ENLC - EnLink Midstream, LLC

NYSE - NYSE Delayed price. Currency in USD
4.8600
+0.1700 (+3.62%)
At close: 4:02PM EST

5.0100 +0.15 (3.09%)
After hours: 6:55PM EST

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Previous close4.6900
Open4.6900
Bid4.8800 x 3200
Ask4.8900 x 1200
Day's range4.6650 - 4.9200
52-week range4.6650 - 13.1000
Volume3,036,129
Avg. volume3,436,800
Market cap2.37B
Beta (3Y monthly)1.98
PE ratio (TTM)N/A
EPS (TTM)-0.6260
Earnings date17 Feb 2020 - 21 Feb 2020
Forward dividend & yield1.13 (24.14%)
Ex-dividend date2019-10-25
1y target est7.92
  • EnLink's 20% Yield Is Everything Wrong With America's Pipelines
    Bloomberg

    EnLink's 20% Yield Is Everything Wrong With America's Pipelines

    (Bloomberg Opinion) -- When a stock goes into free fall, one hope is that some acquirer out there will catch it. Sometimes, though, suitors come with their own complications. That brings us to EnLink Midstream LLC.EnLink operates gathering and processing pipelines and other oil and gas infrastructure across several onshore U.S. basins. In the summer of 2018, Devon Energy Corp., an exploration and production company, sold its stakes in various EnLink entities to Global Infrastructure Partners for just over $3.1 billion. After a subsequent simplification of EnLink, GIP owns 46% of the common units, now worth $1.2 billion.EnLink has been undone by weaker commodity prices. Earlier this month, Devon announced it had dropped the number of rigs operating in one of Oklahoma’s shale basins to precisely zero (how’s that for a coda to last year’s deal?). This confirmed a trend evident already in permitting and drilling data for the Anadarko basin, where just four companies account for the majority of activity; and, crucially, they have operations in other basins that are more competitive in terms of breakeven costs.The distribution yield on EnLink’s stock now scrapes 20% — on a par with the current yield on long-dated bonds of Chesapeake Energy Corp., which just issued a going-concern notice. There’s being paid to wait, as they say, and then there’s being paid to wait in that trash compactor from Star Wars.EnLink’s cash flow math is tight. Consensus forecasts — which have now had time to digest cost savings pledged on the latest earnings call — put Ebitda at $1.1 billion in 2020. Take off around $500-$550 million for cash interest and (much-reduced) capital expenditure, and that leaves about $550-$600 million versus current distributions of about $550 million. With Ebitda forecast to grow at just 1% a year through 2022, that tight squeeze won’t ease up. Wells Fargo & Co.’s analysts estimated in a recent report that, absent a change in distribution policy, current leverage of 4.2 times adjusted Ebitda could reach almost 6 times by 2025. By any rational measure, the distribution should be cut.The complicating issue is that EnLink’s leverage is compounded by more leverage at the GIP level in the form of a $1 billion term loan. Technically, it is separate from EnLink’s own finances. But as the company acknowledges in its own 10K filing, debt owed by an entity owning almost half the company plus its managing partner, and which is serviced by EnLink’s own distributions, is very much a risk factor. By my calculations, the loan requires roughly $80 million a year of EnLink distributions (GIP didn’t respond to requests for comment)(1). As of now, distributions amount to about $255 million. So, in theory, EnLink could slash its payout by about two-thirds and GIP could still service the loan.In practice, that would be a bitter pill to swallow. As it is, GIP’s common units in EnLink are now worth not much more than the value of the loan and way below the original investment. Cutting distributions would certainly help EnLink’s balance sheet; all else equal, a 67% cut would save enough cash to take leverage below 4 times adjusted Ebitda, in line with long-term targets. But this would almost certainly push the value of GIP’s stake even lower, at least in the near term. As Ethan Bellamy, analyst at Robert W. Baird & Co. Inc., put it to me:Does GIP leverage prevent EnLink from cutting the distribution and right sizing the ship? It wouldn’t be the first time we’ve seen parental leverage from a private equity sponsor lead to sub-optimal outcomes for the subsidiary public entity.On the other hand, if EnLink cuts and its price falls further, then GIP might be tempted to make an offer for the rest of the company in an effort to salvage things out of the public eye. Needless to say, a takeover premium on an even lower EnLink price would do very little to make up for the losses suffered to date. We are seeing this play out with Blackstone Group Inc.’s offer for another midstream company, Tallgrass Energy LP, although the pain there is compounded by an agreement between the buyer and Tallgrass’s executives that effectively shields the latter from losses (see this).EnLink captures so much of what has gone wrong in America’s pipelines business. There’s the misalignment of interest between ordinary investors and the sponsors steering the company’s destiny. There’s the exposure to commodity markets from which, in theory, midstream companies were supposed to be insulated. Above all, there’s the overcapitalization of this sector, with obligations piled onto assets (largely to fund outsize payouts to controlling sponsors) that ultimately couldn’t generate the profits to service them (largely because too much stuff got built).Almost exactly four years ago, Kinder Morgan Inc. presaged the midstream reckoning to come by slashing its dividend. The stock has been listless for much of the period since then; even with the cut, chipping away at debts in a post-boom environment is a laborious process. As this decade of nominal success for America’s shale boom draws to a close, EnLink’s predicament shows the hangover remains very much a work in progress.(1) This assumes the full $1 billion remains outstanding. Interest is charged at Libor plus 4.25%, equating to 6.15%, or about $62 million. A debt-service covenant ratio of 1.1 times takes this to $68 million. Mandatory annual amortization of 1% of the loan plus assumed G&A costs results in an estimated minimum requirement of about $80 million to service the debt. Details derived from Moody's Corp.'s initial rating report from July 2018.To contact the author of this story: Liam Denning at ldenning1@bloomberg.netTo contact the editor responsible for this story: Mark Gongloff at mgongloff1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • EnLink Midstream (ENLC) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
    Zacks

