Intrinsic value of EnLink Midstream - ENLC

Previous Close

$11.53

  Intrinsic Value

$495.92

stock screener

  Rating & Target

str. buy

+999%

Previous close

$11.53

 
Intrinsic value

$495.92

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of ENLC stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 2.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  39.70
  36.23
  33.11
  30.30
  27.77
  25.49
  23.44
  21.60
  19.94
  18.44
  17.10
  15.89
  14.80
  13.82
  12.94
  12.14
  11.43
  10.79
  10.21
  9.69
  9.22
  8.80
  8.42
  8.08
  7.77
  7.49
  7.24
  7.02
  6.82
  6.63
Revenue, $m
  8,018
  10,923
  14,540
  18,945
  24,205
  30,375
  37,495
  45,592
  54,682
  64,768
  75,842
  87,893
  100,901
  114,846
  129,705
  145,457
  162,083
  179,567
  197,898
  217,069
  237,080
  257,935
  279,646
  302,229
  325,706
  350,105
  375,459
  401,808
  429,196
  457,670
Variable operating expenses, $m
  2,670
  3,527
  4,594
  5,893
  7,445
  9,266
  11,367
  13,756
  16,438
  19,413
  22,377
  25,933
  29,771
  33,885
  38,269
  42,917
  47,822
  52,981
  58,389
  64,046
  69,950
  76,103
  82,509
  89,172
  96,098
  103,297
  110,778
  118,552
  126,633
  135,034
Fixed operating expenses, $m
  3,598
  3,678
  3,759
  3,841
  3,926
  4,012
  4,100
  4,191
  4,283
  4,377
  4,473
  4,572
  4,672
  4,775
  4,880
  4,987
  5,097
  5,209
  5,324
  5,441
  5,561
  5,683
  5,808
  5,936
  6,067
  6,200
  6,336
  6,476
  6,618
  6,764
Total operating expenses, $m
  6,268
  7,205
  8,353
  9,734
  11,371
  13,278
  15,467
  17,947
  20,721
  23,790
  26,850
  30,505
  34,443
  38,660
  43,149
  47,904
  52,919
  58,190
  63,713
  69,487
  75,511
  81,786
  88,317
  95,108
  102,165
  109,497
  117,114
  125,028
  133,251
  141,798
Operating income, $m
  1,750
  3,719
  6,187
  9,210
  12,834
  17,097
  22,028
  27,646
  33,962
  40,977
  48,992
  57,389
  66,459
  76,186
  86,556
  97,553
  109,164
  121,377
  134,185
  147,582
  161,569
  176,149
  191,329
  207,121
  223,541
  240,607
  258,345
  276,780
  295,945
  315,872
EBITDA, $m
  2,690
  4,890
  7,645
  11,017
  15,059
  19,811
  25,308
  31,569
  38,606
  46,422
  55,012
  64,365
  74,467
  85,302
  96,851
  109,098
  122,029
  135,629
  149,892
  164,811
  180,387
  196,622
  213,525
  231,110
  249,393
  268,396
  288,146
  308,672
  330,010
  352,198
Interest expense (income), $m
  134
  205
  389
  625
  918
  1,275
  1,701
  2,201
  2,778
  3,435
  4,171
  4,989
  5,886
  6,863
  7,918
  9,048
  10,252
  11,529
  12,876
  14,293
  15,779
  17,333
  18,955
  20,645
  22,405
  24,235
  26,138
  28,115
  30,170
  32,306
  34,526
Earnings before tax, $m
  1,545
  3,329
  5,562
  8,292
  11,559
  15,395
  19,826
  24,868
  30,527
  36,806
  44,003
  51,502
  59,595
  68,269
  77,508
  87,301
  97,635
  108,501
  119,891
  131,803
  144,237
  157,195
  170,684
  184,717
  199,306
  214,470
  230,230
  246,610
  263,639
  281,347
Tax expense, $m
  417
  899
  1,502
  2,239
  3,121
  4,157
  5,353
  6,714
  8,242
  9,938
  11,881
  13,906
  16,091
  18,433
  20,927
  23,571
  26,361
  29,295
  32,371
  35,587
  38,944
  42,443
  46,085
  49,873
  53,813
  57,907
  62,162
  66,585
  71,182
  75,964
Net income, $m
  1,128
  2,430
  4,061
  6,053
  8,438
  11,239
  14,473
  18,153
  22,285
  26,868
  32,122
  37,597
  43,505
  49,836
  56,581
  63,730
  71,274
  79,206
  87,521
  96,216
  105,293
  114,752
  124,600
  134,843
  145,493
  156,563
  168,068
  180,025
  192,456
  205,383

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  14,712
  20,043
  26,678
  34,761
  44,412
  55,733
  68,798
  83,656
  100,334
  118,840
  139,160
  161,272
  185,140
  210,727
  237,992
  266,894
  297,400
  329,481
  363,115
  398,292
  435,009
  473,276
  513,112
  554,549
  597,625
  642,394
  688,916
  737,263
  787,515
  839,762
Adjusted assets (=assets-cash), $m
  14,712
  20,043
  26,678
  34,761
  44,412
  55,733
  68,798
  83,656
  100,334
  118,840
  139,160
  161,272
  185,140
  210,727
  237,992
  266,894
  297,400
  329,481
  363,115
  398,292
  435,009
  473,276
  513,112
  554,549
  597,625
  642,394
  688,916
  737,263
  787,515
  839,762
Revenue / Adjusted assets
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
Average production assets, $m
  11,137
  15,172
  20,195
  26,314
  33,620
  42,190
  52,080
  63,328
  75,954
  89,962
  105,345
  122,083
  140,152
  159,522
  180,161
  202,040
  225,133
  249,419
  274,880
  301,509
  329,304
  358,272
  388,429
  419,796
  452,405
  486,295
  521,513
  558,112
  596,153
  635,704
Working capital, $m
  -16
  -22
  -29
  -38
  -48
  -61
  -75
  -91
  -109
  -130
  -152
  -176
  -202
  -230
  -259
  -291
  -324
  -359
  -396
  -434
  -474
  -516
  -559
  -604
  -651
  -700
  -751
  -804
  -858
  -915
Total debt, $m
  7,211
  11,571
  16,999
  23,610
  31,505
  40,766
  51,452
  63,606
  77,250
  92,387
  109,009
  127,096
  146,621
  167,551
  189,853
  213,496
  238,449
  264,691
  292,204
  320,979
  351,013
  382,316
  414,902
  448,797
  484,033
  520,654
  558,709
  598,257
  639,363
  682,101
Total liabilities, $m
  12,035
  16,395
  21,823
  28,434
  36,329
  45,590
  56,276
  68,430
  82,074
  97,211
  113,833
  131,920
  151,445
  172,375
  194,677
  218,320
  243,273
  269,515
  297,028
  325,803
  355,837
  387,140
  419,726
  453,621
  488,857
  525,478
  563,533
  603,081
  644,187
  686,925
Total equity, $m
  2,678
  3,648
  4,855
  6,326
  8,083
  10,143
  12,521
  15,225
  18,261
  21,629
  25,327
  29,351
  33,696
  38,352
  43,314
  48,575
  54,127
  59,965
  66,087
  72,489
  79,172
  86,136
  93,386
  100,928
  108,768
  116,916
  125,383
  134,182
  143,328
  152,837
Total liabilities and equity, $m
  14,713
  20,043
  26,678
  34,760
  44,412
  55,733
  68,797
  83,655
  100,335
  118,840
  139,160
  161,271
  185,141
  210,727
  237,991
  266,895
  297,400
  329,480
  363,115
  398,292
  435,009
  473,276
  513,112
  554,549
  597,625
  642,394
  688,916
  737,263
  787,515
  839,762
Debt-to-equity ratio
  2.690
  3.170
  3.500
  3.730
  3.900
  4.020
  4.110
  4.180
  4.230
  4.270
  4.300
  4.330
  4.350
  4.370
  4.380
  4.400
  4.410
  4.410
  4.420
  4.430
  4.430
  4.440
  4.440
  4.450
  4.450
  4.450
  4.460
  4.460
  4.460
  4.460
Adjusted equity ratio
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182
  0.182

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,128
  2,430
  4,061
  6,053
  8,438
  11,239
  14,473
  18,153
  22,285
  26,868
  32,122
  37,597
  43,505
  49,836
  56,581
  63,730
  71,274
  79,206
  87,521
  96,216
  105,293
  114,752
  124,600
  134,843
  145,493
  156,563
  168,068
  180,025
  192,456
  205,383
Depreciation, amort., depletion, $m
  940
  1,171
  1,458
  1,808
  2,225
  2,715
  3,280
  3,923
  4,644
  5,445
  6,020
  6,976
  8,009
  9,116
  10,295
  11,545
  12,865
  14,252
  15,707
  17,229
  18,817
  20,473
  22,196
  23,988
  25,852
  27,788
  29,801
  31,892
  34,066
  36,326
Funds from operations, $m
  2,068
  3,601
  5,519
  7,861
  10,663
  13,953
  17,753
  22,076
  26,929
  32,313
  38,142
  44,573
  51,513
  58,952
  66,876
  75,275
  84,138
  93,458
  103,228
  113,446
  124,110
  135,225
  146,795
  158,831
  171,345
  184,351
  197,868
  211,917
  226,522
  241,709
Change in working capital, $m
  -5
  -6
  -7
  -9
  -11
  -12
  -14
  -16
  -18
  -20
  -22
  -24
  -26
  -28
  -30
  -32
  -33
  -35
  -37
  -38
  -40
  -42
  -43
  -45
  -47
  -49
  -51
  -53
  -55
  -57
Cash from operations, $m
  2,073
  3,607
  5,526
  7,869
  10,673
  13,966
  17,767
  22,092
  26,947
  32,333
  38,164
  44,597
  51,539
  58,980
  66,906
  75,306
  84,172
  93,493
  103,265
  113,484
  124,150
  135,266
  146,839
  158,877
  171,392
  184,400
  197,919
  211,970
  226,577
  241,766
Maintenance CAPEX, $m
  -456
  -636
  -867
  -1,154
  -1,504
  -1,921
  -2,411
  -2,976
  -3,619
  -4,340
  -5,141
  -6,020
  -6,976
  -8,009
  -9,116
  -10,295
  -11,545
  -12,865
  -14,252
  -15,707
  -17,229
  -18,817
  -20,473
  -22,196
  -23,988
  -25,852
  -27,788
  -29,801
  -31,892
  -34,066
New CAPEX, $m
  -3,164
  -4,035
  -5,023
  -6,118
  -7,307
  -8,570
  -9,890
  -11,248
  -12,626
  -14,009
  -15,383
  -16,738
  -18,069
  -19,369
  -20,639
  -21,879
  -23,093
  -24,285
  -25,461
  -26,629
  -27,795
  -28,968
  -30,156
  -31,367
  -32,609
  -33,890
  -35,217
  -36,599
  -38,041
  -39,551
Cash from investing activities, $m
  -3,620
  -4,671
  -5,890
  -7,272
  -8,811
  -10,491
  -12,301
  -14,224
  -16,245
  -18,349
  -20,524
  -22,758
  -25,045
  -27,378
  -29,755
  -32,174
  -34,638
  -37,150
  -39,713
  -42,336
  -45,024
  -47,785
  -50,629
  -53,563
  -56,597
  -59,742
  -63,005
  -66,400
  -69,933
  -73,617
Free cash flow, $m
  -1,547
  -1,064
  -364
  597
  1,863
  3,475
  5,467
  7,868
  10,702
  13,984
  17,641
  21,839
  26,494
  31,601
  37,151
  43,132
  49,533
  56,343
  63,551
  71,148
  79,126
  87,481
  96,210
  105,313
  114,794
  124,658
  134,913
  145,571
  156,644
  168,149
Issuance/(repayment) of debt, $m
  3,419
  4,360
  5,428
  6,611
  7,895
  9,260
  10,687
  12,154
  13,643
  15,137
  16,622
  18,087
  19,525
  20,930
  22,302
  23,642
  24,954
  26,242
  27,513
  28,774
  30,035
  31,302
  32,586
  33,895
  35,237
  36,621
  38,055
  39,548
  41,106
  42,738
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  3,419
  4,360
  5,428
  6,611
  7,895
  9,260
  10,687
  12,154
  13,643
  15,137
  16,622
  18,087
  19,525
  20,930
  22,302
  23,642
  24,954
  26,242
  27,513
  28,774
  30,035
  31,302
  32,586
  33,895
  35,237
  36,621
  38,055
  39,548
  41,106
  42,738
Total cash flow (excl. dividends), $m
  1,872
  3,296
  5,064
  7,208
  9,758
  12,735
  16,153
  20,022
  24,346
  29,121
  34,263
  39,926
  46,019
  52,532
  59,453
  66,774
  74,487
  82,585
  91,064
  99,922
  109,161
  118,783
  128,796
  139,208
  150,031
  161,279
  172,968
  185,118
  197,750
  210,887
Retained Cash Flow (-), $m
  -755
  -970
  -1,208
  -1,471
  -1,757
  -2,060
  -2,378
  -2,704
  -3,036
  -3,368
  -3,698
  -4,024
  -4,344
  -4,657
  -4,962
  -5,260
  -5,552
  -5,839
  -6,121
  -6,402
  -6,683
  -6,965
  -7,250
  -7,541
  -7,840
  -8,148
  -8,467
  -8,799
  -9,146
  -9,509
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  1,117
  2,326
  3,856
  5,737
  8,002
  10,675
  13,776
  17,318
  21,310
  25,754
  30,565
  35,902
  41,675
  47,875
  54,491
  61,514
  68,935
  76,746
  84,942
  93,520
  102,478
  111,819
  121,546
  131,667
  142,191
  153,131
  164,501
  176,319
  188,604
  201,378
Discount rate, %
  9.20
  9.66
  10.14
  10.65
  11.18
  11.74
  12.33
  12.95
  13.59
  14.27
  14.99
  15.74
  16.52
  17.35
  18.22
  19.13
  20.08
  21.09
  22.14
  23.25
  24.41
  25.63
  26.91
  28.26
  29.67
  31.15
  32.71
  34.35
  36.07
  37.87
PV of cash for distribution, $m
  1,023
  1,934
  2,886
  3,827
  4,710
  5,484
  6,105
  6,540
  6,768
  6,783
  6,579
  6,216
  5,709
  5,099
  4,428
  3,740
  3,071
  2,451
  1,900
  1,430
  1,044
  739
  506
  335
  215
  133
  79
  45
  25
  13
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

EnLink Midstream, LLC is an integrated midstream company. The Company's assets consist of equity interests in EnLink Midstream Partners, LP (the Partnership) and EnLink Oklahoma Gas Processing, LP (EnLink Oklahoma T.O.). The Partnership is engaged in the gathering, transmission, processing and marketing of natural gas and natural gas liquids (NGLs), condensate and crude oil, as well as providing crude oil, condensate and brine services to producers. EnLink Oklahoma T.O., a partnership owned by the Partnership and the Company, is engaged in the gathering and processing of natural gas. The Partnership's segments include Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate. The Partnership connects the wells of producers in its market areas to its gathering systems, processes natural gas to remove NGLs, fractionates NGLs into purity products and markets those products for a fee, transports natural gas and provides natural gas to a range of markets.

FINANCIAL RATIOS  of  EnLink Midstream (ENLC)

Valuation Ratios
P/E Ratio -4.5
Price to Sales 0.5
Price to Book 1.1
Price to Tangible Book
Price to Cash Flow 3.1
Price to Free Cash Flow 692
Growth Rates
Sales Growth Rate -4.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 15.9%
Cap. Spend. - 3 Yr. Gr. Rate 22.1%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 175.2%
Total Debt to Equity 175.2%
Interest Coverage -6
Management Effectiveness
Return On Assets -3.3%
Ret/ On Assets - 3 Yr. Avg. -1%
Return On Total Capital -8.7%
Ret/ On T. Cap. - 3 Yr. Avg. -4%
Return On Equity -22.1%
Return On Equity - 3 Yr. Avg. -10.2%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 29.1%
Gross Margin - 3 Yr. Avg. 28.4%
EBITDA Margin -5.8%
EBITDA Margin - 3 Yr. Avg. -2.2%
Operating Margin -15.9%
Oper. Margin - 3 Yr. Avg. -11.6%
Pre-Tax Margin -20.8%
Pre-Tax Margin - 3 Yr. Avg. -14.2%
Net Profit Margin -10.8%
Net Profit Margin - 3 Yr. Avg. -5.1%
Effective Tax Rate -0.5%
Eff/ Tax Rate - 3 Yr. Avg. 7%
Payout Ratio -40.2%

ENLC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ENLC stock intrinsic value calculation we used $5739.6 million for the last fiscal year's total revenue generated by EnLink Midstream. The default revenue input number comes from 0001 income statement of EnLink Midstream. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our ENLC stock valuation model: a) initial revenue growth rate of 39.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 9.2%, whose default value for ENLC is calculated based on our internal credit rating of EnLink Midstream, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of EnLink Midstream.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of ENLC stock the variable cost ratio is equal to 34.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $3521 million in the base year in the intrinsic value calculation for ENLC stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for EnLink Midstream.

Corporate tax rate of 27% is the nominal tax rate for EnLink Midstream. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the ENLC stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for ENLC are equal to 138.9%.

Life of production assets of 17.5 years is the average useful life of capital assets used in EnLink Midstream operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for ENLC is equal to -0.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1922.2 million for EnLink Midstream - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 181.133 million for EnLink Midstream is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of EnLink Midstream at the current share price and the inputted number of shares is $2.1 billion.

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COMPANY NEWS

▶ Oil Prices Drop Like a Stone: Winners & Losers   [Nov-28-18 08:16AM  Zacks]
▶ EnLink Midstream to Participate in Investor Conferences   [Nov-19-18 06:05AM  PR Newswire]
▶ 4 Top Stocks to Gain as Oil Enters Bear Market   [Nov-14-18 09:03AM  Zacks]
▶ EnLink Midstream: 3Q Earnings Snapshot   [05:07AM  Associated Press]
▶ The Energy Sector Shake-Up Continues   [Oct-22-18 11:49AM  Motley Fool]
▶ Another Dallas oil firm to simplify structure, create $13B company   [10:20AM  American City Business Journals]
▶ EnLink Midstream to Participate in Investor Conferences   [Oct-04-18 05:16PM  PR Newswire]
▶ What Does EnLink Midstream LLCs (NYSE:ENLC) PE Ratio Tell You?   [Sep-06-18 11:36AM  Simply Wall St.]
▶ EnLink Midstream to Participate in Investor Conferences   [Sep-05-18 05:16PM  PR Newswire]
▶ Here are the Houston stocks driving Wall Street's latest bull run   [Aug-24-18 06:00AM  American City Business Journals]
▶ Costs Cut Into Devon Energy Corp's Q2 Results   [Aug-01-18 11:00AM  Motley Fool]
▶ EnLink Midstream: 2Q Earnings Snapshot   [Jul-31-18 06:59PM  Associated Press]
▶ [$$] Deal Close Announcements: July 16-20   [Jul-20-18 05:06PM  The Wall Street Journal]
▶ EnLink Midstream to Participate in Investor Conferences   [May-21-18 06:07AM  PR Newswire]
▶ EnLink Midstream: 1Q Earnings Snapshot   [May-01-18 05:46PM  Associated Press]
▶ EnLink Midstream to Participate in Investor Conferences   [Apr-25-18 05:07PM  PR Newswire]
▶ This 11.4%-Yielder Is Worthy of Your Income Watchlist   [Apr-12-18 12:04PM  Motley Fool]
▶ EnLink Midstream to Participate in Investor Conferences   [Mar-28-18 05:07PM  PR Newswire]
▶ EnLink Midstream to Participate in Investor Conferences   [Feb-26-18 08:04AM  PR Newswire]
▶ Like Dividends? I Bet You'll Love These 4 Stocks   [Feb-24-18 07:17AM  Motley Fool]
▶ EnLink Midstream misses 4Q profit forecasts   [Feb-20-18 06:49PM  Associated Press]

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