DALLAS, Nov. 6, 2018 /PRNewswire/ -- The EnLink
Midstream companies (EnLink), EnLink Midstream Partners, LP (NYSE:
ENLK) (the Partnership or ENLK) and EnLink Midstream, LLC
(NYSE: ENLC) (the General Partner or ENLC), reported financial
results for the third quarter of 2018, announced Cajun-Sibon III, a
project to expand natural gas liquids (NGL) infrastructure across
its Gulf Coast asset platform, and added incremental NGL
fractionation capacity in Louisiana. EnLink also reaffirmed and
increased certain full-year 2018 guidance measures.
Highlights
- ENLK reported net income attributable to ENLK after
non-controlling interest of approximately $43 million for the third quarter of 2018,
compared to approximately $26 million
for the third quarter of 2017, representing approximately 69
percent growth.
- ENLK achieved approximately $267
million of adjusted EBITDA net to ENLK for the third quarter
of 2018, compared to approximately $217
million for the third quarter of 2017, representing
approximately 23 percent growth. Adjusted EBITDA is a non-GAAP
measure and is explained in greater detail under "Non-GAAP
Financial Information."
- ENLK achieved approximately $187
million of distributable cash flow (DCF) for the third
quarter of 2018, compared to approximately $150 million for the third quarter of 2017,
representing approximately 25 percent growth. ENLK's distribution
coverage was 1.21x for the third quarter of 2018. Distributable
cash flow (DCF) is a non-GAAP measure and is explained in greater
detail under "Non-GAAP Financial Information."
- ENLK's four operating segments all experienced
quarter-over-quarter, and year-over-year segment profit growth. The
Oklahoma segment delivered strong
segment profit growth of 35 percent for the third quarter of 2018
as compared to the third quarter of 2017.
- The Crude and Condensate segment experienced stand-out segment
profit growth during the third quarter of 2018, with results
increasing 134 percent over the third quarter of 2017. Key growth
drivers going forward for the Crude and Condensate assets are
EnLink's crude oil gathering systems expansions around its existing
platforms in Oklahoma's prolific
STACK play and the Permian's Delaware and Midland basins. EnLink has made
considerable investments during 2018 to establish its crude
gathering platforms in both of these key growth basins, and expects
significant, capital-efficient, volume growth during 2019 and
beyond.
- ENLC reported net income attributable to ENLC after
non-controlling interest of approximately $8
million for the third quarter of 2018, compared to
approximately $6 million for the
third quarter of 2017, representing approximately 24 percent
growth.
- ENLC achieved approximately $58
million of cash available for distribution for the third
quarter of 2018, compared to approximately $55 million for the third quarter of 2017,
representing approximately 6 percent growth. Cash available for
distribution is a non-GAAP measure and is explained in greater
detail under "Non-GAAP Financial Information."
- EnLink announced Cajun-Sibon III, a project to expand takeaway
capacity from the Mont Belvieu NGL hub region to EnLink's
fractionation facilities in Louisiana. EnLink concurrently announced the
completion of an expansion project of its fractionation capacity in
Louisiana. The two projects
combine to unlock the ability to fractionate between 30,000 barrels
(bbls/d) and 35,000 bbls/d of incremental NGLs once Cajun-Sibon III
is operational, which is expected during the second quarter of
2019. Project costs amount to approximately $50 million.
- EnLink announced commercial success in the Permian's
Delaware Basin with the signing of
a new long-term, fee-based natural gas gathering and processing
contract underpinned by acreage dedications. The new contract is
with a large, independent, investment-grade, publicly traded
producer.
- ENLK reaffirmed its full-year 2018 net income and adjusted
EBITDA guidance. The net income guidance range for 2018 is
$329 million to $369 million. The adjusted EBITDA guidance range
for 2018 is $1.00 billion to
$1.05 billion, and ENLK continues to
expect full-year results to be at the high end of this range.
- ENLK increased its full-year 2018 DCF guidance range to
$700 million to $730 million, up from $680
million to $710 million, and
simultaneously raised expectations for the full-year 2018
distribution coverage range to 1.15x to 1.20x, up from 1.10x to
1.15x.
- On October 22, EnLink announced
plans to simplify the organizational structure with ENLC agreeing
to acquire all outstanding common units of ENLK not already owned
by ENLC in a unit-for-unit exchange transaction. The transaction is
progressing as anticipated and is expected to close during the
first quarter of 2019 subject to the satisfaction or waiver of
certain conditions.
"EnLink has performed tremendously well during the first three
quarters of 2018, with strong year-over-year growth across our core
asset areas, and we expect to finish the year at the high end of
our guidance," said Michael J.
Garberding, President and Chief Executive Officer of
EnLink. "I am proud of the evolution and growth of our
company, with the recent announcement of our organizational
structure simplification, and now with our high-returning NGL
expansion projects along the Gulf Coast. We are executing on
a visible, solid, long-term growth plan, supported by a strong base
business, and we will continue to focus on creating lasting value
for all of our stakeholders."
EnLink Midstream Partners, LP: Third Quarter 2018
Financial Results
- The Partnership reported net income attributable to ENLK of
$43.2 million for the third quarter
of 2018, compared to net income of $25.5
million for the third quarter of 2017.
- The Partnership achieved $267.0
million of adjusted EBITDA net to ENLK for the third quarter
of 2018, compared to $216.8 million
for the third quarter of 2017.
- The Partnership reported net cash provided by operating
activities of $113.1 million for the
third quarter of 2018, compared to $200.8
million for the third quarter of 2017.
- DCF attributable to ENLK's common units was $186.6 million for the third quarter of 2018,
compared to $150.1 million for the
third quarter of 2017.
- ENLK reaffirmed certain full-year 2018 guidance metrics, with
net income expected in the range of $329
million to $369 million and
adjusted EBITDA expected in the range of $1.00 billion to $1.05
billion. Management continues to expect ENLK full-year 2018
adjusted EBITDA results to be at the high end of the guidance
range. ENLK also reaffirmed its 2019 adjusted EBITDA expectations
of approximately 5 percent growth over the 2018 guidance
midpoint.
- ENLK raised its 2018 DCF guidance range to $700 million to $730
million, up from $680 million
to $710 million.
- ENLK's distribution coverage was 1.21x for the third quarter of
2018, compared to 0.99x for the third quarter of 2017. ENLK raised
expectations for the full-year 2018 distribution coverage range to
1.15x to 1.20x, up from 1.10x to 1.15x.
- Debt to adjusted EBITDA as of September
30, 2018, was 3.85x, compared to 3.72x as of September 30, 2017, as calculated under the terms
of ENLK's credit facility. Debt to adjusted EBITDA for 2018 is
expected to be in the range of 3.85x to 4.00x.
- Growth capital expenditures net to ENLK for the third quarter
of 2018 totaled approximately $187
million, which combined with the first half of 2018
expenditures of approximately $308
million, results in year-to-date growth capital expenditures
of approximately $495 million. ENLK
reaffirmed its guidance range for growth capital expenditures of
$685 million to $755 million and expects to fund the majority of
the equity portion with cash flow from the business, resulting in
limited need for equity funding.
- As of November 1, ENLK had
353,100,985 common units outstanding.
EnLink Midstream, LLC: Third Quarter 2018
Financial Results
- The General Partner reported net income attributable to ENLC of
$7.7 million for the third quarter of
2018, compared to net income of $6.2
million for the third quarter of 2017.
- ENLC's cash available for distribution totaled $58.1 million for the third quarter of 2018,
compared to $54.8 million for the
third quarter of 2017. Cash available for distribution for the
third quarter of 2018 included $10.6
million related to ENLC's approximately 16 percent interest
in EnLink Oklahoma Gas Processing LP (together with its
subsidiaries, "EOGP")
- ENLC reaffirmed its full-year 2018 net income guidance, with
net income expected in the range of $285
million to $343 million. ENLC
reaffirmed its cash available for distribution guidance range of
$230 million to $240 million.
- Growth capital expenditures net to ENLC for the third quarter
of 2018 totaled approximately $18
million, which combined with the first half of 2018 growth
capital expenditures of approximately $33
million, results in a year-to-date total of approximately
$51 million.
- ENLC's distribution coverage was 1.17x for the third quarter of
2018, which matches the distribution coverage of 1.17x for the
third quarter of 2017. ENLC's distribution coverage for 2018 is
expected to remain in-line with the previously disclosed guidance
range of 1.16x to 1.22x.
- As of November 1, ENLC had
181,294,967 common units outstanding.
NGL Expansion Update:
EnLink announced Cajun-Sibon
III, a project to expand takeaway capacity from the Mont Belvieu
NGL hub region to EnLink's fractionation facilities in Louisiana. EnLink concurrently announced the
completion of an expansion project of its fractionation capacity in
Louisiana. The two projects combine to unlock the ability to
fractionate between 30,000 bbls/d and 35,000 bbls/d of incremental
NGLs once Cajun-Sibon III is operational.
EnLink operates a comprehensive fractionation and distribution
system along the Gulf Coast, which delivers purity products to
growing refinery demand and export markets. These announced
projects represent the next step in a multi-phased platform
expansion initiative underway, which capitalizes on EnLink's
franchise fractionation position in Louisiana.
Cajun-Sibon III is expected to expand current NGL throughput
capacity to approximately 185,000 bbls/d. The growth capital
expenditures associated with Cajun-Sibon III are expected to be
approximately $50 million, the
majority of which will be for additional pump stations along the
pipeline. The expansion is expected to generate an average annual
adjusted EBITDA multiple of two to three times, and is expected to
be operational during the second quarter of 2019.
EnLink also completed an expansion of its fractionation capacity
in Louisiana to 193,000 bbls/d.
The incremental fractionation capacity was achieved by investing in
cost-effective upgrades to EnLink's Eunice and Plaquemine facilities, and the investment
required less than $10 million. The
additional capacity, along with currently available capacity, is
expected to be fully utilized once Cajun-Sibon III is operational.
Quarterly fractionation volumes are expected to average in the
range of 180,000 bbls/d to 185,000 bbls/d, taking into
consideration various operational factors that impact facility
run-time and effective capacity.
Segment Updates:
Oklahoma:
- EnLink's Oklahoma segment
reported strong segment profit growth year over year. Third quarter
of 2018 segment profit of $107.0
million was up from $79.1
million reported in the third quarter of 2017, representing
an increase of 35 percent. EnLink's Oklahoma segment also experienced solid volume
growth year over year, with the third quarter of 2018 gas
gathering, transportation, and processing volumes increasing over
40 percent from third quarter of 2017. Segment profit and volume
growth in Central Oklahoma are
expected to remain robust as the diverse group of producer
customers on EnLink's dedicated acreage continues to deliver strong
well results and continues the transition to full-field
development.
- Construction of EnLink's previously announced Thunderbird
processing plant is progressing well and remains on track to be
operational during the first quarter of 2019. Once operational,
Thunderbird will increase EnLink's gas processing capacity in
Central Oklahoma by 200 million
cubic feet per day (MMcf/d), bringing total gas processing capacity
to over 1.2 billion cubic feet per day (Bcf/d). EnLink's ongoing
development in the active Central
Oklahoma region reinforces its position as one of the
largest and most cost-efficient providers of natural gas processing
in the STACK.
Texas:
- EnLink's Midland Basin natural gas volume activity experienced
solid growth during the third quarter of 2018, with average
gathering and transportation volumes having increased by
approximately 27 percent, and average processing volumes having
increased by 19 percent, as compared to the third quarter of 2017.
This growth trend is expected to continue throughout the remainder
of 2018 and into 2019. EnLink's Midland Basin processing capacity
was approximately 67 percent utilized during the third quarter of
2018, and the exit utilization rate for 2018 is projected to be
approximately 80 percent.
- EnLink announced commercial success in the Permian's
Delaware Basin with the signing of
a new long-term, fee-based natural gas gathering and processing
contract underpinned by acreage dedications. The new contract is
with a large, independent, investment-grade, publicly traded
producer.
- Natural gas volumes across EnLink's Delaware Basin Joint Venture (JV) experienced
solid growth during the third quarter of 2018, with average
gathering and transportation volumes having increased by
approximately 92 percent and average processing volumes having
increased by approximately 97 percent, as compared to the third
quarter of 2017.
- The JV previously announced the construction of Lobo III, a new
200 MMcf/d expansion of gas processing capacity at the existing
Lobo complex. Construction of Lobo III is progressing well, and the
first 100 MMcf/d expansion is expected to be operational during
November 2018. The second 100 MMcf/d
expansion is expected to be operational during the first quarter of
2019.
- EnLink's operations in the Barnett Shale continue to benefit
from cost optimization initiatives, resulting in a segment profit
increase of approximately six percent for the third quarter of 2018
as compared to the third quarter of 2017. Processing volumes
declined by approximately five percent, and gathering and
transportation volumes declined by approximately eight percent, as
compared to the third quarter of 2017. Producer customers on
EnLink's footprint are reinvigorating their operational and
drilling plans in the Barnett Shale, which is translating into
improved long-term volume stability and profitability on EnLink's
footprint.
Louisiana:
- EnLink's NGL network continues to benefit from growth in
liquids output from EnLink's STACK and Permian operations. Average
NGL volumes on EnLink's system increased by approximately 13
percent during the third quarter of 2018, as compared to the third
quarter of 2017. Segment profit contribution from EnLink's NGL
operations for the third quarter of 2018 increased by approximately
21 percent as compared to the third quarter of 2017, driven by
increased volumes.
- EnLink experienced record volumes on its Louisiana gas system during the third quarter
of 2018, driven by strong industrial and LNG demand across its Gulf
Coast network. Average gathering and transportation throughput on
EnLink's Louisiana gas system
exceeded 2 Bcf/d for the fifth consecutive quarter and reflects a
13 percent increase in average quarterly volumes for the third
quarter of 2018 as compared to the third quarter of 2017. Volumes
for the full-year are expected to remain at the high end of initial
expectations.
Crude and Condensate:
- EnLink's Crude and Condensate segment experienced strong
segment profit growth during the third quarter of 2018, with
segment profit increasing approximately 133 percent over the third
quarter of 2017. EnLink's Ohio River Valley operations and Greater
Chickadee crude oil gathering system in the Midland Basin were key
contributors of the growth during the quarter. The Greater
Chickadee crude oil gathering system achieved average volumes of
approximately 46,600 bbls/d during the third quarter of 2018, which
represents over 50 percent growth as compared to the third quarter
of 2017.
- Key growth drivers going forward for the Crude and Condensate
segment are EnLink's crude oil gathering system expansions around
its existing platforms in Oklahoma's prolific STACK play, and the
Permian's Delaware and Midland
basins. EnLink has made considerable investments during 2018 to
establish its crude gathering platforms in both of these key growth
basins, and expects significant, capital-efficient volume growth
during 2019 and beyond.
Simplification Update
On October 22, EnLink announced the simplification
of its organizational structure in a transaction whereby ENLC will
acquire all outstanding common units of ENLK not already owned by
ENLC in a unit-for-unit exchange transaction. The transaction is
expected to close in the first quarter of 2019 subject to the
satisfaction or waiver of certain closing conditions. For
additional details, please refer to the previously issued press
release.
Third Quarter 2018 Earnings Call Details
The General
Partner and the Partnership will hold a conference call to discuss
third quarter 2018 results on Wednesday, November 7, at 8
a.m. Central Time (9 a.m. Eastern Time). The dial-in
number for the call is 1-855-656-0924. Callers outside the
United States should dial 1-412-542-4172. Participants can
also preregister for the conference call by navigating to
http://dpregister.com/10124340 where they will receive dial-in
information upon completion of preregistration. Interested parties
can access an archived replay of the call on the Investors' page of
EnLink's website at EnLink.com.
About the EnLink Midstream Companies
EnLink provides
integrated midstream services across natural gas, crude oil,
condensate, and NGL commodities. EnLink operates in several
top U.S. basins and is strategically focused on the core growth
areas of the Permian's Midland and Delaware basins,
Oklahoma's Midcontinent,
and Louisiana's Gulf Coast. Headquartered in Dallas,
EnLink is publicly traded through EnLink Midstream,
LLC (NYSE: ENLC), the General Partner, and EnLink
Midstream Partners, LP (NYSE: ENLK), the Master Limited
Partnership. Visit EnLink.com for more information on how
EnLink connects energy to life.
Non-GAAP Financial Information & Other
Definitions
This press release contains non-generally
accepted accounting principles financial measures that we refer to
as adjusted EBITDA, distributable cash flow available to common
unitholders ("distributable cash flow"), and the General Partner's
cash available for distribution. We define adjusted EBITDA as net
income (loss) plus interest expense, provision (benefit) for income
taxes, depreciation and amortization expense, impairments,
unit-based compensation, (gain) loss on non-cash derivatives,
(gain) loss on disposition of assets, (gain) loss on extinguishment
of debt, successful transaction costs (if any), accretion expense
associated with asset retirement obligations, non-cash rent and
distributions from unconsolidated affiliate investments less
payments under onerous performance obligations, non-controlling
interest, (income) loss from unconsolidated affiliate investments
and non-cash revenue from contract restructuring. We define
distributable cash flow as adjusted EBITDA (defined above), net to
the Partnership, less interest expense (excluding amortization of
the EOGP acquisition installment payable discount), litigation
settlement adjustment, interest rate swaps, current income taxes
and other non-distributable cash flows, accrued cash distributions
on Series B Preferred Units and Series C Preferred Units paid or
expected to be paid, and maintenance capital expenditures,
excluding maintenance capital expenditures that were contributed by
other entities and relate to the non-controlling interest share of
our consolidated entities. The General Partner's cash available for
distribution is defined as net income (loss) of the General Partner
less the net income (loss) attributable to the Partnership, which
is consolidated into the General Partner's net income (loss), plus
the General Partner's (i) share of distributions from the
Partnership, (ii) share of EOGP's non-cash expenses, (iii) deferred
income tax expense (benefit), (iv) corporate goodwill impairment,
if any, and (v) successful acquisition transaction costs, if any,
less the General Partner's interest in maintenance capital
expenditures of EOGP, and less third-party non-controlling interest
share of the Partnership's net income (loss) from consolidated
affiliates.
The Partnership's distribution coverage is calculated by
dividing distributable cash flow by distributions declared to the
General Partner and the common unitholders. The General Partner's
distribution coverage is calculated by dividing cash available for
distribution by distributions declared by the General Partner.
Growth capital expenditures generally include capital
expenditures made for acquisitions or capital improvements that we
expect will increase our asset base, operating income or operating
capacity over the long-term. Maintenance capital expenditures
generally include capital expenditures made to replace partially or
fully depreciated assets in order to maintain the existing
operating capacity of the assets and to extend their useful
lives.
The Partnership and General Partner believe 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
each of the Partnership's and the General Partner's cash flow after
it has satisfied the capital and related requirements of its
operations. In addition, adjusted EBITDA achievement is a
primary metric used in the Partnership's credit facility and
short-term incentive program for compensating its employees.
Segment profit (loss) is defined as operating income (loss) plus
general and administrative expenses, depreciation and amortization,
(gain) loss on disposition of assets, impairments and (gain) loss
on litigation settlement. 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 ENLK's Annual Report on Form 10-K for the year
ended December 31, 2017, and, when
available, "Item 1. Financial Statements – Note 11—Segment
Information" in ENLK's Quarterly Report on Form 10-Q for the three
months ended September 30, 2018, for further information about
segment profit (loss).
Adjusted EBITDA, distributable cash flow, and cash available for
distribution, 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 the Partnership's and the
General Partner'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
ENLK's and ENLC's filings with the Securities and Exchange
Commission for more information.
Important Information for Investors and
Unitholders
This communication does not constitute an offer
to sell or the solicitation of an offer to buy any securities or a
solicitation of any vote or approval. In connection with the
transactions referred to in this material, EnLink Midstream, LLC
("ENLC") expects to file a registration statement on Form S-4 with
the Securities and Exchange Commission ("SEC") containing a
preliminary joint information statement and proxy statement of ENLC
and EnLink Midstream Partners, LP ("ENLK") that also constitutes a
preliminary prospectus of ENLC. After the registration statement is
declared effective, ENLK will mail a definitive proxy
statement/prospectus to unitholders of ENLK, and ENLC will mail a
definitive information statement to unitholders of ENLC. This
material is not a substitute for the joint information
statement/proxy statement/prospectus or registration statement or
for any other document that ENLC or ENLK may file with the SEC and
send to ENLC's and/or ENLK's unitholders in connection with the
proposed transactions. INVESTORS AND SECURITY HOLDERS OF ENLC AND
ENLK ARE URGED TO READ THE JOINT INFORMATION STATEMENT/PROXY
STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC
CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and security
holders will be able to obtain free copies of the joint information
statement/proxy statement/prospectus (when available) and other
documents filed with the SEC by ENLC or ENLK through the website
maintained by the SEC at http://www.sec.gov. Copies of the
documents filed with the SEC by ENLC and ENLK will be available
free of charge on ENLC's and ENLK's website at www.enlink.com, in
the "Investors" tab, or by contacting ENLC's and ENLK's Investor
Relations Department at 214-721-9696.
ENLC and the directors and executive officers of the managing
member of ENLC and the directors and executive officers of the
general partner of ENLK may be considered participants in the
solicitation of proxies with respect to the proposed transactions
under the rules of the SEC. Information about the directors and
executive officers of the managing member of ENLC may be found in
its Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on
February 21, 2018. Information about
the directors and executive officers of the general partner of ENLK
may be found in its Annual Report on Form 10-K for the year ended
December 31, 2017 filed with the SEC
on February 21, 2018. These documents
can be obtained free of charge from the sources indicated above.
Additional information regarding the participants in the proxy
solicitations and a description of their direct and indirect
interests, by security holdings or otherwise, will also be included
in any proxy statement and other relevant materials to be filed
with the SEC when they become available.
Forward-Looking Statements
This 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,"
and "expect" and similar expressions. Such forward-looking
statements include, but are not limited to, statements about
guidance, projected or forecasted financial and operating results,
timing for completion of construction or expansion projects,
expected financial and operational results associated with certain
projects, future operational results of our customers, results in
certain basins, future rig count information, the proposed
simplification transaction between EnLink Midstream Partners, LP
and EnLink Midstream, LLC, the expected consideration to be
received in connection with the closing of the proposed
simplification transaction, the timing of the consummation of the
proposed simplification transaction, if it will be consummated at
all, objectives, 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) the dependence on Devon for a substantial
portion of the natural gas and crude that we gather, process, and
transport, (b) developments that materially and adversely
affect Devon or other customers, (c) Devon's ability to
compete with us, (d) adverse developments in the midstream business
may reduce our ability to make distributions, (e) our
vulnerability to having a significant portion of our operations
concentrated in the Barnett Shale, (f) potential conflicts of
interest of Global Infrastructure Partners ("GIP") with us and the
potential for GIP to favor GIP's own interests to the detriment of
the unitholders, (g) GIP's ability to compete with us and the fact
that it is not required to offer us the opportunity to acquire
additional assets or businesses, (h) a default under GIP's credit
facility could result in a change in control of us, could adversely
affect the price of our common units, and could result in a default
under our credit facility, (i) continually competing for crude oil,
condensate, natural gas, and NGL supplies and any decrease in the
availability of such commodities, (j) decreases in the volumes that
we gather, process, fractionate, or transport, (k) construction
risks in our major development projects, (l) our ability to receive
or renew required permits and other approvals, (m) changes in the
availability and cost of capital, including as a result of a change
in our credit rating, (n) operating hazards, natural
disasters, weather-related issues or delays, casualty losses, and
other matters beyond our control, (o) impairments to goodwill,
long-lived assets and equity method investments, and (p) the
effects of existing and future laws and governmental regulations,
including environmental and climate change requirements and other
uncertainties. These and other applicable uncertainties, factors,
and risks are described more fully in EnLink Midstream Partners,
LP's and EnLink Midstream, LLC's filings with the Securities and
Exchange Commission, including EnLink Midstream Partners, LP's and
EnLink Midstream, LLC's Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K.
Neither EnLink Midstream Partners, LP nor EnLink Midstream, LLC
assumes any obligation to update any forward-looking
statements.
The assumptions 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.
Investor Relations: Kate
Walsh, Vice President of Investor Relations, 214-721-9696,
kate.walsh@enlink.com
Media Relations: Jill
McMillan, Vice President of Public & Industry
Affairs, 214-721-9271, jill.mcmillan@enlink.com
EnLink Midstream
Partners, LP
|
Selected Financial
Data
|
(All amounts in
millions except per unit amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Total
revenues
|
$
|
2,114.3
|
|
|
$
|
1,397.9
|
|
|
$
|
5,640.7
|
|
|
$
|
3,983.4
|
|
Cost of
sales
|
1,696.6
|
|
|
1,053.2
|
|
|
4,403.7
|
|
|
2,987.9
|
|
Gross operating
margin
|
417.7
|
|
|
344.7
|
|
|
1,237.0
|
|
|
995.5
|
|
Operating costs and
expenses, excluding cost of sales:
|
|
|
|
|
|
|
|
Operating
expenses
|
114.7
|
|
|
102.1
|
|
|
337.3
|
|
|
308.8
|
|
General and
administrative
|
39.2
|
|
|
30.0
|
|
|
94.5
|
|
|
94.6
|
|
Loss on disposition
of assets
|
—
|
|
|
1.1
|
|
|
1.3
|
|
|
0.8
|
|
Depreciation and
amortization
|
146.7
|
|
|
136.3
|
|
|
430.1
|
|
|
407.1
|
|
Impairments
|
24.6
|
|
|
1.8
|
|
|
24.6
|
|
|
8.8
|
|
Gain on litigation
settlement
|
—
|
|
|
—
|
|
|
—
|
|
|
(26.0)
|
|
Total operating costs
and expenses, excluding cost of sales
|
325.2
|
|
|
271.3
|
|
|
887.8
|
|
|
794.1
|
|
Operating
income
|
92.5
|
|
|
73.4
|
|
|
349.2
|
|
|
201.4
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
(44.1)
|
|
|
(48.9)
|
|
|
(131.5)
|
|
|
(140.5)
|
|
Gain on
extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
9.0
|
|
Income from
unconsolidated affiliates
|
4.3
|
|
|
4.4
|
|
|
11.7
|
|
|
5.0
|
|
Other
income
|
0.1
|
|
|
0.3
|
|
|
0.3
|
|
|
0.5
|
|
Total other
expense
|
(39.7)
|
|
|
(44.2)
|
|
|
(119.5)
|
|
|
(126.0)
|
|
Income before
non-controlling interest and income taxes
|
52.8
|
|
|
29.2
|
|
|
229.7
|
|
|
75.4
|
|
Income tax benefit
(provision)
|
(0.9)
|
|
|
(0.5)
|
|
|
0.2
|
|
|
(0.7)
|
|
Net income
|
51.9
|
|
|
28.7
|
|
|
229.9
|
|
|
74.7
|
|
Net income
attributable to non-controlling interest
|
8.7
|
|
|
3.2
|
|
|
27.7
|
|
|
1.5
|
|
Net income
attributable to ENLK
|
$
|
43.2
|
|
|
$
|
25.5
|
|
|
$
|
202.2
|
|
|
$
|
73.2
|
|
General partner
interest in net income
|
$
|
7.7
|
|
|
$
|
10.6
|
|
|
$
|
29.5
|
|
|
$
|
27.3
|
|
Limited partners'
interest in net income (loss) attributable to ENLK
|
$
|
5.2
|
|
|
$
|
(8.6)
|
|
|
$
|
85.7
|
|
|
$
|
(18.4)
|
|
Series B preferred
interest in net income attributable to ENLK
|
$
|
24.3
|
|
|
$
|
22.8
|
|
|
$
|
69.0
|
|
|
$
|
63.6
|
|
Series C preferred
interest in net income attributable to ENLK
|
$
|
6.0
|
|
|
$
|
0.7
|
|
|
$
|
18.0
|
|
|
$
|
0.7
|
|
Net income (loss)
attributable to ENLK per limited partners' unit:
|
|
|
|
|
|
|
|
Basic common
unit
|
$
|
0.01
|
|
|
$
|
(0.02)
|
|
|
$
|
0.24
|
|
|
$
|
(0.05)
|
|
Diluted common
unit
|
$
|
0.01
|
|
|
$
|
(0.02)
|
|
|
$
|
0.24
|
|
|
$
|
(0.05)
|
|
EnLink Midstream
Partners, LP
|
Reconciliation of
Net Income to Adjusted EBITDA and
|
Distributable Cash
Flow and Calculation of Coverage Ratio
|
(All amounts in
millions except ratios and per unit amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30,
|
|
Nine Months
Ended September 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net income
|
$
|
51.9
|
|
|
$
|
28.7
|
|
|
$
|
229.9
|
|
|
$
|
74.7
|
|
Interest expense, net
of interest income
|
44.1
|
|
|
48.9
|
|
|
131.5
|
|
|
140.5
|
|
Depreciation and
amortization
|
146.7
|
|
|
136.3
|
|
|
430.1
|
|
|
407.1
|
|
Impairments
|
24.6
|
|
|
1.8
|
|
|
24.6
|
|
|
8.8
|
|
Income from
unconsolidated affiliates (1)
|
(4.3)
|
|
|
(4.4)
|
|
|
(11.7)
|
|
|
(5.0)
|
|
Distributions from
unconsolidated affiliates
|
5.3
|
|
|
4.0
|
|
|
16.7
|
|
|
11.4
|
|
Loss on disposition
of assets
|
—
|
|
|
1.1
|
|
|
1.3
|
|
|
0.8
|
|
Gain on
extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.0)
|
|
Unit-based
compensation
|
17.0
|
|
|
10.1
|
|
|
31.6
|
|
|
38.7
|
|
Income tax provision
(benefit)
|
0.9
|
|
|
0.5
|
|
|
(0.2)
|
|
|
0.7
|
|
(Gain) loss on
non-cash derivatives
|
0.8
|
|
|
3.3
|
|
|
14.8
|
|
|
(3.8)
|
|
Payments under
onerous performance obligation offset to other current and
long-term liabilities
|
(4.5)
|
|
|
(4.5)
|
|
|
(13.5)
|
|
|
(13.5)
|
|
Non-cash revenue from
contract restructuring (2)
|
—
|
|
|
—
|
|
|
(45.5)
|
|
|
—
|
|
Other (3)
|
1.3
|
|
|
0.8
|
|
|
2.0
|
|
|
3.5
|
|
Adjusted EBITDA
before non-controlling interest
|
$
|
283.8
|
|
|
$
|
226.6
|
|
|
$
|
811.6
|
|
|
$
|
654.9
|
|
Non-controlling
interest share of adjusted EBITDA (4)
|
(16.8)
|
|
|
(9.8)
|
|
|
(43.7)
|
|
|
(20.8)
|
|
Adjusted EBITDA, net
to ENLK
|
$
|
267.0
|
|
|
$
|
216.8
|
|
|
$
|
767.9
|
|
|
$
|
634.1
|
|
Interest expense, net
of interest income
|
(44.1)
|
|
|
(48.9)
|
|
|
(131.5)
|
|
|
(140.5)
|
|
Amortization of EOGP
installment payable discount included in interest expense
(5)
|
—
|
|
|
6.4
|
|
|
0.5
|
|
|
19.9
|
|
Litigation settlement
adjustment (6)
|
—
|
|
|
—
|
|
|
—
|
|
|
(18.1)
|
|
Current taxes and
other
|
(2.1)
|
|
|
(0.7)
|
|
|
(3.3)
|
|
|
(0.9)
|
|
Maintenance capital
expenditures, net to ENLK (7)
|
(11.8)
|
|
|
(6.9)
|
|
|
(30.1)
|
|
|
(20.5)
|
|
Preferred unit
accrued cash distributions (8)
|
(22.4)
|
|
|
(16.6)
|
|
|
(66.9)
|
|
|
(16.6)
|
|
Distributable cash
flow
|
$
|
186.6
|
|
|
$
|
150.1
|
|
|
$
|
536.6
|
|
|
$
|
457.4
|
|
|
|
|
|
|
|
|
|
Actual declared
distribution to common unitholders
|
$
|
154.3
|
|
|
$
|
152.2
|
|
|
$
|
460.2
|
|
|
$
|
455.5
|
|
Distribution
coverage
|
1.21x
|
|
|
0.99x
|
|
|
1.17x
|
|
|
1.00x
|
|
Distributions
declared per limited partner unit
|
$
|
0.39
|
|
|
$
|
0.39
|
|
|
$
|
1.17
|
|
|
$
|
1.17
|
|
|
|
(1)
|
Includes a loss of
$3.4 million for the nine months ended September 30, 2017 from the
sale of HEP in March 2017.
|
(2)
|
In May 2018, we
restructured a natural gas gathering and processing contract, and,
as a result, recognized non-cash revenue representing the
discounted present value of a secured term loan
receivable.
|
(3)
|
Includes accretion
expense associated with asset retirement obligations, non-cash
rent, which relates to lease incentives pro-rated over the lease
term, and transaction costs, primarily associated with costs we
incurred related to the acquisition by GIP of equity interests in
ENLK, ENLC, and the managing member of ENLC previously held by
subsidiaries of Devon Energy Corporation (the "GIP
Transaction").
|
(4)
|
Non-controlling
interest share of adjusted EBITDA includes ENLC's 16.1% share of
adjusted EBITDA from EOGP, NGP Natural Resources XI, L.P.'s ("NGP")
49.9% share of adjusted EBITDA from the Delaware Basin JV, Marathon
Petroleum Corporation's 50% share of adjusted EBITDA from the
Ascension JV, and other minor non-controlling interests.
|
(5)
|
Amortization of the
EOGP installment payable discount is considered non-cash interest
under the ENLK credit facility since the payment under the payable
is consideration for the acquisition of the EOGP assets.
|
(6)
|
Represents recoveries
from a lawsuit settled in 2017 for amounts not previously deducted
from distributable cash flow.
|
(7)
|
Excludes maintenance
capital expenditures that were contributed by other entities and
relate to the non-controlling interest share of our consolidated
entities.
|
(8)
|
Represents the cash
distributions earned by the Series B Preferred Units and Series C
Preferred Units of $16.4 million and $6.0 million, respectively,
for the three months ended September 30, 2018, $48.9 million
and $18.0 million, respectively, for the nine months ended
September 30, 2018, cash distributions earned by the Series B
Preferred Units of $15.9 million for the three and nine months
ended September 30, 2017, and cash distributions earned by the
Series C Preferred Units of $0.7 million for the three and nine
months ended September 30, 2017. Cash distributions to be paid
to holders of the Series B Preferred Units and Series C Preferred
Units are not available to common unitholders.
|
EnLink Midstream
Partners, LP
|
Reconciliation of
Net Cash Provided by Operating Activities to Adjusted
EBITDA
|
and Distributable
Cash Flow
|
(All amounts in
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30,
|
|
Nine Months
Ended September 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net cash provided by
operating activities
|
$
|
113.1
|
|
|
$
|
200.8
|
|
|
$
|
543.8
|
|
|
$
|
533.0
|
|
Interest expense
(1)
|
44.8
|
|
|
41.5
|
|
|
130.6
|
|
|
118.9
|
|
Current income tax
expense
|
1.0
|
|
|
0.7
|
|
|
1.7
|
|
|
0.9
|
|
Distributions from
unconsolidated affiliate investment in excess of
earnings
|
0.8
|
|
|
(0.1)
|
|
|
2.7
|
|
|
7.3
|
|
Other (2)
|
0.4
|
|
|
(1.7)
|
|
|
0.4
|
|
|
4.0
|
|
Changes in operating
assets and liabilities which (provided) used cash:
|
|
|
|
|
|
|
|
Accounts receivable,
accrued revenues, inventories and other
|
298.3
|
|
|
127.5
|
|
|
385.1
|
|
|
105.5
|
|
Accounts payable,
accrued gas and crude oil purchases and other (3)
|
(174.6)
|
|
|
(142.1)
|
|
|
(252.7)
|
|
|
(114.7)
|
|
Adjusted EBITDA
before non-controlling interest
|
$
|
283.8
|
|
|
$
|
226.6
|
|
|
$
|
811.6
|
|
|
$
|
654.9
|
|
Non-controlling
interest share of adjusted EBITDA (4)
|
(16.8)
|
|
|
(9.8)
|
|
|
(43.7)
|
|
|
(20.8)
|
|
Adjusted EBITDA, net
to ENLK
|
$
|
267.0
|
|
|
$
|
216.8
|
|
|
$
|
767.9
|
|
|
$
|
634.1
|
|
Interest expense, net
of interest income
|
(44.1)
|
|
|
(48.9)
|
|
|
(131.5)
|
|
|
(140.5)
|
|
Amortization of EOGP.
installment payable discount included in interest expense
(5)
|
—
|
|
|
6.4
|
|
|
0.5
|
|
|
19.9
|
|
Litigation settlement
adjustment (6)
|
—
|
|
|
—
|
|
|
—
|
|
|
(18.1)
|
|
Current taxes and
other
|
(2.1)
|
|
|
(0.7)
|
|
|
(3.3)
|
|
|
(0.9)
|
|
Maintenance capital
expenditures, net to ENLK (7)
|
(11.8)
|
|
|
(6.9)
|
|
|
(30.1)
|
|
|
(20.5)
|
|
Preferred unit
accrued cash distributions (8)
|
(22.4)
|
|
|
(16.6)
|
|
|
(66.9)
|
|
|
(16.6)
|
|
Distributable cash
flow
|
$
|
186.6
|
|
|
$
|
150.1
|
|
|
$
|
536.6
|
|
|
$
|
457.4
|
|
|
|
(1)
|
Excludes non-cash
interest income and amortization of debt issuance costs and
discount and premium.
|
(2)
|
Includes non-cash
rent, which relates to lease incentives pro-rated over the lease
term, accruals for settled commodity swap transactions, and
transaction costs, primarily associated with costs we incurred
related to the GIP Transaction.
|
(3)
|
Net of payments under
onerous performance obligation offset to other current and
long-term liabilities.
|
(4)
|
Non-controlling
interest share of adjusted EBITDA includes ENLC's 16.1% share of
adjusted EBITDA from EOGP, NGP's 49.9% share of adjusted EBITDA
from the Delaware Basin JV, Marathon Petroleum Corporation's 50%
share of adjusted EBITDA from the Ascension JV, and other minor
non-controlling interests.
|
(5)
|
Amortization of the
EOGP installment payable discount is considered non-cash interest
under the ENLK credit facility since the payment under the payable
is consideration for the acquisition of the EOGP assets.
|
(6)
|
Represents recoveries
from a lawsuit settled in 2017 for amounts not previously deducted
from distributable cash flow.
|
(7)
|
Excludes maintenance
capital expenditures that were contributed by other entities and
relate to the non-controlling interest share of our consolidated
entities.
|
(8)
|
Represents the cash
distributions earned by the Series B Preferred Units and Series C
Preferred Units of $16.4 million and $6.0 million, respectively,
for the three months ended September 30, 2018, $48.9 million
and $18.0 million, respectively, for the nine months ended
September 30, 2018, cash distributions earned by the Series B
Preferred Units of $15.9 million for the three and nine months
ended September 30, 2017, and cash distributions earned by the
Series C Preferred Units of $0.7 million for the three and nine
months ended September 30, 2017. Cash distributions to be paid
to holders of the Series B Preferred Units and Series C Preferred
Units are not available to common unitholders.
|
EnLink Midstream
Partners, LP
|
Operating
Data
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Midstream
Volumes:
|
|
|
|
|
|
|
|
Texas
Segment
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
2,267,300
|
|
|
2,251,700
|
|
|
2,237,900
|
|
|
2,265,900
|
|
Processing
(MMBtu/d)
|
1,310,800
|
|
|
1,194,300
|
|
|
1,263,100
|
|
|
1,178,800
|
|
Louisiana
Segment
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
2,273,700
|
|
|
2,009,300
|
|
|
2,197,100
|
|
|
1,960,300
|
|
Processing
(MMBtu/d)
|
429,200
|
|
|
443,400
|
|
|
422,200
|
|
|
452,500
|
|
NGL Fractionation
(Gals/d)
|
6,545,100
|
|
|
5,814,800
|
|
|
6,457,000
|
|
|
5,630,600
|
|
Oklahoma
Segment
|
|
|
|
|
|
|
|
Gathering and
Transportation (MMBtu/d)
|
1,259,700
|
|
|
889,200
|
|
|
1,181,800
|
|
|
787,400
|
|
Processing
(MMBtu/d)
|
1,239,000
|
|
|
872,200
|
|
|
1,170,300
|
|
|
753,500
|
|
Crude and
Condensate Segment
|
|
|
|
|
|
|
|
Crude Oil Handling
(Bbls/d)
|
166,400
|
|
|
95,700
|
|
|
147,700
|
|
|
104,500
|
|
Brine Disposal
(Bbls/d)
|
3,300
|
|
|
4,800
|
|
|
3,200
|
|
|
4,700
|
|
EnLink Midstream,
LLC
|
Selected Financial
Data
|
(All amounts in
millions except per unit amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30,
|
|
Nine Months
Ended September 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Total
revenues
|
$
|
2,114.3
|
|
|
$
|
1,397.9
|
|
|
$
|
5,640.7
|
|
|
$
|
3,983.4
|
|
Cost of
sales
|
1,696.6
|
|
|
1,053.2
|
|
|
4,403.7
|
|
|
2,987.9
|
|
Gross operating
margin
|
417.7
|
|
|
344.7
|
|
|
1,237.0
|
|
|
995.5
|
|
Operating costs and
expenses, excluding cost of sales:
|
|
|
|
|
|
|
|
Operating
expenses
|
114.7
|
|
|
102.1
|
|
|
337.3
|
|
|
308.8
|
|
General and
administrative
|
41.9
|
|
|
31.3
|
|
|
99.8
|
|
|
98.5
|
|
Loss on disposition
of assets
|
—
|
|
|
1.1
|
|
|
1.3
|
|
|
0.8
|
|
Depreciation and
amortization
|
146.7
|
|
|
136.3
|
|
|
430.1
|
|
|
407.1
|
|
Impairments
|
24.6
|
|
|
1.8
|
|
|
24.6
|
|
|
8.8
|
|
Gain on litigation
settlement
|
—
|
|
|
—
|
|
|
—
|
|
|
(26.0)
|
|
Total operating costs
and expenses, excluding cost of sales
|
327.9
|
|
|
272.6
|
|
|
893.1
|
|
|
798.0
|
|
Operating
income
|
89.8
|
|
|
72.1
|
|
|
343.9
|
|
|
197.5
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
(45.2)
|
|
|
(49.6)
|
|
|
(134.3)
|
|
|
(142.2)
|
|
Gain on
extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
9.0
|
|
Income from
unconsolidated affiliates
|
4.3
|
|
|
4.4
|
|
|
11.7
|
|
|
5.0
|
|
Other
income
|
0.1
|
|
|
0.3
|
|
|
0.3
|
|
|
0.5
|
|
Total other
expense
|
(40.8)
|
|
|
(44.9)
|
|
|
(122.3)
|
|
|
(127.7)
|
|
Income before
non-controlling interest and income taxes
