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EnLink's Texas Activity Pulls in Strongest 3Q Results

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   |    Wednesday,November 05,2014

The EnLink Midstream companies, EnLink Midstream Partners, LP and EnLink Midstream, LLC reported results for the third quarter of 2014.

Financial Results

EnLink Midstream Partners

The Partnership realized adjusted EBITDA of $111.3 million, distributable cash flow of $89.1 million and net income of $44.0 million for the third quarter of 2014. The Partnership’s third quarter of 2014 gross operating margin was $254.2 million and operating income was $90.1 million.

Barry E. Davis, EnLink Midstream President and Chief Executive Officer, commented: "We experienced another quarter of solid performance. We completed construction of approximately $1 billion of organic growth projects, including the Cajun-Sibon expansion project in South Louisiana and a portion of the Bearkat expansion project in West Texas. In just the last 90 days, we’ve also announced projects that represent the next $1 billion in new capital touching on each of our four growth avenues. These new announcements include a drop down acquisition, an expansion project serving Devon Energy in the Permian basin, organic growth projects in South Louisiana and the Utica shale, and the acquisition of natural gas assets in the Louisiana Gulf Coast. We raised distributions for unitholders of both ENLK and ENLC, and we continue to execute on our goal to double the size of EnLink by 2017 and create significant value for our unitholders and customers."

The Partnership’s operating and reporting segments are based principally upon geographic regions served and consist of the following: the Texas segment, which includes natural gas gathering, processing, transmission and fractionation operations located in north Texas and west Texas; the Louisiana segment, which includes pipelines, processing plants and NGL assets located in Louisiana; the Oklahoma segment, which includes natural gas gathering and processing operations located in Oklahoma; and the ORV segment, which includes rail, truck, pipeline and barge facilities to deliver crude and condensate and brine disposal wells in the Ohio River Valley.

Each business segment’s contribution to the Partnership’s third quarter 2014 gross operating margin is below:

• The Texas segment contributed $149.4 million of gross operating margin.
• The Louisiana segment contributed $43.9 million of gross operating margin.
• The Oklahoma segment contributed $45.9 million of gross operating margin.
• The ORV segment contributed $14.0 million of gross operating margin.

The Partnership’s third quarter 2014 operating expenses were $75.8 million; general and administrative expenses were $22.8 million; depreciation and amortization expense was $71.6 million; gain on litigation settlement was $6.1 million; interest expense was $12.7 million; and income from equity investment was $5.6 million.

Net income per limited partner common unit for the third quarter of 2014 was $0.18.

EnLink Midstream, LLC

The General Partner reported net income of $28.8 million. The General Partner’s cash available for distribution was $62.2 million, which resulted in a 1.65x coverage ratio on the declared distribution of $0.23 per General Partner unit for the quarter.