Earnings call transcript Q4 2022

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Operator

Greetings. Welcome to the Fourth Quarter 2022 EnLink Midstream Earnings Conference Call and Webcast. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. is conference this note, being recorded. Please

time, Brungardt, Director this now I'll Brungardt, turn Brian to begin. over conference of may the you At Investor Mr. Relations.

Brian Brungardt

room of Welcome and Pinto, today call Executive answer Officer. during Chief Vice Arenivas, to and and EnLink's morning, President you, Officer; Jesse call. Operating everyone. Vice the Executive also Lamb, Thank fourth on President good are in quarter questions Officer Walter Ben session. XXXX Chief the and earnings Participating Financial the to any is Q&A Executive Chief

earnings markets available today's made our on call those issued our release yesterday, are be also on We and our presentation the materials of will closed website after website. at replay A and www.enlink.com.

expectations the only revise. meaning within no including discussion filed. Today's found of our and the predictions press may federal undertake or laws. can speak statements be discussion call, of will presentation as differ in update forward-looking that of this results results differ obligation from actual The date the SEC and forward-looking factors cause we securities of release, include materially Actual and to to a our and projections statements, could

Definitions disclosures heading to and including measures reconciliation includes We statements and our you of also our financial Appendix our filings, our the as of cautionary available This call SEC to in those the under other these presentation. press "Risk encourage well certain in press of non-GAAP as discussion the are pertaining measures, review GAAP measures. a made comparable release release Factors". and

the open Jesse and set of the for a questions-and-answers. prepared Ben remainder call by leave today's remarks start with We'll and then call of brief

over Arenivas. to would turn With the like that, to now Jesse call I

Jesse Arenivas

which quarter everyone. plan Thank outlook, executing investors, game Thank you, CCS. us discuss return XXXX: to fourth be sustainable the mover we today to on another in XXXX for you first driving to like record in short, record our focused and remain that our will year. full-year results. XXXX our value also and looks worked through it discuss on good We'll executing and same joining capital In Brian, higher returning advantage morning, investing in projects,

XXXX, night, fourth of EBITDA XXXX a and lot adjusted for at we $XXX back of This a we ever reported million at Last of annual XX%. quarter marked EBITDA records. record EnLink Looking growth year-over-year EBITDA adjusted adjusted $X.XXX billion. our strongest both achieved and

negative Oklahoma, approximately results quarter Permian, these in with weather the severe despite Texas and earthquake unscheduled in achieved had throughout impact We a December winter adjusted XXXX. along the on EBITDA after an of headwinds; fourth of million downtime $XX

distributions. $X.XX strong after free consecutive the announced cash returns third to to flow flow recently generation $XXX million year million. after annualized in this of increase We in represents distribution investors. to the robust cash $XXX free our an flow use to cash robust flow generation cash This generating per XX% unit. drove the We least of at part distributions The increase

has XXXX. already repurchase Board an $XXX million And Board for authorized program in completed authorized the we unit XXXX. Additionally, additional the $XXX million program

our Importantly, investors balance were these while we to sheet. returns simultaneously strengthened our made

with and most due XXXX. XXXX due offering senior notes In due notes our an of senior our we a portion our senior of August, notes of XXXX, refinanced upsize

outlook with Moody's to and the investment no with grade below have the BBB- we balance fourth and our of with upgraded result, investment grade when us a sheet at to one Fitch recognized a end of debt positive exited a meaningful rating. subsequent We near-term remain S&P. improving credit the they X.Xx notch As leverage maturities. S&P quarter by quarter We

our guidance $X.XXX solid to the to another and Permian record growth. we EBITDA of with last mid-point year continue segment In issued expect billion generation continue momentum to exhibit we adjusted of night. to XXXX. largest look We Shifting forecast at for particular, this our the

also we of in another risk acquisition to small is quarter, execution consolidation attractive example market Oklahoma. of fourth strategy, in This Central the is a our continued G&P our the the During designed neighboring bolt-on system any acquisition strategy of environment. low returns with which yield

and the Last of approximately we which assets. announced represents Delaware, to maintaining We continuation remain a opportunities over focused the of high-return relocation night, we Permian third strategy XX% comparable of capital capital continue and invest to on including very a allocation valuable our relocating balanced find plant build our cost. the in the to efficient attractive approach to savings projects, first new

our As online and of coming dominant approximately along generate we market the our Texas. We from gross Coast. the margin natural and North three and operate of G&P gas supportive systems XXXX structurally XX% look wave gas NGLs, for capacity natural Gulf and LNG beyond, to Oklahoma, the and assets well-positioned Permian, are we the in

