Winter Storm Uri
If storm Uri taught us anything, it is that base-load matters when producing electricity and heat, and while coal in the US may continue dwindling due to its severely polluting byproducts, natural gas
Storm Uri Doesn't Freeze EnLink's Q1 Earnings
Summary
- If commodity prices continue to remain supportive, EnLink's forward guidance should get revised upwards in August.
- 2021 will mark the trough for earnings for EnLink. The decline of only 8% from the 2019 peak shows the resilience of the company.
- The market hasn’t fully appreciated the record Free Cash Flow EnLink is producing.
- There are numerous tailwinds for EnLink that will propel their stock higher. Buy it now before the market wakes up to the value.
I have over 30 years of personal investing experience. My articles cover mostly small to mid sized midstream companies and larger topics like the energy transition and macro questions, like when will we hit peak shale? I consider myself a value investor and recommend companies that produce high returns over a 3-8 year time horizon. As value returns to other sectors, I will broaden my articles to include other names.
Analyst’s Disclosure:I am/we are long ENLC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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