An In-Depth Analysis of EnLink Midstream Partners

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An In-Depth Analysis of EnLink Midstream Partners PART 1 OF 11

How Did EnLink Midstream Stock Perform in 2016?

EnLink Midstream’s market performance

EnLink Midstream Partners (ENLK), which mainly provides natural gas gathering, processing, and transportation services, has risen 11.0% YTD (year-to-date). In comparison, ENLK’s peers DCP Midstream Partners (DPM), Enable Midstream Partners (ENBL), and Western Gas Partners (WES) rose 51.1%, 72.5%, and 21.4%, respectively.

However, ENLK and most of its peers are still trading below the levels before the rout in energy prices. EnLink Midstream LLC (ENLC), ENLK’s General Partner, rose 20.9%.

How Did EnLink Midstream Stock Perform in 2016?

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The partnership has gained 122.0% since its February lows. At the same time, the Alerian MLP ETF (AMLP), which comprises 26 midstream energy MLPs, has risen 56.2%.

ENLK’s huge gains could be attributed to the slight recovery in crude oil and natural gas prices and measures undertaken to lower its leverage and capital burden. This includes EnLink Midstream’s joint venture with Natural Gas Partners in the Delaware Basin.

A look at ENLK’s moving averages

Currently, ENLK is trading 0.8% below its 50-day moving average and 6.9% above its 200-day moving average. The 50-day moving average surpassed the 200-day moving average in June 2016, which could indicate a bullish sentiment.

EnLink Midstream’s 3Q16 earnings

EnLink Midstream’s (ENLK) 3Q16 adjusted EBITDA1 increased to $197.5 million from $187.3 million in 3Q15, a YoY (year-over-year) increase of 5.4%. Moreover, EnLink Midstream refined its 2016 EBITDA guidance for the second time in a row. The new EBITDA guidance is $760 million–$790 million compared to its previous guidance of $750 million–$800 million.

Later in this series, we’ll analyze ENLK’s balance position and cash flow measures. Following an analysis of ENLK’s operating results, we’ll look into its valuations, commodity price exposure, key performance indicators, and analyst projections.

  1. earnings before interest, taxes, depreciation, and amortization

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