Intrinsic value of EnLink Midstream - ENLC

Previous Close

$17.35

  Intrinsic Value

$345.56

stock screener

  Rating & Target

str. buy

+999%

Previous close

$17.35

 
Intrinsic value

$345.56

 
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 2017), $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 3.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  35.00
  32.00
  29.30
  26.87
  24.68
  22.71
  20.94
  19.35
  17.91
  16.62
  15.46
  14.41
  13.47
  12.63
  11.86
  11.18
  10.56
  10.00
  9.50
  9.05
  8.65
  8.28
  7.95
  7.66
  7.39
  7.15
  6.94
  6.74
  6.57
  6.41
Revenue, $m
  7,749
  10,229
  13,226
  16,779
  20,921
  25,673
  31,050
  37,058
  43,696
  50,960
  58,839
  67,320
  76,390
  86,034
  96,241
  106,997
  118,295
  130,128
  142,494
  155,393
  168,831
  182,814
  197,356
  212,471
  228,179
  244,502
  261,467
  279,101
  297,439
  316,513
Variable operating expenses, $m
  2,590
  3,322
  4,206
  5,255
  6,477
  7,879
  9,465
  11,238
  13,197
  15,340
  17,361
  19,863
  22,539
  25,385
  28,396
  31,570
  34,904
  38,395
  42,044
  45,850
  49,815
  53,940
  58,231
  62,691
  67,326
  72,142
  77,147
  82,350
  87,761
  93,389
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
  6,188
  7,000
  7,965
  9,096
  10,403
  11,891
  13,565
  15,429
  17,480
  19,717
  21,834
  24,435
  27,211
  30,160
  33,276
  36,557
  40,001
  43,604
  47,368
  51,291
  55,376
  59,623
  64,039
  68,627
  73,393
  78,342
  83,483
  88,826
  94,379
  100,153
Operating income, $m
  1,560
  3,229
  5,261
  7,683
  10,519
  13,782
  17,484
  21,629
  26,217
  31,243
  37,005
  42,885
  49,178
  55,874
  62,964
  70,440
  78,294
  86,524
  95,126
  104,103
  113,456
  123,191
  133,317
  143,844
  154,787
  166,161
  177,983
  190,275
  203,059
  216,360
EBITDA, $m
  3,150
  5,230
  7,759
  10,771
  14,293
  18,345
  22,939
  28,081
  33,770
  40,001
  46,766
  54,053
  61,851
  70,147
  78,930
  88,190
  97,919
  108,112
  118,766
  129,882
  141,465
  153,520
  166,058
  179,093
  192,642
  206,724
  221,361
  236,578
  252,404
  268,870
Interest expense (income), $m
  134
  205
  368
  569
  811
  1,099
  1,435
  1,820
  2,256
  2,743
  3,281
  3,870
  4,508
  5,196
  5,931
  6,713
  7,540
  8,412
  9,327
  10,286
  11,289
  12,334
  13,423
  14,557
  15,735
  16,960
  18,233
  19,556
  20,931
  22,361
  23,847
Earnings before tax, $m
  1,356
  2,862
  4,692
  6,872
  9,419
  12,347
  15,664
  19,373
  23,474
  27,962
  33,135
  38,377
  43,982
  49,943
  56,252
  62,900
  69,883
  77,197
  84,840
  92,814
  101,121
  109,768
  118,760
  128,109
  137,827
  147,927
  158,427
  169,344
  180,699
  192,514
Tax expense, $m
  366
  773
  1,267
  1,855
  2,543
  3,334
  4,229
  5,231
  6,338
  7,550
  8,946
  10,362
  11,875
  13,485
  15,188
  16,983
  18,868
  20,843
  22,907
  25,060
  27,303
  29,637
  32,065
  34,590
  37,213
  39,940
  42,775
  45,723
  48,789
  51,979
Net income, $m
  990
  2,089
  3,425
  5,017
  6,876
  9,013
  11,435
  14,142
  17,136
  20,412
  24,188
  28,015
  32,107
  36,459
  41,064
  45,917
  51,014
  56,353
  61,933
  67,754
  73,819
  80,130
  86,695
  93,520
  100,614
  107,987
  115,652
  123,621
  131,910
  140,535

