DALLAS, Oct. 31,
2023 /PRNewswire/ -- EnLink Midstream, LLC
(NYSE: ENLC) (EnLink) reported financial results for the third
quarter of 2023.
Highlights
- Reported net income of $65.8
million and net cash provided by operating activities of
$274.2 million for the third quarter
of 2023.
- Generated adjusted EBITDA, net to EnLink, of $341.9 million for the third quarter of 2023,
which is flat compared to the third quarter of 2022.
- Delivered $66.2 million of free
cash flow after distributions (FCFAD) for the third quarter of
2023.
- Remain on track to achieve the midpoint of 2023 adjusted EBITDA
guidance, which represents 5% growth compared to 2022 adjusted
EBITDA.
- Repurchased approximately $50
million1 of common units in the third quarter of
2023. EnLink is ahead of pace to complete the 2023 unit repurchase
authorization of $200 million.
"EnLink continues to have multiple ways to win, be it through
the strength of our traditional midstream assets or our growing
carbon transportation business," EnLink Chief Executive Officer
Jesse Arenivas said. "Our Permian
segment generated robust cash flows that we are returning to
investors through our active buyback program, and our Louisiana system remains well positioned to
meet both natural gas and natural gas liquids (NGL) demand.
EnLink's solid third quarter results show the strength of this
business model.
"We believe EnLink is a differentiated midstream investment.
We're approaching completion of our first carbon capture project,
which will capture and sequester carbon dioxide (CO2)
emitted from our Bridgeport
processing plant in North Texas,
and we continue to execute our 'future of midstream' vision by
delivering energy products critical to powering our modern society,
while also offering solutions to reduce greenhouse gas
emissions."
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.
______________________________
|
1 Includes
$23.0 million of common units repurchased from GIP pursuant to our
Unit Repurchase Agreement, which settled on October 30,
2023.
|
Third Quarter 2023 Financial Results and
Highlights
$MM, unless
noted
|
Third Quarter 2023
|
Second Quarter 2023
|
Third Quarter 2022
|
Net Income
(1)
|
66
|
90
|
117
|
Adjusted EBITDA, net to
EnLink
|
342
|
334
|
343
|
Net Cash Provided by
Operating
Activities
|
274
|
316
|
343
|
Capex, Plant Relocation
Costs, net to
EnLink & Investment Contributions
|
126
|
88
|
121
|
Free Cash Flow After
Distributions
|
66
|
96
|
85
|
Debt to Adjusted
EBITDA, net to EnLink (2)
|
3.4x
|
3.4x
|
3.4x
|
Common Units
Outstanding (3)
|
456,851,424
|
461,497,730
|
473,596,120
|
|
(1) Net
income is before non-controlling interest.
|
(2)
Calculated according to credit facility leverage
covenant.
|
(3)
Outstanding common units as of October 26, 2023, July 27,
2023, and October 27, 2022, respectively.
|
Third Quarter 2023 Segment
Updates
Permian Basin:
- Segment profit for the third quarter of 2023 was $102.7 million, including operating expenses
related to plant relocation of $2.5
million and unrealized derivative losses of $7.4 million. Excluding plant relocation
operating expenses and unrealized derivative activity, segment
profit in the third quarter of 2023 grew approximately 11%
sequentially but decreased approximately 4% over the third quarter
of 2022.
- Average natural gas gathering volumes for the third quarter of
2023 were approximately 6% higher compared to the second quarter of
2023 and approximately 15% higher compared to the third quarter of
2022.
- Average natural gas processing volumes for the third quarter of
2023 were approximately 5% higher compared to the second quarter of
2023 and approximately 12% higher compared to the third quarter of
2022. EnLink continues to benefit from strong producer drilling and
completion activity.
- Average crude gathering volumes for the third quarter of 2023
were approximately 13% higher compared to the second quarter of
2023 and approximately 12% higher compared to the third quarter of
2022.
- EnLink's third plant relocation, Tiger II, remains on schedule
to be placed in service in the second quarter of 2024.
Louisiana:
- Segment profit for the third quarter of 2023 was $87.1 million, including unrealized derivative
losses of $6.0 million. Excluding
unrealized derivative activity, segment profit in the third quarter
of 2023 grew approximately 8% sequentially, mainly driven by normal
seasonal effects in the NGL segment, but was flat over the third
quarter of 2022.
- Average natural gas transportation volumes for the third
quarter of 2023 were approximately 5% higher compared to the second
quarter of 2023 but were approximately 18% lower compared to the
third quarter of 2022.
- NGL fractionation volumes for the third quarter of 2023 were
approximately 1% higher compared to the second quarter of 2023 but
were approximately 4% lower compared to the third quarter of
2022.