XXXX, lower well-positioned benefit. time, remain so of significant gas, very in currently for we to a a period natural American see on long-term, North our call prices may are While systems and natural gas and

and gas enable and On complement position. the demand centers demand on Permian the a in Texas the can't footprint And that we the Louisiana side, Oklahoma are replicated, which terminals. to us our LNG our North assets to supply growing supply side, to be have will including weighted perfect participate gas

create advantage building traditional diverse taking ground the differentiated business. midstream are CCS a complementing of EnLink market-leading those a we to our assets for in future business, addition, by In

first definitive executed on current first with COX for our advantage Last addressing industrial year, we Louisiana. the agreement emissions in transportation mover

the gas as extent in in the Because our of assets to business. without cannibalizing XXXX the our expect beyond we agreements do ground, choice. this we can beyond We existing of sign additional of ExxonMobil become COX transporter definitive and

unique Investor CCS Day Next week, provide we plan details our evolving the around Dallas. this to additional business at in opportunity and

it With that, operations Ben results. over an turn of provide our financial and to to overview I will our

Ben Lamb

Thanks, Jesse, and good morning, everyone.

the in weather, winter members importantly, but manner. safe the our a field. to tough They like only thanking team close start with out all more by so not in in they operated I'd to year out did of conditions

EnLink followed XXXX, up safety in record XXXX. performance another a record in with

is rate assets injury in at to came excellence, recordable take total actions XXXX we a operate the safety. with on X.XX. This compromising Our while our never to testament

walk then up through which record assets, me for and with comments our XXXX wrap our about outlook some Let for drove results XXXX.

expenses derivative Let's approximately and profit relocation start included with largest quarter our to segment Permian, of million for at XXXX fourth where the the of profit in the Phantom in million. the gains. $X.X of unrealized the came segment Segment quarter of million operating plant tied $XX.X $XX

XXXX sequentially, but unrealized the unplanned profit XX% an year increased downtime segment and impacted results OpEx activity, quarter winter XX% quarter. a $X from in of plant adversely over and relocation earthquake plant approximately Excluding derivative million of weather. result fourth prior as by from severe quarter the The fourth decreased were

the natural to Average driven compared the of gas by X% volumes lower quarter gathering for quarter events. were third XXXX, the unplanned approximately

plant is Producer meet plant be activity the the build The day of has to roughly XXX our North we acquired per cubic plans expected which recently remained the Tiger cost capacity from a half Texas. of online and producers' add Permian, recently move quarter processing second in at will robust feet relocation a of quarter relocation Delaware will footprint announced early from be on of million new fourth project side, XXXX. XXXX. to across our the II. To our third the will XXXX into This

Segment market experienced in the segment Louisiana. XXXX fourth included the the at quarter. normal $XX.X to came We now unrealized for profit Segment quarter the gas Turning in seasonality losses in $X.X favorable in million. the and fourth million. derivative of conditions segment profit of NGL

profit in XXXX year quarter. Excluding of the increased and segment impact the X% the activity, from fourth derivative X% of sequentially approximately unrealized quarter prior

gas in We to continue and robust for see demand Louisiana. NGLs natural

market, in to of Coast barrel Fractionators, Mont The is NGL to our with we restart in Texas. XXX,XXX fractionation first agreed facility XXXX. tightness the partners the restart facility the expected Belvieu, NGL per in day half With Gulf

Moving up of included of unrealized in losses delivered segment to profit Segment fourth million. profit the XXXX. $XX.X derivative $X for approximately of quarter million quarter We the Oklahoma.

