0001592000 false 0001592000 2023-10-31 2023-10-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of Report (date of earliest event reported):  October 31, 2023

 

ENLINK MIDSTREAM, LLC

(Exact name of registrant as specified in its charter)

 

Delaware   001-36336   46-4108528
(State or Other Jurisdiction of
Incorporation or Organization)
  (Commission File
Number)
  (I.R.S. Employer Identification No.)

 

1722 ROUTH STREET, SUITE 1300
DALLAS, Texas
  75201
(Address of Principal Executive Offices)   (Zip Code)

 

Registrant’s telephone number, including area code: (214) 953-9500

 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE SECURITIES EXCHANGE ACT OF 1934:

 

Title of Each Class   Symbol   Name of Exchange on which Registered

Common Units Representing Limited Liability Company Interests

  ENLC   The New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company            ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ¨

 

 

 

 

 

 

Item 2.02 Results of Operations and Financial Condition.

 

On October 31, 2023, EnLink Midstream, LLC (the “Company”) issued a press release reporting its financial results for the third quarter of 2023. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and will be published on the Company’s website at www.enlink.com. In accordance with General Instruction B.2 of Form 8-K, the information set forth in this Item 2.02 and in such exhibit are deemed to be furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

Item 7.01. Regulation FD Disclosure.

 

On October 31, 2023, the Company published an investor presentation, which is available on the Company’s website, www.enlink.com, under “Investors — News & Events — Presentations.” The Company may from time to time publish additional materials for investors at the same website address. In accordance with General Instruction B.2 of Form 8-K, the information set forth in this Item 7.01 shall be deemed to be furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act.

 

Item 9.01. Financial Statements and Exhibits.
   
(d) Exhibits.

 

  EXHIBIT
NUMBER
  DESCRIPTION
       
  99.1 Press release of third quarter 2023 results, dated October 31, 2023.
       
  104 Cover Page Interactive Data File, formatted in Inline XBRL (included as Exhibit 101).

 

2

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  ENLINK MIDSTREAM, LLC
   
  By: EnLink Midstream Manager, LLC,
its Managing Member
   
Date: October 31, 2023 By: /s/  Benjamin D. Lamb
       Benjamin D. Lamb
       Executive Vice President and Chief Financial Officer

 

3

 

 

Exhibit 99.1

 

A black and white logo

Description automatically generated

 

FOR IMMEDIATE RELEASE

October 31, 2023

 

Investor Relations: Brian Brungardt, Director of Investor Relations, 214-721-9353, brian.brungardt@enlink.com

Media Relations: Megan Wright, Director of Corporate Communications, 214-721-9694, megan.wright@enlink.com

 

EnLink Midstream Reports Third Quarter 2023 Results

 

DALLAS, October 31, 2023 — EnLink Midstream, LLC (NYSE: ENLC) (EnLink) reported financial results for the third quarter of 2023.

 

Highlights

Reported net income of $65.8 million and net cash provided by operating activities of $274.2 million for the third quarter of 2023.

Generated adjusted EBITDA, net to EnLink, of $341.9 million for the third quarter of 2023, which is flat compared to the third quarter of 2022.

Delivered $66.2 million of free cash flow after distributions (FCFAD) for the third quarter of 2023.

Remain on track to achieve the midpoint of 2023 adjusted EBITDA guidance, which represents 5% growth compared to 2022 adjusted EBITDA.

Repurchased approximately $50 million1 of common units in the third quarter of 2023. EnLink is ahead of pace to complete the 2023 unit repurchase authorization of $200 million.

 

“EnLink continues to have multiple ways to win, be it through the strength of our traditional midstream assets or our growing carbon transportation business,” EnLink Chief Executive Officer Jesse Arenivas said. “Our Permian segment generated robust cash flows that we are returning to investors through our active buyback program, and our Louisiana system remains well positioned to meet both natural gas and natural gas liquids (NGL) demand. EnLink's solid third quarter results show the strength of this business model.

 

"We believe EnLink is a differentiated midstream investment. We’re approaching completion of our first carbon capture project, which will capture and sequester carbon dioxide (CO2) emitted from our Bridgeport processing plant in North Texas, and we continue to execute our 'future of midstream' vision by delivering energy products critical to powering our modern society, while also offering solutions to reduce greenhouse gas emissions."

 

Adjusted EBITDA and FCFAD used in this press release are non-GAAP measures and are explained in greater detail under "Non-GAAP Financial Information" below.

 

 

1Includes $23.0 million of common units repurchased from GIP pursuant to our Unit Repurchase Agreement, which settled on October 30, 2023.

 

1

 

 

Third Quarter 2023 Financial Results and Highlights

 

$MM, unless noted  Third Quarter 2023   Second Quarter 2023   Third Quarter 2022 
Net Income (1)   66    90    117 
Adjusted EBITDA, net to EnLink   342    334    343 
Net Cash Provided by Operating Activities   274    316    343 
Capex, Plant Relocation Costs, net to EnLink & Investment Contributions   126    88    121 
Free Cash Flow After Distributions   66    96    85 
Debt to Adjusted EBITDA, net to EnLink (2)   3.4x   3.4x   3.4x
Common Units Outstanding (3)   456,851,424    461,497,730    473,596,120 

 

(1) Net income is before non-controlling interest.

(2) Calculated according to credit facility leverage covenant.

(3) Outstanding common units as of October 26, 2023, July 27, 2023, and October 27, 2022, respectively.

 

Third Quarter 2023 Segment Updates

Permian Basin:

Segment profit for the third quarter of 2023 was $102.7 million, including operating expenses related to plant relocation of $2.5 million and unrealized derivative losses of $7.4 million. Excluding plant relocation operating expenses and unrealized derivative activity, segment profit in the third quarter of 2023 grew approximately 11% sequentially but decreased approximately 4% over the third quarter of 2022.

Average natural gas gathering volumes for the third quarter of 2023 were approximately 6% higher compared to the second quarter of 2023 and approximately 15% higher compared to the third quarter of 2022.

Average natural gas processing volumes for the third quarter of 2023 were approximately 5% higher compared to the second quarter of 2023 and approximately 12% higher compared to the third quarter of 2022. EnLink continues to benefit from strong producer drilling and completion activity.

Average crude gathering volumes for the third quarter of 2023 were approximately 13% higher compared to the second quarter of 2023 and approximately 12% higher compared to the third quarter of 2022.

EnLink's third plant relocation, Tiger II, remains on schedule to be placed in service in the second quarter of 2024.

 

Louisiana:

Segment profit for the third quarter of 2023 was $87.1 million, including unrealized derivative losses of $6.0 million. Excluding unrealized derivative activity, segment profit in the third quarter of 2023 grew approximately 8% sequentially, mainly driven by normal seasonal effects in the NGL segment, but was flat over the third quarter of 2022.

Average natural gas transportation volumes for the third quarter of 2023 were approximately 5% higher compared to the second quarter of 2023 but were approximately 18% lower compared to the third quarter of 2022.

NGL fractionation volumes for the third quarter of 2023 were approximately 1% higher compared to the second quarter of 2023 but were approximately 4% lower compared to the third quarter of 2022.

 

2

 

 

Oklahoma:

Segment profit for the third quarter of 2023 was $104.6 million, including operating expenses related to plant relocation of $0.4 million and unrealized derivative losses of $4.1 million. Excluding plant relocation expenses and unrealized derivative activity, segment profit in the third quarter of 2023 was flat sequentially but grew approximately 14% over the third quarter of 2022.

Average natural gas gathering volumes for the third quarter of 2023 were approximately 2% lower compared to the second quarter of 2023 but were approximately 18% higher compared to the third quarter of 2022.

Average natural gas processing volumes for the third quarter of 2023 were approximately 2% lower compared to the second quarter of 2023 but were approximately 10% higher compared to the third quarter of 2022.

Average crude gathering volumes during the third quarter of 2023 were approximately 18% lower compared to the second quarter of 2023 but were approximately 2% higher compared to the third quarter of 2022.

 

North Texas:

Segment profit for the third quarter of 2023 was $63.8 million, including unrealized derivative losses of $5.4 million. Excluding unrealized derivative activity, segment profit in the third quarter of 2023 decreased approximately 7% sequentially and decreased approximately 14% over the third quarter of 2022.

