PR Newswire
DALLAS, Aug. 2, 2016
DALLAS, Aug. 2, 2016 /PRNewswire/ -- The EnLink Midstream companies (EnLink or EnLink Midstream), EnLink Midstream Partners, LP (NYSE: ENLK) (the Partnership or ENLK) and EnLink Midstream, LLC (NYSE: ENLC) (the General Partner or ENLC), today announced a refined guidance outlook for full-year 2016, reported financial results for the second quarter of 2016, and provided an operational update.
Highlights:
"EnLink delivered another strong quarter of solid operating and financial results as we continue to execute our strategic plan," said Barry E. Davis, EnLink Chairman, President, and Chief Executive Officer. "We successfully executed a series of transformative acquisitions over the last two years, which significantly enhanced the diversification, integration, and growth potential of our asset platforms in the best oil and gas producing basins in the United States. As a result of increased producer activity and continued demand, we are experiencing material volume momentum across our core growth areas of Central Oklahoma, the Permian Basin and Louisiana. Looking ahead, our priority of maintaining a strong balance sheet remains unchanged. We have confidence in the strength of our employees and business model and, as a result, refined our guidance for consolidated adjusted EBITDA to a range of $750 million to $800 million."
Consolidated Guidance Update
Second Quarter 2016 — EnLink Midstream Partners, LP Financial Results
The Partnership's net income was $3.2 million and net cash provided by operating activities was $110.5 million in the second quarter of 2016, compared with net income of $55.4 million and net cash provided by operating activities of $120.6 million in the second quarter of 2015. The Partnership's operating income was $46.4 million in the second quarter of 2016 compared with operating income of $72.5 million in the second quarter of 2015.
The Partnership's gross operating margin was $300.8 million in the second quarter of 2016 compared with gross operating margin of $306.3 million in the second quarter of 2015. The Partnership realized adjusted EBITDA of $187.4 million and distributable cash flow of $150.9 million in the second quarter of 2016, compared with adjusted EBITDA of $174.9 million and distributable cash flow of $134.1 million in the second quarter of 2015. The resulting distribution coverage ratio for the second quarter of 2016 was approximately 1.03x on the declared distribution of $0.39 per Partnership unit. Adjusted EBITDA, distributable cash flow and gross operating margin are non-GAAP measures and are explained in greater detail under "Non-GAAP Financial Information." Reconciliations of these measures to their most directly comparable GAAP measures are included in the tables at the end of this news release.
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 Central Oklahoma; the Crude and Condensate segment, which includes rail, truck, pipeline and barge facilities to deliver crude and condensate in Texas, Louisiana, and the Ohio River Valley and brine disposal wells in the Ohio River Valley; and the corporate segment, which includes operating activity for intersegment eliminations and gains or losses from derivative activities.
Each business segment's contribution to the second quarter 2016 gross operating margin compared with that of the second quarter 2015, and the factors affecting those contributions, is described below:
The Partnership's second quarter 2016 operating expenses were $100.1 million, a decrease of $9.0 million from the second quarter of 2015. General and administrative expenses for the second quarter of 2016 increased by $2.1 million from the second quarter of 2015. Depreciation and amortization expense for the second quarter of 2016 increased by $27.2 million from the second quarter of 2015. This increase was primarily due to the Chisholm and Battle Ridge assets acquired in January 2016 and the Lobo assets acquired in October 2015. Net interest expense for the second quarter of 2016 increased by $23.8 million from the second quarter of 2015 primarily due to an increase in senior notes outstanding and amortization of installment note discount.
Net loss per limited partner common unit for the second quarter of 2016 was $0.07 per common unit compared with net income of $0.12 per common unit for the second quarter of 2015.
Second Quarter 2016 — EnLink Midstream, LLC Financial Results
The General Partner reported net income of $1.2 million for the second quarter of 2016 compared with net income of $44.6 million in the second quarter of 2015. The General Partner's cash available for distribution was $49.8 million in the second quarter of 2016 compared with cash available for distribution of $52.0 million in the second quarter of 2015. The resulting distribution coverage ratio for the second quarter of 2016 was approximately 1.07x on the declared distribution of $0.255 per General Partner unit. Cash available for distribution is a non-GAAP measure and is explained in greater detail under "Non-GAAP Financial Information." A reconciliation of cash available for distribution to its most directly comparable GAAP measure is included in the tables at the end of this news release.
Quarterly Update
EnLink Midstream to Hold Earnings Conference Call on August 3, 2016
The General Partner and the Partnership will hold a conference call to discuss second quarter financial results on Wednesday, August 3, 2016, 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/10082764 where they will receive their dial-in information upon completion of their 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 Midstream is a leading, integrated midstream company with a diverse geographic footprint and a strong financial foundation, delivering tailored customer solutions for sustainable growth. EnLink Midstream is publicly traded through two entities: EnLink Midstream, LLC (NYSE: ENLC), the publicly traded general partner entity, and EnLink Midstream Partners, LP (NYSE: ENLK), the master limited partnership entity.
EnLink Midstream's assets are located in many of North America's premier oil and gas regions, including the Barnett Shale, Permian Basin, Cana-Woodford Shale, Arkoma-Woodford Shale, STACK, SCOOP, C-NOW, Eagle Ford Shale, Haynesville Shale, Gulf Coast region, Utica Shale, and Marcellus Shale. Based in Dallas, Texas, EnLink Midstream's assets include approximately 10,000 miles of gathering and transportation pipelines, 19 processing plants with approximately 3.9 billion cubic feet per day of processing capacity, seven fractionators with approximately 284,000 barrels per day of fractionation capacity, as well as barge and rail terminals, product storage facilities, purchase and marketing capabilities, brine disposal wells, an extensive crude oil trucking fleet and equity investments in certain private midstream companies.
References in this press release to "EnLink Midstream Partners, LP," the "Partnership," "ENLK" or like terms refer to EnLink Midstream Partners, LP itself or EnLink Midstream Partners, LP together with its consolidated subsidiaries, including EnLink Midstream Operating, LP, EnLink Midstream Holdings, LP ("Midstream Holdings") and EnLink Oklahoma Gas Processing, LP (formerly known as EnLink TOM Holdings, LP) and its consolidated subsidiaries (collectively, "EnLink Oklahoma T.O."). EnLink Oklahoma T.O. is sometimes used to refer to EnLink Oklahoma Gas Processing, LP itself or EnLink Oklahoma Gas Processing, LP together with its consolidated subsidiaries.
Additional information about the EnLink companies can be found at www.enlink.com.
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, growth capital expenditures, maintenance capital expenditures 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), adjustments for the mandatorily redeemable non-controlling interest, 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 distributions due to the General Partner from the Partnership, the General Partner's interest in EnLink Oklahoma T.O.'s adjusted EBITDA (as defined herein), and the General Partner's interest in the adjusted EBITDA of Midstream Holdings (as defined herein), less the General Partner's share of maintenance capital attributable to its interests in EnLink Oklahoma T.O. and Midstream Holdings, the General Partner's specific general and administrative costs as a separate public reporting entity, the interest costs associated with the General Partner's debt and current taxes attributable to the General Partner's earnings, plus the General Partner's standalone impairment expense. 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. Adjusted EBITDA of Midstream Holdings is defined as Midstream Holdings' net income plus taxes, depreciation and amortization and distributions from unconsolidated affiliate investments less income from unconsolidated affiliate investments. EnLink Oklahoma T.O.'s adjusted EBITDA means EnLink Oklahoma T.O.'s net income plus depreciation and amortization. Coverage ratio is calculated by dividing distributable cash flow by distributions paid to the General Partner and the unitholders.
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, growth capital expenditures, maintenance capital expenditures, 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 SEC for more information.
EnLink Midstream does not provide GAAP financial measures on a forward-looking basis because the companies are unable to predict with reasonable certainty impairments, depreciation and amortization, gains and losses on derivative activities and acquisition-related expenses without unreasonable effort. These items are uncertain, depend on various factors, and could be material to EnLink Midstream's results computed in accordance with GAAP.
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, 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) reductions in our credit ratings, (k) our debt levels and restrictions contained in our debt documents, (l) our ability to consummate future acquisitions, successfully integrate any acquired businesses, realize any cost savings and other synergies from any acquisition, (m) changes in the availability and cost of capital, (n) competitive conditions in our industry and their impact on our ability to connect hydrocarbon supplies to our assets, (o) operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control, (p) a failure in our computing systems or a cyber-attack on our systems, and (q) 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 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.
(Tables follow)
EnLink Midstream Partners, LP | |||||||||||||||
Selected Financial Data | |||||||||||||||
(All amounts in millions except per unit amounts) | |||||||||||||||
| | | | | | | | ||||||||
| Three Months Ended June 30, | | Six Months Ended June 30, | ||||||||||||
| 2016 | | 2015 | | 2016 | | 2015 | ||||||||
| (Unaudited) (In millions, except per unit amounts) | ||||||||||||||
Total revenues | $ | 1,033.2 | | | $ | 1,274.5 | | | $ | 1,922.9 | | | $ | 2,215.0 | |
Cost of sales (1) | 732.4 | | | 968.2 | | | 1,318.6 | | | 1,625.6 | | ||||
Gross operating margin | 300.8 | | | 306.3 | | | 604.3 | | | 589.4 | | ||||
Operating costs and expenses: | | | | | | | | ||||||||
Operating expenses (2) | 100.1 | | | 109.1 | | | 198.3 | | | 207.6 | | ||||
General and administrative (3) | 29.1 | | | 27.0 | | | 62.3 | | | 68.8 | | ||||
Loss on disposition of assets | 0.3 | | | — | | | 0.1 | | | — | | ||||
Depreciation and amortization | 124.9 | | | 97.7 | | | 246.8 | | | 189.0 | | ||||
Impairments | — | | | — | | | 566.3 | | | — | | ||||
Total operating costs and expenses | 254.4 | | | 233.8 | | | 1,073.8 | | | 465.4 | | ||||
Operating income (loss) | 46.4 | | | 72.5 | | | (469.5) | | | 124.0 Werbung Mehr Nachrichten zur Enlink Midstream Partners Aktie kostenlos abonnieren
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