DALLAS, Feb. 25, 2020 /PRNewswire/ -- EnLink Midstream, LLC (NYSE: ENLC) (EnLink) today reported financial results for the fourth quarter and full-year of 2019, reaffirmed previously announced 2020 financial guidance, and provided a segment level update.
Highlights:
CEO Commentary on 2019 and Forward Outlook"EnLink finished off 2019 with strong adjusted EBITDA performance in the fourth quarter, driven by our diversified asset platform and solid execution. 2019 was a year of transition for EnLink, including the evolution from a period of high growth into an era of operational optimization. We continue to take necessary actions to position EnLink financially and operationally for long-term success, while maintaining an unrelenting commitment to deliver best-in-class services reliably and safely," said Barry E. Davis, EnLink Chairman and Chief Executive Officer.
"Our large-scale, diversified platform generates significant, stable cash flows from our two growth platforms in the Permian and Louisiana, and our two strong, free-cash-flow-generating systems in Oklahoma and North Texas. The Permian continues to drive near-term growth, with producers remaining very active on our footprint, while our Louisiana platform provides long-term growth opportunities.
"We are confident that the earnings power of our platform combined with our execution plan will deliver superior returns for investors over the long-term. As we turn to 2020 and beyond, we believe our strategic asset platform will allow us to differentiate EnLink by generating excess free cash flow, supported by manageable capital needed to modestly grow adjusted EBITDA."
Adjusted EBITDA, distributable cash flow, and excess free cash flow used in this press release are non-GAAP measures and are explained in greater detail under "Non-GAAP Financial Information and Other Definitions" below.
Fourth Quarter and Full-Year 2019 Results | ||
$MM, unless noted | Fourth Quarter 2019 | Full-Year 2019 |
Net (Loss) Attributable to EnLink | ($938.7) | ($1,119.3) |
Adjusted EBITDA, net to EnLink | $290.9 | $1,079.5 |
Net Cash Provided by Operating Activities | $214.4 | $991.9 |
Distributable Cash Flow | $203.1 | $723.8 |
Distribution Coverage | 2.20x | 1.42x |
Growth Capital Expenditures, net to EnLink | $90 | $600 |
Debt to Adjusted EBITDA, net to EnLink | 4.3x | 4.3x |
2020 Financial Guidance Reaffirmed | ||
$MM, unless noted | 2020 Guidance | |
Net Income (1) | $160 - $230 | |
Adjusted EBITDA, net to EnLink | $1,070 - $1,130 | |
Maintenance Capital, net to EnLink | $40 - $50 | |
Distributable Cash Flow | $715 - $755 | |
Distribution Coverage | 1.95x - 2.05x | |
Growth Capital Expenditures, net to EnLink | $275 - $375 | |
Total Capital Expenditures, net to EnLink | $315 - $425 | |
Debt to Adjusted EBITDA, net to EnLink | 4.0x - 4.3x | |
Excess Free Cash Flow (after total capital expenditures & distributions) | $10 - $70 | |
Annualized 4Q19 Declared Distribution per Common Unit | $0.75/ unit |
(1) | Net income is before non-controlling interest. |
Segment Updates
Permian Basin:
Louisiana:
Oklahoma:
North Texas:
2019 Sustainability ReportEnLink will post its 2019 Sustainability Report in May 2020 in the Sustainability section of EnLink's website at www.EnLink.com.
Fourth Quarter and Full-Year 2019 Earnings Call DetailsEnLink will host a webcast and conference call on Wednesday, February 26, at 9 a.m. Central time to discuss its fourth quarter and full-year results. The dial-in number for the call is 1-855-656-0924. Callers outside the United States should dial 1-412-542-4172. Participants can also preregister for the conference call by navigating to http://dpregister.com/10137406. Here, they will receive their dial-in information upon completion of preregistration. Interested parties can access an archived replay of the call on the Investors page of EnLink's website at www.EnLink.com.
