Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36336 ENLINK MIDSTREAM, LLC (Exact name of registrant as specified in its charter) Delaware 46-4108528 (State of organization ...

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited consolidated financial statements, including balance sheets, statements of operations, comprehensive income, changes in members' equity, and cash flows, with detailed notes on accounting policies, acquisitions, debt, equity, and segment performance for periods ended September 30, 2022 [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in millions) | Metric | September 30, 2022 | December 31, 2021 | | :-------------------------- | :------------------- | :------------------ | | Total Assets | $8,813.3 | $8,483.2 | | Total Current Assets | $1,198.8 | $920.4 | | Total Current Liabilities | $1,157.3 | $898.9 | | Long-term Debt, net | $4,537.4 | $4,363.7 | | Total Liabilities and Members' Equity | $8,813.3 | $8,483.2 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations (in millions, except EPS) | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total Revenues | $2,663.5 | $1,787.6 | $7,491.8 | $4,442.7 | | Operating Income | $199.3 | $99.1 | $504.2 | $256.6 | | Net Income | $116.6 | $32.3 | $306.5 | $54.3 | | Net Income (Loss) Attributable to ENLC | $80.8 | $1.9 | $201.3 | $(32.4) | | Basic Common Unit EPS | $0.17 | $0.00 | $0.42 | $(0.07) | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Consolidated Statements of Comprehensive Income (in millions) | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net Income | $116.6 | $32.3 | $306.5 | $54.3 | | Comprehensive Income (Loss) Attributable to ENLC | $80.8 | $5.7 | $201.4 | $(21.3) | [Consolidated Statements of Changes in Members' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Members'%20Equity) - **Total Members' Equity** decreased from **$2,987.0 million** at December 31, 2021, to **$2,874.0 million** at September 30, 2022[22](index=22&type=chunk) - **Common Units Outstanding** decreased from **484.3 million** at December 31, 2021, to **474.6 million** at September 30, 2022[22](index=22&type=chunk) - **Distributions to members** for the nine months ended September 30, 2022, totaled **$(167.4) million**, while distributions to non-controlling interests totaled **$(115.4) million**[29](index=29&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows (in millions) | Metric | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :-------------------------------- | :-------------------------- | :-------------------------- | | Net Cash Provided by Operating Activities | $825.9 | $599.2 | | Net Cash Used in Investing Activities | $(547.0) | $(155.4) | | Net Cash Used in Financing Activities | $(305.1) | $(447.3) | | Net Decrease in Cash and Cash Equivalents | $(26.2) | $(3.5) | | Cash and Cash Equivalents, End of Period | $0.0 | $36.1 | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [(1) General](index=12&type=section&id=(1)%20General) - **EnLink Midstream, LLC (ENLC)** is a Delaware limited liability company, with its common units traded on the NYSE under the symbol "ENLC," owning all of EnLink Midstream Partners, LP's (ENLK) common units and managing ENLK's operations[33](index=33&type=chunk) - The Company primarily provides **midstream energy services**, including gathering, compressing, treating, processing, transporting, storing, and selling natural gas and NGLs, as well as crude oil and condensate services, and brine disposal[34](index=34&type=chunk) - As of September 30, 2022, the midstream energy asset network includes approximately **12,500 miles of pipelines**, **25 natural gas processing plants** (approx. 5.9 Bcf/d capacity), **seven fractionators** (approx. 320,000 Bbls/d capacity), and equity investments in joint ventures[35](index=35&type=chunk) [(2) Significant Accounting Policies](index=13&type=section&id=(2)%20Significant%20Accounting%20Policies) - The accompanying consolidated financial statements are **unaudited** and prepared in accordance with Form 10-Q, not including all information and disclosures required by GAAP for complete financial statements[41](index=41&type=chunk) - Revenue from **Minimum Volume Commitment (MVC)** and firm transportation contracts is recognized during periods of shortfall when the customer cannot, or will not, make up the deficiency[42](index=42&type=chunk) Expected Contractually Committed Fees from MVC and Firm Transportation (in millions) | Period | Amount | | :------------------- | :----- | | 2022 (remaining) | $34.4 | | 2023 | $126.2 | | 2024 | $99.6 | | 2025 | $67.1 | | 2026 | $59.9 | | Thereafter | $293.6 | | **Total** | **$680.8** | [(3) Acquisition](index=14&type=section&id=(3)%20Acquisition) - On July 1, 2022, the Company acquired all equity interest in Crestwood Equity Partners LP's Barnett Shale gathering and processing assets for a cash purchase price of **$275.0 million** plus **$14.5 million** in working capital[45](index=45&type=chunk) - The acquired assets include approximately **400 miles of lean and rich gas gathering pipeline** and **three processing plants** with **425 MMcf/d** of total processing capacity[45](index=45&type=chunk) - For the three months ended September 30, 2022, the acquired assets contributed **$20.6 million in revenue** and **$12.6 million in net income**[47](index=47&type=chunk) [(4) Intangible Assets](index=15&type=section&id=(4)%20Intangible%20Assets) - Intangible assets, primarily customer relationships, are amortized on a straight-line basis over **10 to 20 years**, with a weighted average amortization period of **14.9 years**[51](index=51&type=chunk) Intangible Assets Carrying Amount (in millions) | Metric | September 30, 2022 | December 31, 2021 | | :-------------------------- | :------------------- | :------------------ | | Net Carrying Amount | $953.1 | $1,049.7 | Amortization Expense (in millions) | Period | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Amortization Expense | $31.9 | $31.9 | $96.6 | $94.4 | [(5) Related Party Transactions](index=16&type=section&id=(5)%20Related%20Party%20Transactions) - **Cost of sales** related to purchases from Cedar Cove JV was **$5.6 million** for the three months and **$25.3 million** for the nine months ended September 30, 2022[54](index=54&type=chunk) - The Company entered into an agreement with GIP on February 15, 2022, to repurchase a pro rata portion of ENLC common units held by GIP, maintaining GIP's economic ownership percentage[56](index=56&type=chunk) [(6) Long-Term Debt](index=17&type=section&id=(6)%20Long-Term%20Debt) Long-Term Debt, Net of Unamortized Issuance Cost (in millions) | Metric | September 30, 2022 | December 31, 2021 | | :-------------------------- | :------------------- | :------------------ | | Long-term Debt, net | $4,537.4 | $4,363.7 | - The **Revolving Credit Facility** was amended on June 3, 2022, decreasing commitments from **$1.75 billion to $1.40 billion**, extending maturity to June 3, 2027, and transitioning interest rates from LIBOR to Term SOFR, with **$70.0 million** outstanding as of September 30, 2022[60](index=60&type=chunk)[62](index=62&type=chunk) - The **AR Facility** was amended on August 1, 2022, increasing commitments from **$350.0 million to $500.0 million** and extending the termination date to August 1, 2025, with **$500.0 million** outstanding as of September 30, 2022[66](index=66&type=chunk) - On August 31, 2022, ENLC sold **$700.0 million** of 6.50% senior unsecured notes due 2030 and used the proceeds to repurchase **$700.0 million** of ENLK's 2024 and 2025 senior unsecured notes, resulting in a **$6.3 million loss** on extinguishment of debt[68](index=68&type=chunk)[69](index=69&type=chunk) [(7) Income Taxes](index=19&type=section&id=(7)%20Income%20Taxes) Income Tax Expense (in millions) | Period | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Income Tax Expense | $(15.2) | $(4.4) | $(17.1) | $(12.4) | - **Deferred tax liabilities**, net of deferred tax assets, were **$153.6 million** as of September 30, 2022, compared to **$137.5 million** as of December 31, 2021[74](index=74&type=chunk) - A **valuation allowance of $112.6 million** was established as of September 30, 2022 (vs. $151.6 million at Dec 31, 2021), primarily related to federal and state tax operating loss carryforwards[74](index=74&type=chunk)[75](index=75&type=chunk) [(8) Certain Provisions of the ENLK Partnership Agreement](index=20&type=section&id=(8)%20Certain%20Provisions%20of%20the%20ENLK%20Partnership%20Agreement) - As of September 30, 2022, there were **54,168,359 Series B Preferred Units** outstanding, down from 57,501,693 at December 31, 2021[77](index=77&type=chunk) - In January 2022, **3,333,334 Series B Preferred Units** were redeemed for **$50.5 million** plus accrued distributions[78](index=78&type=chunk) - As of September 30, 2022, there were **400,000 Series C Preferred Units** outstanding, with ENLK distributing **$12.0 million** to Series C holders for the nine months ended September 30, 2022 and 2021[80](index=80&type=chunk) [(9) Members' Equity](index=21&type=section&id=(9)%20Members'%20Equity) - The Board reauthorized the common unit repurchase program at **$100.0 million** effective January 1, 2022, and increased it to **$200.0 million** in July 2022[82](index=82&type=chunk) ENLC Common Unit Repurchase Activity (in millions, except units) | Metric | 3 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2022 | | :-------------------------------- | :-------------------------- | :-------------------------- | | Total ENLC Common Units Repurchased | 6,582,133 | 12,272,440 | | Total Aggregate Cost | $62.5 | $113.2 | | Average Price Paid per Unit | $9.53 | $9.22 | Net Income (Loss) Attributable to ENLC per Unit | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Basic Common Unit | $0.17 | $0.00 | $0.42 | $(0.07) | | Diluted Common Unit | $0.17 | $0.00 | $0.41 | $(0.07) | [(10) Investment in Unconsolidated Affiliates](index=24&type=section&id=(10)%20Investment%20in%20Unconsolidated%20Affiliates) - On May 16, 2022, the Company formed the **Matterhorn JV** to construct a **490-mile, 42-inch natural gas pipeline** from the Waha Hub to Katy, Texas, with an expected capacity of **2.5 Bcf/d**, anticipated to be in service in Q3 2024[92](index=92&type=chunk) Investment in Unconsolidated Affiliates (in millions) | Metric | September 30, 2022 | December 31, 2021 | | :-------------------------- | :------------------- | :------------------ | | Total Investment | $67.9 | $26.2 | | Contributions (9 Months Ended Sep 30, 2022) | $46.3 | $0.0 | | Equity in Loss (9 Months Ended Sep 30, 2022) | $(4.0) | $(9.9) | [(11) Employee Incentive Plans](index=25&type=section&id=(11)%20Employee%20Incentive%20Plans) Total Unit-Based Compensation Expense (in millions) | Period | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total Expense | $11.4 | $6.4 | $23.7 | $19.3 | - As of September 30, 2022, there were **$20.5 million** of unrecognized compensation costs related to non-vested ENLC restricted incentive units, expected