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A Sneak Peek into EnLink Midstream Partners’ 3Q17 Volumes

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EnLink Midstream Partners’ throughput volumes

We’ll discuss the drilling activity and production growth in the basins where EnLink Midstream Partners (ENLK) has exposure. Drilling activity and production growth drive midstream companies’ throughput volumes.

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Barnett Shale

EnLink Midstream Partners has high exposure to the Barnett Shale due to its sponsor Devon Energy (DVN). Devon Energy has a strong focus in the region. The drilling activity in the Barnett region remained mostly flat in 3Q17. However, it fell slightly in October 2017. According to the recent rigs report by Baker Hughes, the rig count in the region remained flat at seven for most of the third quarter. However, it has fallen to four as of October 20, 2017.

Delaware and Midland basins

The Delaware Basin and Midland Basin, which are part of the prolific Permian Basin, continue to see strong drilling activity during 3Q17. The Permian region led in natural gas and crude oil production growth in 3Q17. The average natural gas production in the Permian region has risen 17.5% YoY (year-over-year) in 3Q17 compared to 3Q16, while crude oil production increased by 24.2% YoY.

STACK

Currently, the STACK play is one of the most prolific shale plays in the US. The Anadarko region, which includes the SCOOP and STACK plays, continued to experience strong natural gas production during the second quarter. According to the U.S. Energy Information Administration, the natural gas production in the region rose 5.6% in 3Q17—compared to 3Q16. EnLink Midstream Partners, which continued to expand its presence in the region, is expected to benefit from strong throughput volumes growth.

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