DALLAS, Feb. 15, 2022
/PRNewswire/ -- EnLink Midstream, LLC (NYSE: ENLC) (EnLink) today
reported financial results for the fourth quarter and full-year
2021 and provided 2022 financial guidance.
Highlights
- Reported net income of $88.6
million and $142.9 million for
the fourth quarter of 2021 and full-year 2021, respectively, and
net cash provided by operations of $258.1
million and $857.3 million for
the fourth quarter and full-year 2021, respectively.
- Generated adjusted EBITDA, net to EnLink, of $286.4 million and $1.05
billion for the fourth quarter of 2021 and full-year 2021,
respectively, an amount that was in the upper end of full-year 2021
financial guidance. During the quarter, EnLink benefited from
robust producer activity and disciplined focus on the cost
structure.
- Grew fourth quarter 2021 adjusted EBITDA 17.5% compared to the
fourth quarter of 2020 and full-year 2021 adjusted EBITDA 7.0%
compared to full-year 2020, each after excluding the impact of
minimum volume commitments (MVCs) that expired in 2020.
- Continued to see strengthening producer activity across
EnLink's gathering and processing systems during the fourth quarter
of 2021. Permian gathering volumes for the fourth quarter of 2021
increased 28% over the fourth quarter of 2020. Oklahoma gathering volumes for the fourth
quarter of 2021 declined only 2% over the fourth quarter of 2020,
while North Texas gathering
volumes for the fourth quarter of 2021 remained flat over fourth
quarter 2020.
- Delivered $67.4 million of free
cash flow after distributions (FCFAD) for the fourth quarter of
2021, despite a 20% increase to fourth quarter distribution, driven
by strong operational results. For the second consecutive year,
EnLink generated FCFAD in excess of $300
million, with $313.6 million
reported for the full-year 2021.
- Reached near-term leverage goal with credit facility leverage
of 3.9x at year-end.
- Increased returns to unitholders in 2021 by increasing the
common unit distribution 20% for the fourth quarter of 2021,
repurchasing $40.1 million in common
units during full-year 2021, and redeeming $50 million of Series B Preferred Units in the
fourth quarter. In addition, during January
2022, EnLink repurchased an incremental $10 million of common units and redeemed an
incremental $50 million of par value
of Series B Preferred Units. Both redemptions were executed at 101%
of par value. Taking into account these repurchases and
redemptions, the overall distribution payout increased by
approximately $25 million on an
annualized basis.
- Expects solid cash flow generation to continue in 2022 with
adjusted EBITDA growth of approximately 10% over 2021 at the
midpoint of 2022 guidance range of $1.11
billion to $1.19 billion.
EnLink also expects to generate more than of $300 million in FCFAD based on the midpoint of
2022 guidance.
- Subsequent to the quarter, EnLink announced that the company
has signed a memorandum of understanding (MOU) with Talos Energy
(NYSE: TALO) to provide a complete carbon capture, transportation
and sequestration (CCS) offering for industrial-scale emitters in
Louisiana, utilizing EnLink's
midstream assets combined with Talos' subsurface assets. Talos has
secured approximately 26,000 acres in Louisiana providing sequestration capacity of
over 500 million metric tonnes, which will be known as River Bend
CCS.
"EnLink achieved another quarter of robust financial results,
closing out a great 2021, which is a testament to our employees'
relentless focus on execution, innovation, and cost discipline,"
said Barry E. Davis, EnLink Chairman
and Chief Executive Officer. "The strong performance and execution
of our team allows us to enter 2022 in a position of strength.
"We are continuing to advance our vision to become the future of
midstream by leading in innovation and creating sustainable value.
We will do this by utilizing our integrated business model and
operational excellence to build upon our large-scale,
cash-flow-generating platform, while pursuing energy solutions for
the future, as we are doing with our focus on growing a substantial
CCS business. The alliance that we announced today with Talos
builds on our strategic advantage in CCS by combining the expertise
and assets of both companies to create a more cost-efficient and
environmentally friendly offering than potential new build
projects.
"We are confident in our ability to execute and drive value in
2022, and our financial guidance and strategic plan initiatives
exemplify how we plan to create sustainable value for our investors
and position EnLink as the midstream company of the future."
Adjusted EBITDA, segment cash flow, and free cash flow after
distributions used in this press release are non-GAAP measures and
are explained in greater detail under "Non-GAAP Financial
Information" below.