    EnLink Midstream (ENLC) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

    EnLink Midstream (ENLC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

  • EnLink Midstream (ENLC) Jumps: Stock Rises 7%
    Zacks

    EnLink Midstream (ENLC) Jumps: Stock Rises 7%

    EnLink Midstream (ENLC) saw a big move last session, as its shares jumped more than 7% on the day, amid huge volumes.

  • Shares of Enlink Midstream Crash After Earnings Miss, CEO Departure
    Motley Fool

    Shares of Enlink Midstream Crash After Earnings Miss, CEO Departure

    The oil and gas midstream company looks like it's having some C-suite issues.

  • EnLink Midstream LLC (ENLC) Q2 2019 Earnings Call Transcript
    Motley Fool

    EnLink Midstream LLC (ENLC) Q2 2019 Earnings Call Transcript

    ENLC earnings call for the period ending June 30, 2019.

  • EnLink Midstream (ENLC) Q2 Earnings and Revenues Lag Estimates
    Zacks

    EnLink Midstream (ENLC) Q2 Earnings and Revenues Lag Estimates

    EnLink Midstream (ENLC) delivered earnings and revenue surprises of -16.67% and -6.62%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?

  • What's in Store for Denbury Resources' (DNR) Q2 Earnings?
    Zacks

    What's in Store for Denbury Resources' (DNR) Q2 Earnings?

    Denbury Resources' (DNR) second-quarter 2019 results are expected to be hit by lower oil production and prices.

  • EnLink Midstream (ENLC) Expected to Beat Earnings Estimates: What to Know Ahead of Q2 Release
    Zacks

    EnLink Midstream (ENLC) Expected to Beat Earnings Estimates: What to Know Ahead of Q2 Release

    EnLink Midstream (ENLC) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

  • Five High-Dividend Stocks You Should Watch
    Market Realist

    Five High-Dividend Stocks You Should Watch

    Let’s take a look at five stocks that are trading with high dividend yields and the risks involved with each.

  • Midstream Stocks Outperformed the Energy Space Last Week
    Market Realist

    Midstream Stocks Outperformed the Energy Space Last Week

    Last week (ended July 5), midstream stock EnLink Midstream LLC (ENLC) outperformed the energy space. Here's a summary of midstream stocks' performance.

