EnLink Midstream Reports Second Quarter 2024 Results
EnLink Midstream (NYSE: ENLC) reported net income of $67.0 million and adjusted EBITDA of $306.0 million for Q2 2024. The company generated $53.3 million in free cash flow after distributions. Key highlights include:
1. Reached final investment decision on an 8 Bcf expansion of Jefferson Island Storage & Hub.
2. Repurchased $50 million of common units in Q2, totaling $100 million in H1 2024.
3. Increased 2024 common unit repurchase authorization by $50 million to $250 million.
4. Purchased $200 million of Series B preferred units, reducing outstanding amount by nearly 50% since early 2024.
Segment performance varied, with Permian Basin showing growth, Louisiana experiencing seasonal effects, Oklahoma mixed results, and North Texas declining due to a contract reset.
EnLink Midstream (NYSE: ENLC) ha riportato un utile netto di 67,0 milioni di dollari e un EBITDA rettificato di 306,0 milioni di dollari per il secondo trimestre del 2024. L'azienda ha generato 53,3 milioni di dollari di flusso di cassa libero dopo le distribuzioni. I punti salienti includono:
1. Raggiunta la decisione finale di investimento per un'espansione di 8 Bcf dello Jefferson Island Storage & Hub.
2. Riacquisto di 50 milioni di dollari di unità comuni nel secondo trimestre, per un totale di 100 milioni di dollari nel primo semestre 2024.
3. Aumento dell'autorizzazione al riacquisto di unità comuni per il 2024 di 50 milioni di dollari, portandola a 250 milioni di dollari.
4. Acquisto di 200 milioni di dollari di unità privilegiate di Serie B, riducendo il montante outstanding di quasi il 50% dall'inizio del 2024.
Le performance dei segmenti sono state variabili, con il Permian Basin in crescita, la Louisiana che ha mostrato effetti stagionali, risultati misti in Oklahoma e un calo nel Nord Texas a causa di un reset contrattuale.
EnLink Midstream (NYSE: ENLC) reportó un ingreso neto de $67.0 millones y un EBITDA ajustado de $306.0 millones para el segundo trimestre de 2024. La empresa generó $53.3 millones en flujo de caja libre después de distribuciones. Los aspectos destacados incluyen:
1. Alcanzó la decisión final de inversión para una expansión de 8 Bcf del Jefferson Island Storage & Hub.
2. Recompró $50 millones en unidades comunes en el segundo trimestre, totalizando $100 millones en el primer semestre de 2024.
3. Aumentó la autorización de recompra de unidades comunes para 2024 en $50 millones, elevándola a $250 millones.
4. Compró $200 millones en unidades preferentes de Serie B, reduciendo el monto pendiente en casi un 50% desde principios de 2024.
El rendimiento de los segmentos varió, con el Permian Basin mostrando crecimiento, Louisiana experimentando efectos estacionales, resultados mixtos en Oklahoma y un descenso en el Norte de Texas debido a un reajuste contractual.
EnLink Midstream (NYSE: ENLC)는 2024년 2분기에 순이익 6,700만 달러와 조정 EBITDA 3억 6,000만 달러를 보고했습니다. 회사는 배당금 지급 후 5,330만 달러의 자유 현금 흐름을 생성했습니다. 주요 하이라이트는 다음과 같습니다:
1. 제퍼슨 아일랜드 저장소 및 허브의 8 Bcf 확장에 대한 최종 투자 결정.
2. 2분기에 5,000만 달러의 보통주를 재구매하여 2024년 상반기 총 1억 달러.
3. 2024년도 보통주 재구매 권한을 5,000만 달러 늘려 2억 5천만 달러로 증가.
4. B 시리즈 우선주 2억 달러 구매, 2024년 초 이후 미지급 금액을 거의 50% 감축.
세그먼트 성과는 다양하게 나타났으며, 퍼미안 분지는 성장세를 보였고, 루이지애나는 계절적인 영향을 경험했으며, 오클라호마는 혼합된 결과가 나타났고, 노스 텍사스는 계약 리셋으로 하락했습니다.
EnLink Midstream (NYSE: ENLC) a rapporté un revenu net de 67,0 millions de dollars et un EBITDA ajusté de 306,0 millions de dollars pour le deuxième trimestre 2024. L'entreprise a généré 53,3 millions de dollars de flux de trésorerie libre après distributions. Les points clés incluent :
1. Décision d'investissement finale pour une expansion de 8 Bcf du Jefferson Island Storage & Hub.
2. Rachat de 50 millions de dollars d'unités ordinaires au 2ème trimestre, totalisant 100 millions de dollars au premier semestre 2024.
3. Augmentation de l'autorisation de rachat d'unités ordinaires pour 2024 de 50 millions de dollars à 250 millions de dollars.
4. Achat de 200 millions de dollars d'unités privilégiées de série B, réduisant le montant restant dû de près de 50 % depuis début 2024.
La performance des segments a varié, avec le Permian Basin affichant une croissance, la Louisiane subissant des effets saisonniers, l'Oklahoma des résultats mixtes, et le Texas du Nord en déclin en raison d'un réajustement contractuel.
EnLink Midstream (NYSE: ENLC) berichtete von einem Nettoeinkommen von 67,0 Millionen Dollar und einem bereinigten EBITDA von 306,0 Millionen Dollar für das 2. Quartal 2024. Das Unternehmen generierte 53,3 Millionen Dollar an freiem Cashflow nach Ausschüttungen. Wichtige Höhepunkte sind:
1. Endgültige Investitionsentscheidung für eine Erweiterung um 8 Bcf des Jefferson Island Storage & Hub.
2. Rückkauf von 50 Millionen Dollar an Stammaktien im 2. Quartal, insgesamt 100 Millionen Dollar im ersten Halbjahr 2024.
3. Erhöhung der Genehmigung für den Rückkauf von Stammaktien 2024 um 50 Millionen Dollar auf 250 Millionen Dollar.
4. Erwerb von 200 Millionen Dollar an vorrangigen Serie B-Anteilen, was den ausstehenden Betrag seit Anfang 2024 um fast 50 % reduziert.
Die Leistung der Segmente variierte; das Permian Basin zeigte Wachstum, Louisiana hatte saisonale Effekte, Oklahoma gemischte Ergebnisse und Nordtexas verzeichnete Rückgänge aufgrund einer Vertragsneuausrichtung.
- Net income increased to $67.0 million in Q2 2024 from $50.0 million in Q1 2024
- Repurchased $50 million of common units in Q2, totaling $100 million in H1 2024
- Increased 2024 common unit repurchase authorization by $50 million to $250 million
- Reduced Series B preferred units outstanding by nearly 50% since early 2024
- Permian Basin segment profit grew 10% sequentially and year-over-year
- Oklahoma segment profit grew 14% sequentially
- Adjusted EBITDA decreased to $306.0 million in Q2 2024 from $338.0 million in Q1 2024
- Free Cash Flow After Distributions decreased to $53.3 million in Q2 2024 from $74.0 million in Q1 2024
- Louisiana segment profit decreased 39% sequentially and 9% year-over-year
- North Texas segment profit decreased 11% sequentially and 28% year-over-year
Insights
EnLink Midstream's Q2 2024 results show a mixed performance. Net income decreased to
The debt to adjusted EBITDA ratio of 3.3x remains unchanged from Q1 2024, suggesting consistent leverage management. The company's strategic moves, including the
The Jefferson Island Storage & Hub expansion project is a positive development, potentially boosting future revenues. However, investors should monitor the impact of deferred carbon capture and sequestration spending on long-term growth prospects.
EnLink's Q2 2024 results reflect the resilience of its diversified midstream assets. The Permian Basin segment showed strong growth, with natural gas gathering volumes up
The Louisiana segment's performance highlights the seasonal nature of the NGL business. The decision to expand Jefferson Island Storage & Hub by 8 Bcf is strategically sound, capitalizing on high natural gas demand and leveraging existing assets.
The Oklahoma and North Texas segments face some headwinds, with volume declines year-over-year. However, the company's multi-pronged growth strategy, particularly in Louisiana, demonstrates adaptability to changing market conditions. The 'Henry Hub to the River' project and JISH expansion position EnLink to capture opportunities in the evolving natural gas market.
Highlights
- Reported net income of
$67.0 million $162.6 million - Generated adjusted EBITDA, net to EnLink, of
$306.0 million - Delivered
$53.3 million - 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 $100 million - Subsequent to the quarter, the Board of Directors increased the 2024 common unit repurchase authorization by
$50 million $250 million - Subsequent to the quarter, EnLink purchased
$200 million $410 million 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 |
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 $16.8 million $1.3 million 10% sequentially and grew approximately10% 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 approximately17% 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 approximately14% 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 approximately23% higher compared to the second quarter of 2023. - EnLink's third plant relocation, Tiger II, came online in May.
- Segment profit for the second quarter of 2024 was
$84.3 million $5.6 million 39% sequentially, driven by normal seasonal effects in the natural gas liquids (NGL) segment, and decreased9% 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 approximately20% 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 and2% 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
- Segment profit for the second quarter of 2024 was
$103.5 million $0.1 million $0.8 million 14% sequentially but decreased approximately5% 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 approximately3% 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 approximately3% 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 approximately34% lower compared to the second quarter of 2023.
- Segment profit for the second quarter of 2024 was
$52.4 million $1.1 million 11% sequentially and decreased approximately28% 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 approximately8% 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 approximately8% 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
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
The
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 |
(2) | Includes related party cost of sales of |
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 |
(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 |
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 |
(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 |
(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
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