to be recognized over a weighted-average period of **1.8 years**[101](index=101&type=chunk) - As of September 30, 2022, there were **$12.9 million** of unrecognized compensation costs related to non-vested ENLC performance units, expected to be recognized over a weighted-average period of **2.0 years**[104](index=104&type=chunk) [(12) Derivatives](index=27&type=section&id=(12)%20Derivatives) Gain (Loss) on Derivative Activity (in millions) | Period | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Gain (Loss) on Derivative Activity | $20.5 | $(33.6) | $(6.2) | $(155.2) | Net Fair Value of Commodity Swaps (in millions) | Metric | September 30, 2022 | December 31, 2021 | | :-------------------------- | :------------------- | :------------------ | | Net Fair Value | $23.9 | $(14.5) | - The maximum loss on the gross receivable position of **$76.9 million** from commodity swap contracts would be reduced to **$30.3 million** due to netting under International Swaps and Derivatives Association Agreements (ISDAs)[111](index=111&type=chunk) [(13) Fair Value Measurements](index=29&type=section&id=(13)%20Fair%20Value%20Measurements) Fair Value of Commodity Swaps (in millions) | Metric | September 30, 2022 | December 31, 2021 | | :-------------------------- | :------------------- | :------------------ | | Commodity Swaps | $23.9 | $(14.5) | Fair Value of Long-Term Debt (in millions) | Metric | September 30, 2022 | December 31, 2021 | | :-------------------------- | :------------------- | :------------------ | | Fair Value of Long-term Debt | $4,072.5 | $4,520.0 | - The fair values of all senior unsecured notes are based on **Level 2 inputs** from third-party market quotations[117](index=117&type=chunk) [(14) Segment Information](index=30&type=section&id=(14)%20Segment%20Information) - The Company evaluates financial performance by segment, including Permian, Louisiana, Oklahoma, North Texas, and Corporate, incorporating realized and unrealized gains and losses from commodity swaps[119](index=119&type=chunk) Adjusted Gross Margin by Segment (in millions) | Segment | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Permian | $161.1 | $106.4 | $441.8 | $208.8 | | Louisiana | $134.6 | $94.2 | $381.9 | $304.6 | | Oklahoma | $128.0 | $106.9 | $356.5 | $285.5 | | North Texas | $108.7 | $79.3 | $280.9 | $253.2 | | Corporate | $0.0 | $0.0 | $0.0 | $0.0 | | **Total** | **$532.4** | **$386.8** | **$1,461.1** | **$1,052.1** | Capital Expenditures by Segment (in millions) | Segment | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Permian | $61.7 | $25.8 | $130.6 | $78.6 | | Louisiana | $6.5 | $0.4 | $18.5 | $5.4 | | Oklahoma | $18.2 | $10.3 | $45.1 | $17.1 | | North Texas | $6.5 | $3.3 | $17.7 | $7.6 | | Corporate | $1.6 | $0.6 | $5.1 | $1.1 | | **Total** | **$94.5** | **$40.4** | **$217.0** | **$109.8** | [(15) Other Information](index=35&type=section&id=(15)%20Other%20Information) Other Current Assets (in millions) | Metric | September 30, 2022 | December 31, 2021 | | :-------------------------- | :------------------- | :------------------ | | Natural gas and NGLs inventory | $149.8 | $49.4 | | Prepaid expenses and other | $25.2 | $34.2 | | **Total Other Current Assets** | **$175.0** | **$83.6** | Other Current Liabilities (in millions) | Metric | September 30, 2022 | December 31, 2021 | | :-------------------------- | :------------------- | :------------------ | | Accrued interest | $62.1 | $47.2 | | Accrued wages and benefits, including taxes | $30.5 | $33.1 | | Accrued ad valorem taxes | $38.9 | $28.3 | | Capital expenditure accruals | $22.1 | $23.2 | | Short-term lease liability | $22.9 | $18.1 | | Operating expense accruals | $15.8 | $9.6 | | Other | $26.0 | $23.6 | | **Total Other Current Liabilities** | **$218.3** | **$202.9** | [(16) Commitments and Contingencies](index=36&type=section&id=(16)%20Commitments%20and%20Contingencies) - The Company is involved in litigation with Koch Energy Services, LLC regarding a **$53.9 million invoice** related to Winter Storm Uri, asserting a valid force majeure declaration[132](index=132&type=chunk) - Another subsidiary is involved in multi-district litigation in Harris County, Texas, facing personal injury and property damage claims arising from Winter Storm Uri[133](index=133&type=chunk) - Management believes that any liabilities resulting from these claims would not, individually or in the aggregate, have a **material adverse effect** on the Company's financial position, results of operations, or cash flows[134](index=134&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and results, highlighting strong performance from increased volumes, commodity prices, strategic acquisitions, and new CCS initiatives [Overview](index=37&type=section&id=Overview) - ENLC's core business is providing **midstream energy services**, with all assets owned and operated by ENLK and its subsidiaries[138](index=138&type=chunk) - The Company manages and reports activities primarily by geographic segments: **Permian, Louisiana, Oklahoma, North Texas, and Corporate**[140](index=140&type=chunk) - Approximately **90% of the adjusted gross margin** for the nine months ended September 30, 2022, was derived from fee-based contractual arrangements with minimal direct commodity price exposure[143](index=143&type=chunk) [Recent Developments Affecting Industry Conditions and Our Business](index=39&type=section&id=Recent%20Developments%20Affecting%20Industry%20Conditions%20and%20Our%20Business) - **Commodity prices** for oil and natural gas