Average natural gas gathering and transportation volumes for the third quarter of 2023 were approximately 2% lower compared to the second quarter of 2023 and approximately 7% lower compared to the third quarter of 2022.

Average natural gas processing volumes for the third quarter of 2023 were approximately 1% lower compared to the second quarter of 2023 and approximately 6% lower compared to the third quarter of 2022.

 

Third Quarter 2023 Webcast Details

EnLink will host a webcast and conference call to discuss third quarter 2023 results on November 1, 2023, at 8 a.m. Central time. The conference call will be broadcast via an internet webcast, which can be accessed on the Investors page of EnLink's website at investors.enlink.com. Interested parties can access an archived replay of the webcast on EnLink's website for at least 90 days following the event.

 

About the EnLink Midstream Companies

Headquartered in Dallas, EnLink Midstream (NYSE: ENLC) provides integrated midstream infrastructure services for natural gas, crude oil, condensate, and NGLs, as well as CO2 transportation for carbon capture and sequestration (CCS). Our large-scale, cash-flow-generating asset platforms are in premier production basins and core demand centers, including the Permian Basin, Louisiana, Oklahoma, and North Texas. EnLink is focused on maintaining the financial flexibility and operational excellence that enables us to strategically grow and create sustainable value. Visit www.EnLink.com to learn how EnLink connects energy to life.

 

Non-GAAP Financial Information

This press release contains non-generally accepted accounting principles financial measures that we refer to as adjusted EBITDA and free cash flow after distributions (FCFAD).

 

3

 

 

We define adjusted EBITDA as net income (loss) plus (less) interest expense, net of interest income; depreciation and amortization; impairments; (income) loss from unconsolidated affiliate investments; distributions from unconsolidated affiliate investments; (gain) loss on disposition of assets; (gain) loss on extinguishment of debt; unit-based compensation; income tax expense (benefit); unrealized (gain) loss on commodity derivatives; costs associated with the relocation of processing facilities; accretion expense associated with asset retirement obligations; transaction costs; non-cash expense related to changes in the fair value of contingent consideration; (non-cash rent); and (non-controlling interest share of adjusted EBITDA from joint ventures).

 

We define free cash flow after distributions as adjusted EBITDA, net to ENLC, plus (less) (growth and maintenance capital expenditures, excluding capital expenditures that were contributed by other entities and relate to the non-controlling interest share of our consolidated entities); (interest expense, net of interest income); (distributions declared on common units); (cash distributions earned by the Series B Preferred Units and the Series C Preferred Units); (payment to redeem mandatorily redeemable non-controlling interest); (costs associated with the relocation of processing facilities, excluding costs that were contributed by other entities and relate to the non-controlling interest share of our consolidated entities); non-cash interest (income)/expense; (contributions to investment in unconsolidated affiliates); (payments to terminate interest rate swaps); (current income taxes); and proceeds from the sale of equipment and land.

 

EnLink believes these measures are useful to investors because they may provide users of this financial information with meaningful comparisons between current results and previously-reported results and a meaningful measure of the company’s cash flow after it has satisfied the capital and related requirements of its operations. In addition, adjusted EBITDA is used as a metric in our short-term incentive program for compensating employees and in our performance awards for executives.

 

Adjusted EBITDA and free cash flow after distributions, as defined above, are not measures of financial performance or liquidity under GAAP. They should not be considered in isolation or as an indicator of EnLink’s performance. Furthermore, they should not be seen as a substitute for metrics prepared in accordance with GAAP. Reconciliations of these measures to their most directly comparable GAAP measures are included in the following tables. See EnLink’s filings with the Securities and Exchange Commission for more information.

 

Other definitions and explanations of terms used in this press release:

Segment profit (loss) is defined as revenues, less cost of sales (exclusive of operating expenses and depreciation and amortization), less operating expenses. Segment profit (loss) includes non-cash compensation expenses reflected in operating expenses. See “Item 8. Financial Statements and Supplementary Data - Note 15 - Segment Information” in ENLC’s Annual Report on Form 10-K for the year ended December 31, 2022, and, when available, “Item 1. Financial Statements - Note 14—Segment Information” in ENLC’s Quarterly Report on Form 10-Q for the three months ended September 30, 2023, for further information about segment profit (loss).