Fourth Quarter and Full-Year 2021 Results
$MM, unless
noted
|
Fourth Quarter
2021
|
Full-Year
2021
|
Net Income
(1)
|
89
|
143
|
Adjusted EBITDA, net
to EnLink
|
286
|
1,050
|
Net Cash Provided by
Operating Activities
|
258
|
857
|
Total Capital
Expenditures, net to EnLink, & Plant Relocation
Costs
|
85
|
220
|
Free Cash Flow After
Distributions
|
67
|
314
|
Debt to Adjusted
EBITDA, net to EnLink* at December 31, 2021
|
3.9x
|
Common Units
Outstanding at February 9, 2022
|
484,003,750
|
|
|
(1)
|
Net income is before
non-controlling interest.
|
|
*Calculated according
to credit facility leverage covenant, which excludes cash on the
balance sheet.
|
Strong free cash flow generation resulted in a significant
reduction of debt. EnLink reduced total debt outstanding by
$235 million during 2021.
2022 Financial Guidance
$MM, unless
noted
|
|
2022
Guidance
|
Net Income
(1)
|
|
230 - 310
|
Adjusted EBITDA, net
to EnLink
|
|
1,110 -
1,190
|
Capex, net to EnLink,
& Plant Relocation Costs
|
|
285 - 325
|
Growth Capex, net to EnLink,
& Plant Relocation Costs
|
|
230 - 260
|
Maintenance Capex, net to
EnLink
|
|
55 - 65
|
Free Cash Flow After
Distributions
|
|
285 - 345
|
Annualized 4Q21
Declared Distribution per Common Unit
|
|
$0.45/unit
|
____________________
|
(1)
|
Net income is before
non-controlling interest.
|
- Adjusted EBITDA, net to EnLink, for 2022 is forecasted to
continue the trend of solid growth, with implied growth over
full-year 2021of nearly 10% at the midpoint of guidance.
- The Permian is forecasted to show robust segment profit growth,
along with solid growth in Louisiana. The Permian is forecasted to exit
full-year 2022 as EnLink's largest segment, excluding the impact of
plant relocation costs. Oklahoma
and North Texas are expected to be
about flat compared to full-year 2021, excluding the temporary
impacts of Winter Storm Uri in
2021.
- Capital expenditures for 2022 are expected to be focused on
highly efficient well connect activity. The main expansion project,
the previously announced "Project Phantom" is expected to cost
approximately $80 million, of which
$45 million is considered operating
expenses for GAAP purposes in 2022, representing savings of
approximately 50% over illustrative new-build costs.
- 2022 is forecasted to mark the third consecutive year of FCFAD
in excess of $300 million at the
midpoint of guidance. FCFAD is forecasted to be roughly flat over
full-year 2021 as significant adjusted EBITDA growth is offset by
modest increases in capital expenditures and distributions.
Segment Updates
Permian:
- Segment profit of $73.8 million
for the fourth quarter of 2021 was approximately 7% higher as
compared to the third quarter of 2021 and approximately 60% higher
as compared to the fourth quarter of 2020. Segment profit included
$0.1 million and $8.8 million of operating expenses related to
plant relocation expenses in the fourth quarter of 2021 and third
quarter of 2021, respectively. Segment profit also included
unrealized derivative gains/(losses) of $(4.7) million, $10.2
million and $(1.1) million for
the fourth quarter of 2021, third quarter of 2021 and fourth
quarter of 2020, respectively. Excluding plant relocation expenses
and unrealized derivative activity, segment profit in the fourth
quarter of 2021 grew approximately 16% sequentially and 66% over
the prior year period.
- Segment cash flow totaled $10.8
million for the fourth quarter of 2021, marking the sixth
consecutive quarter of positive segment cash flow.
- Average natural gas gathering volumes for the fourth quarter of
2021 were approximately 8% higher as compared to the third quarter
of 2021 and approximately 28% higher as compared to the fourth
quarter of 2020. Average natural gas processing volumes for the
fourth quarter of 2021 increased by approximately 7% sequentially
and by approximately 25% as compared to the prior year period.
EnLink continues to benefit from strong producer drilling activity
on its Permian footprint. Driven by continued producer activity in
the Delaware Basin, EnLink
reactivated the Tiger natural gas processing facility in
December 2021.
- EnLink continues to meet incremental customer activity needs
through a capital-light approach. During the second half of 2021,
EnLink completed Project War Horse and an associated expansion,
adding 95 million cubic feet per day (MMcf/d) of processing
capacity in the Midland Basin. Project Phantom, which will add 200
MMcf/d of processing capacity in the Midland Basin, remains on
schedule to be completed during the fourth quarter of 2022 and is
expected to achieve an EBITDA multiple of less than 4x.
- Average crude oil gathering volumes for the fourth quarter of
2021 decreased by approximately 5% as compared to the third quarter
of 2021 but were approximately 25% higher as compared to the fourth
quarter of 2020. The sequential decrease was primarily driven by
the timing of producer completion activity, while the
year-over-year increase was driven by increased drilling
activity.
- Segment profit for 2022 is expected to range from $300 million to $340
million, with growth over full-year 2021 expected to be
driven primarily by strong producer activity in the Midland Basin.
