ENLINK MIDSTREAM PARTNERS LP DALLAS, May 2, 2017 /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 today financial results for the first quarter of 2017 and provided commercial and operational updates.
Highlights
-- ENLK reported net income of $13.3 million and net income attributable to
ENLK after non-controlling interest of $18.1 million for the quarter
ended March 31, 2017. ENLK achieved $207.6 million of adjusted EBITDA
net to ENLK for the same period. ENLK also reaffirmed its adjusted
EBITDA guidance outlook for the full-year 2017. Adjusted EBITDA is a
non-GAAP measure and is explained in greater detail under "Non-GAAP
Financial Information."
-- ENLC reported net income of $9.3 million and a net loss attributable to
ENLC after non-controlling interest of $1.9 million for the quarter
ended March 31, 2017. ENLC achieved $51 million of cash available for
distribution for the same period. ENLC also reaffirmed its cash
available for distribution guidance outlook for the full-year 2017. Cash
available for distribution is a non-GAAP measure and is explained in
greater detail under "Non-GAAP Financial Information."
-- EnLink successfully executed three large-scale organic growth projects
year to date. EnLink commenced operations at the Chisholm II facility in
the STACK play, adding 200 million cubic feet per day (MMcf/d) of
processing capacity to the Chisholm complex. In the Permian's Midland
Basin, EnLink began full-service operations of the Greater Chickadee
crude oil gathering system. In southeast Louisiana, EnLink expanded its
natural gas liquids (NGL) service offerings by commencing operations on
the Ascension Pipeline.
-- EnLink announced commercial success in the core of the Permian's Midland
Basin with the execution of nine new contracts during the first quarter
of 2017, of which three are related to the Greater Chickadee crude oil
gathering system and six are related to the gas gathering and processing
business. The new long-term, fee-based contracts expand and deepen key
producer relationships in the Permian and augment EnLink's development
of a regional gas and crude gathering platform.
-- EnLink continued commercial momentum in the Permian's prolific Delaware
Basin with the signing of two new, predominantly fee-based contracts
that are underpinned by acreage dedications. The agreements are with
large, investment-grade producers who are active in the area and are
incremental to the contract announced in February 2017. As a result of
heightened commercial activity, EnLink also announced the commencement
of a further expansion of gas processing capacity at the Lobo II
facility from 120 to 150 MMcf/d, which will bring total processing
capacity in the area to 185 MMcf/d. The follow-on expansion of 30 MMcf/d
is expected to be in service by the end of 2017 and is expected to
require less than $10 million of growth capital expenditures.
-- EnLink also realized gas gathering and processing commercial success in
the STACK with the signing of five primarily long-term, fee-based
contracts year to date, in addition to the contract announced in
February 2017, all with new producers, and adding approximately 20,000
gross operated acres to the company's portfolio.
"EnLink delivered another quarter of strong results while continuing to execute on our long-term strategic growth plan," said Barry E. Davis, EnLink Chairman and Chief Executive Officer. "This year is all about focus and execution for EnLink, and we are proud of what we've accomplished. We successfully executed and placed into service several key organic projects in our core growth areas, while adding significant strength and depth to our producer customer portfolio. We are taking critical steps to drive growth in top basins and markets with strong partners across our platform. Through it all, we remain committed to growing unitholder value and continue to focus on resuming distribution growth."
EnLink Midstream Partners, LP: First Quarter 2017 Financial Results
-- The Partnership reported net income attributable to ENLK of $18.1
million for the first quarter of 2017, compared to a net loss of $560.4
million for the first quarter of 2016. The 2016 net loss was primarily
due to non-cash expenses related to impairments.
-- The Partnership achieved $207.6 million of adjusted EBITDA net to ENLK
for the first quarter of 2017, compared to $195 million for the first
quarter of 2016. Included in adjusted EBITDA for the first quarter of
2017 was $17.5 million related to a gain on litigation settlement.
