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ENLC

EnLink Midstream NYSE:ENLC Stock Report

Last Price

US$10.81

Market Cap

US$5.8b

7D

10.0%

1Y

121.5%

Updated

18 Aug, 2022

Data

Company Financials +
ENLC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance3/6
Financial Health2/6
Dividends3/6

ENLC Stock Overview

EnLink Midstream, LLC provides midstream energy services in the United States.

EnLink Midstream Competitors

Price History & Performance

Summary of all time highs, changes and price drops for EnLink Midstream
Historical stock prices
Current Share PriceUS$10.81
52 Week HighUS$11.85
52 Week LowUS$4.79
Beta2.64
1 Month Change15.49%
3 Month Change6.19%
1 Year Change121.52%
3 Year Change37.36%
5 Year Change-35.85%
Change since IPO-70.46%

Recent News & Updates

Aug 17

EnLink Midstream prices upsized $700M senior notes due 2030 offering

EnLink Midstream, LLC (NYSE:ENLC) has priced its upsized offering of $700M (from $650M) of 6.500% senior notes due September 2030 at 100% of their face value. Offering is expected to close on August 31, 2022. Net proceeds together with existing corporate liquidity will be used to fund the repurchase of up to $500M of $502.3M of outstanding 4.40% senior notes due 2024, $717.2M outstanding 4.15% senior notes due 2025 and $491M outstanding 4.85% senior notes due 2026 and for general corporate purposes.

Shareholder Returns

ENLCUS Oil and GasUS Market
7D10.0%2.3%1.4%
1Y121.5%73.4%-8.4%

Return vs Industry: ENLC exceeded the US Oil and Gas industry which returned 64.7% over the past year.

Return vs Market: ENLC exceeded the US Market which returned -9% over the past year.

Price Volatility

Is ENLC's price volatile compared to industry and market?
ENLC volatility
ENLC Average Weekly Movement7.3%
Oil and Gas Industry Average Movement8.9%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

Stable Share Price: ENLC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ENLC's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20131,073Jesse Arenivashttps://www.enlink.com

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.

EnLink Midstream Fundamentals Summary

How do EnLink Midstream's earnings and revenue compare to its market cap?
ENLC fundamental statistics
Market CapUS$5.79b
Earnings (TTM)US$176.70m
Revenue (TTM)US$8.92b

29.3x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ENLC income statement (TTM)
RevenueUS$8.92b
Cost of RevenueUS$7.10b
Gross ProfitUS$1.82b
Other ExpensesUS$1.65b
EarningsUS$176.70m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.37
Gross Margin20.44%
Net Profit Margin1.98%
Debt/Equity Ratio148.7%

How did ENLC perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

118%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ENLC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ENLC?

Other financial metrics that can be useful for relative valuation.

ENLC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA9.4x
PEG Ratio3.3x

Price to Earnings Ratio vs Peers

How does ENLC's PE Ratio compare to its peers?

ENLC PE Ratio vs Peers
The above table shows the PE ratio for ENLC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.7x
DTM DT Midstream
16.8x6.2%US$5.6b
SHLX Shell Midstream Partners
14.3x13.7%US$7.0b
AM Antero Midstream
15.3x4.2%US$5.0b
HESM Hess Midstream
20.5x8.9%US$7.2b
ENLC EnLink Midstream
29.3x8.9%US$5.8b

Price-To-Earnings vs Peers: ENLC is expensive based on its Price-To-Earnings Ratio (29.3x) compared to the peer average (16.7x).


Price to Earnings Ratio vs Industry

How does ENLC's PE Ratio compare vs other companies in the US Oil and Gas Industry?

Price-To-Earnings vs Industry: ENLC is expensive based on its Price-To-Earnings Ratio (29.3x) compared to the US Oil and Gas industry average (9.8x)


Price to Earnings Ratio vs Fair Ratio

What is ENLC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ENLC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.3x
Fair PE Ratio17.4x

Price-To-Earnings vs Fair Ratio: ENLC is expensive based on its Price-To-Earnings Ratio (29.3x) compared to the estimated Fair Price-To-Earnings Ratio (17.4x).


Share Price vs Fair Value

What is the Fair Price of ENLC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ENLC ($10.81) is trading below our estimate of fair value ($16.06)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENLC's forecast earnings growth (8.9% per year) is above the savings rate (1.9%).

Earnings vs Market: ENLC's earnings (8.9% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: ENLC's earnings are forecast to grow, but not significantly.

Revenue vs Market: ENLC's revenue (5.9% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: ENLC's revenue (5.9% 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 high in 3 years time (31.1%)


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Past Performance

How has EnLink Midstream performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-20.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ENLC has high quality earnings.

Growing Profit Margin: ENLC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ENLC has become profitable over the past 5 years, growing earnings by -20.2% per year.

Accelerating Growth: ENLC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ENLC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (184.6%).


Return on Equity

High ROE: ENLC's Return on Equity (10.7%) is considered low.


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Financial Health

How is EnLink Midstream's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ENLC's short term assets ($1.3B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: ENLC's short term assets ($1.3B) do not cover its long term liabilities ($4.6B).


Debt to Equity History and Analysis

Debt Level: ENLC's net debt to equity ratio (148%) is considered high.

Reducing Debt: ENLC's debt to equity ratio has increased from 72% to 148.7% over the past 5 years.

Debt Coverage: ENLC's debt is well covered by operating cash flow (21.7%).

Interest Coverage: ENLC's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.16%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ENLC's dividend (4.16%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: ENLC's dividend (4.16%) is in the top 25% of dividend payers in the US market (3.99%)


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 8 years, and since then payments have fallen.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (118.4%), ENLC's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (38.3%), ENLC's dividend payments are well covered by cash flows.


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Management

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

3.7yrs

Average management tenure


CEO

Jesse Arenivas (48 yo)

0.17yr

Tenure

Mr. Jesse Arenivas was President of CO2 for Kinder Morgan Energy Partners, L.P. and was also President of Energy Transition Ventures - Kinder Morgan GP Inc for Kinder Morgan Energy Partners, L.P until 2022...


Leadership Team

Experienced Management: ENLC's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: ENLC's board of directors are not considered experienced ( 2.1 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 only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

EnLink Midstream, LLC's 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$5.790b
  • Market Cap: US$5.177b
  • Shares outstanding: 541.23m
  • Website: https://www.enlink.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.