Excluding approximately $40 million
of Project Phantom expenses, the Permian is expected to exit 2022
as the largest segment.
- Given the costs related to Project Phantom and the pace of well
connects projected for EnLink's Permian system, EnLink expects to
allocate approximately 55% of total capital expenditures in 2022 to
Permian projects. This includes costs related to Project Phantom,
the majority of which are treated as operating expenses for GAAP
purposes.
Louisiana:
- Segment profit of $111.7 million
for the fourth quarter of 2021 was approximately 75% higher as
compared to the third quarter of 2021 and approximately 38% higher
as compared to the fourth quarter of 2020. Segment profit included
unrealized derivative gains/(losses) of $19.3 million, $(8.8)
million and $1.3 million for
the fourth quarter of 2021, third quarter of 2021 and fourth
quarter of 2020, respectively. The majority of the unrealized
derivative activity in the fourth quarter of 2021 was associated
with gas and natural gas liquids (NGL) storage operations.
Excluding unrealized derivative activity, segment profit in the
fourth quarter of 2021 grew approximately 27% sequentially and 16%
over the prior year period.
- Segment cash flow for the fourth quarter of 2021 was
$107.8 million, which marked the
highest quarterly Louisiana
segment cash flow in EnLink's history.
- Average natural gas transportation volumes for the fourth
quarter of 2021 were approximately 16% higher as compared to the
third quarter of 2021 and approximately 12% higher as compared to
the fourth quarter of 2020.
- Average NGL fractionation volumes for the fourth quarter of
2021 were approximately 13% higher as compared to the third quarter
of 2021 and 7% higher as compared to the fourth quarter of
2020.
- Average crude volumes handled in EnLink's Ohio River Valley
system for the fourth quarter of 2021 were approximately 11% lower
as compared to the third quarter of 2021 and 17% lower as compared
to the fourth quarter of 2020.
- Segment profit for 2022 is forecasted to range from
$350 million to $360 million, which implies approximately 9%
growth over full-year 2021.
Oklahoma:
- Segment profit of $99.4 million
for the fourth quarter of 2021 was approximately 14% higher as
compared to the third quarter of 2021 and roughly flat as compared
to the fourth quarter of 2020. Segment profit included $1.5 million of operating expenses related to
plant relocation expenses in the fourth quarter of 2021. Segment
profit also included unrealized derivative gains/(losses) of
$9.4 million, $(2.3) million and $(2.1)
million for the fourth quarter of 2021, third quarter of
2021 and fourth quarter of 2020, respectively. Excluding plant
relocation expenses and unrealized derivative activity, segment
profit in the fourth quarter of 2021 grew approximately 2%
sequentially and 10% over the prior year period.
- Segment cash flow for the fourth quarter of 2021 was
$86.1 million.
- Approximately half of all wells scheduled to come on line
during 2021 came on line during the fourth quarter, establishing
strong momentum in volumes for 2022.
- Average natural gas gathering volumes for the fourth quarter of
2021 were approximately 2% higher as compared to the third quarter
of 2021 but approximately 2% lower as compared to the fourth
quarter of 2020.
- Average natural gas processing volumes for the fourth quarter
of 2021 increased approximately 4% when compared to the third
quarter of 2021 but decreased 2% compared the fourth quarter of
2020.
- Segment profit for 2022 is projected to range from $335 million to $355
million, which is roughly flat compared to full-year 2021,
excluding the impact of Winter Storm
Uri. EnLink forecasts volumes for 2022 to again be roughly
flat driven, in part, by an additional rig on the Devon Energy
Corp. and Dow Inc. joint venture acreage.
North Texas:
- Segment profit of $56.1 million
for the fourth quarter of 2021 was approximately 6% lower as
compared to the third quarter of 2021 and approximately 9% lower as
compared to the fourth quarter of 2020. Segment profit included
unrealized derivative gains/(losses) of $(3.5) million, $(0.3)
million and $(0.5) million for
the fourth quarter of 2021, third quarter of 2021 and fourth
quarter of 2020, respectively.
- Segment cash flow for the fourth quarter of 2021 was
$51.8 million.
- Average natural gas gathering volumes for the fourth quarter of
2021 were roughly flat compared to the third quarter of 2021 and
the fourth quarter of 2020.
- Average natural gas processing volumes for the fourth quarter
of 2021 increased by approximately 3% as compared to the third
quarter of 2021 and were roughly flat as compared to the fourth
quarter of 2020.
- Segment profit for 2022 is expected to range from $225 million to $235
million. EnLink expects to benefit from new drilling
activity in the basin by BKV and other customers.
Fourth Quarter, Full-Year 2021 Earnings Call Details
EnLink will host a webcast and conference call on Wednesday, February 16, at 8 a.m. Central time to discuss its fourth quarter
and full-year results, along with 2022 financial guidance. The
dial-in number for the call is 1-855-656-0924. Callers outside
the United States should dial
1-412-542-4172. Participants can also preregister for the
conference call by navigating to
https://dpregister.com/sreg/10162684/f0568b94f0. Here, they will
receive their dial-in information upon completion of
pre-registration. Interested parties can access an archived replay
of the call on the Investors page of EnLink's website at
www.EnLink.com.
About the EnLink Midstream Companies
EnLink Midstream reliably operates a differentiated midstream
platform that is built for long-term, sustainable value creation.
EnLink's best-in-class services span the midstream value chain,
providing natural gas, crude oil, condensate, and NGL capabilities.
Our purposely built, integrated asset platforms are in premier
production basins and core demand centers, including the Permian
Basin, Oklahoma, North Texas, and the Gulf Coast. EnLink's
strong financial foundation and commitment to execution excellence
drive competitive returns and value for our employees, customers,
and investors. Headquartered in Dallas, EnLink is publicly traded through
EnLink Midstream, LLC (NYSE: ENLC). 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,
free cash flow after distributions, and segment cash flow.
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 swaps; costs
associated with the relocation of processing facilities; accretion
expense associated with asset retirement obligations; transaction
costs; (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); (accrued cash
distributions on Series B Preferred Units and Series C Preferred
Units paid or expected to be paid); (costs associated with the
relocation of processing facilities); non-cash interest
(income)/expense; (payments to terminate interest rate swaps);
(current income taxes); and proceeds from the sale of equipment and
land.
We define segment cash flow as segment profit less growth and
maintenance capital expenditures, which are gross to EnLink prior
to giving effect to the contributions by other entities related to
the non-controlling interest share of our consolidated
entities.
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 and free cash flow
after distributions are both used as metrics in our short-term
incentive program for compensating employees.
Adjusted EBITDA, free cash flow after distributions and segment
cash flow, 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 ENLC'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, 2020, and, when
available, "Item 1. Financial Statements - Note 15—Segment
Information" in ENLC's Annual Report on Form 10-K for the year
ended December 31, 2021, 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 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," "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, expected financial and operations results
associated with certain projects, acquisitions, or growth capital
expenditures, future operational results of our customers, results
in certain basins, future results or growth of our CCS business;
future cost savings or operational initiatives, profitability,
financial or leverage metrics, the impact of weather-related events
such as Winter Storm Uri on us and
our financial results and operations, the impact of any customer
billing disputes and litigation arising out of Winter Storm Uri, future expectations regarding
sustainability initiatives, our future capital structure and credit
ratings, the impact of the COVID-19 pandemic or variants thereof on
us and our financial results and operations, 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) the impact of the ongoing coronavirus (COVID-19) pandemic,
including the impact of the emergence of any new variants of the
virus on our business, financial condition, and results of
operations, (b) 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, (c) adverse developments in the midstream
business that may reduce our ability to make distributions, (d)
competition for crude oil, condensate, natural gas, and NGL
supplies and any decrease in the availability of such commodities,
(e) decreases in the volumes that we gather, process, fractionate,
or transport, (i) our ability or our customers' ability to receive
or renew required government or third party permits and other
approvals, (j) 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, (k) climate
change legislation and regulatory initiatives resulting in
increased operating costs and reduced demand for the natural gas
and NGL services we provide, (l) changes in the availability and
cost of capital, including as a result of a change in our credit
rating, (m) volatile prices and market demand for crude oil,
condensate, natural gas, and NGLs that are beyond our control, (n)
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, (o) operating hazards,
natural disasters, weather-related issues or delays, casualty
losses, and other matters beyond our control, (p) reductions in
demand for NGL products by the petrochemical, refining, or other
industries or by the fuel markets, (q) our dependence on
significant customers for a substantial portion of the natural gas
and crude that we gather, process, and transport, (r) construction
risks in our major development projects, (s) challenges we may face
in connection with our strategy to enter into new lines of business
related to the energy transition, (t) impairments to goodwill,
long-lived assets and equity method investments, and (u) 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 and EnLink Midstream Partners, LP's filings with the
Securities and Exchange Commission, including EnLink Midstream,
LLC's and EnLink Midstream Partners, LP's Annual Reports on Form
10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form
8-K. Neither EnLink Midstream, LLC nor EnLink Midstream Partners,
LP assumes any 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.
