EnLink Midstream (ENLC) Q2 2024 earnings summary

Executive summary

• Q2 2024 adjusted EBITDA was $306 million, with net income ranging from $38.1 million to $67 million, and free cash flow after distributions of $53.3 million, driven by strong Permian volumes and the Tiger II plant coming online.

• Revenue for Q2 2024 was $1.55 billion, up slightly year-over-year, but net income and adjusted EBITDA declined compared to Q2 2023 due to higher expenses and a one-time contract reset.

• Repurchased $50 million of units in Q2, with over 10% of units repurchased since 2021 and authorization increased to $250 million.

• Announced Jefferson Island Storage Hub (JISH) expansion to 8–10 Bcf, with $85 million investment and 2028 start, and completed Tiger II plant relocation.

• Simplified capital structure by reducing Series B Preferred Stock by nearly 50% since the start of 2024.

Financial highlights

• Q2 2024 adjusted EBITDA was $306 million, net income ranged from $38.1 million to $67 million, and free cash flow after distributions was $53.3 million.

• Total revenue for Q2 2024 was $1.55 billion, up from $1.53 billion in Q2 2023.

• Capital expenditures, plant relocation, and investment contributions totaled $103 million.

• Declared distribution per common unit of $0.1325, up 6% year-over-year.

• Debt-to-adjusted EBITDA ratio was 3.3x at quarter end.

Outlook and guidance

• Tracking close to the midpoint of full-year adjusted EBITDA guidance of $1.31–$1.41 billion.

• Second half 2024 results expected to be weighted toward Q4 due to seasonal strength in Louisiana NGL business.

• Remaining 2024 capital requirements estimated at $222 million, focused on system development and low-cost projects.

• Key projects include Bridgeline pipeline expansion (Q4 2025), JISH expansion (2028), and Matterhorn Express Pipeline (Q3 2024).

• Positioned to benefit from rising LNG export and data center-driven demand, with incremental gas demand expected to rise by 2028.