EnLink Midstream, LLC (ENLC) Bundle
A Brief History of ENLINK MIDSTREAM, LLC
As of 2024, ENLINK MIDSTREAM, LLC has experienced significant developments in its operations and financial performance. The company's focus on providing integrated midstream services has remained strong, with a diverse portfolio in natural gas, NGL, and crude oil sectors.
Financial Performance Overview
For the nine months ended September 30, 2024, ENLINK reported total revenues of $4,807.4 million, compared to $4,203.7 million for the same period in 2023. The breakdown of revenues by segment is as follows:
| Segment | 2024 Revenues (in millions) | 2023 Revenues (in millions) |
|---|---|---|
| Permian | $2,199.8 | $1,160.5 |
| Louisiana | $2,590.4 | $2,766.4 |
| Oklahoma | $795.0 | $225.1 |
| North Texas | $512.6 | $51.7 |
| Total | $4,807.4 | $4,203.7 |
The adjusted gross margin for the nine months ended September 30, 2024, was $1,526.8 million, representing a substantial increase from $1,508.2 million in 2023. Key operating expenses totaled $441.8 million, compared to $412.5 million in the prior year.
Net Income and Earnings
Net income for the nine months ended September 30, 2024, was reported at $160.1 million, down from $249.9 million in 2023. This decrease is attributed to various factors, including increased operating expenses and derivative losses. The comprehensive income attributable to ENLINK was $64.8 million in 2024 compared to $148.2 million in 2023.
Preferred Units and Equity Activity
As of September 30, 2024, ENLINK had 27,365,971 Series B Preferred Units outstanding, down from 54,575,638 at the end of 2023. In August 2024, the company repurchased 12,698,414 Series B Preferred Units for $200.0 million, representing 105% of the preferred units’ par value. Additionally, the company redeemed all outstanding Series C Preferred Units on October 17, 2024, for $1,000 per unit plus $8.28 of unpaid distributions.
Debt and Capital Management
ENLINK issued $500.0 million in 5.650% senior unsecured notes due September 1, 2034 in August 2024. The proceeds from this issuance were utilized for general corporate purposes, including the repayment of existing debt. As of September 30, 2024, the total outstanding borrowings under the AR Facility amounted to $260.0 million.
Operational Highlights
ENLINK's operational metrics for the nine months ended September 30, 2024, indicate continued growth in volume throughput:
| Operational Metric | Value |
|---|---|
| Gathering and Transportation (MMbtu/d) | 7,380,800 |
| Processing (MMbtu/d) | 3,656,600 |
| Crude Oil Handling (Bbls/d) | 202,500 |
| NGL Fractionation (Bbls/d) | 174,400 |
Market Developments
The company has been actively managing its exposure to commodity price fluctuations through various hedging strategies. As of September 30, 2024, ENLINK reported a net fair value asset of $9.5 million related to its outstanding commodity derivative instruments. A hypothetical 10% change in commodity prices could result in an approximate $13.1 million change in fair value.
Conclusion
Overall, ENLINK MIDSTREAM, LLC has demonstrated resilience and adaptability in a challenging market environment, positioning itself for continued growth and operational efficiency.
A Who Owns EnLink Midstream, LLC (ENLC)
Ownership Structure
As of 2024, EnLink Midstream, LLC (ENLC) is primarily owned by its general partner, EnLink Midstream GP, LLC, which holds a 2% general partner interest and the majority of the incentive distribution rights. The limited partner interests are held by various institutional investors, including GIP, a significant stakeholder.
Major Shareholders
The table below summarizes the major shareholders of EnLink Midstream, LLC as of 2024:
| Shareholder | Ownership Percentage | Type of Interest |
|---|---|---|
| GIP | Approximately 38% | Limited Partner Units |
| EnLink Midstream GP, LLC | 2% | General Partner Interest |
| Public Investors | Approximately 60% | Common Units |
Recent Financial Data
EnLink Midstream's financial performance for the nine months ended September 30, 2024, is as follows:
| Metric | Value (in millions) |
|---|---|
| Total Revenues | $4,807.4 |
| Cost of Sales | $3,280.6 |
| Operating Expenses | $441.8 |
| Segment Profit | $1,085.0 |
| Net Income | $160.1 |
Unit Repurchase Activity
In 2024, EnLink Midstream has been active in repurchasing its common units, with the following activity:
| Period | Units Repurchased | Total Cost (in millions) |
|---|---|---|
| Q1 2024 | 1,906,780 | $25.0 |
| Q2 2024 | 1,718,847 | $20.4 |
| Q3 2024 | 1,000,000 | $15.0 |
Debt and Financial Obligations
As of September 30, 2024, EnLink Midstream has significant debt obligations:
| Debt Type | Amount (in millions) |
|---|---|
| Senior Unsecured Notes | $4,600.0 |
| Revolving Credit Facility | $260.0 |
| Total Debt | $4,860.0 |
Market Performance
As of 2024, ENLC's stock performance reflects market conditions:
| Metric | Value |
|---|---|
| Current Stock Price | $13.07 |
| Market Capitalization | $2.0 billion |
EnLink Midstream, LLC (ENLC) Mission Statement
Overview of Mission Statement
EnLink Midstream, LLC (ENLC) is dedicated to providing integrated midstream services to its customers in the natural gas, natural gas liquids (NGL), and crude oil sectors. The company's mission emphasizes operational excellence, safety, and environmental stewardship, aligning with the needs of its stakeholders, including customers, investors, and the communities in which it operates.