and relocation weather grew profit XX% X% impact sequentially from OpEx the quarter. an of from despite December. activity, million Excluding results unrealized plant XXXX winter fourth $X and achieved the the year these of in segment We derivative in prior nearly severe quarter over

available of increased gathering quarter. sequentially X% to neighboring, include our that in million North growth of prior day, driven is to and operational and incremental will processing gathering acquired Texas quarter, gas cubic Like on significantly The case and synergies. fourth EBITDA At The expected which of to customer we be generate million the our and X% with volumes per support year the closed compared system. drilling earlier those processing no is capital of future assumed in and underutilized and capacity is for comes acquisition, our XXXX. a potential similar to acquisition the activity by XXX economics volume attractive feet acquisition assets end investment natural Average acquisition $XX XXXX approximately systems. an

up million, Wrapping profit million. for gains the unrealized quarter Texas, $XX.X North including was segment with of $X.X derivative

by distributions. XX% improvement in in million quarter. that decreased fourth million The X% XXXX year acquisition free XXXX. in solid prior quarter the activity, were sequentially another the part of of and closed Excluding EBITDA derivative year robust but after higher results cash gas segment and quarter. sequentially prior to driven of third compared profit drove the from the $XX unrealized These X% $XXX of volumes with higher prior gathering grew flow was Natural over year XX% the quarter quarter the adjusted

of We incurring and $XX $X.XXX flow growth of prior the of cash delivered fourth the XX% organizational weather free For the related These million XXXX, third flow year despite $XXX distributions. in the $X adjusted consecutive EnLink realignment and million severance full-year over million. cash adjusted in impact EBITDA despite in and after $XXX quarter. after an and free EBITDA the over costs distributions the results these approximate results December achieved impressive represent year to events, earthquake an million in billion of

included million to total expenditures XXXX. contributions This Capital $XX net venture, for contribution Matterhorn $XX and a our Matterhorn $XXX joint plant bringing investment were our to million in to million. relocation EnLink investment expenses

grade The balance to stable positive sheet. with taken we and BBB- positive below at the in Moody's sheet we note have strong of ample EnLink a of have investment a X.Xx at We rating ourselves agencies the the liquidity. On position to upgraded of a find recently, a with leverage both rating credit our continue a ratio S&P. outlook. very year remain S&P steps strengthen at the with investment balance grade made outlook and one-notch end and to Fitch Most side,

our common annualized. unit per XX% with plans our fourth to allocation to capital unit the to investors, we increased in distribution $X.XX XXXX by quarter increase Consistent returns of

in spent the unit remain million quarter. $XXX we our repurchase plan active the with for fourth completed million Additionally, and with XXXX common program $XX

of quarter also million the at We average units dollar. price an of fourth in Series repurchased the $XX C our on preferred $X.XX

turn let XXXX we announced guidance Now me yesterday. to that

billion. solid momentum $X.XXX From a is position of be standpoint, XXXX of the stability $X.XXX double-digit This forecasting mid-point volume year in is range record the EBITDA at adjusted the and robust Permian, driven are the of of ended we to with and another growth continue continued by Texas. We a in billion growth are represents results. It forecast we range. X% in year to approximately North to activity the an continued Oklahoma, in

prices. commodity to Turning

Our fee-based. business remains approximately XX%

range, $XX and MMBtu prices assumed Hub of per we and average For guidance our $X Henry WTI barrel respectively. per XXXX

minus change in to Accordingly, above approximately prices XXXX approximately or million, in moderate our gas providing no in barrel impact than exposure MMBtu prices plus While hedge increased significantly gas of large we may faster basis a took each assuming prices and turn, certainty been the change at have of action and financial EBITDA results. plus minus in impacts a case, million $X by to EBITDA expected and our for majority levels, adjusted XXXX $X.XX a Waha adjusted change in or XXXX of current volumes. by natural natural prices per forecast anticipated, per $XX to $X we this year pullback we

profit business. At Looking $XX are significant at expenses Permian million. mid-point, of segment for segments, for II. for Tiger be plant That another relocation to the $XXX we XXXX growth of is forecast year the projecting million our includes

a mid-point million Excluding X.X%. plant relocation for at $XXX expenses, segment growth of we forecast profit of approximately Permian

X% be guidance. mid-point when Louisiana at profit mid-point. for an expenses XXXX Texas Oklahoma increase be $XXX relocation is approximately at to segment representing million segment to segment the forecast the the is XXXX to of XXXX. XXXX profit in forecast million mid-point, million be plant for North incurred $XXX $XXX forecast profit for at is excluding of

II the Tiger includes to capital associated with total operating front, two and Tiger $XX accounting contributions our the II between share investment expenditures with with spending million $XXX to the and expenses a million at projects relocation forecast of last million. to night This million EnLink plant we GCF. net are associated $XXX project new investment EnLink On for $XX announced plus and net be restart

As ExxonMobil, which related a million about ground. our in assets takes our existing advantage project to of includes $XX it also reminder, with CCS the

expect From adjusted increase to in a increase this free modest offset cash perspective, flow the we high-return projects EBITDA. in

a As cash flow the of to forecast million. free result, after $XXX in we million distributions range $XXX

program new our mentioned for As earlier, $XXX repurchase XXXX. Board a common authorized million unit

In XXXX. grow, results continue Despite our well-positioned by recent we largest the expect solid Permian. in the to led EnLink delivered to today in summary, team are and the our XXXX, the volatility, segment assets momentum

Jesse. to back it turn I'll that, With

Jesse Arenivas

you, Thank Ben.

for XXXX, which in a records the in of of for resulted I'm team proud number their solid EnLink. execution EnLink

guidance excited about and upon the holds. we're shows, build well-positioned record I'm future our As to what year our

With call that, the for open may you now questions.

Operator

this At session. we'll Instructions]. be a conducting you. [Operator time, question-and-answer Thank

Thank you.

Our of questions. line from is Tudor with first proceed Colton Holt. question Pickering your Please the with Bean

Colton Bean

morning. Good

a on outlook the here. of questions Just for couple XXXX volume

Devon guide in I I consistent double-digit and for high-single-digits the that think they're Oklahoma Anadarko. targeting with yesterday looks mentioned So we're think growth

growth Just activity the seeing curious, from terms in counterparties drilling be is place? the better are difference taking is where of or that specifically just you other

Ben Lamb

Colton. both. Ben. little morning, This good Hey, bit is of A

only investors, help last to think have in level operated We rigs to four five been have in will of our gathered we by We right. running -- share growth Devon's see Devon's other confidence We've did which Oklahoma. confidence. that had of volume and You're customer. And our They in volume expect demonstrate that do they our growth. double-digit see about that comment counterparties. different not But night. nine been the year-to-date, Oklahoma four Devon

volume them growth to expect well. a we as see to contribute So bit

Colton Bean

the I between public, And private other Great. guess rough just breakout to follow-up activity? five, for there, any

Ben Lamb

the expect that. year. activity, The need a the others. the on mostly of nine It's volume contribute does see don't operating rigs private percentage JV. Devon/Dow growth private come points. couple the to don't But throughout operators from necessarily do And dedicated acreage of bulk we We the

Colton Bean

XXXX, assume remain today Understood. entirety place. rigs looks And half a just then for in year? the second you bit two acquisition in XXXX Does the North like of that the it's the than Texas once of guidance that lighter the little running have for

Ben Lamb

Yes.

apart the North So number Texas let's take little do bit. a a little

assets One on saying a You're while few that EnLink things there. legacy the a the is we've stability acquired seen slight still on assets, are decline. volume

a And the actuals the decline assets. so acquired from you're second on seeing half little bit of

modest And activity, just two There's we reduction being would areas, first of in we rigs see expect that other in today. but are North modest a place. also Texas. is stay are a where gas prices working compared If in there I on don't to we mean, impact to bit in no, that It's realistic, Texas. see impact. dedicated very the price of acreage North price given expect then, little the see a some to necessarily

seen being just the market, happen. some haven't like guiding that room for we with feel how yet, should We we it realistic but we're to allow

Colton Bean

Great.

it So activity like little current. Texas does the North assume bit number than sounds a lighter

Ben Lamb

That's correct.

Colton Bean

Great. Thank you.

Operator

Jeffrey with Our proceed next of Christopher question. your the question from coming Mizuho. is with Please line

Christopher Jeffrey

question. thanks for my Hi taking everyone

Colton coming on any what you're kind from said, of off impact shouting how it? chip double-digit acquisition thinking maybe of growth the about rate Just is Oklahoma there that

Ben Lamb

the the growth impact acquisition. double-digit is our EnLink excludes assets legacy The really on and Yes. rate of

it. see reporting contribution course, bit you'll the little from of a the start of as impact Of we acquisition,

a For today of Oklahoma day volume the XX day. XX,XXX -- about Mcf a have a assets million in acquired reference,

Christopher Jeffrey

looking maybe for CapEx inflation Thanks. G&A O&M or a contributing expect in And should it kind then be it. to to And is a taking and what at wondering bit Got of directional outlook maintenance seems bigger similar just leap catch-up we spending? some spending? XXXX, footprint of a Is that?

Ben Lamb

and a footprint. that the main of Yes. of expect because compressor online, overhauls, compressors, more I some a on this it given couple cycle more you're that terms a the in assets of a we've turbine which asked cost acquisitions the had are couple is necessarily apiece. of a run It's and come million us in maintenance rate dollars those to the we thing cycle. plants not year of Most those more year. seeing take of indicative increase last over for from that bit in It's does last than happen more timing have and needing order we a bigger brought XXXX, have couple frankly, the of next compressors of the reflects maintenance had in than you to Well, year to impact but and we've CapEx of little the coming a year, we major maintenance point of

flex a activity. bit little That does with

the -- the net to we but the move do don't for than around. for bit have mainly this If last inflation that machines, else, O&M G&A like you little accrue basis is G&A. the will on in volumes much escalators be have seeing inflation us. of of year. the in and roughly issue into to pressure commercial such read-through And move so really around offset Doesn't a O&M, any bit by around we're that more isn't the contracts little consumables, the that hours everyone need into on as really or a cost a an year overhauls, number think you flat and it'll We don't

Operator

question Pickering proceed is your Cusimano Partners. of next The with Energy question. Please Michael from the with line

Michael Cusimano

have it just spot went what -- into you I about little talk are Can frac if talk the you the detail, GCF there, give discussions you bringing on little to And you online? about bit. a was capacity? contractual bring any to really back can more hoping a arrangements us

Jesse Arenivas

Yes.

and of major XXX,XXX three reminder, So frac in market was we And partners as The first couple at Mont maintenance. it in idled pretty GCF asset our are and the of It just because discussion own some really ago we frac of XX.XX% years portfolios. a our barrels the capacity none it And needed Phillips per Belvieu. the all, it. is time, a XX. and needed partners and of the day, soft with a of has Target

the now three for see the grown frac What's changed as and is portfolios. has up has tightened role in volume partners a their market all frac

the us confirm had merely it operator for bringing the need of a so and a to that discussions develop up And budget. each to were around it for restart

Our budget share the restart will $XX first frac contribute half come is about of that year the million up and we'll that in of XXXX. this see

arrangements In barrels we portion it'll most through we the the barrels a offloads frac, volume, accounted we've that with own. to capacity third-parties be terms Belvieu, in to of by to those for of asset handling offload into those and redirecting Mont GCF and will allowing the third-parties go expire our of been control that

Michael Cusimano

Got it.

helpful. That's maybe or fourth and might volumes you impact? trying the can a look give get levels at for quarter, for you today And idea Okay. provide level us to if Permian like run rate just what ex-weather XQ throughput like normalized the an earthquake then the impact, looking could

Jesse Arenivas

Yes.

there the is, little Permian. had growth or of in that December the two So say to little the the to three the and into most important even because the carrying last earthquake, know and weeks January. It's we how had bit frankly precisely hard a but over seen the for so a were two events bit fact sequential much significant would've we we weather thing for

volume that that report You'll say But hard exactly in just Permian some growth It's much. see we absent seen you'll events. see -- we May. those would've in to the to when XQ suffice say think sequential how I