Oklahoma:
- Segment profit for the third quarter of 2023 was $104.6 million, including operating expenses
related to plant relocation of $0.4
million and unrealized derivative losses of $4.1 million. Excluding plant relocation expenses
and unrealized derivative activity, segment profit in the third
quarter of 2023 was flat sequentially but grew approximately 14%
over the third quarter of 2022.
- Average natural gas gathering volumes for the third quarter of
2023 were approximately 2% lower compared to the second quarter of
2023 but were approximately 18% higher compared to the third
quarter of 2022.
- Average natural gas processing volumes for the third quarter of
2023 were approximately 2% lower compared to the second quarter of
2023 but were approximately 10% higher compared to the third
quarter of 2022.
- Average crude gathering volumes during the third quarter of
2023 were approximately 18% lower compared to the second quarter of
2023 but were approximately 2% higher compared to the third quarter
of 2022.
North Texas:
- Segment profit for the third quarter of 2023 was $63.8 million, including unrealized derivative
losses of $5.4 million. Excluding
unrealized derivative activity, segment profit in the third quarter
of 2023 decreased approximately 7% sequentially and decreased
approximately 14% over the third quarter of 2022.
- Average natural gas gathering and transportation volumes for
the third quarter of 2023 were approximately 2% lower compared to
the second quarter of 2023 and approximately 7% lower compared to
the third quarter of 2022.
- Average natural gas processing volumes for the third quarter of
2023 were approximately 1% lower compared to the second quarter of
2023 and approximately 6% lower compared to the third quarter of
2022.
Third Quarter 2023 Webcast Details
EnLink will
host a webcast and conference call to discuss third quarter 2023
results on November 1, 2023, at 8 a.m. Central
time. The conference call will be broadcast via an internet
webcast, which can be accessed on the Investors page of EnLink's
website at investors.enlink.com. Interested parties can access an
archived replay of the webcast on EnLink's website for at least 90
days following the event.
About the EnLink Midstream Companies
Headquartered in
Dallas, EnLink Midstream (NYSE:
ENLC) provides integrated midstream infrastructure services for
natural gas, crude oil, condensate, 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; 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); 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 15 - Segment Information" in ENLC's
Annual Report on Form 10-K for the year ended December 31,
2022, and, when available, "Item 1. Financial Statements - Note
14—Segment Information" in ENLC's Quarterly Report on Form 10-Q for
the three months ended September 30,
2023, 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. his 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,"
"should," "plan," "predict," "anticipate," "intend," "estimate,"
"expect," "continue," and similar expressions. Such forward-looking
statements include, but are not limited to, statements about
guidance, projected or forecasted financial and operating
results, future results or growth of our CCS business,
expected financial and operations results associated with
certain projects, 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 Global Infrastructure
Partners ("GIP") with us and the potential for GIP to compete with
us or favor GIP'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)
our debt levels 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 enter into new lines of business
related to the energy transition, (p) the impact of the coronavirus
(COVID-19) pandemic (including the impact of any new variants of
the virus) and similar pandemics, (q) impairments to goodwill,
long-lived assets and equity method investments, and (r) the
effects of existing and future laws and governmental regulations,
and other uncertainties. 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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Total revenues
(1)
|
$ 1,746.2
|
|
$ 2,663.5
|
|
$ 5,043.8
|
|
$ 7,491.8
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of sales,
exclusive of operating expenses and depreciation
and amortization (2)
|
1,244.7
|
|
2,131.1
|
|
3,535.6
|
|
6,030.7
|
Operating
expenses
|
143.3
|
|
136.8
|
|
412.5
|
|
386.6
|
Depreciation and
amortization
|
163.8
|
|
162.6
|
|
489.5
|
|
474.5
|
Impairments
|
20.7
|
|
—
|
|
20.7
|
|
—
|
(Gain) loss on
disposition of assets
|
(0.6)
|
|
(0.8)
|
|
(1.8)
|
|
3.9
|
General and
administrative
|
30.4
|
|
34.5
|
|
87.8
|
|
91.9
|
Total operating costs
and expenses
|
1,602.3
|
|
2,464.2
|
|
4,544.3
|
|
6,987.6
|
Operating
income
|
143.9
|
|
199.3
|
|
499.5
|
|
504.2
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
(67.9)
|
|
(60.4)
|
|
(205.2)
|
|
(171.0)
|
Loss on extinguishment
of debt
|
—
|
|
(5.7)
|
|
—
|
|
(6.2)
|
Income (loss) from
unconsolidated affiliate investments
|
1.0
|
|
(1.7)
|
|
(3.7)
|
|
(4.0)
|
Other income
(expense)
|
(0.6)
|
|
0.3
|
|
(0.2)
|
|
0.6
|
Total other
expense
|
(67.5)
|
|
(67.5)
|
|
(209.1)
|
|
(180.6)
|
Income before
non-controlling interest and income taxes
|
76.4
|
|
131.8
|
|
290.4
|
|
323.6
|
Income tax
expense
|
(10.6)
|
|
(15.2)
|
|
(40.5)
|
|
(17.1)
|
Net income
|
65.8
|
|
116.6
|
|
249.9
|
|
306.5
|
Net income attributable
to non-controlling interest
|
36.3
|
|
35.8
|
|
107.9
|
|
105.2
|
Net income attributable
to ENLC
|
$
29.5
|
|
$
80.8
|
|
$
142.0
|
|
$
201.3
|
Net income attributable
to ENLC per unit:
|
|
|
|
|
|
|
|
Basic common
unit
|
$
0.06
|
|
$
0.17
|
|
$
0.31
|
|
$
0.42
|
Diluted common
unit
|
$
0.06
|
|
$
0.17
|
|
$
0.30
|
|
$
0.41
|
|
|
|
|
|
|
|
|
Weighted average common
units outstanding (basic)
|
459.3
|
|
477.2
|
|
464.1
|
|
481.0
|
Weighted average common
units outstanding (diluted)
|
463.9
|
|
484.4
|
|
468.4
|
|
487.9
|
________________________________
|
(1)
|
Includes related party
revenue of $0.7 million and $1.4 million for the three months ended
September 30, 2023 and 2022, respectively, and $2.0 million
and $1.4 million for the nine months ended September 30, 2023
and 2022, respectively.
