ENLINK MIDSTREAM, LLC Q1 2024
Investor
Presentation
April 30, 2024
Key Takeaways
EnLink Is Becoming the Future
of Midstream
Expanding Midstream and
CCS Businesses
Solid 1st Quarter Results
Compelling Investment
Proposition
1
2
3
4
EnLink Midstream @ 2024 EnLink Midstream. All rights reserved | Q1 2024 Update| NYSE: ENLC | April 30, 2024 | www.enlink.com | 2 |
EnLink Is Becoming the Future of Midstream
H e r e ' s h o w …
Operating a large-scale,
cash-flow-generating
midstream platform generates sustainable growth andunitholder returns
- >$1.3 billion Adj. EBITDA1,2
- Disciplined, flexible investment approach
- Focus on FCFAD1 to return capital to investors
- Achieved Investment Grade following S&P upgrade to 'BBB-' in March
Integrated & efficient business model fuels
growth opportunities
- Scale G&P positions in key production basins
- Capital efficient expansions in Louisiana demand-driven market
- Increasing gas supply to next wave of export LNG projects
Revolutionizing
traditional midstream systems to support the energy transformation
- First mover in CO2 transportation
- Increasing business mix of energy transformation alongside traditional midstream
Environmentally
responsible operations
means prioritizing safety
and minimizing
environmental impacts
- Bridgeport processing plant carbon capture project completed in 4th quarter of 2023
- Sustainability and operational excellence tied into strategic plan and employee incentives
1Non-GAAP measures are defined in the appendix. 22024 Guidance provided on February 20, 2024.
EnLink Midstream @ 2024 EnLink Midstream. All rights reserved
Q1 2024 Update| NYSE: ENLC | April 30, 2024 | www.enlink.com | 3
EnLink Asset Overview
Premier production basins
connected to key demand centers
Basin / | Natural | NGL | Crude |
Geography | Gas | ||
Permian Basin | ✓ | ✓ | ✓ |
Gulf Coast | ✓ | ✓ | |
Haynesville | ✓ | ||
Anadarko Basin | ✓ | ✓ | ✓ |
North Texas | ✓ | ✓ | |
~1,100 | 25 | ~5.8 |
Employees | Processing | Bcf/d Processing |
Facilities | Capacity | |
~13,600 | 7 | ~316,300 |
Miles of Pipeline | Fractionators | bbl/d Fractionation |
Capacity |
Note: As of March 31, 2024. Ascension Pipeline is 50% owned by a joint venture with a Marathon Petroleum Corp. subsidiary. Delaware Basin gas G&P assets are 49.9% owned by Natural Gas Partners. EnLink owns 15% of Matterhorn JV, the owner of the natural gas pipeline under construction.
EnLink Midstream @ 2024 EnLink Midstream. All rights reserved | Q1 2024 Update| NYSE: ENLC | April 30, 2024 | www.enlink.com | 4 |
Today's EnLink | |
2019 | TODAY |
Traditional Midstream Model | Creating Sustainable Value in the Energy Transformation |
Non-IG Credit: 4.3x | IG Credit: 3.3x |
Adjusted EBITDA1: $1.08B | Adjusted EBITDA1,2: $1.31B - $1.41B |
Negative FCFAD1 | Positive FCFAD1 |
Largest Segment: Oklahoma | Largest Segment: Permian2 |
No units repurchased | Repurchased ~10% of common units3 |
First Mover in CO2 Transportation |
1Non-GAAP measures are defined in the appendix. 22024 Guidance provided on February 20, 2024. 3Approximately ~46 million common units repurchased since year-end 2021, when approximately ~484 million common units were outstanding.
EnLink Midstream @ 2024 EnLink Midstream. All rights reserved | Q1 2024 Update| NYSE: ENLC | April 30, 2024 | www.enlink.com | 5 |
Positioned to Meet the World's Energy Needs
Meeting Next Wave of Export LNG Demand
- LNG export capacity to nearly double in the next few years1
- 2025 incremental feedgas demand is ~4bcf/d
- Natural gas prices expected to rise to incentivize the needed production2
- Oklahoma well positioned for growth
- Midcontinent positioned to contribute to meeting this demand, with ample inventory and available pipeline capacity3
- Break-evensin the STACK are attractive due to NGL pricing uplift4
-
LNG facilities in close proximity to EnLink's
Louisiana natural gas system5 - Tightening supply/demand driving opportunities for new pipeline projects
- Managing large-scale LNG operations increases the importance of storage
- Brownfield storage expansions are economic
25
US LNG Feedgas Demand1 (Bcf/d)
20
15
10
5
2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 |
1Platts Gas Daily, 3/26/24. 2Morgan Stanley Research, 3/11/24. 3East Daley Dirty Little Secrets 2024, December 2023. 4J.P. Morgan Research, 3/4/24. 5EIA U.S. Liquefaction Capacity, 3/29/24.