Operator

from with questions question. next line proceed The of the Citi. Dounis Spiro Please come your with

Spiro Dounis

appreciated. too expect you've morning, of week, going been that, assigning coming to Good gating has but Exxon Investor team. got what you get there of know similar color Day operator. forward. deals would be Any just you ahead commercial just for first since much question Thanks, momentum Jesse, up so how in terms CCS, seeing curious, on that deal, I items next you're curious don't the any

Jesse Arenivas

in to Good both for thanks Yes. post-IRA, the Spiro, you've think sequestration the sequester and momentum question. is morning, the I players -- emitters the market. numerous got and strengthen continue Look,

I an next think parties. update to multiple week. ongoing do those you with discussions We are expect give

week. going do there, So we the is active to be on a we there next But expect year you CCS the hopefully, see very Louisiana. momentums XXXX front

Spiro Dounis

stay guys and just spending definitely there, you I'll highlighted week. distribution there. tuned cash the two more some capital color of the then thinking and high-return free buyback buckets on the after the about And other Appreciate on flow and units allocation, potentially next for Great. course, repurchasing preferred then projects.

you to thinking of about, the get of And Just of other? sort those, those see? where Or would about come is spent provide potential that you help so above you any as rank more terms as that and in can is prioritize thinking opportunistic backlog you things more force really market? dollars projects this a really truly one there

Jesse Arenivas

the Yes, that more these which let Spiro, approach. the of are weigh projects incremental look the spent over high-return million growth start growth will what you value-added GCF are and downstream these the obviously let very is But projects. XXXX, And at Global plant. are in Ben of discrete business. capital is XXX one of always year the the focus doing expansion philosophical we strategic Delaware high-return, relocation incremental there. very me this CCS And are that. in prioritize And of when spending on then then XXXX a component another on in $XX is basin, Venture we're is, our I'll

additions portfolio. So high-return as you our see, these can are multi-year to

how of we weigh let capital, I'll Ben the in. to the So With we'll allocate high-return prioritize projects. always respect rest

Ben Lamb

Yes.

unit additional year. distributions, after build Jesse other of that structure organic repurchases additional means projects, available would to always unit cash high-return additional this capital the love after said, that, $XXX $XX first do be in reduction. common or that we we'd common million to on if our repurchases priority, be free what to would opportunities incremental Just flow find find Absent some million the

risk in not $XX we and on -- preferred our a and have I us. C We we not describe opportunistic. a liked did past units and redeem risk quarter the return going to good reward it that's But be million of going to would when the willing happen as that. a priority at $X.XX, It's seller for

Spiro Dounis

Appreciate the the Understood. color. time Thanks guys. for

Operator

the next questions from Our of come with Tonet JP Please your Jeremy question. with proceed line Morgan.

Rahul Krotthapalli

Jeremy. Hey guys, on this Rahul is for

in wondering You XQ; guys in think XQ? impacts incremental weather you mentioned the if I was magnitude impacts as details just of the guys could provide to any about

Jesse Arenivas

It's weather It between the of January. modest probably Yes. continued first It or earthquake. relatively so days in XQ. the for and XX the continued

in thing to that know gave you last the that The for we've is we guidance night. important accounted

it's all. at not a to guidance creating risk the So

Rahul Krotthapalli

commodity And hedging switching through into bit That's XXXX. helpful and exposure? could fee-based there. Got breakdown price the a hedge about if notable percent between you then Was topics you. wondering commodity EBITDA talked XXXX run us

Jesse Arenivas

Yes.

to expected And but of we and and fee-based did how warm at market and gas of balance couple a has we prices the is surprised drip bit. faster that And about higher are business XX% been, the for XXXX than we're did winter we year years because we're prices get the in the surprised here gas seeing the Nymex today. majority not of in where the has see gas the that We basis. today both Our for that hasn't EnLink's that $X significantly proactively took because that all the of we did exposure than And what are at at the to XXXX natural in little a got changed. opportunity been to to of Waha hedge market. the is for range. we ahead we really is case not a What

else crude of gross much is our change little gas in in gas change prices gas a about by margin. our exposure impact So EnLink as for only impacts and WTI also change XXXX, significant prices We've very million as the all and of portion $X NGL change margins in on $X $X.XX an a a million. about a equal not $XX has result equates hedged our in that to