Core Values
- Safety: Prioritizing the safety of employees and the communities where operations are located.
- Integrity: Conducting business in an ethical manner, fostering trust with stakeholders.
- Innovation: Continuously improving processes and technology to enhance service delivery.
- Collaboration: Working closely with partners and customers to meet collective goals.
- Sustainability: Committing to environmentally responsible practices in all operations.
Financial Performance Indicators
As of September 30, 2024, EnLink Midstream reported significant financial metrics that reflect its operational effectiveness and market position.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues (in millions) | $1,608.4 | $1,746.2 | $4,807.4 | $5,043.8 |
| Net Income (in millions) | $43.1 | $65.8 | $160.1 | $249.9 |
| Operating Expenses (in millions) | $134.0 | $143.3 | $441.8 | $412.5 |
| Capital Expenditures (in millions) | $75.1 | $136.5 | $355.3 | $191.2 |
| Adjusted Gross Margin (in millions) | $406.8 | $358.2 | $1,085.0 | $1,095.7 |
Market Position
EnLink Midstream operates across five primary segments: Permian, Louisiana, Oklahoma, North Texas, and Corporate. The company's strategic focus allows it to leverage regional strengths and optimize resource allocation.
Operational Highlights
- As of Q3 2024, EnLink transported an average of 7,350,500 MMbtu/d in its Gathering and Transportation segment.
- Processing capacity reached 3,762,700 MMbtu/d during the same period.
- Crude Oil Handling operations averaged 213,200 Bbls/d.
- In April 2023, the company initiated the Tiger II Processing Plant, enhancing its processing capacity in the Permian Basin by 150 MMcf/d.
Future Initiatives
EnLink is focused on expanding its infrastructure and service capabilities, which includes:
- Expanding natural gas transmission capacity through the Henry Hub to the Mississippi River Corridor.
- Enhancing storage capacity at the Jefferson Island Storage Facility.
- Developing the Matterhorn Express Pipeline, expected to facilitate significant natural gas transport capacity.
How EnLink Midstream, LLC (ENLC) Works
Company Overview
EnLink Midstream, LLC (ENLC) is a leading provider of integrated midstream services across natural gas, crude oil, and natural gas liquids (NGL). The company operates in various segments, including Permian, Louisiana, Oklahoma, and North Texas.
Financial Performance
As of September 30, 2024, EnLink's financial results reflect a total revenue of $4,807.4 million, with the following breakdown:
| Segment | Total Revenues (in millions) |
|---|---|
| Permian | $2,199.8 |
| Louisiana | $2,590.4 |
| Oklahoma | $795.0 |
| North Texas | $512.6 |
| Corporate | ($1,290.4) |
For the nine months ended September 30, 2024, the company recorded a net income of $160.1 million, with comprehensive income attributable to ENLC of $64.8 million for the same period.
Operating Metrics
ENLC's midstream volumes for the nine months ended September 30, 2024, are as follows:
| Metric | Volume (MMbtu/d or Bbls/d) |
|---|---|
| Gathering and Transportation | 7,380,800 |
| Processing | 3,656,600 |
| Crude Oil Handling | 202,500 |
| NGL Fractionation | 174,400 |
| Brine Disposal | — |
Segment Profitability
Segment profits for the nine months ended September 30, 2024, are summarized as follows:
| Segment | Segment Profit (in millions) |
|---|---|
| Permian | $325.0 |
| Louisiana | $294.4 |
| Oklahoma | $294.6 |
| North Texas | $171.0 |
Capital Expenditures
For the nine months ended September 30, 2024, EnLink reported capital expenditures totaling $264.7 million, distributed across segments as follows:
| Segment | Capital Expenditures (in millions) |
|---|---|
| Permian | $109.9 |
| Louisiana | $68.6 |
| Oklahoma | $57.3 |
| North Texas | $26.0 |
| Corporate | $2.9 |
Debt and Liquidity
As of September 30, 2024, EnLink's total debt obligations amounted to approximately $4,612.9 million, with various maturities scheduled as follows:
| Year | Debt Obligations (in millions) |
|---|---|
| 2024 | $0 |
| 2025 | $421.6 |
| 2026 | $491.0 |
| 2027 | $0 |
| 2028 | $500.0 |
| Thereafter | $3,200.3 |
Distributions
For the nine months ended September 30, 2024, distributions to members totaled $183.9 million, with additional distributions to non-controlling interests amounting to $122.4 million.