  • EnLink Midstream LLC (ENLC) Q1 2019 Earnings Call Transcript
    Motley Fool

    EnLink Midstream LLC (ENLC) Q1 2019 Earnings Call Transcript

    ENLC earnings call for the period ending March 31, 2019.

  • EnLink Midstream (ENLC) Q1 Earnings and Revenues Beat Estimates
    Zacks

    EnLink Midstream (ENLC) Q1 Earnings and Revenues Beat Estimates

    EnLink Midstream (ENLC) delivered earnings and revenue surprises of 25.00% and 1.68%, respectively, for the quarter ended March 2019. Do the numbers hold clues to what lies ahead for the stock?

  • Earnings Preview: EnLink Midstream (ENLC) Q1 Earnings Expected to Decline
    Zacks

    Earnings Preview: EnLink Midstream (ENLC) Q1 Earnings Expected to Decline

    EnLink Midstream (ENLC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

  • 2 Ultra-High-Yield Dividend Stocks for Low-Risk Investors
    Motley Fool

    2 Ultra-High-Yield Dividend Stocks for Low-Risk Investors

    These companies offer sky-high yields that are on rock-solid ground.

  • Which Midstream Stocks Generated the Most Returns in Q1?
    Market Realist

    Which Midstream Stocks Generated the Most Returns in Q1?

    Midstream Stocks Outperformed Broader Markets in Q1(Continued from Prior Part)Stocks that generated the highest returns NGL Energy Partners (NGL) generated total returns, including price appreciation and dividends, of ~50% in the first quarter. The

  • 3 Ultra-High-Yield Dividend Stocks You Won't Want to Miss
    Motley Fool

    3 Ultra-High-Yield Dividend Stocks You Won't Want to Miss

    Yield-seeking investors should take note of these monster payouts.

  • MLP and Midstream Rating Updates Last Week
    Market Realist

    MLP and Midstream Rating Updates Last Week

    What Happened in the Midstream Sector Last Week?(Continued from Prior Part)J.P. Morgan downgraded Cheniere Energy Partners On February 22, J.P. Morgan cut its rating for Cheniere Energy Partners (CQP) from “overweight” to “neutral.” Among the

  • Forget Buckeye Partners: Here Are 3 Better Dividend Stocks
    Motley Fool

    Forget Buckeye Partners: Here Are 3 Better Dividend Stocks

    While the pipeline and terminal MLP’s sky-high yield might seem attractive, these rivals are better alternatives.

  • GlobeNewswire

    Factors of Influence in 2019, Key Indicators and Opportunity within EnLink Midstream, Pepsico, Arista Networks, Maiden, GCI Liberty, and Akari Therapeutics — New Research Emphasizes Economic Growth

    NEW YORK, Feb. 21, 2019 -- In new independent research reports released early this morning, Capital Review released its latest key findings for all current investors, traders,.

  • EnLink Midstream LLC (ENLC) Q4 2018 Earnings Conference Call Transcript
    Motley Fool

    EnLink Midstream LLC (ENLC) Q4 2018 Earnings Conference Call Transcript

    ENLC earnings call for the period ending December 31, 2018.

  • EnLink Midstream Partners LP (ENLK) Q4 2018 Earnings Conference Call Transcript
    Motley Fool

    EnLink Midstream Partners LP (ENLK) Q4 2018 Earnings Conference Call Transcript

    ENLK earnings call for the period ending December 31, 2018.

  • EnLink Midstream (ENLC) Earnings Expected to Grow: Should You Buy?
    Zacks

    EnLink Midstream (ENLC) Earnings Expected to Grow: Should You Buy?

    EnLink Midstream (ENLC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

  • ONEOK Investors Have 6 Billion Reasons to Be Excited About What’s Ahead
    Motley Fool

    ONEOK Investors Have 6 Billion Reasons to Be Excited About What’s Ahead

    The pipeline company’s building boom could richly reward investors in the coming years.

  • GlobeNewswire

    New Research: Key Drivers of Growth for Cronos Group, Scientific Games, FireEye, EnLink Midstream, Cardtronics, and American Renal Associates — Factors of Influence, Major Initiatives and Sustained Production

    NEW YORK, Jan. 30, 2019 -- In new independent research reports released early this morning, Capital Review released its latest key findings for all current investors, traders,.