ENLC Update - April 15

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

ENLC Update - April 15

Post by dan_s »

Stifel: "We continue to view EnLink Midstream as an interesting gathering and processing centric
midstream player, however following its recent performance we are reducing our rating to Hold
from Buy. ENLC’s 8.5% yield remains attractive and we believe this income will represent the
majority of investors’ return over the near term. We updated our model for ENLC’s revised
segments and our aggregate estimates are virtually unchanged. Our 1Q19 Adjusted EBITDA
estimate is relatively in line with consensus ($253 million compared to consensus of $256 million)
and going into the quarter, we are looking for confirmation of guidance given producer activity
moderating, an update on the NGL environment and ENLC’s long-term repurposing/investment
opportunities. At this time, we are maintaining our $13.00 target price."


ENLC is currently trading at $12.40.

Stifel's forecast model is very close to mine, with 2019 EBITDA estimated at $1.1 Billion. < More than enough for ENLC to raise their distributions by 5% this year.
Dan Steffens
Energy Prospectus Group
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