The EnLink Midstream companies, EnLink Midstream Partners, LP (NYSE:ENLK) (the Partnership) and EnLink Midstream, LLC (NYSE:ENLC) (the General Partner), reported results for the second quarter of 2014.
Second Quarter 2014 — EnLink Midstream Partners, LP Financial Results
The Partnership realized adjusted EBITDA of $111.6 million, distributable cash flow of $93.8 million and net income of $41.4 million for the second quarter of 2014. The Partnership’s second quarter of 2014 gross operating margin was $262.1 million and operating income was $93.1 million. Adjusted EBITDA, distributable cash flow and gross operating margin are explained in greater detail under “Non-GAAP Financial Information”, and reconciliations of these measures to their most directly comparable GAAP measures are included in the tables at the end of this news release.
“We are pleased to report outstanding second quarter results,” said Barry E. Davis, EnLink Midstream President and Chief Executive Officer. “Our performance this quarter exemplifies the many benefits of our strong financial foundation, our growing footprint of assets and our innovative sponsorship from Devon. We continue to execute on our strategic goals and we announced new growth projects which will expand our asset base. Based on the results of the business, we raised distributions this quarter for unitholders of both ENLK and ENLC. As we look ahead, we are confident in our ability to continue creating significant value for our unitholders and customers alike.”
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 second quarter 2014 gross operating margin is below
· The Texas segment contributed $153.0 million of gross operating margin.
· The Louisiana segment contributed $48.3 million of gross operating margin.
· The Oklahoma segment contributed $47.2 million of gross operating margin.
· The ORV segment contributed $15.2 million of gross operating margin.
The Partnership’s second quarter 2014 operating expenses were $71.5 million; general and administrative expenses were $24.8 million; depreciation and amortization expense was $72.7 million; interest expense was $13.0 million; and income from equity investment was $4.5 million.
Net income per limited partner common unit for the second quarter of 2014 was $0.17.
Second Quarter 2014 — EnLink Midstream, LLC Financial Results
The General Partner reported net income of $28.8 million. The General Partner’s cash available for distribution was $69.1 million, which resulted in a 1.91x coverage ratio, on the declared distribution of $0.22 per General Partner unit for the quarter. Cash available for distribution is explained in greater detail under “Non-GAAP Financial Information”, and a reconciliation of this measure to its most directly comparable GAAP measure is included in the tables at the end of this news release.
Excluding cash and debt held by the Partnership and E2, the compression and stabilization company in which the General Partner has invested, the General Partner had cash on hand of approximately $15.1 million and $155.0 million of borrowings available under its bank credit facility as of June 30, 2014.
EnLink Midstream to Hold Earnings Conference Call on August 6, 2014
EnLink Midstream, LLC (NYSE: ENLC) (the General Partner) and EnLink Midstream Partners, LP (NYSE: ENLK) (the Partnership) will hold a conference call to discuss second quarter 2014 financial results and newly announced growth projects on Wednesday, August 6, 2014, at 9:00 a.m. Central time (10:00 a.m. Eastern time).
The dial-in number for the call is 1-866-520-1073. Callers outside the United States should dial 1-810-740-4841. The conference identification passcode is 64735258 for all callers. Participants are advised to dial in to the call at least 10 minutes prior to the call time to register. Participants may preregister for the call at http://www.directeventreg.com/registration/event/64735258. Pre-registrants will be issued a pin number to use when dialing in to the live call, which will provide quick access to the conference by bypassing the operator upon connection.
Interested parties also can access the live webcast and archived replay of the call on the Investors page of EnLink Midstream’s website at www.EnLink.com.