DALLAS, Aug. 1, 2023
/PRNewswire/ -- EnLink Midstream, LLC (NYSE: ENLC) (EnLink)
reported financial results for the second quarter of 2023.
Highlights
- Reported net income of $89.9
million and net cash provided by operating activities of
$315.7 million for the second quarter
of 2023.
- Generated adjusted EBITDA, net to EnLink, of $333.6 million for the second quarter of 2023,
representing 11% growth compared to the second quarter of
2022.
- Delivered $95.7 million of free
cash flow after distributions (FCFAD) for the second quarter of
2023.
- Remain on track to achieve the midpoint of 2023 adjusted EBITDA
guidance.
- Repurchased approximately $60
million of common units in the second quarter of 2023.
EnLink is ahead of pace to complete the 2023 unit repurchase
authorization of $200
million.1
- EnLink's Carbon Solutions business set to benefit from momentum
in carbon capture and sequestration (CCS) deals; ExxonMobil
Corporation signed Nucor Corporation as its second customer for
sequestration, securing an additional 800,000 metric tonnes per
year that EnLink will transport as part of previously signed
transportation agreement.
"EnLink remains on pace for another record year, driven by
robust activity in the Permian," EnLink Chief Executive Officer
Jesse Arenivas said. "The strong
execution is driving growth and investor returns, including our
active buyback program.
"We are uniquely positioned to grow through the current energy
transformation because of our existing platform in Louisiana and its proximity to both
high-emitting industrial facilities and world-class sequestration
sites. We're taking concrete steps today to fulfill our vision for
'the future of midstream,' in which EnLink continues providing
energy products critical to powering modern society, while also
offering solutions to reduce greenhouse gas emissions across
industries that utilize these products."
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
$27.5 million of common units repurchased from GIP pursuant to
our Unit Repurchase Agreement, which settled on July 31,
2023.
|
Second Quarter 2023 Financial Results and
Highlights
$MM, unless
noted
|
Second Quarter 2023
|
First Quarter
2023
|
Second Quarter 2022
|
Net Income
(1)
|
90
|
94
|
124
|
Adjusted EBITDA, net to
EnLink
|
334
|
324
|
300
|
Net Cash Provided by
Operating Activities
|
316
|
272
|
175
|
Capex, Plant Relocation
Costs, net to EnLink & Investment Contributions
|
88
|
157
|
99
|
Free Cash Flow After
Distributions
|
96
|
6
|
68
|
Debt to Adjusted
EBITDA, net to EnLink (2)
|
3.4x
|
3.4x
|
3.5x
|
Common Units
Outstanding (3)
|
461,497,730
|
465,989,285
|
478,933,388
|
|
(1) Net
income is before non-controlling interest.
|
(2)
Calculated according to credit facility leverage
covenant.
|
(3)
Outstanding common units as of July 27, 2023, April 28, 2023,
and July 28, 2022, respectively.
|
Second Quarter 2023 Segment Updates
Permian Basin:
- Segment profit for the second quarter of 2023 was $91.8 million, including operating expenses
related to plant relocation of $0.9
million and an unrealized derivative loss of $7.9 million. Excluding plant relocation
operating expenses and unrealized derivative activity, segment
profit in the second quarter of 2023 grew 12% sequentially but
decreased 8% over the second quarter of 2022.
- Average natural gas gathering volumes for the second quarter of
2023 were approximately 3% higher compared to the first quarter of
2023 and approximately 16% higher compared to the second quarter of
2022.
- Average natural gas processing volumes for the second quarter
of 2023 were approximately 4% higher compared to the prior quarter
and 13% higher compared to the second quarter of 2022. EnLink
continues to benefit from strong producer drilling and completion
activity.
- Average crude gathering volumes for the second quarter of 2023
were approximately 9% higher compared to the first quarter of 2023
but were approximately 11% lower compared to the second 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 second quarter of 2023 was $104.5 million, including an unrealized
derivative gain of $18.2 million.
Excluding unrealized derivative activity, segment profit in the
second quarter of 2023 decreased approximately 18% sequentially,
mainly driven by normal seasonal effects in the natural gas liquids
(NGL) segment, but grew 12% over the second quarter of 2022.
- Average natural gas transportation volumes for the second
quarter of 2023 were approximately 13% lower compared to both the
first quarter of 2023 and second quarter of 2022.
- NGL fractionation volumes for the second quarter of 2023 were
approximately 2% lower compared to the first quarter of 2023 and 5%
lower compared to the second quarter of 2022.
Oklahoma:
- Segment profit for the second quarter of 2023 was $110.7 million, including an unrealized
derivative gain of $2.0 million.
Excluding plant relocation expenses and unrealized derivative
activity, segment profit in the second quarter of 2023 grew
approximately 13% sequentially and grew 18% over the second quarter
of 2022.
- Average natural gas gathering volumes for the second quarter of
2023 were approximately 6% higher compared to the first quarter of
2023 and approximately 23% higher compared to the second quarter of
2022.
- Average natural gas processing volumes for the second quarter
of 2023 were approximately 3% higher compared to the first quarter
of 2023 and approximately 15% higher compared to the second quarter
of 2022.
- Average crude gathering volumes during the second quarter of
2023 were approximately 1% lower compared to the first quarter of
2023 but were approximately 25% higher compared to the second
quarter of 2022.
North Texas:
- Segment profit for the second quarter of 2023 was $67.3 million, including an unrealized derivative
loss of $7.0 million. Excluding
unrealized derivative activity, segment profit in the second
quarter of 2023 grew approximately 1% sequentially and grew 16%
over the second quarter of 2022.
- Average natural gas gathering and transportation volumes for
the second quarter of 2023 were approximately 1% lower compared to
the first quarter of 2023 but were approximately 11% higher
compared to the second quarter of 2022.
- Average natural gas processing volumes for the second quarter
of 2023 were approximately 1% lower compared to the first quarter
of 2023 but were approximately 12% higher compared to the second
quarter of 2022.
Carbon Solutions Business Update
During the second
quarter, ExxonMobil secured another customer, Nucor, for permanent
sequestration of CO2. Similar to the arrangement with CF
Industries, the project with Nucor will address CO2 from
an existing facility that is currently vented to the atmosphere.
Under the transportation agreement with ExxonMobil, EnLink will
transport approximately 800,000 metric tonnes per year from Nucor's
facility in Convent, Louisiana to
ExxonMobil's sequestration site. Combined with its CF Industries
agreement, ExxonMobil has now secured 2.8 Mtpa of its initial 3.2
Mtpa commitment under the transportation agreement with EnLink.
Second Quarter 2023 Webcast Details
EnLink will
host a webcast and conference call to discuss second quarter 2023
results on August 2, 2023, at 8 a.m. Central
time. The conference call will be broadcast via an internet
webcast, which can be accessed on the Investors page of EnLink's
website at investors.enlink.com. Interested parties can access an
archived replay of the webcast on EnLink's website for at least 90
days following the event.
About the EnLink Midstream Companies
Headquartered in
Dallas, EnLink Midstream (NYSE:
ENLC) provides integrated midstream infrastructure services for
natural gas, crude oil, condensate, and NGLs, as well as
CO2 transportation for carbon capture and sequestration
(CCS). Our large-scale, cash-flow-generating asset platforms are in
premier production basins and core demand centers, including the
Permian Basin, Louisiana,
Oklahoma, and North Texas. EnLink is focused on maintaining
the financial flexibility and operational excellence that enables
us to strategically grow and create sustainable value. Visit
www.EnLink.com to learn how EnLink connects energy to life.
Non-GAAP Financial Information
This press release
contains non-generally accepted accounting principles financial
measures that we refer to as adjusted EBITDA and free cash flow
after distributions (FCFAD).
We define adjusted EBITDA as net income (loss) plus (less)
interest expense, net of interest income; depreciation and
amortization; impairments; (income) loss from unconsolidated
affiliate investments; distributions from unconsolidated affiliate
investments; (gain) loss on disposition of assets; (gain) loss on
extinguishment of debt; unit-based compensation; income tax expense
(benefit); unrealized (gain) loss on commodity derivatives; costs
associated with the relocation of processing facilities; accretion
expense associated with asset retirement obligations; transaction
costs; non-cash expense related to changes in the fair value of
contingent consideration; (non-cash rent); and (non-controlling
interest share of adjusted EBITDA from joint ventures).
We define free cash flow after distributions as adjusted EBITDA,
net to ENLC, plus (less) (growth and maintenance capital
expenditures, excluding capital expenditures that were contributed
by other entities and relate to the non-controlling interest share
of our consolidated entities); (interest expense, net of interest
income); (distributions declared on common units); (accrued cash
distributions on Series B Preferred Units and Series C Preferred
Units paid or expected to be paid); (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
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,
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 June 30, 2023, for further information
about segment profit (loss).
The Ascension JV is a joint venture between a subsidiary of
EnLink and a subsidiary of Marathon Petroleum Corporation in which
EnLink owns a 50% interest and Marathon Petroleum Corporation owns
a 50% interest. The Ascension JV, which began operations in
April 2017, owns an NGL pipeline that
connects EnLink's Riverside
fractionator to Marathon Petroleum Corporation's Garyville refinery.
The Delaware Basin JV is a
joint venture between EnLink and an affiliate of NGP Natural
Resources XI, L.P. ("NGP") in which EnLink owns a 50.1% interest
and NGP owns a 49.9% interest. The Delaware Basin JV, which was formed in
August 2016, owns the Lobo processing
facilities and the Tiger processing plant located in the
Delaware Basin in Texas.
Forward-Looking Statements
This press
release contains forward-looking statements within the meaning of
the federal securities laws. his press release contains
forward-looking statements within the meaning of the federal
securities laws. Although these statements reflect the current
views, assumptions and expectations of our management, the matters
addressed herein involve certain assumptions, risks and
uncertainties that could cause actual activities, performance,
outcomes and results to differ materially from those indicated
herein. Therefore, you should not rely on any of these
forward-looking statements. All statements, other than statements
of historical fact, included in this press release constitute
forward-looking statements, including but not limited to statements
identified by the words "forecast," "may," "believe," "will,"
"should," "plan," "predict," "anticipate," "intend," "estimate,"
"expect," "continue," and similar expressions. Such forward-looking
statements include, but are not limited to, statements about
guidance, projected or forecasted financial and operating
results, future results or growth of our CCS business,
expected financial and operations results associated with
certain projects, acquisitions, or growth capital expenditures,
future operational results of our customers, results in certain
basins, cost savings or operational, environmental, and climate
change initiatives, profitability, financial or leverage metrics,
repurchases of common or preferred units, our future capital
structure and credit ratings, objectives, strategies, expectations,
and intentions, and other statements that are not historical facts.
Factors that could result in such differences or otherwise
materially affect our financial condition, results of operations,
or cash flows include, without limitation (a) potential
conflicts of interest of Global Infrastructure Partners ("GIP")
with us and the potential for GIP to compete with us or favor GIP's
own interests to the detriment of our other unitholders, (b)
adverse developments in the midstream business that may reduce our
ability to make distributions, (c) competition for crude oil,
condensate, natural gas, and NGL supplies and any decrease in the
availability of such commodities, (d) decreases in the volumes that
we gather, process, fractionate, or transport, (e) our ability or
our customers' ability to receive or renew required government or
third party permits and other approvals, (f) increased federal,
state, and local legislation, and regulatory initiatives, as well
as government reviews relating to hydraulic fracturing resulting in
increased costs and reductions or delays in natural gas production
by our customers, (g) climate change legislation and regulatory
initiatives resulting in increased operating costs and reduced
demand for the natural gas and NGL services we provide, (h) changes
in the availability and cost of capital, (i) volatile prices and
market demand for crude oil, condensate, natural gas, and NGLs that
are beyond our control, (j) our debt levels could limit our
flexibility and adversely affect our financial health or limit our
flexibility to obtain financing and to pursue other business
opportunities, (k) operating hazards, natural disasters,
weather-related issues or delays, casualty losses, and other
matters beyond our control, (l) reductions in demand for NGL
products by the petrochemical, refining, or other industries or by
the fuel markets, (m) our dependence on significant customers for a
substantial portion of the natural gas and crude that we gather,
process, and transport, (n) construction risks in our major
development projects, (o) challenges we may face in connection with
our strategy to enter into new lines of business related to the
energy transition, (p) the impact of the coronavirus (COVID-19)
pandemic (including the impact of any new variants of the virus)
and similar pandemics, (q) impairments to goodwill, long-lived
assets and equity method investments, and (r) the effects of
existing and future laws and governmental regulations, and other
uncertainties. These and other applicable uncertainties, factors,
and risks are described more fully in EnLink Midstream, LLC's
filings with the Securities and Exchange Commission, including
EnLink Midstream, LLC's Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q, and Current Reports on Form 8-K. EnLink
assumes no obligation to update any forward-looking
statements.
The EnLink management team based the forecasted financial
information included herein on certain information and assumptions,
including, among others, the producer budgets / forecasts to which
EnLink has access as of the date of this press release and the
projects / opportunities expected to require capital expenditures
as of the date of this press release. The assumptions, information,
and estimates underlying the forecasted financial information
included in the guidance information in this press release are
inherently uncertain and, though considered reasonable by the
EnLink management team as of the date of its preparation, are
subject to a wide variety of significant business, economic, and
competitive risks and uncertainties that could cause actual results
to differ materially from those contained in the forecasted
financial information. Accordingly, there can be no assurance that
the forecasted results are indicative of EnLink's future
performance or that actual results will not differ materially from
those presented in the forecasted financial information. Inclusion
of the forecasted financial information in this press release
should not be regarded as a representation by any person that the
results contained in the forecasted financial information will be
achieved.
EnLink Midstream,
LLC
|
Selected Financial
Data
|
(All amounts in
millions except per unit amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Total revenues
(1)
|
$ 1,530.1
|
|
$ 2,600.6
|
|
$ 3,297.6
|
|
$ 4,828.3
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of sales,
exclusive of operating expenses and depreciation and amortization
(2)
|
1,019.0
|
|
2,105.1
|
|
2,290.9
|
|
3,899.6
|
Operating
expenses
|
136.8
|
|
128.9
|
|
269.2
|
|
249.8
|
Depreciation and
amortization
|
165.3
|
|
159.0
|
|
325.7
|
|
311.9
|
(Gain) loss on
disposition of assets
|
(0.8)
|
|
(0.4)
|
|
(1.2)
|
|
4.7
|
General and
administrative
|
27.9
|
|
28.4
|
|
57.4
|
|
57.4
|
Total operating costs
and expenses
|
1,348.2
|
|
2,421.0
|
|
2,942.0
|
|
4,523.4
|
Operating
income
|
181.9
|
|
179.6
|
|
355.6
|
|
304.9
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
(68.8)
|
|
(55.5)
|
|
(137.3)
|
|
(110.6)
|
Loss on extinguishment
of debt
|
—
|
|
(0.5)
|
|
—
|
|
(0.5)
|
Loss from
unconsolidated affiliate investments
|
(4.6)
|
|
(1.2)
|
|
(4.7)
|
|
(2.3)
|
Other income
|
0.4
|
|
0.2
|
|
0.4
|
|
0.3
|
Total other
expense
|
(73.0)
|
|
(57.0)
|
|
(141.6)
|
|
(113.1)
|
Income before
non-controlling interest and income taxes
|
108.9
|
|
122.6
|
|
214.0
|
|
191.8
|
Income tax benefit
(expense)
|
(19.0)
|
|
1.3
|
|
(29.9)
|
|
(1.9)
|
Net income
|
89.9
|
|
123.9
|
|
184.1
|
|
189.9
|
Net income attributable
to non-controlling interest
|
35.6
|
|
38.6
|
|
71.6
|
|
69.4
|
Net income attributable
to ENLC
|
$
54.3
|
|
$
85.3
|
|
$
112.5
|
|
$
120.5
|
Net income attributable
to ENLC per unit:
|
|
|
|
|
|
|
|
Basic common
unit
|
$
0.12
|
|
$
0.18
|
|
$
0.24
|
|
$
0.25
|
Diluted common
unit
|
$
0.12
|
|
$
0.17
|
|
$
0.24
|
|
$
0.25
|
|
|
|
|
|
|
|
|
Weighted average common
units outstanding (basic)
|
462.7
|
|
482.0
|
|
465.8
|
|
483.0
|
Weighted average common
units outstanding (diluted)
|
466.7
|
|
489.0
|
|
469.9
|
|
489.7
|
________________________________
|
(1)
|
Includes related party
revenue of $0.6 million and $1.3 million for the three and six
months ended June 30, 2023, respectively. We did not have related
party revenue for the three and six months ended June 30,
2022.
|
(2)
|
Includes related party
cost of sales of $2.5 million and $9.1 million for the three months
ended June 30, 2023 and 2022, respectively, and $4.0 million
and $19.7 million for the six months ended June 30, 2023 and
2022, respectively.
|
EnLink Midstream,
LLC
|
Reconciliation of
Net Income to Adjusted EBITDA
|
(All amounts in
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
|
$
89.9
|
|
$
123.9
|
|
$
184.1
|
|
$
189.9
|
Interest expense, net
of interest income
|
68.8
|
|
55.5
|
|
137.3
|
|
110.6
|
Depreciation and
amortization
|
165.3
|
|
159.0
|
|
325.7
|
|
311.9
|
Loss from
unconsolidated affiliate investments
|
4.6
|
|
1.2
|
|
4.7
|
|
2.3
|
Distributions from
unconsolidated affiliate investments
|
2.2
|
|
0.2
|
|
2.3
|
|
0.4
|
(Gain) loss on
disposition of assets
|
(0.8)
|
|
(0.4)
|
|
(1.2)
|
|
4.7
|
Loss on extinguishment
of debt
|
—
|
|
0.5
|
|
—
|
|
0.5
|
Unit-based
compensation
|
4.5
|
|
5.7
|
|
8.5
|
|
12.3
|
Income tax expense
(benefit)
|
19.0
|
|
(1.3)
|
|
29.9
|
|
1.9
|
Unrealized gain on
commodity derivatives
|
(5.3)
|
|
(35.3)
|
|
(3.9)
|
|
(20.2)
|
Costs associated with
the relocation of processing facilities (1)
|
1.7
|
|
11.1
|
|
2.1
|
|
22.4
|
Other (2)
|
0.2
|
|
0.4
|
|
0.5
|
|
0.7
|
Adjusted EBITDA before
non-controlling interest
|
350.1
|
|
320.5
|
|
690.0
|
|
637.4
|
Non-controlling
interest share of adjusted EBITDA from joint ventures
(3)
|
(16.5)
|
|
(20.8)
|
|
(32.7)
|
|
(33.4)
|
Adjusted EBITDA, net to
ENLC
|
$
333.6
|
|
$
299.7
|
|
$
657.3
|
|
$
604.0
|
____________________________
|
(1)
|
Represents cost
incurred that are not part of our ongoing operations related to the
relocation of equipment and facilities from the Thunderbird
processing plant in the Oklahoma segment to the Permian segment,
where it is operating as the Phantom processing plant, and the
relocation of equipment and facilities from the Cowtown processing
plant in the North Texas segment to the Permian segment, where it
will operate as the Tiger II processing plant. The Phantom
processing plant began operations in October 2022 and we expect the
Tiger II processing plant to begin operations in the second quarter
of 2024.
|
(2)
|
Includes transaction
costs, non-cash expense related to changes in the fair value of
contingent consideration, accretion expense associated with asset
retirement obligations, and non-cash rent, which relates to lease
incentives pro-rated over the lease term.