Investor Relations: Brian
Brungardt, Director of Investor Relations, 214-721-9353,
brian.brungardt@enlink.com
Media Relations: Jill
McMillan, Vice President of Strategic Relations & Public
Affairs, 214-721-9271, jill.mcmillan@enlink.com
EnLink Midstream,
LLC
|
Selected Financial
Data
|
(All amounts in
millions except per unit amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Total
revenues
|
$
2,243.2
|
|
$
1,064.3
|
|
$
6,685.9
|
|
$
3,893.8
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of sales,
exclusive of operating expenses and depreciation and amortization
(1)(2)
|
1,799.3
|
|
686.0
|
|
5,189.9
|
|
2,388.5
|
Operating
expenses
|
102.9
|
|
90.7
|
|
362.9
|
|
373.8
|
Depreciation and
amortization
|
151.6
|
|
157.3
|
|
607.5
|
|
638.6
|
Impairments
|
0.8
|
|
8.3
|
|
0.8
|
|
362.8
|
(Gain) loss on
disposition of assets
|
(0.8)
|
|
6.0
|
|
(1.5)
|
|
8.8
|
General and
administrative
|
27.5
|
|
23.7
|
|
107.8
|
|
103.3
|
Total operating costs
and expenses
|
2,081.3
|
|
972.0
|
|
6,267.4
|
|
3,875.8
|
Operating
income
|
161.9
|
|
92.3
|
|
418.5
|
|
18.0
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
(58.6)
|
|
(57.0)
|
|
(238.7)
|
|
(223.3)
|
Gain on extinguishment
of debt
|
—
|
|
—
|
|
—
|
|
32.0
|
Income (loss) from
unconsolidated affiliates
|
(1.6)
|
|
(0.2)
|
|
(11.5)
|
|
0.6
|
Other income
(loss)
|
(0.1)
|
|
(0.1)
|
|
—
|
|
0.3
|
Total other
expense
|
(60.3)
|
|
(57.3)
|
|
(250.2)
|
|
(190.4)
|
Income (loss) before
non-controlling interest and income taxes
|
101.6
|
|
35.0
|
|
168.3
|
|
(172.4)
|
Income tax
expense
|
(13.0)
|
|
(159.2)
|
|
(25.4)
|
|
(143.2)
|
Net income
(loss)
|
88.6
|
|
(124.2)
|
|
142.9
|
|
(315.6)
|
Net income
attributable to non-controlling interest
|
33.8
|
|
27.2
|
|
120.5
|
|
105.9
|
Net income (loss)
attributable to ENLC
|
$
54.8
|
|
$
(151.4)
|
|
$
22.4
|
|
$
(421.5)
|
Net income (loss)
attributable to ENLC per unit:
|
|
|
|
|
|
|
|
Basic common
unit
|
$
0.11
|
|
$
(0.31)
|
|
$
0.05
|
|
$
(0.86)
|
Diluted common
unit
|
$
0.11
|
|
$
(0.31)
|
|
$
0.05
|
|
$
(0.86)
|
|
|
|
|
|
|
|
|
Weighted average common
units outstanding (basic)
|
486.7
|
|
489.6
|
|
488.8
|
|
489.3
|
Weighted average common
units outstanding (diluted)
|
493.9
|
|
489.6
|
|
494.3
|
|
489.3
|
____________________
|
(1)
|
Includes related
party cost of sales of $6.2 million and $2.5 million for the three
months ended December 31, 2021 and 2020,
respectively.
|
(2)
|
Includes related
party cost of sales of $17.9 million and $8.7 million for the years
ended December 31, 2021 and 2020, respectively.
|
EnLink Midstream,
LLC
|
Reconciliation of
Net Income (Loss) to Adjusted EBITDA
|
(All amounts in
millions)
|
(Unaudited)
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income
(loss)
|
$
88.6
|
|
$
(124.2)
|
|
$
142.9
|
|
$
(315.6)
|
Interest expense, net
of interest income
|
58.6
|
|
57.0
|
|
238.7
|
|
223.3
|
Depreciation and
amortization
|
151.6
|
|
157.3
|
|
607.5
|
|
638.6
|
Impairments
|
0.8
|
|
8.3
|
|
0.8
|
|
362.8
|
(Income) loss from
unconsolidated affiliate investments
|
1.6
|
|
0.2
|
|
11.5
|
|
(0.6)
|
Distributions from
unconsolidated affiliate investments
|
0.1
|
|
0.1
|
|
3.9
|
|
2.1
|
(Gain) loss on
disposition of assets
|
(0.8)
|
|
6.0
|
|
(1.5)
|
|
8.8
|
Gain on
extinguishment of debt
|
—
|
|
—
|
|
—
|
|
(32.0)
|
Unit-based
compensation
|
6.0
|
|
3.8
|
|
25.3
|
|
28.4
|
Income tax
expense
|
13.0
|
|
159.2
|
|
25.4
|
|
143.2
|
Unrealized (gain)
loss on commodity swaps
|
(20.5)
|
|
2.5
|
|
12.4
|
|
10.5
|
Costs associated with
the relocation of processing facilities (1)
|
1.7
|
|
0.8
|
|
28.3
|
|
0.8
|
Other (2)
|
(0.4)
|
|
(0.3)
|
|
(0.6)
|
|
(1.1)
|
Adjusted EBITDA
before non-controlling interest
|
300.3
|
|
270.7
|
|
1,094.6
|
|
1,069.2
|
Non-controlling
interest share of adjusted EBITDA from joint ventures
(3)
|
(13.9)
|
|
(8.9)
|
|
(44.9)
|
|
(30.7)
|
Adjusted EBITDA, net to
ENLC
|
$
286.4
|
|
$
261.8
|
|
$
1,049.7
|
|
$
1,038.5
|
____________________
|
(1)
|
Represents cost
incurred related to the relocation of equipment and facilities from
the Thunderbird processing plant and Battle Ridge processing plant,
in the Oklahoma segment, to the Permian segment that are not part
of our ongoing operations. The relocation of equipment and
facilities from the Battle Ridge processing plant was completed in
the third quarter of 2021 and we expect to complete the relocation
of equipment and facilities from the Thunderbird processing plant
in 2022.