About the EnLink Midstream CompaniesEnLink Midstream reliably operates a differentiated midstream platform that is built for long-term, sustainable value creation. EnLink's best-in-class services span the midstream value chain, providing natural gas, crude oil, condensate, and NGL capabilities. Our purposely built, integrated asset platforms are in premier production basins and core demand centers, including the Permian Basin, Oklahoma, North Texas, and the Gulf Coast. EnLink's strong financial foundation and commitment to execution excellence drive competitive returns and value for our employees, customers, and investors. Headquartered in Dallas, EnLink is publicly traded through EnLink Midstream, LLC (NYSE: ENLC). Visit www.EnLink.com to learn how EnLink connects energy to life.
Non-GAAP Financial Information and Other DefinitionsThis press release contains non-generally accepted accounting principles financial measures that we refer to as adjusted EBITDA, distributable cash flow available to common unitholders (distributable cash flow), excess free cash flow, and segment free cash flow all as defined below:
We define adjusted EBITDA as net income (loss) plus interest expense, net of interest income; income tax expense (benefit); depreciation and amortization; impairments; loss on secured term loan receivable; distributions from unconsolidated affiliate investments; (gain) loss on disposition of assets; unit-based compensation; transaction costs; (income) loss from unconsolidated affiliate investments; (gain) loss on non-cash derivatives; and accretion expense associated with asset retirement obligations; less non-cash revenue from contract restructuring; gain on extinguishment of debt; payments under onerous performance obligation; non-cash rent; and non-controlling interest.
We define distributable cash flow as adjusted EBITDA (defined above, net to ENLC), less interest expense, loss (gain) on settlement of interest rate swaps, current income taxes and other non-distributable cash flows, accrued cash distributions on EnLink Midstream Partners, LP's ("ENLK") Series B Cumulative Convertible Preferred Units (the "ENLK Series B Preferred Units") and ENLK's Series C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units ("ENLK Series C Preferred Units") paid or expected to be paid, and maintenance capital expenditures, excluding maintenance capital expenditures that were contributed by other entities and relate to the non-controlling interest share of our consolidated entities.
Excess free cash flow is defined as distributable cash flow less distributions declared on common units and growth capital expenditures, which are net to EnLink after giving effect to the contributions by other entities related to the non-controlling interest share of our consolidated entities.
Segment Free Cash Flow is defined as segment profit less growth and maintenance capital expenditures, which are gross to EnLink prior to giving effect to the contributions by other entities related to the non-controlling interest share of our consolidated entities.
EnLink believes these measures are useful to investors because they may provide users of this financial information with meaningful comparisons between current results and previously reported results and a meaningful measure of the company's cash flow after it has satisfied the capital and related requirements of its operations. In addition, adjusted EBITDA achievement is a primary metric used in our short-term incentive program for compensating employees.
Adjusted EBITDA, distributable cash flow, excess free cash flow and segment free cash flow, as defined above, are not measures of financial performance or liquidity under GAAP. They should not be considered in isolation or as an indicator of EnLink's performance. Furthermore, they should not be seen as a substitute for metrics prepared in accordance with GAAP. Reconciliations of these measures to their most directly comparable GAAP measures are included in the following tables. See ENLC's filings with the Securities and Exchange Commission for more information.
Other definitions and explanations of terms used in this press release:
Distribution coverage is calculated by dividing distributable cash flow by distributions declared to common unitholders.
Growth capital expenditures generally include capital expenditures made for acquisitions or capital improvements that we expect will increase our asset base, operating income or operating capacity over the long-term. Maintenance capital expenditures generally include capital expenditures made to replace partially or fully depreciated assets in order to maintain the existing operating capacity of the assets and to extend their useful lives.
Segment profit (loss) is defined as operating income (loss) plus general and administrative expenses, depreciation and amortization, (gain) loss on disposition of assets, impairments, and (gain) loss on litigation settlement. Segment profit (loss) includes non-cash compensation expenses reflected in operating expenses.
Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the federal securities laws. Although these statements reflect the current views, assumptions and expectations of our management, the matters addressed herein involve certain assumptions, risks and uncertainties that could cause actual activities, performance, outcomes and results to differ materially from those indicated herein. Therefore, you should not rely on any of these forward-looking statements. All statements, other than statements of historical fact, included in this press release constitute forward-looking statements, including but not limited to statements identified by the words "forecast," "may," "believe," "will," "should," "plan," "predict," "anticipate," "intend," "estimate," and "expect" and similar expressions. Such forward-looking statements include, but are not limited to, statements about guidance, projected or forecasted financial and operating results, when additional capacity will be operational, timing for completion of construction or expansion projects, expected financial and operational results associated with certain projects or growth capital expenditures, future operational results of our customers, results in certain basins, future rig count information or rig activity, future cost savings, profitability, financial metrics, operating efficiencies and other benefits of cost savings or operational initiatives, our future capital structure and credit ratings, objectives, strategies, expectations, and intentions, and other statements that are not historical facts. Factors that could result in such differences or otherwise materially affect our financial condition, results of operations, or cash flows include, without limitation (a) potential conflicts of interest of Global Infrastructure Partners ("GIP") with us and the potential for GIP to favor GIP's own interests to the detriment of the unitholders, (b) GIP's ability to compete with us and the fact that it is not required to offer us the opportunity to acquire additional assets or businesses, (c) a default under GIP's credit facility could result in a change in control of us, could adversely affect the price of our common units, and could result in a default under our credit facility, (d) the dependence on Devon for a substantial portion of the natural gas and crude that we gather, process, and transport, (e) developments that materially and adversely affect Devon or other customers, (f) adverse developments in the midstream business that may affect our financial condition, results of operations and reduce our ability to make distributions, (g) competition for crude oil, condensate, natural gas, and NGL supplies and any decrease in the availability of such commodities, (h) decreases in the volumes that we gather, process, fractionate, or transport, (i) construction risks in our major development projects, (j) our ability to receive or renew required permits and other approvals, (k) changes in the availability and cost of capital, including as a result of a change in our credit rating, (l) the effects of existing and future laws and governmental regulations, including legislation or regulation relating to hydraulic fracturing or climate change or other environmental matters, (m) operating hazards, natural disasters, weather-related issues or delays, casualty losses, and other matters beyond our control, and (n) impairments to goodwill, long-lived assets and equity method investments. These and other applicable uncertainties, factors, and risks are described more fully in EnLink Midstream, LLC's and EnLink Midstream Partners, LP's filings with the Securities and Exchange Commission, including EnLink Midstream, LLC's and EnLink Midstream Partners, LP's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Neither EnLink Midstream, LLC nor EnLink Midstream Partners, LP assumes any obligation to update any forward-looking statements.
The EnLink management team based the forecasted financial information included herein on certain information and assumptions, including, among others, the producer budgets / forecasts to which EnLink has access as of the date of this press release and the projects / opportunities expected to require growth capital expenditures as of the date of this press release. The assumptions, information, and estimates underlying the forecasted financial information included in the guidance information in this press release are inherently uncertain and, though considered reasonable by the EnLink management team as of the date of its preparation, are subject to a wide variety of significant business, economic, and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the forecasted financial information. Accordingly, there can be no assurance that the forecasted results are indicative of EnLink's future performance or that actual results will not differ materially from those presented in the forecasted financial information. Inclusion of the forecasted financial information in this press release should not be regarded as a representation by any person that the results contained in the forecasted financial information will be achieved.
Investor Relations: Kate Walsh, Vice President of Investor Relations and Tax, 214-721-9696, kate.walsh@enlink.com
Media Relations: Jill McMillan, Vice President of Strategic Relations & Public Affairs, 214-721-9271, jill.mcmillan@enlink.com
EnLink Midstream, LLC | |||||||||||||||
Selected Financial Data | |||||||||||||||
(All amounts in millions except per unit amounts) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Total revenues | $ | 1,155.7 | $ | 2,058.3 | $ | 6,052.9 | $ | 7,699.0 | |||||||
Cost of sales | 729.5 | 1,604.3 | 4,392.5 | 6,008.0 | |||||||||||
Gross operating margin | 426.2 | 454.0 | 1,660.4 | 1,691.0 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Operating expenses | 115.5 | 116.1 | 467.1 | 453.4 | |||||||||||
General and administrative | 30.5 | 40.5 | 152.6 | 140.3 | |||||||||||
(Gain) loss on disposition of assets | 1.0 | (0.9) | (1.9) | 0.4 | |||||||||||
Depreciation and amortization | 153.9 | 147.2 | 617.0 | 577.3 | |||||||||||
Impairments | 947.0 | 341.2 | 1,133.5 | 365.8 | |||||||||||
Loss on secured term loan receivable | — | — | 52.9 | — | |||||||||||
Total operating costs and expenses, excluding cost of sales | 1,247.9 | 644.1 | 2,421.2 | 1,537.2 | |||||||||||
Operating income (loss) | (821.7) | (190.1) | (760.8) | 153.8 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense, net of interest income | (55.5) | (48.0) | (216.0) | (182.3) | |||||||||||
Income (loss) from unconsolidated affiliates | (30.8) | 1.6 | (16.8) | 13.3 | |||||||||||
Other income | 0.8 | 0.3 | 0.9 | 0.6 | |||||||||||
Total other expense | (85.5) | (46.1) | (231.9) | (168.4) | |||||||||||
Loss before non-controlling interest and income taxes | (907.2) | (236.2) | (992.7) | (14.6) | |||||||||||
Income tax expense | (4.2) | (0.9) | (6.9) | (18.2) | |||||||||||
Net loss | (911.4) | (237.1) | (999.6) | (32.8) | |||||||||||
Net income (loss) attributable to non-controlling interest | 27.3 | (175.8) | 119.7 | (19.6) | |||||||||||
ENLC interest in net loss | $ | (938.7) | $ | (61.3) | $ | (1,119.3) | $ | (13.2) | |||||||
Net loss attributable to ENLC per unit: | |||||||||||||||
Basic common unit | $ | (1.92) | $ | (0.34) | $ | (2.41) | $ | (0.07) | |||||||
Diluted common unit | $ | (1.92) | $ | (0.34) | $ | (2.41) | $ | (0.07) |
EnLink Midstream, LLC | |||||||||||||||
Reconciliation of Net Loss to Adjusted EBITDA | |||||||||||||||
(All amounts in millions) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months EndedDecember 31, | Year EndedDecember 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net loss | $ | (911.4) | $ | (237.1) | $ | (999.6) | $ | (32.8) | |||||||
Interest expense, net of interest income | 55.5 | 48.0 | 216.0 | 182.3 | |||||||||||
Depreciation and amortization | 153.9 | 147.2 | 617.0 | 577.3 | |||||||||||
Impairments | 947.0 | 341.2 | 1,133.5 | 365.8 | |||||||||||
Non-cash revenue from contract restructuring (1) | — | — | — | (45.5) | |||||||||||
Loss on secured term loan receivable (1) | — | — | 52.9 | — | |||||||||||
(Income) loss from unconsolidated affiliate investments (2) | 30.8 | (1.6) | 16.8 | (13.3) | |||||||||||
Distributions from unconsolidated affiliate investments | 4.7 | 6.0 | 20.2 | 22.7 | |||||||||||
(Gain) loss on disposition of assets | 1.0 | (0.9) | (1.9) | 0.4 | |||||||||||
Unit-based compensation | 8.2 | 9.3 | 39.4 | 41.1 | |||||||||||
Income tax expense | 4.2 | 0.9 | 6.9 | 18.2 | |||||||||||
(Gain) loss on non-cash derivatives | 4.8 | (24.9) | 0.1 | (10.1) | |||||||||||
Payments under onerous performance obligation offset to other current and long-term liabilities | — | (4.4) | (9.0) | (17.9) | |||||||||||
Transaction costs (3) | — | 5.3 | 13.9 | 8.1 | |||||||||||
