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EnLink Midstream Grows Their CCS Division

Sep. 12, 2023 2:22 PM ETEnLink Midstream, LLC (ENLC)DEN, XOM15 Comments
Aaron Goldberg profile picture
Aaron Goldberg


  • EnLink's stock has entered a long-term trading range between $8.50 and $13.50 per unit.
  • The company plans to invest $1.5 billion in CCUS projects over the next 7 years to meet growing demand.
  • EnLink has signed a transportation service agreement with Exxon Mobil to move CO2 captured from CF Industries and Nucor Steel to a sequestration site in Louisiana.

Reduce CO2 emission concept in the hand for environmental, global warming, Sustainable development and green business based on renewable energy.

Khanchit Khirisutchalual

EnLink's (NYSE:ENLC) go-go days of 2022 (as M&A activity peaked) are now behind us, but we still have a lot of positive news to report. The ridiculously easy money was made climbing from a unit low of $0.88 per unit reached on

This article was written by

Aaron Goldberg profile picture
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/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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Comments (15)

Great article, Aaron.

My concern with the CCS business is that it seems dependent on the government for 100% of its revenue, and the govt gets to set the price for carbon credits. So what if policy changes or the govt decides they will pay less, can the business stand on its own by the likes of CF garnering a premium for carbon-neutral fertilizer, etc?
Aaron Goldberg profile picture
@deckofcards That's a good point and perhaps a topic of conversation for a future article because as much research as I've done on CCS, I don't know the answer to this. It requires a deeper dive into the economics of CCS. For example, the CF produces 2 Mtpa per year and if I do the 45Q math on $85 per tons, I get a figure of $170MM but is that a total value over 12 years or per year figure? A per year figure is $2B and I know that can't be right.
Aaron thanks for your periodic reviews/analysis of EnLink. I keep thinking(hoping) that ENLC will increase Div enough to get in the range of other pipeline C-Corps and MLP's yields. If the share price stays in the current higher range, maybe they will divert some of the Stock buyback money to increased Div.
In any case I plan to hold my long term position for the next year or two because I believe that the CCS business has a lot of potential especially with ENLC existing pipelines and the heavy C02 emitters in their Louisiana service area.
@Lookingforincome depending on how low you bought it may make sense to take your win and sell. I really like ENLC. I just think they are currently overpriced compared to peers. In time they will continue to increase but that could take years. And with the persistent volatility there is likely an opportunity to buy at $8 or 9 again, and if the ever looming crash does come it could drop well past that (I’m not predicting a crash just saying I don’t know). Mostly it is a volatile stock near the high end of its value, maybe even overvalued currently with the dividend yield being low for the industry. I bought ENLC for $1.05 in 2020 and sold long for $11.50 in 2021. Changed my family’s financial situation. Thank you ENLC.
@JBedgood Somewhat agree with you re. Sale, but have very low cost basis in Taxable accounts which would result in high Capital gains taxes which might push us into Medicare surtax. Also, current div is classified as "return of capital" so no current taxable Div income. Older so may hold for step-up-in-basis for heirs. Have a small percent of shares In IRAs, which will sell when I think ENLC is more fully priced.
@Lookingforincome difficult choices but good problems to have. I’m ignorant on this but does ENLC step up for heirs as it is not am MLP?
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