|
(2)
|
Includes accretion
expense associated with asset retirement obligations; transaction
costs; 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.'s ("NGP") 49.9% share of adjusted EBITDA
from the Delaware Basin JV, Marathon Petroleum Corporation's 50%
share of adjusted EBITDA from the Ascension JV, and other minor
non-controlling interests.
|
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
December
31,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net cash provided by
operating activities
|
$
258.1
|
|
$
170.1
|
|
$
857.3
|
|
$
731.1
|
Interest expense
(1)
|
54.4
|
|
55.1
|
|
221.0
|
|
218.2
|
Utility credits, net
of usage (2)
|
(5.6)
|
|
—
|
|
32.6
|
|
—
|
Payments to terminate
interest rate swaps (3)
|
—
|
|
10.9
|
|
1.8
|
|
10.9
|
Accruals for settled
commodity swap transactions
|
6.7
|
|
(5.0)
|
|
2.1
|
|
(4.3)
|
Distributions from
unconsolidated affiliate investment in excess of
earnings
|
0.1
|
|
0.1
|
|
3.9
|
|
0.5
|
Costs associated with
the relocation of processing facilities (4)
|
1.7
|
|
0.8
|
|
28.3
|
|
0.8
|
Other (5)
|
—
|
|
(0.3)
|
|
2.4
|
|
0.8
|
Changes in operating
assets and liabilities which (provided) used cash:
|
|
|
|
|
|
|
|
Accounts receivable,
accrued revenues, inventories, and other
|
(3.3)
|
|
79.0
|
|
273.5
|
|
6.4
|
Accounts payable,
accrued product purchases, and other accrued liabilities
|
(11.8)
|
|
(40.0)
|
|
(328.3)
|
|
104.8
|
Adjusted EBITDA before
non-controlling interest
|
300.3
|
|
270.7
|
|
1,094.6
|
|
1,069.2
|
Non-controlling
interest share of adjusted EBITDA from joint ventures
(6)
|
(13.9)
|
|
(8.9)
|
|
(44.9)
|
|
(30.7)
|
Adjusted EBITDA, net to
ENLC
|
286.4
|
|
261.8
|
|
1,049.7
|
|
1,038.5
|
Interest expense, net
of interest income
|
(58.6)
|
|
(57.0)
|
|
(238.7)
|
|
(223.3)
|
Growth capital
expenditures, net to ENLC (7)
|
(76.2)
|
|
(21.3)
|
|
(165.3)
|
|
(187.2)
|
Maintenance capital
expenditures, net to ENLC (7)
|
(7.0)
|
|
(11.2)
|
|
(26.1)
|
|
(32.1)
|
Distributions
declared on common units
|
(55.2)
|
|
(46.7)
|
|
(195.2)
|
|
(186.0)
|
ENLK preferred unit
accrued cash distributions (8)
|
(25.3)
|
|
(22.9)
|
|
(94.3)
|
|
(91.4)
|
Costs associated with
the relocation of processing facilities (4)
|
(1.7)
|
|
(0.8)
|
|
(28.3)
|
|
(0.8)
|
Non-cash interest
expense
|
2.2
|
|
0.2
|
|
9.5
|
|
0.2
|
Payments to terminate
interest rate swaps (3)
|
—
|
|
(10.9)
|
|
(1.8)
|
|
(10.9)
|
Other (9)
|
2.8
|
|
0.4
|
|
4.1
|
|
3.5
|
Free cash flow after
distributions
|
$
67.4
|
|
$
91.6
|
|
$
313.6
|
|
$
310.5
|
|
|
|
|
|
|
|
|
Distribution
coverage
|
3.04x
|
|
3.43x
|
|
3.43x
|
|
3.66x
|
Distributions
declared per ENLC unit
|
$
0.1125
|
|
$
0.09375
|
|
$
0.39375
|
|
$
0.3750
|
____________________
|
(1)
|
Net of amortization
of debt issuance costs, net discount of senior unsecured notes, and
designated cash flow hedge, which are included in interest expense
but not included in net cash provided by operating activities, and
non-cash interest income, which is netted against interest expense
but not included in adjusted EBITDA.