|
(3)
|
Non-controlling
interest share of adjusted EBITDA from joint ventures includes NGP
Natural Resources XI, L.P. ("NGP")'s 49.9% share of adjusted EBITDA
from the Delaware Basin JV and Marathon Petroleum Corporation's 50%
share of adjusted EBITDA from the Ascension JV.
|
EnLink Midstream,
LLC
|
Reconciliation of
Net Cash Provided by Operating Activities to Adjusted
EBITDA
|
and Free Cash Flow
After Distributions
|
(All amounts in
millions except ratios and per unit amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net cash provided by
operating activities
|
$ 315.7
|
|
$ 174.9
|
|
$ 587.8
|
|
$ 482.6
|
Interest expense
(1)
|
67.0
|
|
54.2
|
|
134.0
|
|
107.9
|
Utility credits
redeemed (2)
|
(0.1)
|
|
(6.0)
|
|
(1.5)
|
|
(11.6)
|
Accruals for settled
commodity derivative transactions
|
—
|
|
0.6
|
|
—
|
|
(1.6)
|
Distributions from
unconsolidated affiliate investment in excess of
earnings
|
2.2
|
|
0.2
|
|
2.3
|
|
0.4
|
Costs associated with
the relocation of processing facilities (3)
|
1.7
|
|
11.1
|
|
2.1
|
|
22.4
|
Other (4)
|
(0.1)
|
|
1.7
|
|
—
|
|
3.4
|
Changes in operating
assets and liabilities which (provided) used cash:
|
|
|
|
|
|
|
|
Accounts receivable,
accrued revenues, inventories, and other
|
(80.3)
|
|
137.2
|
|
(249.7)
|
|
309.9
|
Accounts payable,
accrued product purchases, and other accrued liabilities
|
44.0
|
|
(53.4)
|
|
215.0
|
|
(276.0)
|
Adjusted EBITDA before
non-controlling interest
|
350.1
|
|
320.5
|
|
690.0
|
|
637.4
|
Non-controlling
interest share of adjusted EBITDA from joint ventures
(5)
|
(16.5)
|
|
(20.8)
|
|
(32.7)
|
|
(33.4)
|
Adjusted EBITDA, net
to ENLC
|
333.6
|
|
299.7
|
|
657.3
|
|
604.0
|
Growth capital
expenditures, net to ENLC (6)
|
(74.6)
|
|
(49.9)
|
|
(167.3)
|
|
(90.4)
|
Maintenance capital
expenditures, net to ENLC (6)
|
(20.0)
|
|
(11.1)
|
|
(34.2)
|
|
(25.0)
|
Interest expense, net
of interest income
|
(68.8)
|
|
(55.5)
|
|
(137.3)
|
|
(110.6)
|
Distributions declared
on common units
|
(58.1)
|
|
(54.6)
|
|
(116.8)
|
|
(110.1)
|
ENLK preferred unit
accrued cash distributions (7)
|
(24.0)
|
|
(23.3)
|
|
(47.6)
|
|
(46.8)
|
Costs associated with
the relocation of processing facilities, net to ENLC
(3)(6)(9)
|
7.1
|
|
(11.1)
|
|
6.7
|
|
(22.4)
|
Contribution to
investment in unconsolidated affiliates
|
—
|
|
(26.6)
|
|
(49.7)
|
|
(26.6)
|
Payment to redeem
mandatorily redeemable non-controlling interest (8)
|
—
|
|
—
|
|
(10.5)
|
|
—
|
Other (10)
|
0.5
|
|
(0.1)
|
|
0.8
|
|
0.3
|
Free cash flow after
distributions
|
$
95.7
|
|
$
67.5
|
|
$ 101.4
|
|
$ 172.4
|
|
|
|
|
|
|
|
|
Actual declared
distribution to common unitholders
|
$
58.1
|
|
$
54.6
|
|
$ 116.8
|
|
$ 110.1
|
Distribution
coverage
|
3.51x
|
|
3.33x
|
|
3.64x
|
|
3.58x
|
Distributions declared
per ENLC unit
|
$
0.1250
|
|
$
0.1125
|
|
$
0.2500
|
|
$
0.2250
|
____________________________
|
(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" on our consolidated balance sheets and amortized as
we incur utility expenses.
