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EnLink Midstream’s Leverage Situation: Key Analysis

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EnLink Midstream’s outstanding debt

EnLink Midstream Partners (ENLK) ended 2Q16 with total outstanding debt of $3.3 billion, which is 8.4% higher than the debt outstanding by the end of 2015.

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EnLink Midstream’s net debt-to-EBITDA

EnLink Midstream’s net debt-to-EBITDA multiple stood at 4.4x by the end of 2Q16. This ratio is within industry standards. MLPs generally target a ratio between 4.0x and 4.5x. Moreover, ENLK’s leverage situation is better than most of its peers.

EnLink Midstream’s EBITDA-to-interest expense

EnLink Midstream’s EBITDA-to-interest expense ratio was 3.9x by the end of 2Q16. ENLK’s EBITDA-to-interest expense ratio has come down from its historical average.

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