Other (4) | (0.2) | (0.5) | (1.0) | — | |||||||||||
Adjusted EBITDA before non-controlling interest | 298.5 | 288.5 | 1,105.2 | 1,096.3 | |||||||||||
Non-controlling interest share of adjusted EBITDA from joint ventures (5) | (7.6) | (5.3) | (25.7) | (19.1) | |||||||||||
Adjusted EBITDA, net to ENLC | $ | 290.9 | $ | 283.2 | $ | 1,079.5 | $ | 1,077.2 |
(1) | In May 2018, we restructured our natural gas gathering and processing contract with White Star, and, as a result, recognized non-cash revenue representing the discounted present value of a secured term loan receivable granted to us by White Star. In late May 2019, White Star, the counterparty to our $58.0 million second lien secured term loan receivable, defaulted on its approximately $10.0 million installment payment under the term loan and filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. White Star sold its assets and we did not recover any amounts then owed to us under the second lien secured term loan. | ||||
(2) | Includes a loss of $31.4 million for the three months and year ended December 31, 2019 related to an impairment on the carrying value of Cedar Cove Midstream LLC. | ||||
(3) | Represents transaction costs primarily attributable to costs incurred related to the acquisition of all outstanding, publicly-held ENLK common units in January 2019 and costs we incurred related to the acquisition by GIP of equity interests in ENLK, ENLC, and the managing member of ENLC previously held by subsidiaries of Devon Energy Corporation in July 2018. | ||||
(4) | Includes accretion expense associated with asset retirement obligations and non-cash rent, which relates to lease incentives pro-rated over the lease term. | ||||
(5) | Non-controlling interest share of adjusted EBITDA from joint ventures includes NGP Natural Resources XI, L.P.'s ("NGP") 49.9% share of adjusted EBITDA from the Delaware Basin JV, Marathon Petroleum Corporation's 50% share of adjusted EBITDA from the Ascension JV, and other minor non-controlling interests. |
EnLink Midstream, LLC | |||||||
Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA | |||||||
and Distributable Cash Flow | |||||||
(All amounts in millions except ratios and per unit amounts) | |||||||
(Unaudited) | |||||||
Three Months EndedDecember 31, | Year EndedDecember 31, | ||||||
2019 | 2019 | ||||||
Net cash provided by operating activities | $ | 214.4 | $ | 991.9 | |||
Interest expense (1) | 54.5 | 213.7 | |||||
Current income tax benefit | (2.0) | — | |||||
Distributions from unconsolidated affiliate investment in excess of earnings | 2.9 | 3.7 | |||||
Transaction costs (2) | — | 13.9 | |||||
Other (3) | (1.5) | (3.8) | |||||
Changes in operating assets and liabilities which (provided) used cash: | |||||||
Accounts receivable, accrued revenues, inventories, and other | (9.4) | (350.7) | |||||
Accounts payable, accrued product purchases, and other accrued liabilities (4) | 39.6 | 236.5 | |||||
Adjusted EBITDA before non-controlling interest | 298.5 | 1,105.2 | |||||
Non-controlling interest share of adjusted EBITDA from joint ventures (5) | (7.6) | (25.7) | |||||
Adjusted EBITDA, net to ENLC | 290.9 | 1,079.5 | |||||
Interest expense, net of interest income | (55.5) | (216.0) | |||||
Maintenance capital expenditures, net to ENLC (6) | (11.4) | (45.8) | |||||
ENLK preferred unit accrued cash distributions (7) | (22.8) | (91.7) | |||||
Other (8) | 1.9 | (2.2) | |||||
Distributable cash flow | $ | 203.1 | $ | 723.8 | |||
Actual declared distribution to common unitholders | $ | 92.3 | $ | 508.1 | |||
Distribution coverage | 2.20x | 1.42x | |||||
Distributions declared per ENLC unit | $ | 0.1875 | $ | 1.0325 |
(1) | Net of amortization of debt issuance costs and discount and premium, which are included in interest expense but not included in net cash provided by operating activities, and non-cash interest income, which is netted against interest expense but not included in adjusted EBITDA. | ||||
(2) | Represents transaction costs primarily attributable to costs incurred related to the acquisition of all outstanding, publicly-held ENLK common units in January 2019. | ||||
(3) | Includes accruals for settled commodity swap transactions and non-cash rent, which relates to lease incentives pro-rated over the lease term. | ||||
(4) | Net of payments under onerous performance obligation offset to other current and long-term liabilities. | ||||
(5) | Non-controlling interest share of adjusted EBITDA from joint ventures includes NGP's 49.9% share of adjusted EBITDA from the Delaware Basin JV, Marathon Petroleum Corporation's 50.0% share of adjusted EBITDA from the Ascension JV, and other minor non-controlling interests. | ||||
(6) | Excludes maintenance capital expenditures that were contributed by other entities and relate to the non-controlling interest share of our consolidated entities. | ||||
(7) | Represents the cash distributions earned by the ENLK Series B Preferred Units and ENLK Series C Preferred Units of $16.8 million and $6.0 million, respectively, for the three months ended December 31, 2019, and cash distributions earned by the ENLK Series B Preferred Units and ENLK Series C Preferred Units of $67.7 million and $24.0 million, respectively, for the year ended December 31, 2019. Cash distributions to be paid to holders of the ENLK Series B Preferred Units and ENLK Series C Preferred Units are not available to common unitholders. |
Distributable cash flow is not presented for the three months and year ended December 31, 2018 because distributable cash flow was not used as a supplemental liquidity measure by ENLC during 2018. ENLC began using distributable cash flow as a supplemental liquidity measure in 2019 as a result of ENLC's acquisition of all outstanding, publicly-held ENLK common units in January 2019.
EnLink Midstream, LLC | |||||||||||
Operating Data | |||||||||||
(Unaudited) | |||||||||||
Three Months EndedDecember 31, | Year EndedDecember 31, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Midstream Volumes: | |||||||||||
Permian Segment | |||||||||||
Gathering and Transportation (MMBtu/d) | 806,700 | 593,100 | 723,400 | 521,900 | |||||||
Processing (MMBtu/d) | 849,500 | 587,600 | 771,400 | 531,700 | |||||||
Crude Oil Handling (Bbls/d) | 122,900 | 132,200 | 132,000 | 124,300 | |||||||
North Texas Segment | |||||||||||
Gathering and Transportation (MMBtu/d) | 1,634,000 | 1,712,500 | 1,651,900 | 1,733,900 | |||||||
Processing (MMBtu/d) | 741,200 | 738,900 | 750,500 | 747,400 | |||||||
Oklahoma Segment | |||||||||||
Gathering and Transportation (MMBtu/d) | 1,296,600 | 1,272,800 | 1,302,200 | 1,204,700 | |||||||
Processing (MMBtu/d) | 1,252,400 | 1,269,600 | 1,276,700 | 1,195,300 | |||||||
Crude Oil Handling (Bbls/d) | 46,400 | 24,200 | 47,300 | 15,700 | |||||||
Louisiana Segment | |||||||||||
Gathering and Transportation (MMBtu/d) | 2,124,300 | 2,193,300 | 2,050,000 | 2,196,200 | |||||||
Processing (MMBtu/d) | 411,100 | 458,100 | 400,200 | 431,200 | |||||||
Crude Oil Handling (Bbls/d) | 19,200 | 17,000 | 18,900 | 15,400 | |||||||
NGL Fractionation (Gals/d) | 7,668,800 | 6,963,500 | 7,341,700 | 6,584,400 | |||||||
Brine Disposal (Bbls/d) | 1,500 | 3,300 | 2,700 | 3,200 |
EnLink Midstream, LLC | |||||||||||
Forward-Looking Reconciliation of Net Income to Adjusted EBITDA and Excess Free Cash Flow (1) | |||||||||||
(All amounts in millions) | |||||||||||