recovered from 2020 lows and rose rapidly in the first half of 2022 due to demand rebound, supply issues, and geopolitical events, moderating since but remaining higher than recent years[155](index=155&type=chunk) - The **Inflation Reduction Act of 2022 (IRA)** is expected to expand and support the development of the Company's Carbon Capture and Sequestration (CCS) business through enhanced 45Q tax credits[162](index=162&type=chunk) - Key recent developments include the acquisition of **Barnett Shale assets for $275.0 million**, the formation of the **Matterhorn Express Pipeline Joint Venture**, the relocation of the **Phantom processing plant** to the Permian Basin, and new **CCS agreements with ExxonMobil and BKV**[164](index=164&type=chunk)[165](index=165&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) [Non-GAAP Financial Measures](index=42&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted Gross Margin Reconciliation (in millions) | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total Revenues | $2,663.5 | $1,787.6 | $7,491.8 | $4,442.7 | | Cost of Sales (excl. OpEx, D&A) | $(2,131.1) | $(1,400.8) | $(6,030.7) | $(3,390.6) | | Operating Expenses | $(136.8) | $(106.9) | $(386.6) | $(260.0) | | Depreciation & Amortization | $(162.6) | $(153.0) | $(474.5) | $(455.9) | | Gross Margin | $233.0 | $126.9 | $600.0 | $336.2 | | **Adjusted Gross Margin** | **$532.4** | **$386.8** | **$1,461.1** | **$1,052.1** | Adjusted EBITDA, Net to ENLC Reconciliation (in millions) | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net Income | $116.6 | $32.3 | $306.5 | $54.3 | | Interest expense, net | $60.4 | $60.1 | $171.0 | $180.1 | | Depreciation & Amortization | $162.6 | $153.0 | $474.5 | $455.9 | | Unit-based compensation | $11.4 | $6.4 | $23.7 | $19.3 | | Income tax expense | $15.2 | $4.4 | $17.1 | $12.4 | | Unrealized (gain) loss on commodity swaps | $(18.2) | $1.2 | $(38.4) | $32.9 | | **Adjusted EBITDA, net to ENLC** | **$343.4** | **$256.4** | **$947.4** | **$763.3** | Free Cash Flow After Distributions Reconciliation (in millions) | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Adjusted EBITDA, net to ENLC | $343.4 | $256.4 | $947.4 | $763.3 | | Growth capital expenditures, net to ENLC | $(82.7) | $(33.2) | $(173.1) | $(89.1) | | Maintenance capital expenditures, net to ENLC | $(8.7) | $(6.9) | $(33.7) | $(19.1) | | Distributions declared on common units | $(54.8) | $(46.6) | $(164.9) | $(140.0) | | ENLK preferred unit accrued cash distributions | $(23.3) | $(23.0) | $(70.1) | $(69.0) | | **Free cash flow after distributions** | **$84.9** | **$80.5** | **$257.3** | **$246.2** | [Results of Operations](index=47&type=section&id=Results%20of%20Operations) - **Gross margin** increased by **$106.1 million to $233.0 million** for the three months ended September 30, 2022, compared to $126.9 million for the same period in 2021, driven by all operating segments[198](index=198&type=chunk) - For the nine months ended September 30, 2022, **gross margin increased by $263.8 million to $600.0 million**, compared to $336.2 million in the prior year, with significant contributions from the Permian, Louisiana, and Oklahoma segments due to higher volumes and commodity prices[216](index=216&type=chunk) - **North Texas segment's gross margin** increased by **$17.8 million** for the three months and **$13.3 million** for the nine months ended September 30, 2022, primarily due to the acquisition of Barnett Shale gathering and processing assets[207](index=207&type=chunk)[223](index=223&type=chunk) [Critical Accounting Policies](index=53&type=section&id=Critical%20Accounting%20Policies) - Information regarding critical accounting policies is included in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of the Annual Report on Form 10-K for the year ended December 31, 2021[232](index=232&type=chunk) [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) - **Net cash provided by operating activities** increased by **$226.7 million to $825.9 million** for the nine months ended September 30, 2022, compared to $599.2 million in the prior year, primarily due to higher gross margin[234](index=234&type=chunk) - **Net cash used in investing activities** significantly increased to **$547.0 million** for the nine months ended September 30, 2022, from $155.4 million in the prior year, driven by higher capital expenditures and acquisitions[235](index=235&type=chunk)[236](index=236&type=chunk) - The Company expects remaining capital requirements for 2022 to be **$145 million**, which will be funded from operating cash flows[241](index=241&type=chunk)[242](index=242&type=chunk) - As of September 30, 2022, the Company had **$500.0 million** outstanding borrowings under the AR Facility, **$4.0 billion** in senior unsecured notes, and **$70.0 million** outstanding borrowings under the Revolving Credit Facility[251](index=251&type=chunk) [Recent Accounting Pronouncements](index=58&type=section&id=Recent%20Accounting%20Pronouncements) - Recently issued accounting pronouncements that became effective during the three months ended September 30, 2022, are not expected to have a **material impact** on the consolidated financial statements[257](index=257&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details the company's exposure to market risks, primarily commodity price and interest rate fluctuations, and outlines risk management strategies through derivatives and contractual arrangements [Commodity Price Risk](index=61&type=section&id=Commodity%20Price%20Risk) - Approximately **90% of the adjusted gross margin** for the nine months ended September 30, 2022, was generated from fee-based contractual arrangements with minimal direct commodity price exposure[265](index=265&type=chunk) - The Company uses **OTC derivative financial instruments (commodity swaps)** to manage and hedge price and location risk related to market exposures and to manage margins on offsetting fixed-price purchase or sale commitments[271](index=271&type=chunk)[272](index=272&type=chunk)[274](index=274&type=chunk) - As of September 30, 2022, outstanding commodity swap agreements had a **net fair value asset of $23.9 million**, where a hypothetical 10% change in commodity prices would result in an approximate **$15.0 million change** in the net fair value of these contracts[278](index=278&type=chunk) [Interest Rate Risk](index=63&type=section&id=Interest%20Rate%20Risk) - The Company is exposed to interest rate risk on its **Revolving Credit Facility ($70.0 million outstanding)** and **AR Facility ($500.0 million outstanding)**, which bear interest at SOFR-based rates[280](index=280&type=chunk) - A **1.0% increase or decrease in interest rates** would change annualized interest expense by approximately **$0.7 million** for the Revolving Credit Facility and **$5.0 million** for the AR Facility[280](index=280&type=chunk) - Distributions on ENLK's Series C Preferred Units will transition to a **floating rate tied to LIBOR** (or an alternative rate) plus 4.11% beginning December 15, 2022[282](index=282&type=chunk) [Item 4. Controls and Procedures](index=63&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2022, with no material changes in internal control over financial reporting during the quarter - Management concluded that **disclosure controls and procedures were effective** as of September 30, 2022[283](index=283&type=chunk) - There were **no material changes in internal control over financial reporting** during the three months ended September 30, 2022[284](index=284&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 16 for details on legal proceedings, including Winter Storm Uri, with management believing no material adverse effect on financial position or operations - Legal proceedings are discussed in detail in **Note 16, "Commitments and Contingencies,"** of the Notes to Consolidated Financial Statements[287](index=287&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) Risk factor information does not materially differ from that presented in the Annual Report on Form 10-K for the year ended December 31, 2021 - Information about risk factors does not materially differ from that set forth in Part I, "Item 1A. Risk Factors" of the Annual Report on Form 10-K for the year ended December 31, 2021[288](index=288&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the repurchase of ENLC common units during Q3 2022, including units re-acquired from employees for tax liabilities and under the repurchase program ENLC Common Unit Repurchase Activity (Q3 2022) | Metric | July 1 - July 31, 2022 | August 1 - August 31, 2022 | September 1 - Sep 30, 2022 | Total Q3 2022 | | :-------------------------------- | :----------------------- | :------------------------- | :------------------------- | :------------ | | Total Number of Units Purchased | 904,782 | 3,742,405 | 2,750,481 | 7,397,668 | | Average Price Paid Per Unit | $8.60 | $9.64 | $9.69 | $9.53 | | Units Purchased as Part of Publicly Announced Plans or Programs | 901,800 | 3,533,555 | 2,146,778 | 6,582,133 | | Dollar Value of Units Yet to Be Purchased Under Programs (as of Sep 30, 2022) | $141.5 | $107.4 | $86.8 | $86.8 | - The total units purchased include **815,535 ENLC common units** received from employees for the payment of personal income tax withholding on vesting transactions[290](index=290&type=chunk) - The Board increased the amount available for repurchase under the common unit repurchase program to **$200.0 million** in July 2022[290](index=290&type=chunk) [Item 6. Exhibits](index=65&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of Form 10-Q, including organizational documents, credit agreements, deferred compensation plans, certifications, and iXBRL financial information - Exhibits include organizational documents (Certificates of Formation, Operating Agreements), debt instruments (Indenture, Revolving Credit Agreement, AR Facility Amendment), employee benefit plans (2023 Deferred Compensation Plan), and regulatory certifications (Principal Executive Officer, Principal Financial Officer)[292](index=292&type=chunk) - Financial information for the quarter ended September 30, 2022, is provided in **iXBRL format** as Exhibit 101[292](index=292&type=chunk)

EnLink Midstream, LLC (NYSE:ENLC) Q3 2022 Earnings Conference Call November 2, 2022 9:00 AM ET Company Representatives Jesse Arenivas - Chief Executive Officer Ben Lamb - Executive Vice President, Chief Operating Officer Pablo Mercado - Executive Vice President, Chief Financial Officer Brian Brungardt - Investor Relations Director Conference Call Participants Gabriel Moreen - Mizuho Securities Michael Cusimano - Pickering Jeremy Tonet - JP Morgan Operator Good morning, and welcome to the EnLink Midstream, T ...

| --- | --- | --- | --- | --- | --- | |-------------------------------|----------------|-------|-------|-------|-------| | | | | | | | | Q u a r t e r l y U p d a t e | Q3 2022 UPDATE | | | | | FORWARD-LOOKING STATEMENTS • This presentation 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 t ...

