EnLink Midstream Expands Common Unit Repurchase Authorization, Increases Quarterly Distribution, and Updates Financial Policy
The company also schedules webcast and call to discuss quarterly and year-end earnings and 2024 guidance
DALLAS, Jan. 16, 2024 /PRNewswire/ -- EnLink Midstream, LLC (NYSE:ENLC) (EnLink) announced today that the EnLink Board of Directors (Board) completed its expanded 2023 common unit repurchase authorization of $250 million, authorized a 2024 common unit repurchase plan, increased its quarterly distribution for the fourth quarter of 2023 by approximately 6%, and updated EnLink's financial policy to reflect a long-term leverage target of 3.5x debt-to-EBITDA.
EnLink also announced it will host a webcast and conference call on Wednesday, February 21, at 8 a.m. Central time to discuss its fourth quarter and full-year 2023 earnings, along with 2024 financial guidance.
Increased 2023 Common Unit Repurchase Execution
In November, the Board increased the 2023 common unit repurchase authorization by $50 million to $250 million. The increase reflected the generation of strong free cash flow after distributions, as well as the use of a portion of the proceeds of the sale of EnLink's Ohio River Valley (ORV) assets. A portion of the ORV proceeds was also used to reduce debt, resulting in a leverage-neutral transaction. EnLink fully executed the expanded 2023 common unit repurchase program, including approximately $42 million of common units repurchased from Global Infrastructure Partners (GIP), pursuant to our 2023 Unit Repurchase Agreement, which will settle on February 19, 2024.
Authorized New 2024 Unit Repurchase Plan
The Board authorized a new $200 million unit repurchase plan for 2024. This marks the third consecutive year that the Board has authorized a significant unit repurchase plan. Following consistent repurchase execution since early 2022, EnLink has repurchased approximately 42 million units, which represents approximately 9% of total outstanding units at the end of 2021. GIP will also participate in the 2024 unit repurchases through its execution of a Unit Repurchase Agreement for 2024.
Increased Quarterly Distribution for Fourth Quarter of 2023
The Board declared a cash distribution of $0.1325 per common unit for the fourth quarter of 2023, which represents an increase of approximately 6% from the third quarter 2023 distribution. The fourth quarter 2023 cash distribution will be paid on February 9, 2024, to unitholders of record on January 29, 2024.
Updated Financial Policy
EnLink lowered its long-term leverage target to 3.5x debt-to-EBITDA. EnLink's previous target was below 4.0x. The updated policy reflects progress made on deleveraging and strengthening the balance sheet, EnLink's solid financial and operational performance, and management's confidence in the long-term outlook of the business. At the end of the third quarter of 2023, EnLink's leverage stood at 3.4x.
Fourth Quarter, Full-Year 2023 Earnings and 2024 Financial Guidance Webcast Details
EnLink will host a webcast and conference call on Wednesday, February 21, at 8 a.m. Central time to discuss fourth quarter and full-year 2023 earnings, along with 2024 financial guidance. The conference call will be broadcast via an internet webcast, which can be accessed on the Investors page of EnLink's website Investors.EnLink.com. Interested parties can access an archived replay of the webcast on EnLink's website for at least 90 days following the event.
EnLink's investor presentation and earnings press release will be posted on the Investors page of EnLink's website at Investors.EnLink.com after market close on Tuesday, February 20.
All dates and times are subject to change. Any timing updates, along with participation instructions for the webcasts and conference calls, will be provided via press release prior to the event.
About EnLink Midstream
Headquartered in Dallas, EnLink Midstream (NYSE:ENLC) provides integrated midstream infrastructure services for natural gas, crude oil, and NGLs, as well as CO2 transportation for carbon capture and sequestration (CCS). Our large-scale, cash-flow-generating asset platforms are in premier production basins and core demand centers, including the Permian Basin, Louisiana, Oklahoma, and North Texas. EnLink is focused on maintaining the financial flexibility and operational excellence that enables us to strategically grow and create sustainable value. Visit www.enlink.com to learn how EnLink connects energy to life.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Although these statements reflect the current views, assumptions and expectations of our management, the matters addressed herein involve certain assumptions, risks and uncertainties that could cause actual activities, performance, outcomes and results to differ materially from those indicated herein. Therefore, you should not rely on any of these forward-looking statements. All statements, other than statements of historical fact, included in this press release constitute forward-looking statements, including but not limited to statements identified by the words "forecast," "may," "believe," "will," "should," "plan," "predict," "anticipate," "intend," "estimate," "expect," "continue," and similar expressions. Applicable uncertainties, factors, and risks are described more fully in EnLink Midstream, LLC's filings with the Securities and Exchange Commission, including EnLink Midstream, LLC's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. EnLink assumes no obligation to update any forward-looking statements.
Investor Relations: Brian Brungardt, Director of Investor Relations, 214-721-9353, [email protected]
Media Relations: Megan Wright, Director of Corporate Communications, 214-721-9694, [email protected]
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SOURCE EnLink Midstream, LLC