Included in adjusted EBITDA for the first quarter of 2016 was
approximately $10 million related to non-core assets which were
subsequently sold.
-- ENLK reaffirmed full-year 2017 adjusted EBITDA guidance.
-- The Partnership achieved net cash provided by operating activities of
$174.2 million for the first quarter of 2017, compared to net cash
provided by operating activities of $189.1 million for the first quarter
of 2016.
-- Distributable cash flow (DCF) attributable to ENLK was $153 million for
the first quarter of 2017, as compared to $155.4 million for the first
quarter of 2016. Included in DCF for the first quarter of 2017 is
approximately $5 million related to the litigation settlement noted
above. Distributable cash flow is a non-GAAP measure and is explained in
greater detail under "Non-GAAP Financial Information."
-- Growth capital expenditures net to ENLK for the first quarter of 2017
totaled approximately $207 million. Guidance for 2017 growth capital
expenditures net to ENLK remains unchanged at a range of $505 million to
$645 million.
-- As of April 27, 2017, ENLK had 346,452,004 common units outstanding.
EnLink Midstream, LLC: First Quarter 2017 Financial Results
-- The General Partner reported net income of $9.3 million for the first
quarter of 2017, compared to a net loss of $871.3 million in the first
quarter of 2016. The net loss in 2016 was primarily due to non-cash
expenses related to impairments.
-- The General Partner's cash available for distribution was $51 million
for the first quarter of 2017, compared to $48.4 million in the first
quarter of 2016.
-- ENLC reaffirmed full-year 2017 cash available for distribution guidance.
-- Growth capital expenditures net to ENLC for the first quarter of 2017
totaled approximately $21 million. Guidance for 2017 growth capital
expenditures net to ENLC remains unchanged at a range of $60 million to
$70 million.
-- As of April 27, 2017, ENLC had 180,557,694 common units outstanding.
Commercial and Operational Updates
Central Oklahoma:
EnLink successfully increased gas processing capacity in Central Oklahoma at the Chisholm complex by 200 MMcf/d in early April 2017. The Chisholm III plant expansion of an additional 200 MMcf/d is progressing well and is expected to be operational during the fourth quarter of 2017. Once Chisholm III is operational, EnLink will operate approximately 1 billion cubic feet per day of processing capacity in Central Oklahoma and will continue to be one of the largest providers of gas processing in the STACK.
Midland Basin:
EnLink announced commercial success in the core of the Permian's Midland Basin, with the execution of three new contracts during the first quarter of 2017 related to the Greater Chickadee crude oil gathering system. EnLink has been successful in expanding the scope of the gathering system as a result of adding new customers, volumes, and dedicated acreage. The new contracts expand and deepen key producer relationships in the Permian and augment EnLink's development of a regional crude gathering platform. The Greater Chickadee crude oil gathering system became operational during the first quarter of 2017.
Delaware Basin:
-- EnLink achieved increased commercial momentum in the Delaware Basin with
the recent signing of two new predominantly fee-based contracts, which
are both supported by acreage dedications. The agreements are with
large, active, investment-grade producers and are in addition to the
contract announced in February 2017. EnLink's Delaware Basin joint
venture footprint is located in the core of the northern Delaware Basin
and consists of new, high-quality assets, which continue to prove to be
advantaged in a very competitive environment. EnLink is currently
evaluating the next phase of gas processing capacity expansion for the
Delaware Basin joint venture, as new customer commitments are
accelerating volume growth in the area.
-- EnLink is executing on the previously announced 60 MMcf/d expansion of
gas processing capacity at the Delaware Basin joint venture's Lobo II
facility, which will bring nameplate capacity to 120 MMcf/d and is
expected to be operational by the end of the second quarter of 2017.
Separately, EnLink announced the initiation of a new project to further
expand the nameplate capacity of Lobo II by 30 to 150 MMcf/d, at an
expected cost of less than $10 million of growth capital expenditures.
