EnLink Midstream (ENLC) Q3 2024 earnings summary

Executive summary

• ONEOK acquired 43.8% of ENLC and full control of its Managing Member for $3.285 billion on October 15, 2024, resulting in a change of control.

• ENLC operates a large midstream network with 13,600 miles of pipelines, 25 processing plants, and 7 fractionators, focused on natural gas, NGLs, and crude oil services.

• S&P upgraded credit rating to BBB after the ONEOK transaction; Fitch maintains BBB- on Credit Watch Positive.

• Repurchased $45.4M of common units in Q3, totaling $145M YTD; redeemed all Series C preferred units post-quarter.

• Contracted 200,000 MMBtu/d of new long-term natural gas transportation in Louisiana, expected to add $15M annual cash flow starting Q4 2024.

Financial highlights

• Q3 2024 revenues were $1,608.4M, down from $1,746.2M in Q3 2023; net income attributable to ENLC was $14.0M, down from $29.5M.

• Adjusted EBITDA for Q3 2024 was $345.0M, up from $341.9M in Q3 2023.

• Free cash flow after distributions for Q3 2024 was $122.4M, up from $66.2M in Q3 2023.

• Q3 2024 EPS was $(0.03) basic and diluted, compared to $0.06 in Q3 2023.

• Operating income for Q3 2024 was $119.0M, compared to $143.9M in Q3 2023.

Outlook and guidance

• On track to achieve midpoint of 2024 adjusted EBITDA guidance of $1.31–$1.41B.

• Remaining 2024 capital expenditures are expected to be $138M, funded from operating cash flows.

• Capital expenditures and plant relocation costs expected near midpoint of $435–$485M guidance.

• FCFAD expected at upper end of $265–$315M 2024 guidance.

• Major projects include Bridgeline pipeline expansion (completion Q4 2025) and Jefferson Island storage facility expansion (completion 2028).