EnLink Midstream @ 2024 EnLink Midstream. All rights reserved | Q1 2024 Update| NYSE: ENLC | April 30, 2024 | www.enlink.com | 6 |
Positioned to Meet the World's Energy Needs
Data Centers - A Surge to Energy Demand
- Electricity demand to increase more rapidly than any point in the past 3 decades1
- Utilities have recently ~doubled their incremental power demand forecasts by 20282
- Data centers to be 7.5% or more of US electricity consumption by 2030, up from 2.5%3
o | This usage is equivalent to 40mm homes, vs the 5 yr |
average growth of ~1.5mm homes3 | |
• Data centers don't turn "on and off" | |
o | Voracious users of energy and require power 24 |
30
US Data Center Demand5
(Gigawatts)
20
10
0
2014 | 2016 | 2018 | 2020 | 2022 | 2024 | 2026 | 2028 |
hours/day |
o Intermittency of renewables drives need for natural gas |
• Midstream is a beneficiary |
o Incremental gas demand could be ~7bcf/d or more4 |
55
50
45
US Natural Gas Consumption by Power Plants4
(Bcf/d)
o Potential for improved pipeline utilization and rates |
- Positive for terminal value assumptions and equity valuation multiples
40 | Impact of Data | ||||||||
Ex AI growth | Centers | ||||||||
35 | |||||||||
30 | |||||||||
25 | |||||||||
2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
1NERC 2023 Long-Term Reliability Assessment, December 2023. 2New York Times, 3/14/24. 3Boston Consulting Group, September 2023; US Census Housing Starts data 2019-2023.4Wells Fargo Research, 3/21/2024. 5Washington Post & McKinsey, 3/7/24.
EnLink Midstream @ 2024 EnLink Midstream. All rights reserved | Q1 2024 Update| NYSE: ENLC | April 30, 2024 | www.enlink.com | 7 |
Growing Permian Footprint
Growing Alongside Customers
- Diverse mix of over 15 customers
- In process of relocating our 3rd processing plant
- Represents ~50% cost vs. newbuild project
- Lowers supply chain risks of sourcing materials o Lowers inflation risk on project
- Equity investor and shipper on Matterhorn pipeline
Sustained Growth in EnLink's Largest Segment
Permian Segment Profit vs. Total Segment Profit
27% | 27% | 30% | ||
20% | ||||
15% | ||||
2020 | 2021 | 2022 | 2023 | 2024 Midpoint |
Guidance1 |
12024 Financial guidance provided on February 20, 2024. Note: Delaware Basin gas G&P assets are 49.9% owned by Natural Gas Partners
EnLink Midstream @ 2024 EnLink Midstream. All rights reserved | Q1 2024 Update| NYSE: ENLC | April 30, 2024 | www.enlink.com | 8 |
Strong Experience & Operational Capabilities in Louisiana
Strategically Positioned Assets
Serve Growing Demand Market
- 3,100 miles gas transmission pipelines
- 800 miles NGL pipelines
- 3 NGL fractionation facilities
- ~11 Bcf of working natural gas storage, with potential to expand capacity
- 2 natural gas processing facilities with 710 MMcf/d capacity
- 245 employees in state of Louisiana
EnLink Midstream @ 2024 EnLink Midstream. All rights reserved | Q1 2024 Update| NYSE: ENLC | April 30, 2024 | www.enlink.com | 9 |
Louisiana Assets are Strategically Positioned
Future Pipeline Opportunities Include:
- Phase 1: existing contracts renew at higher rates and longer tenor
- Phase 2: expand capacity through quick-to-market,high-return debottlenecking projects
- New Project: Henry Hub to the River
- Additional compression to expand capacity ~210 MMcf/d
- Total capex of ~$70MM, in-service in 4Q25
- Phase 3: potential for larger and longer return projects to resupply industrial customers with contracted new pipelines and storage
Future Storage Opportunities Include:
- ~11 Bcf current working natural gas storage capacity1
- Strong customer demand to expand working gas storage capacity by up to 9 Bcf
1Estimated working capacity for gas storage excludes linefill capacity necessary to operate facilities.
EnLink Midstream @ 2024 EnLink Midstream. All rights reserved | Q1 2024 Update| NYSE: ENLC | April 30, 2024 | www.enlink.com | 10 |
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Disclaimer
EnLink Midstream LLC published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 09:16:36 UTC.