|
49.0
|
|
|
27.2
|
|
|
221.6
|
|
|
69.8
|
|
Income tax
provision
|
(4.0)
|
|
|
(3.1)
|
|
|
(17.3)
|
|
|
(9.3)
|
|
Net income
|
45.0
|
|
|
24.1
|
|
|
204.3
|
|
|
60.5
|
|
Net income
attributable to non-controlling interest
|
37.3
|
|
|
17.9
|
|
|
156.2
|
|
|
50.3
|
|
Net income
attributable to ENLC
|
$
|
7.7
|
|
|
$
|
6.2
|
|
|
$
|
48.1
|
|
|
$
|
10.2
|
|
Net income
attributable to ENLC per unit:
|
|
|
|
|
|
|
|
Basic common
unit
|
$
|
0.04
|
|
|
$
|
0.03
|
|
|
$
|
0.27
|
|
|
$
|
0.06
|
|
Diluted common
unit
|
$
|
0.04
|
|
|
$
|
0.03
|
|
|
$
|
0.26
|
|
|
$
|
0.06
|
|
EnLink Midstream,
LLC
|
Cash Available for
Distribution and Calculation of Coverage Ratio
|
(All amounts in
millions except ratios and per unit amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30,
|
|
Nine Months
Ended September 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Distribution declared
by ENLK associated with (1):
|
|
|
|
|
|
|
|
General partner
interest
|
$
|
0.7
|
|
|
$
|
0.6
|
|
|
$
|
1.9
|
|
|
$
|
1.9
|
|
Incentive
distribution rights
|
15.0
|
|
|
14.8
|
|
|
44.6
|
|
|
44.1
|
|
ENLK common units
owned
|
34.5
|
|
|
34.5
|
|
|
103.6
|
|
|
103.6
|
|
Total share of ENLK
distributions declared
|
$
|
50.2
|
|
|
$
|
49.9
|
|
|
$
|
150.1
|
|
|
$
|
149.6
|
|
Adjusted EBITDA of
EOGP (2)
|
10.6
|
|
|
6.9
|
|
|
29.8
|
|
|
14.6
|
|
Transaction costs
(3)
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
Total cash
available
|
$
|
62.1
|
|
|
$
|
56.8
|
|
|
$
|
181.2
|
|
|
$
|
164.2
|
|
Uses of
cash:
|
|
|
|
|
|
|
|
General and
administrative expenses
|
(2.6)
|
|
|
(1.1)
|
|
|
(5.1)
|
|
|
(3.7)
|
|
Current income taxes
(4)
|
(0.1)
|
|
|
(0.1)
|
|
|
(0.3)
|
|
|
(0.3)
|
|
Interest
expense
|
(1.1)
|
|
|
(0.7)
|
|
|
(2.8)
|
|
|
(1.7)
|
|
Maintenance capital
expenditures (5)
|
(0.2)
|
|
|
(0.1)
|
|
|
(0.4)
|
|
|
(0.1)
|
|
Total cash
used
|
$
|
(4.0)
|
|
|
$
|
(2.0)
|
|
|
$
|
(8.6)
|
|
|
$
|
(5.8)
|
|
ENLC cash available
for distribution
|
$
|
58.1
|
|
|
$
|
54.8
|
|
|
$
|
172.6
|
|
|
$
|
158.4
|
|
|
|
|
|
|
|
|
|
Actual declared
distribution to common unitholders
|
$
|
49.8
|
|
|
$
|
46.7
|
|
|
$
|
146.9
|
|
|
$
|
139.9
|
|
Distribution
coverage
|
1.17x
|
|
|
1.17x
|
|
|
1.18x
|
|
|
1.13x
|
|
Distributions
declared per ENLC unit
|
$
|
0.271
|
|
|
$
|
0.255
|
|
|
$
|
0.801
|
|
|
$
|
0.765
|
|
|
|
(1)
|
Represents
distributions declared by ENLK and to be paid to ENLC on November
13, 2018 and distributions paid by ENLK to ENLC on August 13,
2018, May 14, 2018, November 13, 2017, August 11,
2017, and May 12, 2017.
|
(2)
|
Represents ENLC's
interest in EOGP adjusted EBITDA, which is disbursed to ENLC by
EOGP on a monthly basis. EOGP adjusted EBITDA is defined as
earnings before depreciation and amortization and provision for
income taxes and includes allocated expenses from ENLK.
|
(3)
|
Represents
transaction costs, primarily associated with costs incurred by ENLC
related to the GIP Transaction.
|
(4)
|
Represents ENLC's
stand-alone current tax expense.
|
(5)
|
Represents ENLC's
interest in EOGP's maintenance capital expenditures which is netted
against the monthly disbursement of EOGP's adjusted EBITDA per (2)
above.
|
EnLink Midstream,
LLC
|
Reconciliation of
Net Income of ENLC to ENLC Cash Available for
Distribution
|
(All amounts in
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net income of
ENLC
|
$
|
45.0
|
|
|
$
|
24.1
|
|
|
$
|
204.3
|
|
|
$
|
60.5
|
|
Less: Net income
attributable to ENLK
|
43.2
|
|
|
25.5
|
|
|
202.2
|
|
|
73.2
|
|
Net income (loss) of
ENLC excluding ENLK
|
$
|
1.8
|
|
|
$
|
(1.4)
|
|
|
$
|
2.1
|
|
|
$
|
(12.7)
|
|
ENLC's share of
distributions from ENLK (1)
|
50.2
|
|
|
49.9
|
|
|
150.1
|
|
|
149.6
|
|
ENLC's interest in
EOGP's non-cash expenses (2)
|
5.1
|
|
|
4.6
|
|
|
7.5
|
|
|
12.8
|
|
ENLC deferred income
tax expense (3)
|
3.0
|
|
|
2.5
|
|
|
17.2
|
|
|
8.3
|
|
Non-controlling
interest share of ENLK's net (income) loss (4)
|
(3.1)
|
|
|
(0.9)
|
|
|
(5.2)
|
|
|
0.3
|
|
Other items
(5)
|
1.1
|
|
|
0.1
|
|
|
0.9
|
|
|
0.1
|
|
ENLC cash available
for distribution
|
$
|
58.1
|
|
|
$
|
54.8
|
|
|
$
|
172.6
|
|
|
$
|
158.4
|
|
|
|
(1)
|
Represents
distributions declared by ENLK and to be paid to ENLC on November
13, 2018 and distributions paid by ENLK to ENLC on August 13,
2018, May 14, 2018, November 13, 2017, August 11,
2017, and May 12, 2017.
|
(2)
|
Includes depreciation
and amortization, unit-based compensation expense allocated to
EOGP, gains and losses on sale of property, and non-cash revenue
recognized upon receipt of secured term loan receivable related to
contract restructuring.
|
(3)
|
Represents ENLC's
stand-alone deferred taxes.
|
(4)
|
Represents NGP's
49.9% share of the Delaware Basin JV, Marathon Petroleum
Corporation's 50% share of the Ascension JV, and other minor
non-controlling interests.
|
(5)
|
Represents ENLC's
interest in EOGP's maintenance capital expenditures (which is
netted against the monthly disbursement of EOGP's adjusted EBITDA),
transaction costs, primarily associated with costs incurred by ENLC
related to the GIP Transaction, and other non-cash items not
included in cash available for distribution.
