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EnLink Midstream’s 4Q15 EBITDA Estimates: Key for Investors?

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EnLink Midstream’s 4Q15 EBITDA estimates

EnLink Midstream Partners (ENLK) is expected to release its 4Q15 earnings on February 17, 2016. In this series, we’ll talk about ENLK’s 4Q15 estimates, each of its segments’ contributions to earnings, market performance, and analyst recommendations. Let’s start with analysts’ earnings estimates.

Wall Street analysts’ 4Q15 consensus EBITDA (earnings before interest, taxes, depreciation, and amortization) estimate for ENLK is ~$189.4 million. ENLK’s 4Q15 estimate is 14.0% more than the 4Q14 adjusted EBITDA.

According to Wall Street estimates, ENLK’s peers Crestwood Equity Partners (CEQP), Boardwalk Pipeline Partners (BWP), and Enable Midstream Partners (ENBL) are expected to post a YoY (year-over-year) EBITDA growth of 8.4%, 12.5%, and -10.0%, respectively, in 4Q15 compared to 4Q14.

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EnLink Midstream’s 4Q15 EBITDA drivers

EnLink Midstream’s 4Q15 EBITDA is expected to be driven by the following factors:

  • higher throughput volumes across Coronado Midstream assets – ENLK expects Coronado’s volumes to be 30% higher by the end of 2015 compared to its acquisition in March of 2015.
  • acquisition of gathering and processing assets in the Delaware Basin from Matador Resources Company – This acquisition is expected to drive ENLK’s 4Q15 EBITDA.
  • acquisition and dropdowns completed at ENLK’s Crude and Condensate segment

EnLink Midstream’s adjusted EBITDA versus consensus estimates

The 3Q15 EBITDA estimate for ENLK was ~$185.6 million, while the adjusted EBITDA was ~$169 million, a ~8.9% miss. We’ll have to wait for the 4Q15 earnings release to see whether ENLK beats or misses its 4Q15 EBITDA estimates. We’ll cover this in our post-earnings series for ENLK once it reports its 4Q15 results. ENLK forms 2.1% of the Global X MLP ETF (MLPA).

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