0.6
|
|
Adjusted EBITDA before
non-controlling interest
|
367.6
|
|
358.9
|
|
1,048.3
|
|
1,048.9
|
|
Non-controlling
interest share of adjusted EBITDA from joint
ventures (4)
|
(22.6)
|
|
(17.0)
|
|
(59.6)
|
|
(49.7)
|
|
Adjusted EBITDA, net to
ENLC
|
$
345.0
|
|
$
341.9
|
|
$
988.7
|
|
$
999.2
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Relates to the loss
incurred to settle litigation that arose from Winter Storm Uri
and is not part of our ongoing operations.
|
|
(2)
|
Represents cost
incurred to execute discrete, project-based strategic initiatives
aimed at realigning available processing capacity from our Oklahoma
and North Texas segments to the Permian segment. These costs are
not part of our ongoing operations.
|
|
(3)
|
Includes transaction
costs, non-cash expense related to changes in the fair value of
contingent consideration, accretion expense associated with asset
retirement obligations, and non-cash rent, which relates to lease
incentives pro-rated over the lease term.
|
|
(4)
|
Non-controlling
interest share of adjusted EBITDA from joint ventures
includes NGP Natural Resources XI, L.P. ("NGP")'s 49.9% share
of adjusted EBITDA from the Delaware Basin JV and Marathon
Petroleum Corporation's 50% share of adjusted EBITDA from the
Ascension JV.
|
|
EnLink Midstream,
LLC
|
|
Reconciliation of
Net Cash Provided by Operating Activities to Adjusted
EBITDA
|
|
and Free Cash Flow
After Distributions
|
|
(All amounts in
millions except ratios and per unit amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net cash provided by
operating activities
|
$
260.1
|
|
$
274.2
|
|
$
716.0
|
|
$
862.0
|
|
Interest expense
(1)
|
66.1
|
|
66.3
|
|
195.2
|
|
200.3
|
|
Costs associated with
the relocation of processing facilities (2)
|
2.1
|
|
2.9
|
|
28.3
|
|
5.0
|
|
Loss on litigation
settlement (3)
|
—
|
|
—
|
|
23.0
|
|
—
|
|
Other (4)
|
1.3
|
|
0.9
|
|
5.3
|
|
1.7
|
|
Changes in operating
assets and liabilities which (provided) used
cash:
|
|
|
|
|
|
|
|
|
Accounts receivable,
accrued revenues, inventories, and other
|
(63.5)
|
|
156.9
|
|
(52.0)
|
|
(92.8)
|
|
Accounts payable,
accrued product purchases, and other
accrued liabilities
|
101.5
|
|
(142.3)
|
|
132.5
|
|
72.7
|
|
Adjusted EBITDA before
non-controlling interest
|
367.6
|
|
358.9
|
|
1,048.3
|
|
1,048.9
|
|
Non-controlling
interest share of adjusted EBITDA from joint
ventures (5)
|
(22.6)
|
|
(17.0)
|
|
(59.6)
|
|
(49.7)
|
|
Adjusted EBITDA, net
to ENLC
|
345.0
|
|
341.9
|
|
988.7
|
|
999.2
|
|
Growth capital
expenditures, net to ENLC (6)
|
(48.9)
|
|
(97.4)
|
|
(192.3)
|
|
(264.7)
|
|
Maintenance capital
expenditures, net to ENLC (6)
|
(21.6)
|
|
(18.3)
|
|
(55.9)
|
|
(52.5)
|
|
Interest expense, net
of interest income
|
(67.7)
|
|
(67.9)
|
|
(199.8)
|
|
(205.2)
|
|
Distributions declared
on common units
|
(62.4)
|
|
(57.5)
|
|
(183.0)
|
|
(174.3)
|
|
ENLK preferred unit
cash distributions earned (7)
|
(13.7)
|
|
(24.6)
|
|
(61.9)
|
|
(72.2)
|
|
Payment to redeem
mandatorily redeemable non-controlling
interest (8)
|
—
|
|
—
|
|
—
|
|
(10.5)
|
|
Costs associated with
the relocation of processing facilities, net
to ENLC (2)(6)
|
(1.9)
|
|
(1.7)
|
|
(17.7)
|
|
5.0
|
|
Contributions to
investment in unconsolidated affiliates
|
(5.3)
|
|
(8.7)
|
|
(25.4)
|
|
(58.4)
|
|
Other (9)
|
(1.1)
|
|
0.4
|
|
(3.0)
|
|
1.2
|
|
Free cash flow after
distributions
|
$
122.4
|
|
$
66.2
|
|
$
249.7
|
|
$
167.6
|
|
|
|
|
|
|
|
|
|
Actual declared
distribution to common unitholders
|
$
62.4
|
|
$
57.5
|
|
$
183.0
|
|
$
174.3
|
|
Distribution
coverage
|
3.94 x
|
|
3.98 x
|
|
3.64 x
|
|
3.75 x
|
|
Distributions declared
per ENLC unit
|
$
0.1325
|
|
$ 0.1250
|
|
$
0.3975
|
|
$ 0.3750
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Net of amortization of
debt issuance costs, net discount of senior unsecured notes, and
designated cash flow hedge, which are included in interest expense
but not included in net cash provided by operating activities, and
non-cash interest income, which is netted against interest expense
but not included in adjusted EBITDA.
|
|
(2)
|
Represents cost
incurred to execute discrete, project-based strategic initiatives
aimed at realigning available processing capacity from our Oklahoma
and North Texas segments to the Permian segment. These costs are
not part of our ongoing operations.
|
|
(3)
|
Relates to the loss
incurred to settle litigation that arose from Winter Storm Uri and
is not part of our ongoing operations.
|
|
(4)
|
Includes utility
credits redeemed, distributions from unconsolidated affiliate
investments in excess of earnings, transaction costs, current
income tax expense, and non-cash rent, which relates to lease
incentives pro-rated over the lease term.
|
|
(5)
|
Non-controlling
interest share of adjusted EBITDA from joint ventures
includes NGP's 49.9% share of adjusted EBITDA from the
Delaware Basin JV and Marathon Petroleum Corporation's 50% share of
adjusted EBITDA from the Ascension JV.
|
|
(6)
|
Excludes capital
expenditures and costs associated with the relocation of processing
facilities that were contributed by other entities and relate to
the non-controlling interest share of our consolidated
entities.
|
|
(7)
|
Represents the cash
distributions earned by the Series B Preferred Units and
Series C Preferred Units, which are not available to common
unitholders.
|
|
(8)
|
In January 2023, we
settled the redemption of the mandatorily redeemable
non-controlling interest in one of our non-wholly owned
subsidiaries.
|
|
(9)
|
Includes current income
tax expense, earnout payments related to the Amarillo Rattler
Acquisition and the Central Oklahoma Acquisition, a reduction for
non-cash gain associated with a lease modification, and proceeds
from the sale of surplus or unused equipment and land, which
occurred in the normal operation of our business.
|
|
EnLink Midstream,
LLC
|
|
Operating
Data
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Midstream
Volumes:
|
|
|
|
|
|
|
|
|
Permian
Segment
|
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
2,029,700
|
|
1,840,800
|
|
1,987,600
|
|
1,752,800
|
|
Processing
(MMBtu/d)
|
1,864,700
|
|
1,699,700
|
|
1,820,300
|
|
1,626,500
|
|
Crude Oil Handling
(Bbls/d)
|
195,500
|
|
176,100
|
|
183,800
|
|
158,100
|
|
Louisiana
Segment
|
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
2,561,500
|
|
2,468,900
|
|
2,711,100
|
|
2,501,900
|
|
Crude Oil Handling
(Bbls/d)
|
—
|
|
18,600
|
|
—
|
|
17,800
|
|
NGL Fractionation
(Bbls/d)
|
164,400
|
|
180,800
|
|
174,400
|
|
181,000
|
|
Brine Disposal
(Bbls/d)
|
—
|
|
3,400
|
|
—
|
|
3,000
|
|
Oklahoma
Segment
|
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
1,242,900
|
|
1,223,000
|
|
1,202,200
|
|
1,218,600
|
|
Processing
(MMBtu/d)
|
1,192,700
|
|
1,178,200
|
|
1,152,400
|
|
1,182,400
|
|
Crude Oil Handling
(Bbls/d)
|
17,700
|
|
21,900
|
|
18,700
|
|
25,300
|
|
North Texas
Segment
|
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
1,516,400
|
|
1,563,100
|
|
1,479,900
|
|
1,591,100
|
|
Processing
(MMBtu/d)
|
705,300
|
|
729,000
|
|
683,900
|
|
737,800
|
Investor Relations: Brian
Brungardt, Senior Director of Investor Relations,
214-721-9353, brian.brungardt@enlink.com
Media Relations: Megan
Wright, Director of Corporate Communications, 214-721-9694,
megan.wright@enlink.com
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SOURCE EnLink Midstream, LLC