NYSE:ENLC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

EnLink Midstream, LLC focuses on providing midstream energy services in the United States. More Details


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has EnLink Midstream's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ENLC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.3%

ENLC

-3.2%

US Oil and Gas

-2.4%

US Market


1 Year Return

-63.3%

ENLC

-46.6%

US Oil and Gas

18.2%

US Market

Return vs Industry: ENLC underperformed the US Oil and Gas industry which returned -45.4% over the past year.

Return vs Market: ENLC underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

ENLCIndustryMarket
7 Day-7.3%-3.2%-2.4%
30 Day-3.1%-7.5%4.2%
90 Day-0.8%-18.6%6.3%
1 Year-57.1%-63.3%-43.3%-46.6%20.9%18.2%
3 Year-78.4%-84.3%-46.7%-53.8%41.2%31.8%
5 Year-79.2%-86.7%-42.2%-53.5%84.8%63.9%

Price Volatility Vs. Market

How volatile is EnLink Midstream's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is EnLink Midstream undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ENLC ($2.54) is trading below our estimate of fair value ($5.2)

Significantly Below Fair Value: ENLC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ENLC is unprofitable, so we can't compare its PE Ratio to the US Oil and Gas industry average.

PE vs Market: ENLC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ENLC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ENLC's PB Ratio (0.7x) is in line with the US Oil and Gas industry average.


Next Steps

Future Growth

How is EnLink Midstream forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

74.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENLC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: ENLC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ENLC's is expected to become profitable in the next 3 years.

Revenue vs Market: ENLC's revenue (9.4% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: ENLC's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ENLC's Return on Equity is forecast to be low in 3 years time (2.3%).


Next Steps

Past Performance

How has EnLink Midstream performed over the past 5 years?

-19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENLC is currently unprofitable.

Growing Profit Margin: ENLC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ENLC is unprofitable, and losses have increased over the past 5 years at a rate of 19.8% per year.

Accelerating Growth: Unable to compare ENLC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ENLC is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-38%).


Return on Equity

High ROE: ENLC has a negative Return on Equity (-32.2%), as it is currently unprofitable.


Next Steps

Financial Health

How is EnLink Midstream's financial position?


Financial Position Analysis

Short Term Liabilities: ENLC's short term assets ($507.2M) exceed its short term liabilities ($430.1M).

Long Term Liabilities: ENLC's short term assets ($507.2M) do not cover its long term liabilities ($4.9B).


Debt to Equity History and Analysis

Debt Level: ENLC's debt to equity ratio (139.3%) is considered high.

Reducing Debt: ENLC's debt to equity ratio has increased from 39.8% to 139.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable ENLC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ENLC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 45.7% per year.


Next Steps

Dividend

What is EnLink Midstream current dividend yield, its reliability and sustainability?

14.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ENLC's dividend (14.76%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: ENLC's dividend (14.76%) is in the top 25% of dividend payers in the US market (4.66%)


Stability and Growth of Payments

Stable Dividend: ENLC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ENLC has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: ENLC is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: ENLC's dividends in 3 years are not forecast to be well covered by earnings (523.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Barry Davis (58 yo)

1.17yrs

Tenure

US$6,490,311

Compensation

Mr. Barry E. Davis has been Executive Chairman of Sabine Pipe Line LLC., Chandeleur Pipe Line LLC., and EnLink Midstream GP, LLC since January 2, 2018. He has been Chief Executive Officer and Chairman of E ...


CEO Compensation Analysis

Compensation vs Market: Barry's total compensation ($USD6.49M) is above average for companies of similar size in the US market ($USD4.44M).

Compensation vs Earnings: Barry's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Barry Davis
Chairman & CEO of EnLink Midstream Manager1.17yrsUS$6.49m0.60%
$ 9.0m
Benjamin Lamb
Executive VP & COO of EnLink Midstream Manager LLC2.33yrsUS$2.64m0.070%
$ 1.0m
Alaina Brooks
Executive VP2.33yrsUS$2.09m0.021%
$ 317.8k
Pablo Mercado
Executive VP & CFO of EnLink Midstream GP0.25yrno data0.041%
$ 606.8k
Kate Walsh
Vice President of Investor Relations & Taxno datano datano data
Justin Griffin
Senior Vice President of Business & Corporate Development1.42yrsno datano data
Rhonda Price
Senior Vice President of Human Resources - Enlink Midstream Manager LLC3.08yrsno datano data
Cynthia Jaggi
Senior Vice President of Oklahoma4.75yrsno datano data
Michael Leblanc
Senior Vice President of Liquids Business Unit Operations for Enlink Midstream Manager LLc4.75yrsno datano data
Robbie Leffel
Senior Vice President of Crude Oil Commercial3.83yrsno datano data
Michael Burdett
Senior Vice President of Texas2.33yrsno datano data
Christopher Tennant
Senior Vice President of Louisiana2.33yrsno datano data

2.3yrs

Average Tenure

44yo

Average Age

Experienced Management: ENLC's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Barry Davis
Chairman & CEO of EnLink Midstream Manager1.17yrsUS$6.49m0.60%
$ 9.0m
Thomas Horton
Director of EnLink Midstream Manager LLC1.17yrsno datano data
William Woodburn
Director of EnLink Midstream Manager LLC2.25yrsno datano data
Christopher Ortega
Director of EnLink Midstream Manager LLC1.75yrsno datano data
Kyle Vann
Independent Director of EnLink Midstream Manager LLC1.75yrsUS$216.48k0.039%
$ 578.5k
Leldon Echols
Independent Director of EnLink Midstream Manager LLC6.58yrsUS$221.90k0.024%
$ 351.2k
James Crain
Independent Director of EnLink Midstream Manager LLC6.58yrsUS$247.72k0.019%
$ 288.0k
William Brilliant
Director of EnLink Midstream Manager LLC2.25yrsno datano data
Deborah Adams
Independent Director of Enlink Midstream Manager0.58yrno data0.0053%
$ 78.0k
James Lee
Director of Enlink Midstream Manager0.58yrno datano data

2.0yrs

Average Tenure

59yo

Average Age

Experienced Board: ENLC's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ENLC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.6%.


Top Shareholders

Company Information

EnLink Midstream, LLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EnLink Midstream, LLC
  • Ticker: ENLC
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Implied Market Cap: US$1.486b
  • Market Cap: US$1.244b
  • Shares outstanding: 558.48m
  • Website: https://www.enlink.com

Number of Employees


Location

  • EnLink Midstream, LLC
  • 1722 Routh Street
  • Suite 1300
  • Dallas
  • Texas
  • 75201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENLCNYSE (New York Stock Exchange)YesCommon UnitsUSUSDMar 2014
0DB (Deutsche Boerse AG)YesCommon UnitsDEEURMar 2014

Biography

EnLink Midstream, LLC focuses on providing midstream energy services in the United States. It operates through Permian, North Texas, Oklahoma Texas, Louisiana Oklahoma, Louisiana, and Corporate segments. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:53
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.