EnLink Midstream, LLC (ENLC) | Investment Case

1. Company Snapshot

1.a. Company Description

EnLink Midstream, LLC provides midstream energy services in the United States.It operates through Permian, Louisiana, Oklahoma, North Texas, and Corporate segments.The company is involved in gathering, compressing, treating, processing, transporting, storing, and selling natural gas; fractionating, transporting, storing, and selling natural gas liquids; and stabilizing, trans-loading , and condensate crude oil , as well as providing brine disposal services.

Its midstream energy asset network includes approximately 12,100 miles of pipelines; 22 natural gas processing plants;7 fractionators with approximately 320,000 barrels per day; barge and rail terminals; product storage facilities; brine disposal wells; and a crude oil trucking fleet.The company was incorporated in 2013 and is based in Dallas, Texas.

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1.b. Last Insights on ENLC

Recent negative drivers behind EnLink Midstream, LLC's stock performance include the company's announced acquisition by ONEOK Inc., which resulted in EnLink's removal from three Tortoise Capital indices: the Tortoise MLP Index, the Tortoise North American Pipeline Index, and the Tortoise Decarbonization Infrastructure Index. Additionally, EnLink's unitholders approved the acquisition, and the transaction is expected to close on January 31, 2025.

1.c. Company Highlights

Last Price	14.12
Change Percentage	-0.21%
Open	14.23
Previous Close	14.15
Market Cap ( Millions)	6454
Volume	94984962
Year High	16.4
Year Low	11.7
M A 50	14.83
M A 200	14.08

FCF Yield	3.71%
Dividend Yield	0.00%
ROE	3.83%
Debt / Equity	270.35%
Net Debt / EBIDTA	798.82%
Price To Book	3.59
Price Earnings Ratio	124.29
Price To FCF	26.98
Price To sales	2.04
EV / EBITDA	18.59

2. Transcript Summary

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3. NewsRoom

Tortoise Capital Announces Tortoise MLP Index, Tortoise North American Pipeline Index, and Tortoise Decarbonization Infrastructure Index Constituent Changes Due to Corporate Action

Jan -31

Source: accessnewswire.com

EnLink Unitholders Approve ONEOK Acquisition of Remaining Public Units

Jan -30

Source: prnewswire.com

Leading Independent Proxy Advisory Firms ISS and Glass Lewis Recommend EnLink Unitholders Vote "FOR" Pending ONEOK Acquisition

Jan -22

Source: prnewswire.com

3 Oil Stocks to Buy Right Away on Trump 2.0's Inaugural Speech

Jan -21

Source: zacks.com

Definitive Proxy Statement Filed in Connection with ONEOK's Pending Acquisition of the Remaining Publicly Held Common Units of EnLink Midstream

Dec -31

Source: prnewswire.com

ONEOK Finishes The Job In Picking Up EnLink Midstream

Nov -27

Source: seekingalpha.com

SHAREHOLDER ALERT: The M&A Class Action Firm Investigates the Merger of EnLink Midstream, LLC - ENLC

Nov -25

Source: prnewswire.com

Shareholder Alert: Ademi LLP Investigates Whether EnLink Midstream, LLC Is Obtaining a Fair Price for its Public Unitholders

Nov -25

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.13%)

6. Segments

Louisiana

Expected Growth: 12.0%

EnLink Midstream's 12.0% growth in Louisiana is driven by increasing natural gas production in the Haynesville Shale, supported by strong demand from LNG export facilities and industrial markets. Additionally, the company's strategic infrastructure investments and contractual agreements with key producers have secured a stable revenue stream, contributing to its growth momentum.

Permian

Expected Growth: 14.0%

Permian's 14.0% growth is driven by increasing crude oil production, supported by EnLink Midstream's strategic infrastructure expansion, strong demand for natural gas and natural gas liquids (NGLs), and favorable market conditions. Additionally, the region's low breakeven costs, high well productivity, and growing drilling activity contribute to the segment's robust growth.

Corporate Segment

Expected Growth: 10.0%

EnLink Midstream's Corporate Segment growth is driven by increasing natural gas production in the Permian Basin, expansion of gathering and processing capacity, and strategic acquisitions. Additionally, the segment benefits from long-term contracts with investment-grade customers, providing a stable revenue stream. These factors contribute to the 10.0% growth rate, positioning the company for continued success in the midstream energy sector.