(Unaudited) | |||||||||||
2020 Outlook 1 | |||||||||||
($MM) | Low | Midpoint | High | ||||||||
Net income of EnLink (2) | $ | 160 | $ | 195 | $ | 230 | |||||
Interest expense, net of interest income | 220 | 225 | 230 | ||||||||
Depreciation and amortization | 647 | 632 | 618 | ||||||||
Income from unconsolidated affiliate investments | (3) | (4) | (5) | ||||||||
Distribution from unconsolidated affiliate investments | 5 | 7 | 9 | ||||||||
Unit-based compensation | 33 | 37 | 40 | ||||||||
Income taxes | 52 | 53 | 55 | ||||||||
Other (3) | (1) | (1) | (1) | ||||||||
Adjusted EBITDA before non-controlling interest | $ | 1,113 | $ | 1,144 | $ | 1,176 | |||||
Non-controlling interest share of adjusted EBITDA (4) | (43) | (44) | (46) | ||||||||
Adjusted EBITDA, net to EnLink | $ | 1,070 | $ | 1,100 | $ | 1,130 | |||||
Interest expense, net of interest income | (220) | (225) | (230) | ||||||||
Current taxes and other | (4) | (4) | (4) | ||||||||
Maintenance capital expenditures, net to EnLink (5) | (40) | (45) | (50) | ||||||||
Preferred unit accrued cash distributions (6) | (91) | (91) | (91) | ||||||||
Distributable cash flow | $ | 715 | $ | 735 | $ | 755 | |||||
Common distributions declared | (370) | (370) | (370) | ||||||||
Growth capital expenditures, net to EnLink (5) | (275) | (325) | (375) | ||||||||
Excess free cash flow | $ | 70 | $ | 40 | $ | 10 |
(1) | Represents the forward-looking net income guidance of EnLink Midstream, LLC for the year ended December 31, 2020. The forward-looking net income guidance excludes the potential impact of gains or losses on derivative activity, gains or losses on disposition of assets, impairment expense, gains or losses as a result of legal settlements, gains or losses on extinguishment of debt, and the financial effects of future acquisitions. The exclusion of these items is due to the uncertainty regarding the occurrence, timing and/or amount of these events. | ||||
(2) | Net income includes estimated net income attributable to (i) NGP Natural Resources XI, L.P.'s ("NGP") 49.9% share of net income from the Delaware Basin JV, (ii) Marathon Petroleum Corp.'s ("Marathon") 50% share of net income from the Ascension JV., and (iii) other minor non-controlling interests. | ||||
(3) | Includes (i) estimated accretion expense associated with asset retirement obligations and (ii) estimated non-cash rent, which relates to lease incentives pro-rated over the lease term. | ||||
(4) | Non-controlling interest share of adjusted EBITDA includes estimates for (i) NGP's 49.9% share of adjusted EBITDA from the Delaware Basin JV, (ii) Marathon's 50% share of adjusted EBITDA from the Ascension JV and (iii) other minor non-controlling interests. | ||||
(5) | Excludes capital expenditures that are contributed by other entities and relate to the non-controlling interest share of our consolidated entities. | ||||
(6) | Represents the cash distributions earned by the ENLK Series B Preferred Units and ENLK Series C Preferred Units. Cash distributions to be paid to holders of the ENLK Series B Preferred Units and ENLK Series C Preferred Units are not available to common unitholders. |
EnLink Midstream does not provide a reconciliation of forward-looking Net Cash Provided by Operating Activities to Adjusted EBITDA and Excess Free Cash Flow because the companies are unable to predict with reasonable certainty changes in working capital, which may impact cash provided or used during the year. Working capital includes accounts receivable, accounts payable and other current assets and liabilities. These items are uncertain and depend on various factors outside the companies' control.
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