The incremental expansion is expected to be completed by the end of 2017
and, together with the Lobo I processing facility, will bring the
Delaware Basin joint venture's total processing capacity in the area to
185 MMcf/d.
Louisiana:
-- EnLink's Louisiana NGL platform is well positioned to benefit from the
upcoming processing capacity growth in Central Oklahoma. NGL output from
the Chisholm II plant is currently linked to EnLink's Louisiana NGL
system through pipelines owned by third parties. EnLink is evaluating
alternatives to optimize the connectivity between its upstream gathering
and processing businesses and its NGL business.
-- The Ascension Pipeline in southeast Louisiana, which is a joint venture
with Marathon Petroleum Corp., became operational during the first
quarter of 2017 and is already enhancing service offerings in the
region. EnLink expects that Ascension will create opportunities for
future bolt-on projects.
-- EnLink achieved another quarter of record volumes on its Louisiana gas
system during the first quarter of 2017, as demand across the footprint
remained strong. EnLink continued to enhance operational capacity and
capture new and repeat business.
North Texas:
-- Devon Energy Corp. previously announced 2017 capital investment
increases related to its northern Barnett Shale operations. Devon
recently announced that its investment is expected to focus on a six
well program to apply new horizontal refrac techniques and the
initiation of a six well pilot drilling program. They expect to begin
drilling new wells in the latter part of the second quarter or early
third quarter of 2017. Devon also noted that additional capital could be
allocated to the Barnett in 2017, as these projects have the potential
to deliver highly competitive returns.
-- Devon announced today its intent to divest approximately $1 billion of
upstream assets across its portfolio. The non-core assets identified for
monetization include select portions of the Barnett Shale, with a focus
around Johnson County properties. EnLink holds acreage dedication rights
related to Devon's East Johnson County operations, with current
financial activity related to midstream services provided in this area
representing approximately 7 percent of EnLink's total North Texas
revenues. Devon's divestiture of the Johnson County assets could
translate into a strengthening of volumes in this area on EnLink's
system over the mid-to-long term, if sold to a third party with a focus
on production growth.
First Quarter 2017 Earnings Call Details
The General Partner and the Partnership will hold a conference call to discuss first quarter 2017 financial results on Wednesday, May 3, 2017, at 9 a.m. Central Time (10 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/10104534, 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 www.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 www.EnLink.com for more information on how EnLink connects energy to life.
Non-GAAP Financial Information
This press release contains non-generally accepted accounting principle financial measures that we refer to as adjusted EBITDA, distributable cash flow, gross operating margin, and the General Partner's cash available for distribution. We define adjusted EBITDA as net income (loss) plus interest expense, provision for income taxes, depreciation and amortization expense, impairment expense, unit-based compensation, (gain) loss on non-cash derivatives, (gain) loss on disposition of assets, successful transaction costs, accretion expense associated with asset retirement obligations, reimbursed employee costs, non-cash rent and distributions from unconsolidated affiliate investments less payments under onerous performance obligations, non-controlling interest and income (loss) from unconsolidated affiliate investments. We define distributable cash flow as adjusted EBITDA (defined above), net to the Partnership, less interest expense (excluding amortization of the Tall Oak acquisition installment payable discount), litigation settlement adjustment, adjustments for the mandatorily redeemable non-controlling interest, interest rate swaps, cash taxes and other, and maintenance capital expenditures. We define gross operating margin, as revenues less cost of sales. The General Partner's cash available for distribution is defined as net income (loss) of the General Partner less the net income (loss) of the Partnership, which is consolidated into the General Partner's net income (loss), plus the General Partner's share of distributions from the Partnership, the General Partner's share of EnLink Oklahoma T.O. non-cash expenses, maintenance capital expenditures, the General Partner's deferred income tax expense, the General Partner's corporate goodwill impairment and the General Partner's acquisition transaction costs attributable to its share of the EnLink Oklahoma T.O. acquisition.
The Partnership's coverage ratio is calculated by dividing distributable cash flow by distributions paid to the General Partner and the unitholders. The General Partner's coverage ratio is calculated by dividing cash available for distribution by distributions paid 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 are 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 prior-reported results and a meaningful measure 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.
