DALLAS, Aug. 6, 2024
/PRNewswire/ -- EnLink Midstream, LLC (NYSE: ENLC) (EnLink)
today reported financial results for the second quarter of
2024.
Highlights
- Reported net income of $67.0
million and net cash provided by operating activities of
$162.6 million for the second quarter
of 2024.
- Generated adjusted EBITDA, net to EnLink, of $306.0 million for the second quarter of
2024.
- Delivered $53.3 million of free
cash flow after distributions (FCFAD) for the second quarter of
2024.
- Subsequent to the quarter, EnLink reached final investment
decision (FID) for EnLink's first brownfield natural gas expansion
project in Louisiana with plans to
expand Jefferson Island Storage & Hub (JISH) by approximately 8
billion cubic feet (Bcf). The project received strong commercial
interest and is backed by investment-grade credit customers under
long-term contracts.
- Repurchased approximately $50.0
million[1] of common units in the second quarter of 2024.
EnLink has repurchased approximately $100
million of common units through the first half of 2024.
- Subsequent to the quarter, the Board of Directors increased the
2024 common unit repurchase authorization by $50 million to $250
million. The increase reflected the generation of strong
FCFAD, as well as the deferral of carbon capture and sequestration
spending.
- Subsequent to the quarter, EnLink purchased $200 million of Series B preferred units.
Combined with common unit exchanges initiated by the preferred
unitholders, approximately $410
million of Series B preferred units now remain outstanding,
reflecting a reduction of nearly 50% since the beginning of
2024.
"EnLink delivered a solid quarter in line with our expectations,
as our midstream assets and our diversified business continue to
show resilience," EnLink President and Chief Executive Officer
Jesse Arenivas said. "Our Louisiana
team is executing on a multiprong growth strategy and moving
projects toward commercialization, such as the 'Henry Hub to the
River' project announced last quarter and the JISH expansion
announced today, to supply the high-demand market for natural gas.
EnLink's strength is in our diverse, integrated value chain, which
we continue to leverage for new opportunities that optimize and
grow our business."
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
$22.9 million of common units repurchased from GIP pursuant to
our Unit Repurchase Agreement, which settled on August 5,
2024.
|
Second Quarter 2024 Financial Results and
Highlights
|
$MM, unless
noted
|
Second Quarter
2024
|
First Quarter
2024
|
Second Quarter
2023
|
|
Net Income
(1)
|
67
|
50
|
90
|
|
Adjusted EBITDA, net to
EnLink
|
306
|
338
|
334
|
|
Net Cash Provided by
Operating Activities
|
163
|
293
|
316
|
|
Capex, Plant Relocation
Costs, net to EnLink & Investment Contributions
|
103
|
111
|
88
|
|
Free Cash Flow After
Distributions
|
53
|
74
|
96
|
|
Debt to Adjusted
EBITDA, net to EnLink (2)
|
3.3x
|
3.3x
|
3.4x
|
|
Common Units
Outstanding (3)
|
461,449,461
|
451,304,161
|
461,497,730
|
|
|
(1) Net
income is before non-controlling interest.
|
|
(2)
Calculated according to credit facility leverage
covenant.
|
|
(3)
Outstanding common units as of August 1, 2024, April 25,
2024, and July 27, 2023, respectively.
|
Second Quarter 2024 Segment Updates
Permian Basin:
- Segment profit for the second quarter of 2024 was $93.1 million, including operating expenses
related to plant relocation of $16.8
million and unrealized derivative losses of $1.3 million. Excluding plant relocation
operating expenses and unrealized derivative activity, segment
profit in the second quarter of 2024 grew approximately 10%
sequentially and grew approximately 10% over the second quarter of
2023.
- Average natural gas gathering volumes for the second quarter of
2024 were approximately 7% higher compared to the first quarter of
2024 and approximately 17% higher compared to the second quarter of
2023.
- Average natural gas processing volumes for the second quarter
of 2024 were approximately 6% higher compared to the first quarter
of 2024 and approximately 14% higher compared to the second quarter
of 2023. EnLink continues to benefit from strong producer drilling
and completion activity.
- Average crude gathering volumes for the second quarter of 2024
were approximately 16% higher compared to the first quarter of 2024
and approximately 23% higher compared to the second quarter of
2023.
- EnLink's third plant relocation, Tiger II, came online in
May.
Louisiana:
- Segment profit for the second quarter of 2024 was $84.3 million, including unrealized derivative
gains of $5.6 million. Excluding
unrealized derivative activity, segment profit in the second
quarter of 2024 decreased approximately 39% sequentially, driven by
normal seasonal effects in the natural gas liquids (NGL) segment,
and decreased 9% over the second quarter of 2023.
- Average natural gas transportation volumes for the second
quarter of 2024 were approximately 2% higher compared to the first
quarter of 2024 and approximately 20% higher compared to the second
quarter of 2023.
- NGL fractionation volumes for the second quarter of 2024 were
approximately 5% lower compared to the first quarter of 2024 and 2%
lower compared to the second quarter of 2023.
- EnLink reached FID on the Stage 1 brownfield expansion project
at JISH, adding approximately 8 Bcf of working gas storage.
Consistent with EnLink's strategy to leverage existing assets,
Stage 1 will cost approximately $85
million with project economics in the low-to-mid single
digit EBITDA multiples. The Stage 1 expansion is anticipated to
begin service in 2028 and will increase working gas storage to 10
Bcf from 2 Bcf at JISH.
Oklahoma:
- Segment profit for the second quarter of 2024 was $103.5 million, including operating expenses
related to plant relocation of $0.1
million and unrealized derivative gains of $0.8 million. Excluding plant relocation
operating expenses and unrealized derivative activity, segment
profit in the second quarter of 2024 grew 14% sequentially but
decreased approximately 5% over the second quarter of 2023.
- Average natural gas gathering volumes for the second quarter of
2024 were approximately 7% higher compared to the first quarter of
2024 but were approximately 3% lower compared to the second quarter
of 2023.
- Average natural gas processing volumes for the second quarter
of 2024 were approximately 8% higher compared to the first quarter
of 2024 but were approximately 3% lower compared to the second
quarter of 2023.
- Average crude gathering volumes during the second quarter of
2024 were approximately 13% lower compared to the first quarter of
2024 and approximately 34% lower compared to the second quarter of
2023.
North Texas:
- Segment profit for the second quarter of 2024 was $52.4 million, including unrealized derivative
losses of $1.1 million. Excluding
unrealized derivative activity, segment profit in the second
quarter of 2024 decreased approximately 11% sequentially and
decreased approximately 28% over the second quarter of 2023.
Segment results during the second quarter of 2024 reflect a
full-quarter impact from the previously disclosed one-time contract
reset.
- Average natural gas gathering and transportation volumes for
the second quarter of 2024 were approximately 2% higher compared to
the first quarter of 2024 but were approximately 8% lower compared
to the second quarter of 2023.
- Average natural gas processing volumes for the second quarter
of 2024 were approximately 1% higher compared to the first quarter
of 2024 but were approximately 8% lower compared to the second
quarter of 2023.
Second Quarter 2024 Webcast Details
EnLink will host a webcast and conference call to discuss second
quarter 2024 results on August 7, 2024, 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, 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); (earnout payments related to the
Amarillo Rattler Acquisition and the Central Oklahoma Acquisition);
(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); (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 June 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 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 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)
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, and
(s) 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
June
30,
|
|
Six Months
Ended
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Total revenues
(1)
|
$ 1,551.1
|
|
$ 1,530.1
|
|
$ 3,199.0
|
|
$ 3,297.6
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of sales,
exclusive of operating expenses and depreciation and amortization
(2)
|
1,062.6
|
|
1,019.0
|
|
2,213.0
|
|
2,290.9
|
|
Operating
expenses
|
155.2
|
|
136.8
|
|
307.8
|
|
269.2
|
|
Depreciation and
amortization
|
162.6
|
|
165.3
|
|
327.9
|
|
325.7
|
|
Impairments
|
—
|
|
—
|
|
14.2
|
|
—
|
|
(Gain) loss on
disposition of assets
|
0.9
|
|
(0.8)
|
|
(0.8)
|
|
(1.2)
|
|
General and
administrative
|
30.2
|
|
27.9
|
|
85.4
|
|
57.4
|
|
Total operating costs
and expenses
|
1,411.5
|
|
1,348.2
|
|
2,947.5
|
|
2,942.0
|
|
Operating
income
|
139.6
|
|
181.9
|
|
251.5
|
|
355.6
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
(66.7)
|
|
(68.8)
|
|
(132.1)
|
|
(137.3)
|
|
Income (loss) from
unconsolidated affiliate investments
|
0.3
|
|
(4.6)
|
|
(0.5)
|
|
(4.7)
|
|
Other income
|
3.8
|
|
0.4
|
|
4.3
|
|
0.4
|
|
Total other
expense
|
(62.6)
|
|
(73.0)
|
|
(128.3)
|
|
(141.6)
|
|
Income before
non-controlling interest and income taxes
|
77.0
|
|
108.9
|
|
123.2
|
|
214.0
|
|
Income tax
expense
|
(10.0)
|
|
(19.0)
|
|
(6.2)
|
|
(29.9)
|
|
Net income
|
67.0
|
|
89.9
|
|
117.0
|
|
184.1
|
|
Net income attributable
to non-controlling interest
|
28.9
|
|
35.6
|
|
64.4
|
|
71.6
|
|
Net income attributable
to ENLC
|
$
38.1
|
|
$
54.3
|
|
$
52.6
|
|
$
112.5
|
|
Net income attributable
to ENLC per unit:
|
|
|
|
|
|
|
|
|
Basic common
unit
|
$
0.07
|
|
$
0.12
|
|
$
0.11
|
|
$
0.24
|
|
Diluted common
unit
|
$
0.07
|
|
$
0.12
|
|
$
0.10
|
|
$
0.24
|
|
|
|
|
|
|
|
|
|
Weighted average common
units outstanding (basic)
|
451.4
|
|
462.7
|
|
451.3
|
|
465.8
|
|
Weighted average common
units outstanding (diluted)
|
454.1
|
|
466.7
|
|
454.0
|
|
469.9
|
|
________________________________
|
|
(1)
|
Includes related party
revenue of $0.5 million and $0.6 million for the three months ended
June 30, 2024 and 2023, respectively, and $1.0 million and $1.3
million for the six months ended June 30, 2024 and 2023,
respectively.