|
(2)
|
Includes related party
cost of sales of $1.8 million and $5.6 million for the three months
ended September 30, 2023 and 2022, respectively, and $5.8 million
and $25.3 million for the nine months ended September 30, 2023 and
2022, respectively.
|
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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
|
$
65.8
|
|
$
116.6
|
|
$
249.9
|
|
$
306.5
|
Interest expense, net
of interest income
|
67.9
|
|
60.4
|
|
205.2
|
|
171.0
|
Depreciation and
amortization
|
163.8
|
|
162.6
|
|
489.5
|
|
474.5
|
Impairments
|
20.7
|
|
—
|
|
20.7
|
|
—
|
(Income) loss from
unconsolidated affiliate investments
|
(1.0)
|
|
1.7
|
|
3.7
|
|
4.0
|
Distributions from
unconsolidated affiliate investments
|
0.1
|
|
0.2
|
|
2.4
|
|
0.6
|
(Gain) loss on
disposition of assets
|
(0.6)
|
|
(0.8)
|
|
(1.8)
|
|
3.9
|
Loss on extinguishment
of debt
|
—
|
|
5.7
|
|
—
|
|
6.2
|
Unit-based
compensation
|
5.7
|
|
11.4
|
|
14.2
|
|
23.7
|
Income tax
expense
|
10.6
|
|
15.2
|
|
40.5
|
|
17.1
|
Unrealized (gain) loss
on commodity derivatives
|
22.9
|
|
(18.2)
|
|
19.0
|
|
(38.4)
|
Costs associated with
the relocation of processing
facilities (1)
|
2.9
|
|
9.7
|
|
5.0
|
|
32.1
|
Other (2)
|
0.1
|
|
(3.1)
|
|
0.6
|
|
(2.4)
|
Adjusted EBITDA before
non-controlling interest
|
358.9
|
|
361.4
|
|
1,048.9
|
|
998.8
|
Non-controlling
interest share of adjusted EBITDA from
joint ventures (3)
|
(17.0)
|
|
(18.0)
|
|
(49.7)
|
|
(51.4)
|
Adjusted EBITDA, net to
ENLC
|
$
341.9
|
|
$
343.4
|
|
$
999.2
|
|
$
947.4
|
____________________________
|
(1)
|
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.
|
(2)
|
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.