|
(2)
|
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. These utility credits are recorded as "Other
current assets" or "Other assets, net" on our consolidated balance
sheets depending on the timing of their expected usage, and
amortized as we incur utility expenses.
|
(3)
|
Represents cash paid
for the early terminations of our interest rate swaps due to the
partial repayments of the Term Loan in May 2021, September 2021,
and December 2020 of $100.0 million, $100.0 million, and $500.0
million, respectively.
|
(4)
|
Represents cost
incurred related to the relocation of equipment and facilities from
the Thunderbird processing plant and Battle Ridge processing plant,
in the Oklahoma segment, to the Permian segment that are not part
of our ongoing operations. The relocation of equipment and
facilities from the Battle Ridge processing plant was completed in
the third quarter of 2021 and we expect to complete the relocation
of equipment and facilities from the Thunderbird processing plant
in 2022.
|
(5)
|
Includes current
income tax expense; transaction costs; and non-cash rent, which
relates to lease incentives pro-rated over the lease
term.
|
(6)
|
Non-controlling
interest share of adjusted EBITDA from joint ventures includes
NGP's 49.9% share of adjusted EBITDA from the Delaware Basin JV,
Marathon Petroleum Corporation's 50% share of adjusted EBITDA from
the Ascension JV, and other minor non-controlling
interests.
|
(7)
|
Excludes capital
expenditures that were contributed by other entities and relate to
the non-controlling interest share of our consolidated
entities.
|
(8)
|
Represents the cash
distributions earned by the Series B Preferred Units and Series C
Preferred Units, which are not available to common
unitholders.
|
(9)
|
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
|
Reconciliation of
Segment Profit to Segment Cash Flow
|
(All amounts in
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Permian
|
|
Louisiana
|
|
Oklahoma
|
|
North
Texas
|
Three Months Ended
December 31, 2021
|
|
|
|
|
|
|
|
Segment
profit
|
$
73.8
|
|
$
111.7
|
|
$
99.4
|
|
$
56.1
|
Capital
Expenditures
|
(63.0)
|
|
(3.9)
|
|
(13.3)
|
|
(4.3)
|
Segment cash
flow
|
$
10.8
|
|
$
107.8
|
|
$
86.1
|
|
$
51.8
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2020
|
|
|
|
|
|
|
|
Segment profit
(loss)
|
$
46.2
|
|
$
80.8
|
|
$
99.0
|
|
$
61.6
|
Capital
Expenditures
|
(19.7)
|
|
(5.3)
|
|
(3.8)
|
|
(6.2)
|
Segment cash
flow
|
$
26.5
|
|
$
75.5
|
|
$
95.2
|
|
$
55.4
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2021
|
|
|
|
|
|
|
|
Segment
profit
|
$
229.7
|
|
$
324.9
|
|
$
327.6
|
|
$
250.9
|
Capital
Expenditures
|
(141.6)
|
|
(9.3)
|
|
(30.4)
|
|
(11.9)
|
Segment cash
flow
|
$
88.1
|
|
$
315.6
|
|
$
297.2
|
|
$
239.0
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2020
|
|
|
|
|
|
|
|
Segment
profit
|
$
170.1
|
|
$
285.6
|
|
$
405.4
|
|
$
270.4
|
Capital
expenditures
|
(181.1)
|
|
(44.6)
|
|
(17.9)
|
|
(16.9)
|
Segment cash
flow
|
$
(11.0)
|
|
$
241.0
|
|
$
387.5
|
|
$
253.5
|
EnLink Midstream,
LLC
|
Operating
Data
|
(Unaudited)
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Midstream
Volumes:
|
|
|
|
|
|
|
|
Permian
Segment
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
1,201,000
|
|
936,400
|
|
1,067,000
|
|
890,800
|
Processing
(MMBtu/d)
|
1,139,200
|
|
907,800
|
|
1,010,000
|
|
899,000
|
Crude Oil Handling
(Bbls/d)
|
150,100
|
|
120,300
|
|
134,600
|
|
116,200
|
Louisiana
Segment
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
2,338,400
|
|
2,096,800
|
|
2,160,800
|
|
1,993,900
|
Crude Oil Handling
(Bbls/d)
|
15,700
|
|
19,000
|
|
15,900
|
|
16,900
|
NGL Fractionation
(Gals/d)
|
7,931,900
|
|
7,403,300
|
|
7,455,600
|
|
7,597,800
|
Brine Disposal
(Bbls/d)
|
3,200
|
|
1,200
|
|
2,700
|
|
1,300
|
Oklahoma
Segment
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
1,018,100
|
|
1,039,500
|
|
992,400
|
|
1,116,500
|
Processing
(MMBtu/d)
|
1,041,200
|
|
1,061,800
|
|
1,010,300
|
|
1,105,900
|
Crude Oil Handling
(Bbls/d)
|
19,300
|
|