Market Trends and Challenges
EnLink is currently navigating a fluctuating market environment, with challenges including price volatility in commodity markets and operational adjustments due to rate resets in certain contracts.
How EnLink Midstream, LLC (ENLC) Makes Money
Revenue Streams
EnLink Midstream, LLC generates revenue through six primary sources:
- Gathering and transporting natural gas, NGLs, and crude oil.
- Processing natural gas at its processing plants.
- Fractionating and marketing recovered NGLs.
- Providing compression services.
- Providing crude oil and condensate transportation and terminal services.
- Providing storage for natural gas, crude oil, and NGLs.
Financial Performance Overview
As of September 30, 2024, EnLink's total revenues for the nine months reached $4,807.4 million, compared to $5,043.8 million for the same period in 2023.
| Revenue Source | 2024 (9M) | 2023 (9M) |
|---|---|---|
| Natural Gas Sales | $631.2 million | $860.6 million |
| NGL Sales | $2,068.9 million | $2,253.5 million |
| Crude Oil and Condensate Sales | $1,273.7 million | $1,089.6 million |
| Midstream Services | $839.5 million | $838.9 million |
Segment Performance
EnLink's operations are segmented into four main areas: Permian, Louisiana, Oklahoma, and North Texas. The performance of these segments for the nine months ended September 30, 2024, is detailed below:
| Segment | Total Revenues | Adjusted Gross Margin | Segment Profit |
|---|---|---|---|
| Permian | $2,199.8 million | $531.4 million | $325.0 million |
| Louisiana | $2,590.4 million | $380.3 million | $294.4 million |
| Oklahoma | $795.0 million | $371.6 million | $294.6 million |
| North Texas | $512.6 million | $243.5 million | $171.0 million |
Cost Structure
For the nine months ended September 30, 2024, EnLink's cost of sales, excluding operating expenses and depreciation, was $3,280.6 million, compared to $3,535.6 million in 2023.
| Cost Type | 2024 (9M) | 2023 (9M) |
|---|---|---|
| Cost of Sales | $3,280.6 million | $3,535.6 million |
| Operating Expenses | $441.8 million | $412.5 million |
| Depreciation and Amortization | $514.0 million | $489.5 million |
| Impairments | $85.2 million | $20.7 million |
Net Income and Earnings
For the nine months ended September 30, 2024, EnLink's net income was $160.1 million, down from $249.9 million in 2023. The comprehensive income attributable to ENLC was $64.8 million for the same period.
Capital Expenditures
Capital expenditures for EnLink Midstream for the nine months ended September 30, 2024, totaled $264.7 million, compared to $355.3 million in 2023.
| Segment | Capital Expenditures (2024) | Capital Expenditures (2023) |
|---|---|---|
| Permian | $109.9 million | $191.2 million |
| Louisiana | $68.6 million | $53.1 million |
| Oklahoma | $57.3 million | $59.3 million |
| North Texas | $26.0 million | $46.9 million |
Debt and Interest Expenses
Interest expense, net of interest income, for the three months ended September 30, 2024, was $67.7 million, a slight decrease from $67.9 million in the same period in 2023.
Customer Base
Several customers contribute significantly to EnLink's revenue. Notable customers for the three months ended September 30, 2024, included:
| Customer | Percentage of Revenue |
|---|---|
| Marathon Petroleum Corporation | 21.8% |
| ExxonMobil Corporation | 7.7% |
| The Dow Chemical Company | 10.6% |
Future Outlook
EnLink Midstream is actively working on expanding its carbon transportation business, particularly along the Gulf Coast, to support carbon capture and storage (CCS) initiatives. This strategic direction aims to leverage existing infrastructure and customer relationships to enhance future revenue streams.
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Resources:
- EnLink Midstream, LLC (ENLC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of EnLink Midstream, LLC (ENLC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View EnLink Midstream, LLC (ENLC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.