Enlink Midstream reports third quarter results

EnLink Midstream Partners, LP financial results

The EnLink Midstream Partners realised adjusted EBITDA of US$ 111.3 million, distributable cash flow of US$ 89.1 million and net income of US$ 44.0 million for Q3 2014. The gross operating margin was US$ 254.2 million and operating income was US$ 90.1 million.

“We experienced another quarter of solid performance,” said Barry E. Davis, EnLink Midstream President and Chief Executive Officer. “We completed construction of approximately US$ 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 US$ 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.”

EnLink Midstream Partners’ 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 EnLink Midstream Partners’ Q3 2014 gross operating margin is listed below:

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

Q3 2014 operating expenses were US$ 75.8 million; general and administrative expenses were US$ 22.8 million; depreciation and amortisation expense was US$ 71.6 million; gain on litigation settlement was US$ 6.1 million; interest expense was US$ 12.7 million; and income from equity investment was US$ 5.6 million. Net income per limited partner common unit for Q3 2014 was US$ 0.18.

EnLink Midstream, LLC financial results

EnLink Midstream, LLC reported net income of US$ 28.8 million. The cash available for distribution was US$ 62.2 million, which resulted in a 1.65x coverage ratio on the declared distribution of $0.23 per unit for the quarter.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/06112014/enlink-midstream-reports-third-quarter-results-987/