|
(3)
|
Represents cost
incurred that are not part of our ongoing operations related to the
relocation of equipment and facilities from the Thunderbird
processing plant in the Oklahoma segment to the Permian segment,
where it is operating as the Phantom processing plant, and the
relocation of equipment and facilities from the Cowtown processing
plant in the North Texas segment to the Permian segment, where it
will operate as the Tiger II processing plant. The Phantom
processing plant began operations in October 2022 and we expect the
Tiger II processing plant to begin operations in the second quarter
of 2024.
|
(4)
|
Includes transaction
costs, current income tax expense, and non-cash rent, which relates
to lease incentives pro-rated over the lease term.
|
(5)
|
Non-controlling
interest share of adjusted EBITDA from joint ventures includes
NGP's 49.9% share of adjusted EBITDA from the Delaware Basin JV and
Marathon Petroleum Corporation's 50% share of adjusted EBITDA from
the Ascension JV.
|
(6)
|
Excludes capital
expenditures and costs associated with the relocation of processing
facilities that were contributed by other entities and relate to
the non-controlling interest share of our consolidated
entities.
|
(7)
|
Represents the cash
distributions earned by the Series B Preferred Units and Series C
Preferred Units, which are not available to common
unitholders.
|
(8)
|
In January 2023, we
settled the redemption of the mandatorily redeemable
non-controlling interest in one of our non-wholly owned
subsidiaries.
|
(9)
|
Includes a
one-time $8.0 million contribution from an affiliate of NGP in May
2023 in connection with the Delaware Basin JV's purchase of the
Cowtown processing plant.
|
(10)
|
Includes current income
tax expense and proceeds from the sale of surplus or unused
equipment and land, which occurred in the normal operation of our
business.
|
EnLink Midstream,
LLC
|
Operating
Data
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Midstream
Volumes:
|
|
|
|
|
|
|
|
Permian
Segment
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
1,732,200
|
|
1,494,400
|
|
1,708,100
|
|
1,421,200
|
Processing
(MMBtu/d)
|
1,617,400
|
|
1,432,200
|
|
1,589,200
|
|
1,344,700
|
Crude Oil Handling
(Bbls/d)
|
155,400
|
|
175,000
|
|
149,000
|
|
162,900
|
Louisiana
Segment
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
2,345,600
|
|
2,696,500
|
|
2,518,600
|
|
2,597,700
|
Crude Oil Handling
(Bbls/d)
|
16,500
|
|
17,700
|
|
17,400
|
|
16,800
|
NGL Fractionation
(Gals/d)
|
7,519,300
|
|
7,896,900
|
|
7,604,100
|
|
7,965,000
|
Brine Disposal
(Bbls/d)
|
2,700
|
|
3,200
|
|
2,800
|
|
3,100
|
Oklahoma
Segment
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
1,253,800
|
|
1,016,100
|
|
1,216,300
|
|
1,008,100
|
Processing
(MMBtu/d)
|
1,204,600
|
|
1,047,600
|
|
1,184,500
|
|
1,038,600
|
Crude Oil Handling
(Bbls/d)
|
26,800
|
|
21,400
|
|
27,000
|
|
22,600
|
North Texas
Segment
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
1,593,600
|
|
1,429,900
|
|
1,605,300
|
|
1,397,100
|
Processing
(MMBtu/d)
|
740,000
|
|
661,900
|
|
742,300
|
|
638,300
|
Investor Relations: Brian
Brungardt, Director of Investor Relations, 214-721-9353,
brian.brungardt@enlink.com
Media Relations: Megan Wright,
Director of Corporate Communications, 214-721-9694,
megan.wright@enlink.com
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SOURCE EnLink Midstream, LLC