|
|
(2)
|
Includes related party
cost of sales of $1.4 million and $2.5 million for the three months
ended June 30, 2024 and 2023, respectively, and $2.8 million and
$4.0 million for the six months ended June 30, 2024 and 2023,
respectively.
|
|
EnLink Midstream,
LLC
|
|
Reconciliation of
Net Income to Adjusted EBITDA
|
|
(All amounts in
millions)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income
|
$
67.0
|
|
$
89.9
|
|
$
117.0
|
|
$
184.1
|
|
Interest expense, net
of interest income
|
66.7
|
|
68.8
|
|
132.1
|
|
137.3
|
|
Depreciation and
amortization
|
162.6
|
|
165.3
|
|
327.9
|
|
325.7
|
|
Impairments
|
—
|
|
—
|
|
14.2
|
|
—
|
|
(Income) loss from
unconsolidated affiliate investments
|
(0.3)
|
|
4.6
|
|
0.5
|
|
4.7
|
|
Distributions from
unconsolidated affiliate investments
|
—
|
|
2.2
|
|
—
|
|
2.3
|
|
(Gain) loss on
disposition of assets
|
0.9
|
|
(0.8)
|
|
(0.8)
|
|
(1.2)
|
|
Loss on litigation
settlement (1)
|
—
|
|
—
|
|
23.0
|
|
—
|
|
Unit-based
compensation
|
5.2
|
|
4.5
|
|
10.8
|
|
8.5
|
|
Income tax
expense
|
10.0
|
|
19.0
|
|
6.2
|
|
29.9
|
|
Unrealized (gain) loss
on commodity derivatives
|
(4.0)
|
|
(5.3)
|
|
22.1
|
|
(3.9)
|
|
Costs associated with
the relocation of processing facilities (2)
|
16.9
|
|
1.7
|
|
26.2
|
|
2.1
|
|
Other (3)
|
(0.1)
|
|
0.2
|
|
1.5
|
|
0.5
|
|
Adjusted EBITDA before
non-controlling interest
|
324.9
|
|
350.1
|
|
680.7
|
|
690.0
|
|
Non-controlling
interest share of adjusted EBITDA from joint ventures
(4)
|
(18.9)
|
|
(16.5)
|
|
(37.0)
|
|
(32.7)
|
|
Adjusted EBITDA, net to
ENLC
|
$
306.0
|
|
$
333.6
|
|
$
643.7
|
|
$
657.3
|
|
____________________________
|
|
(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
June
30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net cash provided by
operating activities
|
$
162.6
|
|
$
315.7
|
|
$
455.9
|
|
$
587.8
|
|
Interest expense
(1)
|
65.2
|
|
67.0
|
|
129.1
|
|
134.0
|
|
Costs associated with
the relocation of processing facilities (2)
|
16.9
|
|
1.7
|
|
26.2
|
|
2.1
|
|
Loss on litigation
settlement (3)
|
—
|
|
—
|
|
23.0
|
|
—
|
|
Other (4)
|
0.2
|
|
2.0
|
|
4.0
|
|
0.8
|
|
Changes in operating
assets and liabilities which (provided) used cash:
|
|
|
|
|
|
|
|
|
Accounts receivable,
accrued revenues, inventories, and other
|
149.5
|
|
(80.3)
|
|
11.5
|
|
(249.7)
|
|
Accounts payable,
accrued product purchases, and other accrued liabilities
|
(69.5)
|
|
44.0
|
|
31.0
|
|
215.0
|
|
Adjusted EBITDA before
non-controlling interest
|
324.9
|
|
350.1
|
|
680.7
|
|
690.0
|
|
Non-controlling
interest share of adjusted EBITDA from joint ventures
(5)
|
(18.9)
|
|
(16.5)
|
|
(37.0)
|
|
(32.7)
|
|
Adjusted EBITDA, net
to ENLC
|
306.0
|
|
333.6
|
|
643.7
|
|
657.3
|
|
Growth capital
expenditures, net to ENLC (6)
|
(62.6)
|
|
(74.6)
|
|
(143.4)
|
|
(167.3)
|
|
Maintenance capital
expenditures, net to ENLC (6)
|
(20.0)
|
|
(20.0)
|
|
(34.3)
|
|
(34.2)
|
|
Interest expense, net
of interest income
|
(66.7)
|
|
(68.8)
|
|
(132.1)
|
|
(137.3)
|
|
Distributions declared
on common units
|
(60.9)
|
|
(58.1)
|
|
(120.6)
|
|
(116.8)
|
|
ENLK preferred unit
cash distributions earned (7)
|
(23.8)
|
|
(24.0)
|
|
(48.2)
|
|
(47.6)
|
|
Earnout payments
(8)
|
—
|
|
—
|
|
(2.5)
|
|
—
|
|
Payment to redeem
mandatorily redeemable non-controlling interest (9)
|
—
|
|
—
|
|
—
|
|
(10.5)
|
|
Costs associated with
the relocation of processing facilities, net to ENLC
(2)(6)
|
(9.5)
|
|
7.1
|
|
(15.8)
|
|
6.7
|
|
Contributions to
investment in unconsolidated affiliates
|
(10.7)
|
|
—
|
|
(20.1)
|
|
(49.7)
|
|
Other (10)
|
1.5
|
|
0.5
|
|
0.6
|
|
0.8
|
|
Free cash flow after
distributions
|
$
53.3
|
|
$
95.7
|
|
$
127.3
|
|
$
101.4
|
|
|
|
|
|
|
|
|
|
Actual declared
distribution to common unitholders
|
$
60.9
|
|
$
58.1
|
|
$
120.6
|
|
$
116.8
|
|
Distribution
coverage
|
3.23 x
|
|
3.77 x
|
|
3.52 x
|
|
3.64 x
|
|
Distributions declared
per ENLC unit
|
$
0.1325
|
|
$ 0.1250
|
|
$
0.2650
|
|
$ 0.2500
|
|
____________________________
|
|
(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)
|
Earnout payments were
made in connection to the consideration paid for the Amarillo
Rattler Acquisition and the Central Oklahoma Acquisition, both of
which included a contingent component payable beginning in
2024.
|
|
(9)
|
In January 2023, we
settled the redemption of the mandatorily redeemable
non-controlling interest in one of our non-wholly owned
subsidiaries.
|
|
(10)
|
Includes current income
tax expense, 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
June
30,
|
|
Six Months
Ended
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Midstream
Volumes:
|
|
|
|
|
|
|
|
|
Permian
Segment
|
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
2,033,300
|
|
1,732,200
|
|
1,966,300
|
|
1,708,100
|
|
Processing
(MMBtu/d)
|
1,850,400
|
|
1,617,400
|
|
1,797,800
|
|
1,589,200
|
|
Crude Oil Handling
(Bbls/d)
|
191,100
|
|
155,400
|
|
177,900
|
|
149,000
|
|
Louisiana
Segment
|
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
2,819,700
|
|
2,345,600
|
|
2,786,800
|
|
2,518,600
|
|
Crude Oil Handling
(Bbls/d)
|
—
|
|
16,500
|
|
—
|
|
17,400
|
|
NGL Fractionation
(Bbls/d)
|
175,300
|
|
179,000
|
|
179,500
|
|
181,100
|
|
Brine Disposal
(Bbls/d)
|
—
|
|
2,700
|
|
—
|
|
2,800
|
|
Oklahoma
Segment
|
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
1,219,000
|
|
1,253,800
|
|
1,181,700
|
|
1,216,300
|
|
Processing
(MMBtu/d)
|
1,173,200
|
|
1,204,600
|
|
1,132,100
|
|
1,184,500
|
|
Crude Oil Handling
(Bbls/d)
|
17,800
|
|
26,800
|
|
19,100
|
|
27,000
|
|
North Texas
Segment
|
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
1,473,100
|
|
1,593,600
|
|
1,461,500
|
|
1,605,300
|
|
Processing
(MMBtu/d)
|
677,500
|
|
740,000
|
|
673,200
|
|
742,300
|
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