Gross operating margin, 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.
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. Such forward-looking statements include, but are not limited to, statements about guidance, projected or forecasted financial and operating results, operational results of our customers, results in certain basins, future rig count information, objectives, project timing, 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 and cash flows include, without limitation,(a) the dependence on Devon for a substantial portion of the natural gas that we gather, process and transport, (b) developments that materially and adversely affect Devon or our other customers, (c) adverse developments in the midstream business may reduce our ability to make distributions, (d) our vulnerability to having a significant portion of our operations concentrated in the Barnett Shale, (e) the amount of hydrocarbons transported in our gathering and transmission lines and the level of our processing and fractionation operations, (f) impairments to goodwill, long-lived assets and equity method investments, (g) our ability to balance our purchases and sales, (h) fluctuations in oil, natural gas and NGL prices, (i) construction risks in our major development projects, (j) conducting certain of our operations through joint ventures, (k) reductions in our credit ratings, (l) our debt levels and restrictions contained in our debt documents, (m) our ability to consummate future acquisitions, successfully integrate any acquired businesses, realize any cost savings and other synergies from any acquisition, (n) changes in the availability and cost of capital, (o) competitive conditions in our industry and their impact on our ability to connect hydrocarbon supplies to our assets, (p) operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control, (q) a failure in our computing systems or a cyber-attack on our systems, and (r) 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 growth capital expenditures guidance information in this press release are inherently uncertain and, though considered reasonable by the EnLink Midstream 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 Midstream'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.
EnLink Midstream Partners, LP
Selected Financial Data
(All amounts in millions except per unit amounts)
(Unaudited)
Three Months Ended
March 31,
2017 2016
---- ----
Total
revenues $1,321.9 $889.7
Cost of
sales (1) 1,002.3 586.2
------- -----
Gross
operating
margin 319.6 303.5
Operating costs and
expenses:
Operating
expenses
(2) 104.1 98.2
General and
administrative 35.0 33.2
(Gain) loss
on
disposition
of assets 5.1 (0.2)
Depreciation
and
amortization 128.3 121.9
Impairments 7.0 566.3
Gain on
litigation
settlement (17.5) -
----- ---
Total
operating
costs and
expenses 262.0 819.4
----- -----
Operating
income
(loss) 57.6 (515.9)
Other income (expense):
Interest
expense,
net of
interest
income (44.5) (43.7)
Income
(loss)
from
unconsolidated
affiliates 0.7 (2.4)
Other
income - 0.1
--- ---
Total other
expense (43.8) (46.0)
----- -----
Income
(loss)
before
non-
controlling
interest
and income
taxes 13.8 (561.9)
Income tax
provision (0.5) (1.0)
---- ----
Net income
(loss) 13.3 (562.9)
Net loss
attributable
to the
non-
controlling
interest (4.8) (2.5)
Net income
(loss)
attributable
to EnLink
Midstream
Partners,
LP $18.1 $(560.4)
===== =======
General
partner
interest
in net
income $5.9 $7.4
==== ====
Limited
partners'
interest
in net
loss
attributable
to EnLink
Midstream
Partners,
LP $(9.3) $(567.2)
=====
Class C
partners'
interest
in net
loss
attributable
to EnLink
Midstream
Partners,
LP $ - $(12.4)
=== === ======
Preferred
interest
in net
income
attributable
to EnLink
Midstream
Partners,
LP $21.5 $11.8
===== =====
Net loss attributable to
EnLink Midstream Partners,
LP per limited partners'
unit:
Basic
common
unit $(0.03) $(1.74)
====== ======
Diluted
common
unit $(0.03) $(1.74)
====== ======
(1) Includes related party cost of sales of
$28.7 million and $42.6 million for the
three months ended March 31, 2017 and
2016, respectively.
(2) Includes related party operating expenses
of $0.2 million and $0.1 million for the
three months ended March 31, 2017 and
2016, respectively.
EnLink Midstream Partners, LP
Reconciliation of Net Income (Loss) 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
March 31,
2017 2016
---- ----
Net income (loss) $13.3 $(562.9)
Interest expense, net of interest income 44.5 43.7
Depreciation and amortization 128.3 121.9
Impairments 7.0 566.3
(Income) loss from unconsolidated affiliates (1) (0.7) 2.4
Distribution from unconsolidated affiliates 2.9 9.2
(Gain) loss on disposition of assets 5.1 (0.2)
Unit-based compensation 19.3 7.9
Income tax provision 0.5 1.0
(Gain) loss on non-cash derivatives (5.3) 6.5
Payments under onerous performance obligation offset to other current and long-term liabilities (4.5) (4.4)
Other (2) 0.8 4.4
--- ---
Adjusted EBITDA before non-controlling interest 211.2 195.8
Non-controlling interest share of adjusted EBITDA (3) (3.6) (0.8)
---- ----
Adjusted EBITDA, net to EnLink Midstream Partners, LP $207.6 $195.0
------ ------
Interest expense, net of interest income (44.5) (43.7)
Amortization of EnLink Oklahoma T.O. installment payable discount included in interest expense (4) 7.0 12.4
Litigation settlement adjustment (5) (12.3) -
Non-cash adjustment for redeemable non-controlling interest - 0.2
Cash taxes and other (0.6) (1.0)
Maintenance capital expenditures (4.2) (7.5)
---- ----
Distributable cash flow $153.0 $155.4
====== ======
Actual declared distribution $151.4 $142.2
Distribution Coverage 1.01x 1.09x
Distributions declared per limited partner unit $0.39 $0.39
(1) Includes a loss of $3.4 million
for the three months ended March
31, 2017 from the sale of HEP in
March 2017.
(2) Includes the following: accretion
expense associated with asset
retirement obligations;
reimbursed employee costs from
Devon and LPC Crude Oil
Marketing LLC ("LPC");
successful acquisition
transaction costs, which we do
not consider in determining
adjusted EBITDA because
operating cash flows are not
used to fund such costs; and
non-cash rent, which relates to
lease incentives pro-rated over
the lease term.
(3) Non-controlling interest share
of adjusted EBITDA includes
ENLC's 16% share of adjusted
EBITDA from EnLink Oklahoma
T.O., NGP Natural Resources XI,
L.P.'s ("NGP") 49.9% share of
adjusted EBITDA from the
Delaware Basin JV formed in
August 2016 and other minor non-
controlling interests.
(4) Amortization of the EnLink
Oklahoma T.O. 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 EnLink
Oklahoma T.O. assets.
(5) Represents recoveries from
litigation settlement for
amounts not previously deducted
from distributable cash flow.
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
March 31,
2017 2016
---- ----
Net cash
provided
by
operating
activities $174.2 $189.1
Interest
expense,
net (1) 37.3 31.4
Current
income
tax 0.8 1.0
Distributions
from
unconsolidated
affiliate
investment
in
excess
of
earnings 2.9 9.2
Other
(2) 0.9 4.5
Changes in operating
assets and liabilities
which provided cash:
Accounts
receivable,
accrued
revenues,
inventories
and
other (19.4) (46.9)
Accounts
payable,
accrued
gas and
crude
oil
purchases
and
other
(3) 14.5 7.5
Adjusted
EBITDA
before
non-
controlling
interest $211.2 $195.8
Non-
controlling
interest
share
of
adjusted
EBITDA
(4) (3.6) (0.8)
Adjusted
EBITDA,
net to
EnLink
Midstream
Partners,
LP $207.6 $195.0
------ ------
Interest
expense,
net of
interest
income (44.5) (43.7)
Amortization
of expense
EnLink (5)
Oklahoma
T.O.
installment
payable
discount
included
in
interest 7.0 12.4
Litigation
settlement
adjustment
(6) (12.3) -
Non-
cash
adjustment
for
redeemable
non-
controlling
interest - 0.2
Cash
taxes
and
other (0.6) (1.0)
Maintenance
capital
expenditures (4.2) (7.5)
---- ----
Distributable
cash
flow $153.0 $155.4
====== ======
(1) Net of amortization of debt
issuance costs, discount and
premium, and valuation
adjustment for redeemable non-
controlling interest included in
interest expense but not
included in net cash provided by
operating activities.
(2) Includes the following:
successful acquisition
transaction costs, which we do
not consider in determining
adjusted EBITDA because
operating cash flows are not
used to fund such costs, non-
cash rent, which relates to
lease incentives pro-rated over
the lease term, and reimbursed
employee costs from Devon and
LPC, which are costs reimbursed
to us by previous employers
pursuant to acquisition or
merger.
(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% share of adjusted
EBITDA from EnLink Oklahoma
T.O., NGP's 49.9% share of
adjusted EBITDA from the
Delaware Basin JV and other
minor non-controlling
interests.
(5) Amortization of the EnLink
Oklahoma T.O. 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 EnLink
Oklahoma T.O. assets.
(6) Represents recoveries from
litigation settlement for
amounts not previously deducted
from distributable cash flow.
EnLink Midstream Partners, LP
Operating Data
(Unaudited)
Three Months Ended
March 31,
2017 2016
---- ----
Midstream Volumes:
Texas
Gathering and
Transportation (MMBtu/d)
(1) 2,274,100 2,743,400
Processing (MMBtu/d) 1,162,100 1,198,100
Louisiana
Gathering and
Transportation (MMBtu/d) 1,931,300 1,475,000
Processing (MMBtu/d) 467,800 517,800
NGL Fractionation (Gals/d) 5,245,500 5,020,200
Oklahoma
Gathering and
Transportation (MMBtu/d) 705,500 617,000
Processing (MMBtu/d) 652,800 569,700
Crude and Condensate
Crude Oil Handling (Bbls/
d) 110,400 124,700
Brine Disposal (Bbls/d) 4,300 3,500
(1) Gathering and transportation
volumes in Texas for the three
months ended March 31, 2016
included 291,000 MMBtu/d related
to the North Texas Pipeline,
which was divested in the fourth
quarter of 2016.
EnLink Midstream, LLC
Selected Financial Data
(All amounts in millions except per unit amounts)
(Unaudited)
Three Months Ended
March 31,
2017 2016
---- ----
Total revenues $1,321.9 $889.7
Cost of sales (1) 1,002.3 586.2
------- -----
Gross operating margin 319.6 303.5
Operating costs and expenses:
Operating expenses (2) 104.1 98.2
General and administrative 36.1 35.1
(Gain) loss on disposition of
assets 5.1 (0.2)
Depreciation and amortization 128.3 121.9
Impairments 7.0 873.3
Gain on litigation settlement (17.5) -
----- ---
Total operating costs and
expenses 263.1 1,128.3
----- -------
Operating income (loss) 56.5 (824.8)
Other income (expense):
Interest expense, net of
interest income (44.9) (44.0)
Income (loss) from
unconsolidated affiliates 0.7 (2.4)
Other income - 0.1
--- ---
Total other expense (44.2) (46.3)
----- -----
Income (loss) before non-
controlling interest and income
taxes 12.3 (871.1)
Income tax provision (3.0) (0.2)
---- ----
Net income (loss) 9.3 (871.3)
Net income (loss) attributable
to the non-controlling
interest 11.2 (413.7)
---- ------
Net loss attributable to EnLink
Midstream, LLC $(1.9) $(457.6)
===== =======
Net loss attributable to EnLink Midstream, LLC
per unit:
Basic common unit $(0.01) $(2.56)
------ ------
Diluted common unit $(0.01) $(2.56)
====== ======
(1) Includes related party cost of sales of
$28.7 million and $42.6 million for the
three months ended March 31, 2017 and
2016, respectively.
(2) Includes related party operating
expenses of $0.2 million and $0.1
million for the three months ended
March 31, 2017 and 2016, respectively.
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
March 31,
2017 2016
---- ----
Distribution declared
by ENLK associated
with (1):
General
partner
interest $0.6 $0.6
Incentive
distribution
rights 14.7 13.8
ENLK
common
units
owned 34.5 34.5
---- ----
Total
share
of
ENLK
distributions
declared $49.8 $48.9
Adjusted
EBITDA
of
EnLink
Oklahoma
T.O.
(2) 2.6 $0.9
Transaction
costs
(3) - $0.7
---
Total
cash
available $52.4 $50.5
----- -----
Uses of cash:
General
and
administrative
expenses (1.0) (1.8)
Current
income
taxes
(4) - -
Interest
expense (0.4) (0.3)
Total
cash
used $(1.4) $(2.1)
ENLC
cash
available
for
distribution $51.0 $48.4
===== =====
Distribution
declared
per
ENLC
unit $0.255 $0.255
Cash
distribution
declared $46.7 $46.5
Distribution
coverage 1.09x 1.04x
(1) Represents distributions to be
paid to ENLC on May 12, 2017
and distributions paid on May
12, 2016.
(2) Represents ENLC's interest in
EnLink Oklahoma T.O. adjusted
EBITDA, which is disbursed to
ENLC by EnLink Oklahoma T.O. on
a monthly basis and includes
$0.3 million and $0.1 million
of allocated expenses from ENLK
for the three months ended
March 31, 2017 and 2016,
respectively. EnLink Oklahoma
T.O. adjusted EBITDA is defined
as earnings before depreciation
and amortization and provision
for income taxes.
(3) Represents acquisition
transaction costs attributable
to ENLC's 16% interest in
EnLink Oklahoma T.O, which are
considered growth capital
expenditures as part of the
cost of the assets acquired.
(4) Represents ENLC's stand-alone
current tax expense.
EnLink Midstream, LLC
Reconciliation of Net Income of ENLC to ENLC Cash Available for Distribution
(All amounts in millions)
(Unaudited)
Three Months Ended
March 31,
2017 2016
---- ----
Net
income
(loss)
of
ENLC $9.3 $(871.3)
Less:
Net
income
(loss)
attributable
to
ENLK 18.1 (560.4)
Net
loss
of
ENLC
excluding
ENLK $(8.8) $(310.9)
ENLC's
share
of
distributions
from
ENLK
(1) 49.8 48.9
ENLC's
interest
in
EnLink
Oklahoma
T.O.'s
non-
cash
expenses
(2) 4.0 3.2
ENLC
deferred
income
tax
(benefit)
expense
(3) 2.5 (0.8)
ENLC
corporate
goodwill
impairment - 307.0
Non-
controlling
interest
share
of
ENLK's
net
income
(loss)
(4) 3.4 0.2
Other
items
(5) 0.1 0.8
--- ---
ENLC
cash
available
for
distribution $51.0 $48.4
===== =====
(1) Represents distributions declared
by ENLK and to be paid to ENLC on
May 12, 2017 and distributions
paid by ENLK to ENLC on May 12,
2016.
(2) Includes depreciation and
amortization and unit-based
compensation expense allocated to
EnLink Oklahoma T.O. for the
three months ended March 31,
2017, and depreciation and
amortization for the three months
ended March 31, 2016.
(3) Represents ENLC's stand-alone
deferred taxes.
(4) Represents non-controlling
interest share of ENLK's net loss
in the Delaware Basin JV and
other minor non-controlling
interests.
(5) Represents transaction costs
attributable to ENLC's share of
the acquisition of EnLink
Oklahoma T.O. for the three
months ended March 31, 2016 and
other non-cash items not
included in cash available for
distribution.
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
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/enlink-midstream-reports-first-quarter-2017-results-provides-commercial-and-operational-updates-300450032.html
SOURCE EnLink Midstream