PART I—FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The company presents its unaudited consolidated balance sheets, statements of operations, and cash flows | | June 30, 2022 (Unaudited) | December 31, 2021 | | :--- | :--- | :--- | | **Total current assets** | $1,288.2 million | $920.4 million | | **Total assets** | $8,678.8 million | $8,483.2 million | | **Total current liabilities** | $1,219.6 million | $898.9 million | | **Long-term debt, net** | $4,320.0 million | $4,363.7 million | | **Total members' equity** | $2,906.0 million | $2,987.0 million | | **Total liabilities and members' equity** | $8,678.8 million | $8,483.2 million | | (In millions, except per unit data) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | $2,600.6 | $1,406.7 | $4,828.3 | $2,655.1 | | **Operating income** | $179.6 | $77.1 | $304.9 | $157.5 | | **Net income** | $123.9 | $9.4 | $189.9 | $22.0 | | **Net income (loss) attributable to ENLC** | $85.3 | $(21.6) | $120.5 | $(34.3) | | **Basic EPS** | $0.18 | $(0.04) | $0.25 | $(0.07) | | **Diluted EPS** | $0.17 | $(0.04) | $0.25 | $(0.07) | | (In millions) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $482.6 | $402.2 | | **Net cash used in investing activities** | $(149.3) | $(112.2) | | **Net cash used in financing activities** | $(341.4) | $(296.8) | | **Net decrease in cash and cash equivalents** | $(8.1) | $(6.8) | | **Cash and cash equivalents, end of period** | $18.1 | $32.8 | [Note 1: General](index=12&type=section&id=Note%201%20General) The company details its midstream energy services and extensive network of pipelines and processing plants - EnLink's core business is providing midstream energy services for natural gas, NGLs, and crude oil, including gathering, compressing, treating, processing, transporting, storing, and selling these commodities[36](index=36&type=chunk) - As of June 30, 2022, the company's asset base includes approximately **12,100 miles of pipelines**, **22 natural gas processing plants** with 5.5 Bcf/d capacity, and seven fractionators with 320,000 Bbls/d capacity[37](index=37&type=chunk) [Note 2: Significant Accounting Policies](index=13&type=section&id=Note%202%20Significant%20Accounting%20Policies) The company outlines its revenue recognition policies and future committed fees from long-term contracts | Period | Expected Fees (in millions) | | :--- | :--- | | 2022 (remaining) | $69.6 | | 2023 | $119.7 | | 2024 | $99.9 | | 2025 | $67.0 | | 2026 | $59.9 | | Thereafter | $290.9 | | **Total** | **$707.0** | [Note 5: Long-Term Debt](index=15&type=section&id=Note%205%20Long-Term%20Debt) The company details its **$4.32 billion** long-term debt structure and recent credit facility amendments | Debt Instrument | June 30, 2022 (in millions) | December 31, 2021 (in millions) | | :--- | :--- | :--- | | Revolving Credit Facility due 2027 | $— | $15.0 | | AR Facility due 2025 | $325.0 | $350.0 | | Senior unsecured notes (various) | $4,024.9 | $4,026.5 | | **Total Long-term debt, net** | **$4,320.0** | **$4,363.7** | - On June 3, 2022, the company amended its revolving credit facility, **decreasing commitments from $1.75 billion to $1.40 billion**, extending the maturity to June 3, 2027, and removing the interest coverage ratio covenant[55](index=55&type=chunk) - During the first six months of 2022, the company **repurchased $2.0 million** of its outstanding senior unsecured notes due 2024 in open market transactions[61](index=61&type=chunk) [Note 8: Members' Equity](index=18&type=section&id=Note%208%20Members'%20Equity) The company details its common unit repurchase program and changes in members' equity - The Board reauthorized the common unit repurchase program for up to **$100.0 million** effective January 1, 2022, and subsequently increased the authorization to **$200.0 million** in July 2022[71](index=71&type=chunk) - An agreement was made with GIP on February 15, 2022, to repurchase a pro rata portion of its ENLC common units quarterly to maintain GIP's economic ownership percentage[72](index=72&type=chunk) | Repurchase Activity (in millions, except unit count) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Total ENLC common units repurchased** | 5,690,307 | 317,751 | | **Total aggregate cost** | $50.7 | $2.0 | [Note 9: Investment in Unconsolidated Affiliates](index=21&type=section&id=Note%209%20Investment%20in%20Unconsolidated%20Affiliates) The company discusses its investments in unconsolidated affiliates, including the new Matterhorn JV - On May 16, 2022, EnLink formed the Matterhorn JV with partners to construct the Matterhorn Express Pipeline, a **2.5 Bcf/d natural gas pipeline** from the Waha Hub to Katy, Texas[81](index=81&type=chunk) | Activity (in millions) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Total Contributions** | $26.6 | $— | | **Total Distributions** | $(0.4) | $(3.7) | | **Total Equity in loss** | $(2.3) | $(7.6) | [Note 13: Segment Information](index=27&type=section&id=Note%2013%20Segment%20Information) The company reports financial performance across its five operating segments, led by strong Permian growth | Segment Profit (in millions) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :--- | :--- | :--- | | Permian | $112.1 | $44.0 | | Louisiana | $89.0 | $67.3 | | Oklahoma | $98.6 | $85.6 | | North Texas | $66.9 | $57.9 | | **Total Segment Profit** | **$366.6** | **$254.8** | | Adjusted Gross Margin (in millions) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Permian | $280.7 | $102.4 | | Louisiana | $247.3 | $210.4 | | Oklahoma | $228.5 | $178.6 | | North Texas | $172.2 | $173.9 | | **Total Adjusted Gross Margin** | **$928.7** | **$665.3** | [Note 15: Commitments and Contingencies](index=32&type=section&id=Note%2015%20Commitments%20and%20Contingencies) The company discloses ongoing litigation, including a **$53.9 million** dispute from Winter Storm Uri - The company is in litigation with Koch Energy Services, LLC over a dispute from Winter Storm Uri. Koch has invoiced EnLink for approximately **$53.9 million**, while EnLink contests the claim based on a force majeure declaration[119](index=119&type=chunk) [Note 16: Subsequent Event](index=33&type=section&id=Note%2016%20Subsequent%20Event) The company reports the **$275.0 million** acquisition of Barnett Shale assets after the reporting period - On July 1, 2022, EnLink acquired Barnett Shale assets from Crestwood Equity Partners LP for a cash purchase price of approximately **$275.0 million**, plus working capital adjustments[123](index=123&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial results, segment performance, and strategic developments like CCS initiatives [Recent Developments](index=36&type=section&id=Recent%20Developments%20Affecting%20Industry%20Conditions%20and%20Our%20Business) The company highlights strategic progress in CCS, acquisitions, and capital structure optimizations - The company is developing a Carbon Capture, Transportation, and Sequestration (CCS) business, leveraging its existing pipeline network in Louisiana and recently signed an agreement with BKV in the Barnett Shale[142](index=142&type=chunk)[158](index=158&type=chunk) - On May 19, 2022, EnLink agreed to acquire North Texas gathering and processing assets from Crestwood Equity Partners LP for approximately **$275.0 million**, a deal that closed on July 1, 2022[154](index=154&type=chunk) - In January 2022, the company redeemed 3,333,334 Series B Preferred Units for **$50.5 million** plus accrued distributions[163](index=163&type=chunk) [Non-GAAP Financial Measures](index=38&type=section&id=Non-GAAP%20Financial%20Measures) The company provides definitions and reconciliations for key non-GAAP metrics like Adjusted EBITDA | (In millions) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Adjusted Gross Margin** | $928.7 | $665.3 | | **Adjusted EBITDA, net to ENLC** | $604.0 | $506.9 | | **Free Cash Flow After Distributions** | $172.4 | $165.7 | [Results of Operations](index=44&type=section&id=Results%20of%20Operations) The company reports a **$104.7 million** quarterly gross margin increase, driven by the Permian segment - For Q2 2022 vs Q2 2021, gross margin increased by **$104.7 million**, with the Permian segment contributing a **$65.6 million** increase due to higher producer activity and commodity prices[186](index=186&type=chunk) - For the six months ended June 30, 2022 vs 2021, gross margin increased by **$157.7 million**, with the Permian segment contributing a **$92.6 million** increase[204](index=204&type=chunk) | Midstream Volumes (Average Daily) | Q2 2022 | Q2 2021 | | :--- | :--- | :--- | | **Permian Gathering & Transportation (MMbtu/d)** | 1,494,400 | 1,025,900 | | **Permian Processing (MMbtu/d)** | 1,432,200 | 958,400 | | **Louisiana Gathering & Transportation (MMbtu/d)** | 2,696,500 | 2,139,300 | [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) The company details its liquidity position, cash flows, and remaining **$251 million** in 2022 capital needs | Expected Remaining Capital Requirements for 2022 (in millions) | Amount | | :--- | :--- | | Capital expenditures, net to ENLC | $185 | | Operating expenses for processing facilities relocation | $23 | | Contributions to unconsolidated affiliate investments | $43 | | **Total** | **$251** | | Contractual Obligations (in millions) | Total | Remainder 2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total** | **$7,013.8** | **$155.5** | **$278.5** | **$766.0** | **$1,261.6** | **$682.3** | **$3,869.9** | [Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company discusses its exposure to commodity price and interest rate risks and its hedging strategies - Approximately **90%** of the company's adjusted gross margin for the first six months of 2022 was generated from fee-based structures with minimal direct commodity price exposure[252](index=252&type=chunk) - A hypothetical **10% change** in commodity prices would result in a change of approximately **$21.0 million** in the net fair value of the company's derivative contracts as of June 30, 2022[266](index=266&type=chunk) - The company is exposed to interest rate risk on its Revolving Credit Facility and AR Facility. As of June 30, 2022, there were **$325.0 million** in outstanding borrowings under the AR Facility. A **1.0% change** in interest rates would alter annualized interest expense by approximately **$3.3 million**[267](index=267&type=chunk) [Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirms the effectiveness of disclosure controls and procedures as of the reporting date - Management, including the CEO and CFO, concluded that as of June 30, 2022, the company's **disclosure controls and procedures were effective**[270](index=270&type=chunk) - There were **no changes** in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[271](index=271&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) The company references Note 15 for details on legal matters, including Winter Storm Uri litigation - For discussion of legal proceedings, the report refers to Note 15, "Commitments and Contingencies," which details litigation arising from the normal course of business, including matters related to Winter Storm Uri[274](index=274&type=chunk) [Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to its previously disclosed risk factors - There are **no material changes** from the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021[275](index=275&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details its Q2 common unit repurchase activity and an increased program authorization | Period (2022) | Total Units Purchased | Average Price Paid Per Unit | | :--- | :--- | :--- | | April | 430,416 | $9.92 | | May | 1,656,301 | $9.53 | | June | 1,527,335 | $9.08 | | **Total Q2** | **3,614,052** | **$9.39** | - In July 2022, the Board **increased the amount available** for the common unit repurchase program to **$200.0 million** from the $100.0 million authorized at the start of the year[277](index=277&type=chunk) [Other Information](index=58&type=section&id=Item%205.%20Other%20Information) The company discloses a post-period amendment increasing its AR Securitization Facility to **$500.0 million** - On August 1, 2022, the company amended its AR Facility to **increase the facility limit to $500.0 million** from $350.0 million and extend the maturity to August 1, 2025[279](index=279&type=chunk)[280](index=280&type=chunk) [Exhibits](index=59&type=section&id=Item%206.%20Exhibits) The company lists all exhibits filed with the report, including material contracts and certifications

EnLink Midstream, LLC (NYSE:ENLC) Q2 2022 Earnings Conference Call August 4, 2022 9:00 AM ET Company Participants Brian Brungardt - Director, Investor Relations Jesse Arenivas - Chief Executive Officer Ben Lamb - EVP and Chief Operating Officer Pablo Mercado - EVP and Chief Financial Officer Conference Call Participants Gabriel Moreen - Mizuho Michael Endsley - Tudor, Pickering & Holt Michael Cusimano - Pickering Energy Partners Operator Good day, and welcome to the EnLink Midstream Second Quarter 2022 Earn ...

Financial Performance - EnLink Midstream achieved a record quarterly Adjusted EBITDA of approximately $299.7 million in Q2 2022[6] - The company's Permian segment experienced substantial growth, with volumes increasing by 11% sequentially and 46% year-over-year, while segment profit grew by 24% sequentially and 76% year-over-year[6] - EnLink executed $75 million in common unit repurchases during the first half of 2022[6] - As of June 30, 2022, EnLink's debt-to-Adjusted EBITDA ratio was 3.5x, and the company had no amount outstanding on its $1.4 billion revolving credit facility, with a cash balance of $11 million[6] Updated Guidance - EnLink Midstream raised its 2022 net income guidance to a range of $390 million to $430 million[12] - The company increased its 2022 Adjusted EBITDA guidance to a range of $1.25 billion to $1.29 billion, implying approximately 21% growth over 2021[12, 13] - EnLink updated its capital expenditure guidance to a range of $405 million to $455 million, including $65 million to $75 million for investment contributions[12] - The company expects to generate $300 million or more in Free Cash Flow After Distributions (FCFAD) for the third consecutive year[13] Strategic Initiatives - EnLink Midstream is investing in the Matterhorn Express Pipeline project with a 15% equity interest, expecting to spend approximately $70 million in 2022 and the balance in 2023 out of a total ~$100 million investment[21, 26] - The company acquired a North Texas G&P system for $275 million in cash, projecting a ~4x EBITDA multiple and high teens unlevered return[21, 28] - EnLink Midstream is focused on reducing scope 1 methane emissions intensity by 30% by 2024, compared to 2020 levels[23]

| --- | --- | --- | --- | --- | |-----------------------------------------------------------------------|-------|-------|-------|-------------------| | | | | | | | Q u a r t e r l y U p d a t e Q1 2022 UPDATE \| 2022 UPDATED GUIDANCE | | | | M a y 3 , 2 0 2 2 | | | | | | | | | | | | | FORWARD-LOOKING STATEMENTS • This presentation contains forward-looking statements within the meaning of the federal securities laws. Although these statements reflect the current views, assumptions and expectations of our man ...

Financial Data and Key Metrics Changes - EnLink achieved adjusted EBITDA of approximately $304 million, marking a 22% increase over the prior year [10][31] - The company reported $105 million of free cash flow after distributions for Q1 2022 [10][32] - Increased 2022 guidance implies 16% growth at the midpoint in adjusted EBITDA over 2021 [11][35] - Leverage ratio stood at 3.8 times at the end of Q1 2022, with positive credit profile momentum recognized by rating agencies [33][40] Business Line Data and Key Metrics Changes - **Permian Segment**: Generated segment profit of $73 million, with a 12% sequential increase and over 62% growth from the prior year [19][22] - **Louisiana Segment**: Reported segment profit of $90.5 million, increasing approximately 4% sequentially and 16% year-over-year [23][24] - **Oklahoma Segment**: Delivered segment profit of $85.8 million, with nearly 29% growth from the prior year [25][26] - **North Texas Segment**: Segment profit was $63 million, flat sequentially and decreased less than 4% year-over-year [28][29] Market Data and Key Metrics Changes - Average natural gas gathering volumes in the Permian were approximately 12% higher compared to Q4 2021 and 46% higher compared to Q1 2021 [20] - Average natural gas processing volumes in the Permian were approximately 10% higher sequentially and 43% higher year-over-year [20] Company Strategy and Development Direction - The company is focused on executing a disciplined and capital-light approach while enhancing customer relationships [9] - EnLink aims to lead in innovation and create sustainable value for stakeholders, with a strong emphasis on ESG efforts [13][39] - The Carbon Solutions Group is a strategic focus, with the first customer agreement signed with Oxy Low Carbon Ventures [11][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the supportive commodity price environment and its impact on business momentum [8][9] - The outlook for 2022 and beyond is strengthening, with expectations of meaningful volume growth returning in Oklahoma by 2023 [11][27] - Management highlighted the importance of safety and operational excellence, achieving zero recordable injuries in Q1 2022 [39] Other Important Information - The company issued its fourth sustainability report, reporting significant progress towards reducing methane emissions intensity [13] - EnLink is actively repurchasing common units, with $23 million repurchased in Q1 2022 [34] Q&A Session Summary Question: Guidance increase linked to commodity prices or higher volumes? - Management indicated that the guidance increase is due to strong performance across segments and improved commodity price environment, with about 90% of revenue being fixed fee [42][43] Question: Producer activity levels in Oklahoma? - Management noted that producer activity has stabilized, with expectations for meaningful growth in 2023 due to improved pricing [46][47] Question: Timing for CO2 projects with Oxy and Talos? - Management stated that permitting processes are underway, with expectations for CO2 movement through the system by 2025 [49] Question: Thoughts on investment grade status? - Management highlighted positive credit profile momentum and expectations for continued improvement towards investment grade [74][76] Question: CCS initiatives and investment opportunities? - Initial capital requirements for CCS projects are modest, with potential for increased funding through green bonds in the future [76]

Table of Contents Title of Each Class Trading Symbol Name of Exchange on which Registered Common Units Representing Limited Liability Company InterestsENLC The New York Stock Exchange UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition pe ...