22,700
|
|
20,200
|
|
28,700
|
North Texas
Segment
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
1,397,200
|
|
1,399,400
|
|
1,377,400
|
|
1,478,200
|
Processing
(MMBtu/d)
|
645,700
|
|
645,100
|
|
631,500
|
|
671,000
|
EnLink Midstream,
LLC
|
Forward-Looking
Reconciliation of Net Income to Adjusted EBITDA and Free Cash Flow
After Distributions
|
(All amounts in
millions)
|
(Unaudited)
|
|
|
2022 Outlook
1
|
($MM)
|
Midpoint
|
Net income of EnLink
Midstream, LLC (2)
|
$
270.0
|
Interest expense, net
of interest income
|
216.0
|
Depreciation and
amortization
|
604.0
|
Loss from
unconsolidated affiliate investments
|
(2.0)
|
Distributions from
unconsolidated affiliate investments
|
1.0
|
Unit-based
compensation
|
21.0
|
Income
taxes
|
54.0
|
Plant relocation
costs (3)
|
45.0
|
Other (4)
|
(2.0)
|
Adjusted EBITDA before
non-controlling interest
|
1207.0
|
Non-controlling
interest share of adjusted EBITDA (5)
|
(57.0)
|
Adjusted EBITDA, net to
EnLink Midstream, LLC
|
1150.0
|
Interest expense, net
of interest income
|
(217.0)
|
Maintenance capital
expenditures, net to ENLK (6)
|
(60.0)
|
Preferred unit
accrued cash distributions (7)
|
(95.0)
|
Distributable cash
flow
|
778.0
|
Common distributions
declared
|
(218.0)
|
Growth capital
expenditures, net to EnLink and plant relocation costs
(3)(6)
|
(245.0)
|
Free cash flow after
distributions
|
$
315.0
|
____________________
|
(1)
|
Represents the
forward-looking net income guidance of EnLink Midstream, LLC for
the year ended December 31, 2022. The forward-looking net income
guidance excludes the potential impact of gains or losses on
derivative activity, gains or losses on disposition of assets,
impairment expense, gains or losses as a result of legal
settlements, gains or losses on extinguishment of debt, the
financial effects of future acquisitions, proceeds from the sale of
equipment, and repurchases of common units or ENLK Series B
Preferred Units. The exclusion of these items is due to the
uncertainty regarding the occurrence, timing and/or amount of these
events.
|
(2)
|
Net income includes
estimated net income attributable to NGP Natural Resources XI,
L.P.'s ("NGP") 49.9% share of net income from
the Delaware Basin JV and Marathon Petroleum Corp.'s
("Marathon") 50% share of net income from the Ascension
JV.
|
(3)
|
Includes operating
expenses incurred related to the relocation of equipment and
facilities from the Thunderbird processing plant, in
the Oklahoma segment, to the Permian segment that are not
part of our ongoing operations.
|
(4)
|
Includes (i)
estimated accretion expense associated with asset retirement
obligations and (ii) estimated non-cash rent, which relates to
lease incentives pro-rated over the lease term.
|
(5)
|
Non-controlling
interest share of adjusted EBITDA includes estimates for NGP's
49.9% share of adjusted EBITDA from the Delaware Basin JV
and Marathon's 50% share of adjusted EBITDA from the Ascension
JV.
|
(6)
|
Excludes capital
expenditures that are contributed by other entities and relate to
the non-controlling interest share of our consolidated
entities.
|
(7)
|
Represents the cash
distributions earned by the ENLK Series B Preferred Units and ENLK
Series C Preferred Units. Cash distributions to be paid to holders
of the ENLK Series B Preferred Units and ENLK Series C Preferred
Units are not available to common unitholders.
|
EnLink does not provide a reconciliation of forward-looking net
cash provided by operating activities to adjusted EBITDA because
the Company is unable to predict with reasonable certainty changes
in working capital, which may impact cash provided or used during
the year. Working capital includes accounts receivable, accounts
payable, and other current assets and liabilities. These items are
uncertain and depend on various factors outside the Company's
control.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/enlink-midstream-reports-fourth-quarter-and-full-year-2021-results-provides-2022-financial-guidance-301483132.html
SOURCE EnLink Midstream, LLC