|
EnLink Midstream
Partners, LP
|
Forward-Looking
Reconciliation of Net Income to Adjusted EBITDA and Distributable
Cash Flow
|
(All amounts in
millions)
|
(Unaudited)
|
|
|
Mid-Year 2018
Outlook (1)
|
|
2018
Revised
|
|
Low
|
|
Midpoint
|
|
High
|
|
High Outlook
2
|
Net income
(3)
|
$
|
329
|
|
|
$
|
349
|
|
|
$
|
369
|
|
|
$
|
335
|
|
Interest expense, net
of interest income
|
180
|
|
|
184
|
|
|
188
|
|
|
181
|
|
Depreciation and
amortization
|
556
|
|
|
566
|
|
|
576
|
|
|
571
|
|
Impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
Income from
unconsolidated affiliate investments
|
(15)
|
|
|
(17)
|
|
|
(19)
|
|
|
(16)
|
|
Distribution from
unconsolidated affiliate investments
|
18
|
|
|
20
|
|
|
22
|
|
|
22
|
|
(Gain) loss on
disposition of assets
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
Unit-based
compensation
|
39
|
|
|
34
|
|
|
29
|
|
|
41
|
|
Income
taxes
|
—
|
|
|
1
|
|
|
2
|
|
|
1
|
|
(Gain) loss on
non-cash derivatives
|
14
|
|
|
14
|
|
|
14
|
|
|
15
|
|
Payments under
onerous performance obligation offset to other current and
long-term liabilities
|
(18)
|
|
|
(18)
|
|
|
(18)
|
|
|
(18)
|
|
Non-cash revenue from
contract restructuring
|
(46)
|
|
|
(46)
|
|
|
(46)
|
|
|
(46)
|
|
Other (4)
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
Adjusted EBITDA
before non-controlling interest
|
$
|
1,058
|
|
|
$
|
1,088
|
|
|
$
|
1,118
|
|
|
$
|
1,114
|
|
Non-controlling
interest share of adjusted EBITDA (5)
|
(58)
|
|
|
(63)
|
|
|
(68)
|
|
|
(64)
|
|
Adjusted EBITDA, net
to EnLink Midstream Partners, LP
|
$
|
1,000
|
|
|
$
|
1,025
|
|
|
$
|
1,050
|
|
|
$
|
1,050
|
|
Interest expense, net
of interest income
|
(180)
|
|
|
(184)
|
|
|
(188)
|
|
|
(181)
|
|
Amortization of EOGP
installment payable discount included in interest expense
(6)
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
Preferred unit
accrued cash distributions
|
(89)
|
|
|
(89)
|
|
|
(89)
|
|
|
(89)
|
|
Current taxes and
other
|
(2)
|
|
|
(6)
|
|
|
(9)
|
|
|
(4)
|
|
Maintenance capital
expenditures, net to EnLink Midstream Partners, LP
|
(50)
|
|
|
(52)
|
|
|
(55)
|
|
|
(47)
|
|
Distributable cash
flow
|
$
|
680
|
|
|
$
|
695
|
|
|
$
|
710
|
|
|
$
|
730
|
|
|
|
(1)
|
Represents the
revised forward-looking net income guidance for the year ended
December 31, 2018 published on July 31, 2018, and includes the
actual results for the six months ended June 30, 2018 and the
projected results for the second half of the year ended December
31, 2018. The forward-looking net income guidance from July 1, 2018
through December 31, 2018 excludes the potential impact of gains or
losses on derivative activity, gains or losses on disposition of
assets, impairment expense, gains or losses as a result of legal
settlements, gains or losses on extinguishment of debt, and the
financial effects of future acquisitions. The exclusion of these
items is due to the uncertainty regarding the occurrence, timing
and/or amount of these events.
|
(2)
|
Represents the
revised forward-looking net income guidance for the year ended
December 31, 2018, and includes the actual results for the nine
months ended September 30, 2018 and the projected results for the
fourth quarter of the year ended December 31, 2018. The
forward-looking net income guidance from October 1, 2018 through
December 31, 2018 excludes the potential impact of gains or losses
on derivative activity, gains or losses on disposition of assets,
impairment expense, gains or losses as a result of legal
settlements, gains or losses on extinguishment of debt, and the
financial effects of future acquisitions. The exclusion of these
items is due to the uncertainty regarding the occurrence, timing
and/or amount of these events.
|
(3)
|
Net income includes
estimated net income attributable to ENLK's non-controlling
interest in (i) ENLC's 16% share of net income from EOGP, (ii)
NGP's 49.9% share of net income from the Delaware Basin JV and
(iii) Marathon Petroleum Corp.'s 50% share of net income from the
Ascension JV.
|
(4)
|
Includes (i)
estimated accretion expense associated with asset retirement
obligations; (ii) estimated non-cash rent, which relates to lease
incentives pro-rated over the lease term; and (iii) successful
transaction costs, including transaction costs related to the GIP
transaction.
|
(5)
|
Non-controlling
interest share of adjusted EBITDA includes estimates for (i) ENLC's
16% share of adjusted EBITDA from EOGP, (ii) NGP's 49.9% share of
adjusted EBITDA from the Delaware Basin JV, (iii) Marathon's 50%
share of adjusted EBITDA from the Ascension JV and (iv) other minor
non-controlling interests.
|
(6)
|
Amortization of the
EOGP installment payable discount is considered non-cash interest
under our credit facility since the payment under the payable is
consideration for the acquisition of the EOGP assets.
|
EnLink Midstream does not provide a reconciliation of
forward-looking Net Cash Provided by Operating Activities to
Adjusted EBITDA because the companies are unable to predict with
reasonable certainty changes in working capital, which may impact
cash provided or used during the year. Working capital
includes accounts receivable, accounts payable and other current
assets and liabilities. These items are uncertain and depend on
various factors outside the companies' control.
EnLink Midstream,
LLC
|
Forward-Looking
Reconciliation of Net Income of ENLC to ENLC Cash Available for
Distribution (1)
|
(All amounts in
millions)
|
(Unaudited)
|
|
2018
Outlook
|
|
Low
|
|
Midpoint
|
|
High
|
Net income of ENLC
(2)
|
$
|
285
|
|
|
$
|
314
|
|
|
$
|
343
|
|
Less: Net income
attributable to ENLK (3)
|
(280)
|
|
|
(305)
|
|
|
(330)
|
|
Net income of ENLC
excluding ENLK
|
$
|
5
|
|
|
$
|
9
|
|
|
$
|
13
|
|
ENLC's share of
distributions from ENLK (4)
|
200
|
|
|
200
|
|
|
200
|
|
ENLC's interest in EOGP
non-cash expenses
|
12
|
|
|
12
|
|
|
12
|
|
Non-controlling
interest share of ENLK's net income (5)
|
(9)
|
|
|
(9)
|
|
|
(9)
|
|
ENLC deferred income
tax expense (6)
|
23
|
|
|
24
|
|
|
25
|
|
Maintenance capital
expenditures (7)
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
ENLC cash available
for distribution
|
$
|
230
|
|
|
$
|
235
|
|
|
$
|
240
|
|
|
|
(1)
|
The revised
forward-looking net income guidance for the year ended December 31,
2018 includes the actual results for the six months ended June 30,
2018 and the projected results for the second half of the year
ended December 31, 2018. The forward-looking net income guidance
from July 1, 2018 through December 31, 2018 excludes the potential
impact of gains or losses on derivative activity, gains or losses
on disposition of assets, impairment expense, gains or losses as a
result of legal settlements, gains or losses on extinguishment of
debt, and the financial effects of future acquisitions. The
exclusion of these items is due to the uncertainty regarding the
occurrence, timing and/or amount of these events.
|
(2)
|
Net income of ENLC
includes estimated net income attributable to ENLC's
non-controlling interest in ENLK.
|
(3)
|
Net income
attributable to ENLK is net of the estimated non-controlling
interest share attributable to the Delaware Basin JV, Ascension JV
and EOGP.
|
(4)
|
Represents quarterly
distributions estimated to be paid to ENLC by ENLK for
2018.
|
(5)
|
Represents estimated
amounts for (i) NGP's 49.9% share of adjusted EBITDA from the
Delaware Basin JV, (ii) Marathon Petroleum Corp.'s 50% share of
adjusted EBITDA from the Ascension JV and (iii) other minor
non-controlling interests.
|
(6)
|
Represents ENLC's
estimated stand-alone deferred taxes for 2018.
|
(7)
|
Represents 2018
maintenance capital expenditures attributable to ENLC's share of
EOGP.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/enlink-midstream-reports-third-quarter-2018-results-announces-cajun-sibon-iii-and-adds-ngl-fractionation-capacity-300745169.html
SOURCE EnLink Midstream