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EnLink Midstream: All The Ingredients For Higher Distributions In 2022

Dec. 02, 2021 8:34 AM ETEnLink Midstream, LLC (ENLC) Stock8 Comments
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DT Analysis


  • EnLink Midstream had a bumpy start to 2021 but when looking ahead, they have all the ingredients for higher distributions in 2022.
  • After a business-as-usual second and third quarter of 2021, management has signaled a clear desire to push their distributions higher quite soon.
  • They generate ample free cash flow to potentially double their distributions, although time will tell how much they are increased.
  • Whilst their leverage remains high, it does not impede their ability to provide higher distributions and should trend lower as they reduce their net debt.
  • Following this positive outlook, it should be no surprise that I believe my bullish rating remains appropriate.

Rising Arrow Chart

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Despite seeing a bumpy start to 2021 due to the Texas Winter storm dubbed Uri, EnLink Midstream (NYSE:ENLC) still had the potential to double their distributions that currently provide a moderate yield of

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Comments (8)

I was hoping for more than 45 cents a year for the increase. I remember not too long ago it was $1.13
upnorthwi profile picture
@dannyb1984 And during that time the share price dropped from almost $20 to $6.50 and on down to under $1.00. Share price is 1/3rd of what it was and so is the div, they could have and probably should have suspended it. It hurt, I'm glad they maintained 1/3rd, but I'll take any increase as a sign of good times ahead.
@upnorthwi It’s better than nothing, but I was hoping it would be in the 56-60 cent range. I guess I’ll have to wait until Q4 2022 for that to possibly happen.
I would like to see the FCF used equally for a Distribution increase up to $.15 quarterly, debt repayment. Capex, and stock buybacks. This would allow them to continue moving forward on all fronts to further strengthen their company and provide returns to stockholders. new projects in the permain will provide good returns, but Ok and North Texas need to provide YOY stable cashflow.
upnorthwi profile picture
I'd love a 2x increase, or a large special, but I'd be happy with a small sustainable increase that would increase yearly or so, providing growth without breaking the bank.
Targa was rewarded for slamming the dividend down and then paying down debt instead of increasing their distribution.
sidnal5 profile picture
@Brucejfern Excellent observation. I would rather have enlc reduce debt than speculate on lower interest rates continuing. Whatever makes more sense.Leverage is ok when making accretive acquisitions.
@sidnal5 debt first, buy backs and distribution second
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