Oklahoma

Expected Growth: 11.0%

Oklahoma's 11.0% growth driven by EnLink Midstream, LLC's strategic expansion in the SCOOP and STACK plays, increasing natural gas production and takeaway capacity, coupled with strong demand from LNG exports and power generation, resulting in higher volumes and revenue growth.

North Texas

Expected Growth: 12.5%

North Texas, a key region for EnLink Midstream, LLC, is driven by 12.5% growth due to increasing natural gas production from the Permian Basin, rising demand from nearby power generation and industrial facilities, and strategic infrastructure investments enhancing connectivity and capacity.

7. Detailed Products

Gathering and Processing

EnLink Midstream provides gathering and processing services for natural gas and crude oil, connecting producers to markets and refineries.

Transmission

EnLink Midstream operates a network of transmission pipelines, transporting natural gas and crude oil across the United States.

Crude Oil Logistics

EnLink Midstream offers crude oil logistics services, including transportation, storage, and marketing.

Natural Gas Liquids (NGLs) Logistics

EnLink Midstream provides NGLs logistics services, including transportation, storage, and marketing.

Marketing and Distribution

EnLink Midstream markets and distributes natural gas, crude oil, and NGLs to various markets and refineries.

8. EnLink Midstream, LLC's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for EnLink Midstream, LLC is medium due to the availability of alternative energy sources and transportation methods.

Bargaining Power Of Customers

The bargaining power of customers for EnLink Midstream, LLC is low due to the company's diversified customer base and lack of dependence on a single customer.

Bargaining Power Of Suppliers

The bargaining power of suppliers for EnLink Midstream, LLC is medium due to the company's dependence on a few key suppliers and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants for EnLink Midstream, LLC is low due to the high barriers to entry in the midstream energy industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for EnLink Midstream, LLC is high due to the competitive nature of the midstream energy industry and the presence of several large and established competitors.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	63.56%
Debt Cost	6.95%
Equity Weight	36.44%
Equity Cost	15.58%
WACC	10.09%
Leverage	174.46%

11. Quality Control: EnLink Midstream, LLC passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Western Midstream Partners

A-Score: 7.1/10

Value: 5.1

Growth: 6.6

Quality: 7.2

Yield: 10.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

DT Midstream

A-Score: 6.6/10

Value: 3.2

Growth: 6.0

Quality: 6.5

Yield: 7.0

Momentum: 8.5

Volatility: 8.3

1-Year Total Return ->

Plains GP Holdings

A-Score: 6.6/10

Value: 8.1

Growth: 3.6

Quality: 3.9

Yield: 10.0

Momentum: 4.5

Volatility: 9.3

1-Year Total Return ->

Plains All American Pipeline

A-Score: 6.5/10

Value: 7.8

Growth: 3.6

Quality: 4.5

Yield: 10.0

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

EnLink Midstream

A-Score: 4.6/10

Value: 3.5

Growth: 5.4

Quality: 2.8

Yield: 5.0

Momentum: 4.5

Volatility: 6.3

1-Year Total Return ->

Equitrans Midstream

A-Score: 3.8/10

Value: 2.2

Growth: 3.0

Quality: 5.0

Yield: 5.0

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

0.81%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

10.09%

EnLink Midstream, LLC - US29336T1007

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ENLC

1.c. Company Highlights

Higher Yield

Medium Volatility

Average Quality

Revenues Miss

Average Yield

Less Volatile

Lower Quality

Earnings Miss

Fairly Valued

Expensive

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.13%)

6. Segments

Louisiana

Expected Growth: 12.0%

Permian

Expected Growth: 14.0%

Corporate Segment

Expected Growth: 10.0%

Oklahoma

Expected Growth: 11.0%

North Texas

Expected Growth: 12.5%

7. Detailed Products

Gathering and Processing

Transmission

Crude Oil Logistics

Natural Gas Liquids (NGLs) Logistics

Marketing and Distribution

8. EnLink Midstream, LLC's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: EnLink Midstream, LLC passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.12$

Current Price

14.12$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA