X
<

EnLink Midstream Partners Could Gain Upward Momentum

PART:
1 2 3 4 5 6 7 8 9 10
Part 5
EnLink Midstream Partners Could Gain Upward Momentum PART 5 OF 10

Why EnLink Midstream Partners’ Leverage Is Rising

Outstanding debt

EnLink Midstream Partners (ENLK) ended 2Q17 with a total outstanding debt of $3.6 billion—11.1% higher than the outstanding debt at the end of 2016. The increase in the partnership’s outstanding debt could be due to funding for organic projects. EnLink Midstream Partners has $1.3 billion of liquidity under its credit facility as of June 30, 2017.


Why EnLink Midstream Partners’ Leverage Is Rising

Interested in ENLK? Don't miss the next report.

Receive e-mail alerts for new research on ENLK

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Net debt-to-adjusted EBITDA

EnLink Midstream Partners’ net debt-to-adjusted EBITDA multiple stood at 4.5x by the end of 2Q17. It’s higher than the leverage (4.2x) at the end of 2016. The partnership’s increased leverage is due to increased capital spending. The EBITDA increased at the same rate.

EnLink Midstream Partners’ leverage is still within the industry standards. MLPs generally target a ratio between 4.0x to 4.5x. EnLink Midstream Partners’ leverage position is better compared to Energy Transfer Partners (ETP), Williams Partners (WPZ), and DCP Midstream (DCP).

In the next part, we’ll analyze EnLink Midstream Partners’ current valuation.

X

Please select a profession that best describes you: