DALLAS, April 30, 2024 /PRNewswire/ -- EnLink Midstream, LLC (NYSE:ENLC) (EnLink) today reported financial results for the first quarter of 2024. Highlights Reported net income of $50.0 million and net cash provided by operating activities of $293.3 million for the first quarter of 2024. Generated adjusted EBITDA, net to EnLink, of $337.7 million for the first quarter of 2024, which represents growth of 4.3% compared to the first quarter of 2023. Delivered $74.0 million of free cash flow after distributions (FCFAD) for the first quarter of 2024. Executed the first project in Phase 2 of Louisiana gas expansion to meet customer needs in eastern Louisiana. Through additional compression, the "Henry Hub to the River" project represents a quick-to-market solution with a targeted in-service date in the fourth quarter of 2025. Repurchased approximately $50.0 million1 of common units in the first quarter of 2024. EnLink is on pace to complete the 2024 unit repurchase authorization of $200 million. "EnLink delivered a solid quarter due to the resilience of our assets and diversified nature of our business," EnLink Chief Executive Officer Jesse Arenivas said. "We continue to find additional opportunities for our Louisiana segment, which is outperforming. Last quarter, we announced a three-phase Louisiana growth strategy that positions EnLink to benefit from the shifting dynamics of today's natural gas demand market. We've made great progress on Phase 1, renewing the vast majority of our existing contracts at higher rates and longer tenor. I'm pleased to announce that we've also executed on Phase 2 of this strategy with our new 'Henry Hub to the River' project, which will add approximately 210 million cubic feet per day (MMcf/d) of expanded capacity and is the exact type of quick-to-market, debottlenecking project that we believe leverages our existing footprint to drive high returns for EnLink." Adjusted EBITDA and FCFAD used in this press release are non-GAAP measures and are explained in greater detail under "Non-GAAP Financial Information" below. 1 Includes $23.1 million of common units repurchased from GIP pursuant to our Unit Repurchase Agreement, which settled on April 29, 2024.   First Quarter 2024 Financial Results and Highlights $MM, unless noted First Quarter 2024 Fourth Quarter 2023 First Quarter 2023 Net Income (1) 50 100 94 Adjusted EBITDA, net to EnLink 338 351 324 Net Cash Provided by Operating Activities 293 361 272 Capex, Plant Relocation Costs, net to EnLink & Investment Contributions 111 122 157 Free Cash Flow After Distributions 74 79 6 Debt to Adjusted EBITDA, net to EnLink (2) 3.3x 3.3x 3.4x Common Units Outstanding (3) 451,304,161 453,176,911 465,989,285 (1) Net income is before non-controlling interest. (2) Calculated according to credit facility leverage covenant. (3) Outstanding common units as of April 25, 2024, February 14, 2024, and April 27, 2023, respectively.   First Quarter 2024 Segment Updates Permian Basin: Segment profit for the first quarter of 2024 was $89.0 million, including operating expenses related to plant relocation of $9.3 million and unrealized derivative losses of $2.4 million. Excluding plant relocation operating expenses and unrealized derivative activity, segment profit in the first quarter of 2024 decreased approximately 10% sequentially but grew approximately 12% over the first quarter of 2023. Segment results during the first quarter of 2024 were adversely impacted by lower volumes from winter weather and a one-time utility expense that increased Permian operating expenses by approximately $5 million. Average natural gas gathering volumes for the first quarter of 2024 were approximately 2% lower compared to the fourth quarter of 2023 but were approximately 13% higher compared to the first quarter of 2023. Average natural gas processing volumes for the first quarter of 2024 were approximately 1% lower compared to the fourth quarter of 2023 but were approximately 12% higher compared to the first quarter of 2023. EnLink continues to benefit from strong producer drilling and completion activity. Average crude gathering volumes for the first quarter of 2024 were approximately 12% lower compared to the fourth quarter of 2023 but were approximately 15% higher compared to the first quarter of 2023. EnLink's third plant relocation, Tiger II, is in the process of coming online in May. Louisiana: Segment profit for the first quarter of 2024 was $110.4 million, including unrealized derivative losses of $19.5 million. Excluding unrealized derivative activity, segment profit in the first quarter of 2024 grew approximately 26% sequentially, driven by normal seasonal effects in the natural gas liquids (NGL) segment and benefits from market volatility in the natural gas segment, and grew 23% over the first quarter of 2023. Average natural gas transportation volumes for the first quarter of 2024 were approximately 11% higher compared to the fourth quarter of 2023 and approximately 2% higher compared to the first quarter of 2023. NGL fractionation volumes for the first quarter of 2024 were approximately 4% lower compared to the fourth quarter of 2023 but were flat compared to the first quarter of 2023. EnLink executed on Phase 2 of the Louisiana gas market expansion with the Henry Hub to the River project. Through this capital-efficient, debottlenecking project, EnLink will increase natural gas supply to the Mississippi River corridor by approximately 210 MMcf/d by adding compression. The total project is expected to cost approximately $70 million, representing a mid-single-digit EBITDA investment multiple, with an in-service date in the fourth quarter of 2025. Oklahoma: Segment profit for the first quarter of 2024 was $85.7 million, including unrealized derivative losses of $4.1 million. Excluding unrealized derivative activity, segment profit in the first quarter of 2024 decreased 19% sequentially and decreased approximately 7% over the first quarter of 2023. Segment results during the first quarter of 2024 were adversely impacted by lower volumes from winter weather and the previously discussed one-time contract reset. Average natural gas gathering volumes for the first quarter of 2024 were approximately 7% lower compared to the fourth quarter of 2023 and approximately 3% lower compared to the first quarter of 2023. Average natural gas processing volumes for the first quarter of 2024 were approximately 8% lower compared to the fourth quarter of 2023 and approximately 6% lower compared to the first quarter of 2023. Average crude gathering volumes during the first quarter of 2024 were approximately 19% lower compared to the fourth quarter of 2023 and approximately 25% lower compared to the first quarter of 2023. North Texas: Segment profit for the first quarter of 2024 was $59.8 million, including unrealized derivative losses of $0.1 million. Excluding unrealized derivative activity, segment profit in the first quarter of 2024 decreased approximately 12% sequentially and decreased approximately 18% over the first quarter of 2023. Segment results during the first quarter of 2024 were adversely impacted by lower volumes from winter weather and the previously discussed one-time contract reset. Average natural gas gathering and transportation volumes for the first quarter of 2024 were approximately 6% lower compared to the fourth quarter of 2023 and approximately 10% lower compared to the first quarter of 2023. Average natural gas processing volumes for the first quarter of 2024 were approximately 8% lower compared to the fourth quarter of 2023 and approximately 10% lower compared to the first quarter of 2023. First Quarter 2024 Webcast DetailsEnLink will host a webcast and conference call to discuss first quarter 2024 results on May 1, 2024, at 8 a.m. Central time. The conference call will be broadcast via an internet webcast, which can be accessed on the Investors page of EnLink's website at investors.enlink.com. Interested parties can access an archived replay of the webcast on EnLink's website for at least 90 days following the event. About the EnLink Midstream CompaniesHeadquartered in Dallas, EnLink Midstream (NYSE:ENLC) provides integrated midstream infrastructure services for natural gas, crude oil, and NGLs, as well as CO2 transportation for carbon capture and sequestration (CCS). Our large-scale, cash-flow-generating asset platforms are in premier production basins and core demand centers, including the Permian Basin, Louisiana, Oklahoma, and North Texas. EnLink is focused on maintaining the financial flexibility and operational excellence that enables us to strategically grow and create sustainable value. Visit www.EnLink.com to learn how EnLink connects energy to life. Non-GAAP Financial InformationThis press release contains non-generally accepted accounting principles financial measures that we refer to as adjusted EBITDA and free cash flow after distributions (FCFAD). We define adjusted EBITDA as net income (loss) plus (less) interest expense, net of interest income; depreciation and amortization; impairments; (income) loss from unconsolidated affiliate investments; distributions from unconsolidated affiliate investments; (gain) loss on disposition of assets; (gain) loss on extinguishment of debt; (gain) loss on litigation settlement; unit-based compensation; income tax expense (benefit); unrealized (gain) loss on commodity derivatives; costs associated with the relocation of processing facilities; accretion expense associated with asset retirement obligations; transaction costs; non-cash expense related to changes in the fair value of contingent consideration; (non-cash rent); and (non-controlling interest share of adjusted EBITDA from joint ventures). We define free cash flow after distributions as adjusted EBITDA, net to ENLC, plus (less) (growth and maintenance capital expenditures, excluding capital expenditures that were contributed by other entities and relate to the non-controlling interest share of our consolidated entities); (interest expense, net of interest income); (distributions declared on common units); (cash distributions earned by the Series B Preferred Units and the Series C Preferred Units); (payment to redeem mandatorily redeemable non-controlling interest); (earnout payments related to the Amarillo Rattler Acquisition and the Central Oklahoma Acquisition); (costs associated with the relocation of processing facilities, excluding costs that were contributed by other entities and relate to the non-controlling interest share of our consolidated entities); non-cash interest (income)/expense; (contributions to investment in unconsolidated affiliates); (payments to terminate interest rate swaps); (current income taxes); (non-cash gain associated with a lease modification); and proceeds from the sale of equipment and land. 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 is used as a metric in our short-term incentive program for compensating employees and in our performance awards for executives. Adjusted EBITDA and free cash flow after distributions, 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 EnLink's filings with the Securities and Exchange Commission for more information. Other definitions and explanations of terms used in this press release:Segment profit (loss) is defined as revenues, less cost of sales (exclusive of operating expenses and depreciation and amortization), less operating expenses. Segment profit (loss) includes non-cash compensation expenses reflected in operating expenses. See "Item 8. Financial Statements and Supplementary Data - Note 16 - Segment Information" in ENLC's Annual Report on Form 10-K for the year ended December 31, 2023, and, when available, "Item 1. Financial Statements - Note 13—Segment Information" in ENLC's Quarterly Report on Form 10-Q for ...