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Exhibit 99.1
FOR IMMEDIATE RELEASE
May 2, 2017
Investor Relations: Kate Walsh, Vice President of Investor Relations, 214-721-9696, kate.walsh@enlink.com
Media Relations: Jill McMillan, Vice President of Public & Industry Affairs, 214-721-9271, jill.mcmillan@enlink.com
EnLink Midstream Reports First Quarter 2017 Results, Provides Commercial and Operational Updates
DALLAS, May 2, 2017 The EnLink Midstream companies (EnLink), EnLink Midstream Partners, LP (NYSE: ENLK) (the Partnership or ENLK) and EnLink Midstream, LLC (NYSE: ENLC) (the General Partner or ENLC), reported today financial results for the first quarter of 2017 and provided commercial and operational updates.
Highlights
· ENLK reported net income of $13.3 million and net income attributable to ENLK after non-controlling interest of $18.1 million for the quarter ended March 31, 2017. ENLK achieved $207.6 million of adjusted EBITDA net to ENLK for the same period. ENLK also reaffirmed its adjusted EBITDA guidance outlook for the full-year 2017. Adjusted EBITDA is a non-GAAP measure and is explained in greater detail under Non-GAAP Financial Information.
· ENLC reported net income of $9.3 million and a net loss attributable to ENLC after non-controlling interest of $1.9 million for the quarter ended March 31, 2017. ENLC achieved $51 million of cash available for distribution for the same period. ENLC also reaffirmed its cash available for distribution guidance outlook for the full-year 2017. Cash available for distribution is a non-GAAP measure and is explained in greater detail under Non-GAAP Financial Information.
· EnLink successfully executed three large-scale organic growth projects year to date. EnLink commenced operations at the Chisholm II facility in the STACK play, adding 200 million cubic feet per day (MMcf/d) of processing capacity to the Chisholm complex. In the Permians Midland Basin, EnLink began full-service operations of the Greater Chickadee crude oil gathering system. In southeast Louisiana, EnLink expanded its natural gas liquids (NGL) service offerings by commencing operations on the Ascension Pipeline.
· EnLink announced commercial success in the core of the Permians Midland Basin with the execution of nine new contracts during the first quarter of 2017, of which three are related to the Greater Chickadee crude oil gathering system and six are related to the gas gathering and processing business. The new long-term, fee-based contracts expand and deepen key producer relationships in the Permian and augment EnLinks development of a regional gas and crude gathering platform.
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The decrease in gross operating margin from our north Texas assets was primarily attributable to a $2.2 million decrease due to volume declines across our north Texas assets and a $5.0 million decrease attributable to the sale of the North Texas Pipeline the NTPL assets.
Operating expenses in the Louisiana segment increased $2.1 million, which was primarily attributable to an increase in labor and benefits charges, including the cost of bonuses paid in the form of units that vested in March 2017, an increase in ad valorem taxes and an increase in materials and supplies expense.
Includes the following: accretion expense associated with asset retirement obligations reimbursed employee costs from Devon and LPC Crude Oil Marketing LLC LPC successful acquisition transaction costs, which we do not consider in determining adjusted EBITDA because operating cash flows are not used to fund such costs and non-cash rent, which relates to lease incentives pro-rated over the lease term.
We define adjusted EBITDA as net income loss plus interest expense, provision for income taxes, depreciation and amortization expense, impairments, unit-based compensation, gain loss on non-cash derivatives, gain loss on disposition of assets, successful acquisition 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.
Gross operating margin in the Oklahoma segment increased $8.3 million, which was primarily driven by an $11.0 million increase in gross operating margin due to higher volumes at our central Oklahoma assets.
Includes the following: successful acquisition...Read more
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Narrower basis spreads in recent...Read more
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Of the increase in depreciation...Read more
Bonus expense decreased by $1.9...Read more
Gross operating margin was $319.6...Read more
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with respect to future events...Read more
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Operating expenses in the Oklahoma...Read more
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We primarily focus on providing...Read more
Depreciation and amortization expenses were...Read more
ASU 2017-04 is effective for...Read more
Operating expenses in the Crude...Read more
Gross operating margin in the...Read more
Additionally, our NGL business had...Read more
The fees we earn on...Read more
to Adjusted EBITDA and Distributable...Read more
We include the following non-GAAP...Read more
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Operating expenses in the Texas...Read more
However, over time, the supplies...Read more
We expect to fund payment...Read more
We define distributable cash flow...Read more
These expenses include the costs...Read more
The following tables reconcile adjusted...Read more
Greater Chickadee includes over 185...Read more
Our gathering and transportation fee...Read more
Includes projected growth capital contributions...Read more
We realize gross operating margins...Read more
In January 2016, we issued...Read more
Approximately 94% of our gross...Read more
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However, given the same borrowing...Read more
We record revenue under agreements...Read more
Includes growth capital expenditures that...Read more
General and administrative expenses were...Read more
Unit-based compensation expense increased $8.1...Read more
Operating expenses were $104.1 million...Read more
Gain loss on non-cash derivatives...Read more
installment payable discount is considered...Read more
Payment of installment payable for...Read more
Gain on Litigation Settlement....Read more
We recognized a gain on...Read more
Gross operating margin is a...Read more
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Distributable cash flow may not...Read more
Financial Statements, Disclosures and Schedules
Inside this 10-Q Quarterly Report
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Enlink Midstream Partners, Lp provided additional information to their SEC Filing as exhibits
Ticker: ENLK
CIK: 1179060
Form Type: 10-Q Quarterly Report
Accession Number: 0001179060-17-000006
Submitted to the SEC: Wed May 03 2017 8:33:40 AM EST
Accepted by the SEC: Wed May 03 2017
Period: Friday, March 31, 2017
Industry: Natural Gas Transmission