Q2 2024 EnLink Midstream LLC Earnings Call Transcript
Key Points
- Generated $306 million of adjusted EBITDA for the quarter, driven by the Tiger II plant going into service in the Permian.
- Achieved solid free cash flow after distributions of approximately $53 million.
- Repurchased approximately $50 million of units outstanding, taking total buyback execution to more than 10% of units outstanding over a little more than 2 years.
- Announced the first expansion of natural gas storage assets in Louisiana, representing the third project to meet the evolving market.
- Successfully brought online the third relocated processing plant in the Permian, Tiger II, which represents efficient capital allocation with significant cost savings.
- Unable to find alternative CO2 transportation projects with ExxonMobil, leading to a reassessment of the Pecan Island CCS project.
- Segment profit in Louisiana decreased approximately 39% sequentially and 9% compared to the prior year quarter, reflecting seasonality and weather-related activity.
- North Texas segment profit decreased 11% sequentially and 28% from the prior year quarter, driven by a one-time contract reset.
- The CCS business has been slower to develop, impacting potential future growth in this area.
- Capital expenditures, plant relocation expenses, and investment contributions were high at $103 million for the second quarter.
Greetings. Welcome to the EnLink Midstream second quarter 2024 earnings call and webcast. (Operator Instructions) Please note this conference is being recorded.
At this time, I'll turn the conference over to Brian Brungardt. Brian, you may now begin.
Thank you, and good morning, everyone. Welcome to EnLink's second quarter of 2024 earnings call. Participating on the call today are Jesse Arenivas, President and Chief Executive Officer; Dilanka Seimon, Executive Vice President and Chief Commercial Officer; and Ben Lamb, Executive Vice President and Chief Financial Officer; Walter Pinto, Executive Vice President and Chief Operating Officer, is also in the room to answer any questions during the Q&A session.
We issued our earnings release and presentation after the markets closed yesterday and those materials are on our website. For a replay of today's call will also be made available on our website at investors.enlink.com.
Today's discussion will include forward
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