 

The Ascension JV is a joint venture between a subsidiary of EnLink and a subsidiary of Marathon Petroleum Corporation in which EnLink owns a 50% interest and Marathon Petroleum Corporation owns a 50% interest. The Ascension JV, which began operations in April 2017, owns an NGL pipeline that connects EnLink’s Riverside fractionator to Marathon Petroleum Corporation’s Garyville refinery.

 

The Delaware Basin JV is a joint venture between EnLink and an affiliate of NGP Natural Resources XI, L.P. ("NGP") in which EnLink owns a 50.1% interest and NGP owns a 49.9% interest. The Delaware Basin JV, which was formed in August 2016, owns the Lobo processing facilities and the Tiger processing plant located in the Delaware Basin in Texas.

 

4

 

 

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. his press release contains forward-looking statements within the meaning of the federal securities laws. Although these statements reflect the current views, assumptions and expectations of our management, the matters addressed herein involve certain assumptions, risks and uncertainties that could cause actual activities, performance, outcomes and results to differ materially from those indicated herein. Therefore, you should not rely on any of these forward-looking statements. All statements, other than statements of historical fact, included in this press release constitute forward-looking statements, including but not limited to statements identified by the words “forecast,” “may,” “believe,” “will,” “should,” “plan,” “predict,” “anticipate,” “intend,” “estimate,” “expect,” "continue," and similar expressions. Such forward-looking statements include, but are not limited to, statements about guidance, projected or forecasted financial and operating results, future results or growth of our CCS business, expected financial and operations results associated with certain projects, acquisitions, or growth capital expenditures, timing for completion of construction or expansion projects, results in certain basins, cost savings or operational, environmental, and climate change initiatives, profitability, financial or leverage metrics, repurchases of common or preferred units, our future capital structure and credit ratings, objectives, strategies, expectations, and intentions, and other statements that are not historical facts. Factors that could result in such differences or otherwise materially affect our financial condition, results of operations, or cash flows include, without limitation (a)  potential conflicts of interest of Global Infrastructure Partners (“GIP”) with us and the potential for GIP to compete with us or favor GIP’s own interests to the detriment of our other unitholders, (b) adverse developments in the midstream business that may reduce our ability to make distributions, (c) competition for crude oil, condensate, natural gas, and NGL supplies and any decrease in the availability of such commodities, (d) decreases in the volumes that we gather, process, fractionate, or transport, (e) our ability or our customers’ ability to receive or renew required government or third party permits and other approvals, (f) increased federal, state, and local legislation, and regulatory initiatives, as well as government reviews relating to hydraulic fracturing resulting in increased costs and reductions or delays in natural gas production by our customers, (g) climate change legislation and regulatory initiatives resulting in increased operating costs and reduced demand for the natural gas and NGL services we provide, (h) changes in the availability and cost of capital, (i) volatile prices and market demand for crude oil, condensate, natural gas, and NGLs that are beyond our control, (j) our debt levels could limit our flexibility and adversely affect our financial health or limit our flexibility to obtain financing and to pursue other business opportunities, (k) operating hazards, natural disasters, weather-related issues or delays, casualty losses, and other matters beyond our control, (l) reductions in demand for NGL products by the petrochemical, refining, or other industries or by the fuel markets, (m) our dependence on significant customers for a substantial portion of the natural gas and crude that we gather, process, and transport, (n) construction risks in our major development projects, (o) challenges we may face in connection with our strategy to enter into new lines of business related to the energy transition, (p) the impact of the coronavirus (COVID-19) pandemic (including the impact of any new variants of the virus) and similar pandemics, (q) impairments to goodwill, long-lived assets and equity method investments, and (r) the effects of existing and future laws and governmental regulations, and other uncertainties. These and other applicable uncertainties, factors, and risks are described more fully in EnLink Midstream, LLC’s filings with the Securities and Exchange Commission, including EnLink Midstream, LLC’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. EnLink assumes no obligation to update any forward-looking statements.

