EnLink Midstream(US:ENLC)2020-05-08 20:03Financial Performance - Total revenues for the three months ended March 31, 2020, were $1,156.1 million, a decrease of 34.9% compared to $1,779.2 million in the same period of 2019[18] - Product sales decreased to $892.9 million from $1,530.9 million, reflecting a decline of 41.6% year-over-year[18] - Operating loss for the period was $(245.5) million, compared to $(88.7) million in the prior year, indicating a significant increase in losses[18] - Net loss attributable to ENLC was $(286.8) million, compared to $(176.3) million in the same quarter of 2019, representing a 62.7% increase in net losses[18] - Basic and diluted common unit loss per unit was $(0.59), worsening from $(0.45) in the prior year[18] - Total operating costs and expenses were $1,401.6 million, down from $1,867.9 million, a decrease of 25% year-over-year[18] - Comprehensive loss attributable to ENLC was $(299.9) million, compared to $(176.3) million in the same quarter of 2019[20] - The company reported a net cash increase of $180.7 million for the period, compared to a decrease of $99.7 million in the prior year[1] - Net loss for the three months ended March 31, 2020, was $260.4 million, compared to a net loss of $134.8 million for the same period in 2019[1] Assets and Liabilities - Total current assets increased to $723.7 million from $644.4 million, representing a growth of approximately 12.2%[15] - Long-term debt stood at $4.95 billion, up from $4.76 billion, indicating an increase of about 4%[15] - Members' equity decreased to $3.46 billion from $3.81 billion, reflecting a decline of approximately 9.3%[15] - Total assets decreased to $9.06 billion from $9.34 billion, a reduction of about 2.9%[15] - Total current liabilities decreased to $522.5 million from $647.1 million, showing a decline of approximately 19.3%[15] - Cash and cash equivalents rose to $258.1 million from $77.4 million, marking an increase of about 233.5%[15] - The carrying amount of intangible assets related to customer relationships was $1,795.8 million, with accumulated amortization of $576.8 million as of March 31, 2020[58] - The outstanding balance of the Term Loan was $850.0 million as of March 31, 2020, with a maturity date of December 10, 2021[76] Impairments and Losses - Impairments for the period were $353.0 million, significantly higher than $186.5 million in the same quarter of 2019[18] - An impairment of $168.0 million was recognized on property and equipment related to the Louisiana reporting segment due to non-recoverable carrying amounts[1] - Goodwill impairment loss of $184.6 million was recognized for the Permian reporting unit due to a sustained decline in unit price and weakness in the energy sector[55] - The company recorded impairments of goodwill and property and equipment during the three months ended March 31, 2020, due to revised forecasts[151] Cash Flow and Investments - Net cash provided by operating activities was $182.0 million for the three months ended March 31, 2020, down from $264.0 million in the same period of 2019[200] - Net cash used in investing activities was $115.5 million for the three months ended March 31, 2020, compared to $241.0 million in the same period of 2019[204] - Capital expenditures for Q1 2020 amounted to $114.8 million, compared to $251.0 million in Q1 2019, a reduction of 54.4%[124] - The company plans to reduce capital expenditures in 2020 to between $190 million and $250 million, representing a 65% reduction from 2019 total capital spending[147] Revenue and Segment Performance - Total revenue for the three months ended March 31, 2020, was $1,136.9 million, compared to $1,777.4 million for the same period in 2019, representing a decrease of approximately 36.1%[122] - Revenues in the Permian segment fell to $371.7 million in Q1 2020 from $742.6 million in Q1 2019, a decrease of 50%[171] - The North Texas segment reported revenues of $120.7 million in Q1 2020, down from $174.3 million in Q1 2019, a decline of 30.7%[171] - Oklahoma segment revenues decreased to $220.0 million in Q1 2020 from $319.7 million in Q1 2019, representing a decline of 31.1%[171] - Louisiana segment revenues dropped to $563.5 million in Q1 2020 from $798.1 million in Q1 2019, a decrease of 29.5%[171] Operational Efficiency - The company reported a gross operating margin, which is a non-GAAP financial measure, indicating strong operational efficiency[15] - Gross operating margin for the three months ended March 31, 2020, was $400.8 million, a decrease of $15.0 million or 3.6% from $415.8 million in Q1 2019[173] - The company achieved a segment profit of $32.3 million in the Permian region for Q1 2020, down from $38.6 million in Q1 2019[124] - The company recorded a gain on derivative activity of $19.2 million in Q1 2020, compared to a gain of $1.8 million in Q1 2019, indicating improved performance in this area[124] Market Conditions and Future Outlook - The COVID-19 pandemic has led to a nearly one-third drop in global demand for crude oil since mid-February 2020, significantly impacting the energy industry[127] - The company cannot predict the full impact of COVID-19 on its business and financial results due to numerous uncertainties surrounding the pandemic and market conditions[129] - The company expects continued volatility in crude oil, condensate, natural gas, and NGL prices for the foreseeable future, which may adversely impact its business[146] - The decline in commodity prices and limited storage capacity has led to a severe shortage of storage capacity for oil, resulting in historic low oil prices[128]