Rahul Krotthapalli

could think If just XXXX CapEx should how the about or is helpful. we I going something rate run of run one That's it. CapEx rate squeeze think we Got one can some quick that? forward, or in,

Jesse Arenivas

Yes.

it's outlined kind said, that in a nature. we'll seeing on little to to side. Like I projects, are we of for high-return downstream opportunity lot Louisiana we bigger items tell. We'll discrete in said, look you one the the as too early the think at are I more a time evaluate Ben continue

here. as just we So have we'll to update you go

Ben Lamb

And what the devote only to budget thing more CCS I'd capital and in I us time opportunities. add you'll more see that is think to over the

Operator

Thank you. Instructions]. [Operator

from of is the next question Seaport The with Sibal Sunil line with Global. Please proceed your questions.

Sunil Sibal

on things. the a good wanted I off of side balance to Yes. Hi, congrats sheet XXXX good morning, start on guidance. and everybody,

was talk kind capital structure. part that prefs Fitch. see wondering the your at some plans of have agencies discussion see agencies was curious have you and good talked other of you some if So specifically, how on about about kind other of to I think rating upgrade do could in I as in longer-term instances I the the of and prefs. with

Jesse Arenivas

And your BBB-. Yes, and happy the to to do that. upgrade investment appreciate highlighting Fitch grade

We positive outlook both at are S&P. at and Moody's S&P one-notch below with

to rated business X.Xx for call last lot and night think at we very positive ending need done of to perspective, I year we've today. and everyone a with that investment again outlined be liquidity do a From outlook on that levered the then our everything the grade we've

than decisions other course So from ratings we Fitch the agencies, that timing of year. more think but we've done of that we'll our see by any part. can't We the we're the the control the upgrade obviously optimistic over just

the chipping In on on in little reward. risen, favorable earlier. one when preferreds the said thought -- price at terms been risk we opportunity reiterate I of has a presented something the a the We away opportunistic I'd was preferreds, we've and plans the offer that

Series well, preferred chipped We're and chipped don't last a quarter we preferred it we to B of Series as little the consider the XXXX going to today. away priority opportunistic a we made don't that C then those, be So in preferreds at prices be year, -- away at thought sense. again the fourth those have eliminate we on at to bit

Sunil Sibal

And mid-stream it. one have your structures, with I players, contract some regard Got floors. to of with POP/POL Permian then other about contracts Okay. especially talked fee-based in the question your with think

that, So contracts, when stores have include are? you commodity kind how the current those do compare of that kind fee-based does where a XX% on those -- you how the the And of contracts mentioned in contracts, prices such fee-based? follow-up kind then of you fee-based high to does if

Jesse Arenivas

We -- fee, they're are and contracts our contracts either a that POP component component. fee both have a or Yes. fee-based, POP generally fixed

a So of component. a a but number not fixed floor, Mcf or plus that per MMBtu POP help? Does cents necessarily

Sunil Sibal

Yes. That does help.

Jesse Arenivas

to element of really that's element a fee we both a So not there's fee comparison about and element, a just commodity the the current the include of business POP when percentage fee-based. the and price. we There's talk contract

Operator

over of and we've At this time, the reached Thank I'll turn question-and-answer to Arenivas Jesse session, for call remarks. the end you. the closing

Jesse Arenivas

continued being and call this support. the on for Rob, morning today call facilitating for and for everyone you, the your thank Thank

in interest you day. we investment in our always, a first have XX. Dallas continued February look wish when host As the and We great we to healthy EnLink. you of stay on In well, week Day seeing forward most your next and meantime, appreciate Investor we

Operator

will today's your conference. participation. Thank conclude This for you

this disconnect wonderful day. lines Have a time. now at may You your

EnLink Midstream (ENLC) 15 Feb 232022 Q4 Earnings call transcript