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This Segment Will Drive EnLink Midstream’s 4Q16 Results

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Nov. 20 2020, Updated 1:29 p.m. ET

EnLink Midstream’s Texas segment

EnLink Midstream Partners’ (ENLK) Texas segment mainly provides natural gas gathering, processing, transportation, and fractionation services. The segment’s 4Q16 performance might be negatively impacted by the decline in throughput volumes at North Texas assets, including Eagle Ford volume, and the expiration of certain contracts. This might be partially offset by strong Midland volumes.

DCP Midstream Partners (DPM), Western Gas Partners (WES), and Enable Midstream Partners (ENBL) are among the midstream MLPs that benefit from resilient Midland volumes.

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Louisiana segment

EnLink Midstream’s Louisiana segment, which mainly provides natural gas and NGL (natural gas liquid) transportation and processing, might experience a YoY decline in earnings due to the sale of few non-core operating assets. However, this might be partially offset by higher NGL volumes.

Midstream’s Oklahoma segment

EnLink Midstream’s Oklahoma segment provides natural gas gathering and processing services in the Oklahoma region. The segment has been EnLink Midstream’s top-performing segment in the recent quarters driven by Sponsor’s and Devon Energy’s (DVN) strong focus in the region.

This trend is expected to continue in the fourth quarter. Moreover, ENLK expects central Oklahoma region to become its largest operating region by the end of 2017. (For more details, read EnLink Midstream to Continue Its Strong STACK Focus in 2017.)

Crude and Condensate segment

EnLink Midstream’s Crude and Condensate segment is involved in crude oil transportation and marketing via rail, truck, pipelines, and barges. The segment’s 4Q16 performance might be negatively impacted by Eagle Ford throughput decline and termination of customer contracts. However, in future quarters, the segment could benefit from its recent recovery in Eagle Ford drilling activity and expansion projects.

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