 

The EnLink management team based the forecasted financial information included herein on certain information and assumptions, including, among others, the producer budgets / forecasts to which EnLink has access as of the date of this press release and the projects / opportunities expected to require capital expenditures as of the date of this press release. The assumptions, information, and estimates underlying the forecasted financial information included in the guidance information in this press release are inherently uncertain and, though considered reasonable by the EnLink management team as of the date of its preparation, are subject to a wide variety of significant business, economic, and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the forecasted financial information. Accordingly, there can be no assurance that the forecasted results are indicative of EnLink's future performance or that actual results will not differ materially from those presented in the forecasted financial information. Inclusion of the forecasted financial information in this press release should not be regarded as a representation by any person that the results contained in the forecasted financial information will be achieved.

 

5

 

 

EnLink Midstream, LLC

Selected Financial Data

(All amounts in millions except per unit amounts)

(Unaudited)

 

   Three Months Ended
September 30,
   Nine Months Ended
September 30,
 
   2023   2022   2023   2022 
Total revenues (1)  $1,746.2   $2,663.5   $5,043.8   $7,491.8 
                     
Operating costs and expenses:                    
Cost of sales, exclusive of operating expenses and depreciation and amortization (2)   1,244.7    2,131.1    3,535.6    6,030.7 
Operating expenses   143.3    136.8    412.5    386.6 
Depreciation and amortization   163.8    162.6    489.5    474.5 
Impairments   20.7        20.7     
(Gain) loss on disposition of assets   (0.6)   (0.8)   (1.8)   3.9 
General and administrative   30.4    34.5    87.8    91.9 
Total operating costs and expenses   1,602.3    2,464.2    4,544.3    6,987.6 
Operating income   143.9    199.3    499.5    504.2 
Other income (expense):                    
Interest expense, net of interest income   (67.9)   (60.4)   (205.2)   (171.0)
Loss on extinguishment of debt       (5.7)       (6.2)
Income (loss) from unconsolidated affiliate investments   1.0    (1.7)   (3.7)   (4.0)
Other income (expense)   (0.6)   0.3    (0.2)   0.6 
Total other expense   (67.5)   (67.5)   (209.1)   (180.6)
Income before non-controlling interest and income taxes   76.4    131.8    290.4    323.6 
Income tax expense   (10.6)   (15.2)   (40.5)   (17.1)
Net income   65.8    116.6    249.9    306.5 
Net income attributable to non-controlling interest   36.3    35.8    107.9    105.2 
Net income attributable to ENLC  $29.5   $80.8   $142.0   $201.3 
Net income attributable to ENLC per unit:                    
Basic common unit  $0.06   $0.17   $0.31   $0.42 
Diluted common unit  $0.06   $0.17   $0.30   $0.41 
                     
Weighted average common units outstanding (basic)   459.3    477.2    464.1    481.0 
Weighted average common units outstanding (diluted)   463.9    484.4    468.4    487.9 

 

 

(1)Includes related party revenue of $0.7 million and $1.4 million for the three months ended September 30, 2023 and 2022, respectively, and $2.0 million and $1.4 million for the nine months ended September 30, 2023 and 2022, respectively.
(2)Includes related party cost of sales of $1.8 million and $5.6 million for the three months ended September 30, 2023 and 2022, respectively, and $5.8 million and $25.3 million for the nine months ended September 30, 2023 and 2022, respectively.

 

6

 

 

EnLink Midstream, LLC

Reconciliation of Net Income to Adjusted EBITDA

(All amounts in millions)

(Unaudited)

 

    Three Months Ended
September 30,
 
    Nine Months Ended
September 30,
 
 
    2023     2022     2023     2022  
Net income   $ 65.8     $ 116.6     $ 249.9     $ 306.5  
Interest expense, net of interest income     67.9       60.4       205.2       171.0  
Depreciation and amortization     163.8       162.6       489.5       474.5  
Impairments     20.7             20.7        
(Income) loss from unconsolidated affiliate investments     (1.0 )     1.7       3.7       4.0  
Distributions from unconsolidated affiliate investments     0.1       0.2       2.4       0.6  
(Gain) loss on disposition of assets     (0.6 )     (0.8 )     (1.8 )     3.9  
Loss on extinguishment of debt           5.7             6.2  
Unit-based compensation     5.7       11.4       14.2       23.7  
Income tax expense     10.6       15.2       40.5       17.1  
Unrealized (gain) loss on commodity derivatives     22.9       (18.2 )     19.0       (38.4 )
Costs associated with the relocation of processing facilities (1)     2.9       9.7       5.0       32.1  
Other (2)     0.1       (3.1 )     0.6       (2.4 )
Adjusted EBITDA before non-controlling interest     358.9       361.4       1,048.9       998.8  
Non-controlling interest share of adjusted EBITDA from joint ventures (3)     (17.0 )     (18.0 )     (49.7 )     (51.4 )
Adjusted EBITDA, net to ENLC   $ 341.9     $ 343.4     $ 999.2     $ 947.4  

 

 

(1)Represents cost incurred to execute discrete, project-based strategic initiatives aimed at realigning available processing capacity from our Oklahoma and North Texas segments to the Permian segment. These costs are not part of our ongoing operations.
(2)Includes transaction costs, non-cash expense related to changes in the fair value of contingent consideration, accretion expense associated with asset retirement obligations, and non-cash rent, which relates to lease incentives pro-rated over the lease term.
(3)Non-controlling interest share of adjusted EBITDA from joint ventures includes NGP Natural Resources XI, L.P. ("NGP")’s 49.9% share of adjusted EBITDA from the Delaware Basin JV and Marathon Petroleum Corporation’s 50% share of adjusted EBITDA from the Ascension JV.

 

7

 

 

EnLink Midstream, LLC

Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA

and Free Cash Flow After Distributions

(All amounts in millions except ratios and per unit amounts)

(Unaudited)

 

    Three Months Ended
September 30,
 
    Nine Months Ended
September 30,
 
    2023     2022     2023     2022  
Net cash provided by operating activities   $ 274.2     $ 343.3     $ 862.0     $ 825.9  
Interest expense (1)     66.3       59.3       200.3       167.2  
Utility credits redeemed (2)           (16.3 )     (1.5 )     (27.9 )
Accruals for settled commodity derivative transactions           (0.3 )           (1.9 )
Distributions from unconsolidated affiliate investment in excess of earnings     0.1       0.2       2.4       0.6  
Costs associated with the relocation of processing facilities (3)     2.9       9.7       5.0       32.1  
Other (4)     0.8       (0.1 )     0.8       3.3  
Changes in operating assets and liabilities which (provided) used cash:                                
Accounts receivable, accrued revenues, inventories, and other     156.9       (54.3 )     (92.8 )     255.6  
Accounts payable, accrued product purchases, and other accrued liabilities     (142.3 )     19.9       72.7       (256.1 )
Adjusted EBITDA before non-controlling interest     358.9       361.4       1,048.9       998.8  
Non-controlling interest share of adjusted EBITDA from joint ventures (5)     (17.0 )     (18.0 )     (49.7 )     (51.4 )
Adjusted EBITDA, net to ENLC     341.9       343.4       999.2       947.4  
Growth capital expenditures, net to ENLC (6)     (97.4 )     (82.7 )     (264.7 )     (173.1 )
Maintenance capital expenditures, net to ENLC (6)     (18.3 )     (8.7 )     (52.5 )     (33.7 )
Interest expense, net of interest income     (67.9 )     (60.4 )     (205.2 )     (171.0 )
Distributions declared on common units     (57.5 )     (54.8 )     (174.3 )     (164.9 )
ENLK preferred unit cash distributions earned (7)     (24.6 )     (23.3 )     (72.2 )     (70.1 )
Costs associated with the relocation of processing facilities, net to ENLC (3)(6)(9)     (1.7 )     (9.7 )     5.0       (32.1 )
Contributions to investment in unconsolidated affiliates     (8.7 )     (19.7 )     (58.4 )     (46.3 )
Payment to redeem mandatorily redeemable non-controlling interest (8)                 (10.5 )      
Other (10)     0.4       0.8       1.2       1.1  
Free cash flow after distributions   $ 66.2     $ 84.9     $ 167.6     $ 257.3  
                                 
Actual declared distribution to common unitholders   $ 57.5     $ 54.8     $ 174.3     $ 164.9  
Distribution coverage     3.98 x     4.64 x     3.75 x     4.09 x
Distributions declared per ENLC unit   $ 0.1250     $ 0.1125     $ 0.3750     $ 0.3375  