|
(3)
|
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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net cash provided by
operating activities
|
$
274.2
|
|
$
343.3
|
|
$
862.0
|
|
$
825.9
|
Interest expense
(1)
|
66.3
|
|
59.3
|
|
200.3
|
|
167.2
|
Utility credits
redeemed (2)
|
—
|
|
(16.3)
|
|
(1.5)
|
|
(27.9)
|
Accruals for settled
commodity derivative transactions
|
—
|
|
(0.3)
|
|
—
|
|
(1.9)
|
Distributions from
unconsolidated affiliate investment in excess of
earnings
|
0.1
|
|
0.2
|
|
2.4
|
|
0.6
|
Costs associated with
the relocation of processing facilities (3)
|
2.9
|
|
9.7
|
|
5.0
|
|
32.1
|
Other (4)
|
0.8
|
|
(0.1)
|
|
0.8
|
|
3.3
|
Changes in operating
assets and liabilities which (provided) used cash:
|
|
|
|
|
|
|
|
Accounts receivable,
accrued revenues, inventories, and other
|
156.9
|
|
(54.3)
|
|
(92.8)
|
|
255.6
|
Accounts payable,
accrued product purchases, and other accrued
liabilities
|
(142.3)
|
|
19.9
|
|
72.7
|
|
(256.1)
|
Adjusted EBITDA before
non-controlling interest
|
358.9
|
|
361.4
|
|
1,048.9
|
|
998.8
|
Non-controlling
interest share of adjusted EBITDA from joint ventures
(5)
|
(17.0)
|
|
(18.0)
|
|
(49.7)
|
|
(51.4)
|
Adjusted EBITDA, net
to ENLC
|
341.9
|
|
343.4
|
|
999.2
|
|
947.4
|
Growth capital
expenditures, net to ENLC (6)
|
(97.4)
|
|
(82.7)
|
|
(264.7)
|
|
(173.1)
|
Maintenance capital
expenditures, net to ENLC (6)
|
(18.3)
|
|
(8.7)
|
|
(52.5)
|
|
(33.7)
|
Interest expense, net
of interest income
|
(67.9)
|
|
(60.4)
|
|
(205.2)
|
|
(171.0)
|
Distributions declared
on common units
|
(57.5)
|
|
(54.8)
|
|
(174.3)
|
|
(164.9)
|
ENLK preferred unit
cash distributions earned (7)
|
(24.6)
|
|
(23.3)
|
|
(72.2)
|
|
(70.1)
|
Costs associated with
the relocation of processing facilities, net to ENLC
(3)(6)(9)
|
(1.7)
|
|
(9.7)
|
|
5.0
|
|
(32.1)
|
Contributions to
investment in unconsolidated affiliates
|
(8.7)
|
|
(19.7)
|
|
(58.4)
|
|
(46.3)
|
Payment to redeem
mandatorily redeemable non-controlling interest (8)
|
—
|
|
—
|
|
(10.5)
|
|
—
|
Other (10)
|
0.4
|
|
0.8
|
|
1.2
|
|
1.1
|
Free cash flow after
distributions
|
$ 66.2
|
|
$ 84.9
|
|
$
167.6
|
|
$
257.3
|
|
|
|
|
|
|
|
|
Actual declared
distribution to common unitholders
|
$ 57.5
|
|
$ 54.8
|
|
$
174.3
|
|
$
164.9
|
Distribution
coverage
|
3.98
x
|
|
4.64
x
|
|
3.75
x
|
|
4.09
x
|
Distributions declared
per ENLC unit
|
$ 0.1250
|
|
$ 0.1125
|
|
$ 0.3750
|
|
$ 0.3375
|
____________________________
|
(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)
|
Under our utility
agreements, we are entitled to a base load of electricity and pay
or receive credits, based on market pricing, when we exceed or do
not use the base load amounts. Due to Winter Storm Uri, we received
credits from our utility providers based on market rates for our
unused electricity.
|
(3)
|
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.
|
(4)
|
Includes 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 a one-time
$8.0 million contribution from an affiliate of NGP in May 2023 in
connection with the Delaware Basin JV's purchase of the Cowtown
processing plant.
|
(10)
|
Includes current income
tax expense 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
June
30,
|
|
Nine Months
Ended
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Midstream
Volumes:
|
|
|
|
|
|
|
|
Permian
Segment
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
1,840,800
|
|
1,596,400
|
|
1,752,800
|
|
1,480,200
|
Processing
(MMBtu/d)
|
1,699,700
|
|
1,520,800
|
|
1,626,500
|
|
1,404,100
|
Crude Oil Handling
(Bbls/d)
|
176,100
|
|
157,700
|
|
158,100
|
|
161,200
|
Louisiana
Segment
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
2,468,900
|
|
2,996,100
|
|
2,501,900
|
|
2,731,900
|
Crude Oil Handling
(Bbls/d)
|
18,600
|
|
18,500
|
|
17,800
|
|
17,400
|
NGL Fractionation
(Gals/d)
|
7,593,400
|
|
7,930,200
|
|
7,600,500
|
|
7,953,300
|
Brine Disposal
(Bbls/d)
|
3,400
|
|
3,000
|
|
3,000
|
|
3,100
|
Oklahoma
Segment
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
1,223,000
|
|
1,036,400
|
|
1,218,600
|
|
1,017,600
|
Processing
(MMBtu/d)
|
1,178,200
|
|
1,067,600
|
|
1,182,400
|
|
1,048,400
|
Crude Oil Handling
(Bbls/d)
|
21,900
|
|
21,500
|
|
25,300
|
|
22,200
|
North Texas
Segment
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
1,563,100
|
|
1,687,100
|
|
1,591,100
|
|
1,494,800
|
Processing
(MMBtu/d)
|
729,000
|
|
776,700
|
|
737,800
|
|
684,900
|
Investor Relations: Brian
Brungardt, 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