EnLink Midstream, LLC Reports Strong Third Quarter 2024 Financial Results

EnLink Midstream, LLC, a leading integrated midstream infrastructure services provider, recently disclosed its financial outcomes for the third quarter of 2024. The company reported net income of $43.1 million and net cash provided by operating activities totaling $260.1 million for the said period. Additionally, EnLink generated adjusted EBITDA, net to EnLink, amounting to $345.0 million in the third quarter of 2024. The firm recorded $122.4 million of free cash flow after distributions (FCFAD) during the same quarter.

During the third quarter of 2024, EnLink repurchased around $45.4 million of common units, with a total repurchase of about $145 million of common units throughout the initial nine months of 2024. EnLink also secured an additional 200,000 MMBtu/d of long-term transportation capacity for natural gas delivery to end users in Louisiana. Notably, the company took significant steps post the ONEOK transaction closure, simplifying its capital structure further by redeeming all remaining Series C preferred units. Following these moves, S&P Global Ratings upgraded EnLink’s credit rating to “BBB” from “BBB-” with a “Credit Watch Positive” status at Fitch Ratings Inc.

Jesse Arenivas, the President and Chief Executive Officer of EnLink, expressed satisfaction with the robust third-quarter results driven by consistent strategic execution. The company is actively advancing natural gas capacity expansions and storage projects in Louisiana. Furthermore, in the Permian region, where EnLink finished its third plant relocation earlier this year, there’s a consistent producer activity indicating potential growth phases. Amid these growth initiatives, EnLink remains dedicated to creating value for unitholders and ensuring financial flexibility by generating substantial free cash flow post distributions.

Adjusted EBITDA and FCFAD, highlighted in the disclosure, serve as non-GAAP metrics. These measures are crucial for investors to compare current results with previous reports, offering insights into the firm’s cash flow after fulfilling operational requirements. EnLink uses adjusted EBITDA for compensating employees through incentive programs, recognizing performance in short-term incentives.

EnLink’s financial outlook for 2024 remains optimistic, with the company on track to achieve the midpoint of its earlier communicated adjusted EBITDA guidance range of $1.31 billion to $1.41 billion. Capital expenditures, plant relocation costs, and investment contributions are projected to align near the midpoint of the guidance range of $435 million to $485 million. FCFAD is anticipated to hit the upper end of the 2024 guidance range of $265 million to $315 million.

The detailed financial results and strategic actions of EnLink Midstream position it favorably for future growth and stability within the midstream industry.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read EnLink Midstream’s 8K filing here.

About EnLink Midstream

EnLink Midstream, LLC provides midstream energy services in the United States. The company operates through Permian, Louisiana, Oklahoma, North Texas, and Corporate segments. It is involved in gathering, compressing, treating, processing, transporting, storing, and selling natural gas; fractionating, transporting, storing, and selling natural gas liquids; and gathering, transporting, stabilizing, storing, trans-loading, and selling crude oil and condensate, as well as providing brine disposal services.