 

 

(1)Net of amortization of debt issuance costs, net discount of senior unsecured notes, and designated cash flow hedge, which are included in interest expense but not included in net cash provided by operating activities, and non-cash interest income, which is netted against interest expense but not included in adjusted EBITDA.
(2)Under our utility agreements, we are entitled to a base load of electricity and pay or receive credits, based on market pricing, when we exceed or do not use the base load amounts. Due to Winter Storm Uri, we received credits from our utility providers based on market rates for our unused electricity.
(3)Represents cost incurred to execute discrete, project-based strategic initiatives aimed at realigning available processing capacity from our Oklahoma and North Texas segments to the Permian segment. These costs are not part of our ongoing operations.
(4)Includes transaction costs, current income tax expense, and non-cash rent, which relates to lease incentives pro-rated over the lease term.
(5)Non-controlling interest share of adjusted EBITDA from joint ventures includes NGP's 49.9% share of adjusted EBITDA from the Delaware Basin JV and Marathon Petroleum Corporation's 50% share of adjusted EBITDA from the Ascension JV.
(6)Excludes capital expenditures and costs associated with the relocation of processing facilities that were contributed by other entities and relate to the non-controlling interest share of our consolidated entities.
(7)Represents the cash distributions earned by the Series B Preferred Units and Series C Preferred Units, which are not available to common unitholders.
(8)In January 2023, we settled the redemption of the mandatorily redeemable non-controlling interest in one of our non-wholly owned subsidiaries.
(9)Includes a one-time $8.0 million contribution from an affiliate of NGP in May 2023 in connection with the Delaware Basin JV’s purchase of the Cowtown processing plant.
(10)Includes current income tax expense and proceeds from the sale of surplus or unused equipment and land, which occurred in the normal operation of our business.

 

8

 

 

EnLink Midstream, LLC

Operating Data

(Unaudited)

 

    Three Months Ended
June 30,
 
    Nine Months Ended
September 30,
 
 
    2023     2022     2023     2022  
Midstream Volumes:                                
Permian Segment                                
Gathering and Transportation (MMBtu/d)     1,840,800       1,596,400       1,752,800       1,480,200  
Processing (MMBtu/d)     1,699,700       1,520,800       1,626,500       1,404,100  
Crude Oil Handling (Bbls/d)     176,100       157,700       158,100       161,200  
Louisiana Segment                                
Gathering and Transportation (MMBtu/d)     2,468,900       2,996,100       2,501,900       2,731,900  
Crude Oil Handling (Bbls/d)     18,600       18,500       17,800       17,400  
NGL Fractionation (Gals/d)     7,593,400       7,930,200       7,600,500       7,953,300  
Brine Disposal (Bbls/d)     3,400       3,000       3,000       3,100  
Oklahoma Segment                                
Gathering and Transportation (MMBtu/d)     1,223,000       1,036,400       1,218,600       1,017,600  
Processing (MMBtu/d)     1,178,200       1,067,600       1,182,400       1,048,400  
Crude Oil Handling (Bbls/d)     21,900       21,500       25,300       22,200  
North Texas Segment                                
Gathering and Transportation (MMBtu/d)     1,563,100       1,687,100       1,591,100       1,494,800  
Processing (MMBtu/d)     729,000       776,700       737,800       684,900  

 

9

 

v3.23.3
Cover
Oct. 31, 2023
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Oct. 31, 2023
Entity File Number 001-36336
Entity Registrant Name ENLINK MIDSTREAM, LLC
Entity Central Index Key 0001592000
Entity Tax Identification Number 46-4108528
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One 1722 ROUTH STREET
Entity Address, Address Line Two SUITE 1300
Entity Address, City or Town DALLAS
Entity Address, State or Province TX
Entity Address, Postal Zip Code 75201
City Area Code 214
Local Phone Number 953-9500
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Units Representing Limited Liability Company Interests
Trading Symbol ENLC
Security Exchange Name NYSE
Entity Emerging Growth Company false

EnLink Midstream (NYSE:ENLC)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more EnLink Midstream Charts.
EnLink Midstream (NYSE:ENLC)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more EnLink Midstream Charts.