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
  14,218
  18,768
  24,267
  30,788
  38,387
  47,107
  56,973
  67,996
  80,177
  93,505
  107,961
  123,522
  140,164
  157,861
  176,588
  196,325
  217,055
  238,767
  261,457
  285,126
  309,781
  335,439
  362,121
  389,855
  418,677
  448,628
  479,756
  512,113
  545,759
  580,759
Adjusted assets (=assets-cash), $m
  14,218
  18,768
  24,267
  30,788
  38,387
  47,107
  56,973
  67,996
  80,177
  93,505
  107,961
  123,522
  140,164
  157,861
  176,588
  196,325
  217,055
  238,767
  261,457
  285,126
  309,781
  335,439
  362,121
  389,855
  418,677
  448,628
  479,756
  512,113
  545,759
  580,759
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
  12,856
  16,969
  21,941
  27,837
  34,708
  42,592
  51,512
  61,479
  72,492
  84,543
  97,613
  111,683
  126,730
  142,731
  159,663
  177,508
  196,251
  215,883
  236,398
  257,798
  280,090
  303,289
  327,414
  352,490
  378,549
  405,630
  433,773
  463,029
  493,451
  525,096
Working capital, $m
  -54
  -72
  -93
  -117
  -146
  -180
  -217
  -259
  -306
  -357
  -412
  -471
  -535
  -602
  -674
  -749
  -828
  -911
  -997
  -1,088
  -1,182
  -1,280
  -1,381
  -1,487
  -1,597
  -1,712
  -1,830
  -1,954
  -2,082
  -2,216
Total debt, $m
  6,806
  10,528
  15,026
  20,360
  26,577
  33,709
  41,779
  50,797
  60,761
  71,662
  83,488
  96,217
  109,830
  124,306
  139,625
  155,770
  172,727
  190,488
  209,048
  228,409
  248,577
  269,565
  291,391
  314,078
  337,654
  362,154
  387,616
  414,084
  441,606
  470,236
Total liabilities, $m
  11,631
  15,352
  19,851
  25,185
  31,401
  38,533
  46,604
  55,621
  65,585
  76,487
  88,312
  101,041
  114,655
  129,130
  144,449
  160,594
  177,551
  195,312
  213,872
  233,233
  253,401
  274,389
  296,215
  318,902
  342,478
  366,978
  392,440
  418,908
  446,431
  475,060
Total equity, $m
  2,588
  3,416
  4,417
  5,603
  6,986
  8,573
  10,369
  12,375
  14,592
  17,018
  19,649
  22,481
  25,510
  28,731
  32,139
  35,731
  39,504
  43,456
  47,585
  51,893
  56,380
  61,050
  65,906
  70,954
  76,199
  81,650
  87,316
  93,205
  99,328
  105,698
Total liabilities and equity, $m
  14,219
  18,768
  24,268
  30,788
  38,387
  47,106
  56,973
  67,996
  80,177
  93,505
  107,961
  123,522
  140,165
  157,861
  176,588
  196,325
  217,055
  238,768
  261,457
  285,126
  309,781
  335,439
  362,121
  389,856
  418,677
  448,628
  479,756
  512,113
  545,759
  580,758
Debt-to-equity ratio
  2.630
  3.080
  3.400
  3.630
  3.800
  3.930
  4.030
  4.100
  4.160
  4.210
  4.250
  4.280
  4.310
  4.330
  4.340
  4.360
  4.370
  4.380
  4.390
  4.400
  4.410
  4.420
  4.420
  4.430
  4.430
  4.440
  4.440
  4.440
  4.450
  4.450
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
  990
  2,089
  3,425
  5,017
  6,876
  9,013
  11,435
  14,142
  17,136
  20,412
  24,188
  28,015
  32,107
  36,459
  41,064
  45,917
  51,014
  56,353
  61,933
  67,754
  73,819
  80,130
  86,695
  93,520
  100,614
  107,987
  115,652
  123,621
  131,910
  140,535
Depreciation, amort., depletion, $m
  1,589
  2,001
  2,498
  3,088
  3,775
  4,563
  5,455
  6,452
  7,553
  8,758
  9,761
  11,168
  12,673
  14,273
  15,966
  17,751
  19,625
  21,588
  23,640
  25,780
  28,009
  30,329
  32,741
  35,249
  37,855
  40,563
  43,377
  46,303
  49,345
  52,510
Funds from operations, $m
  2,579
  4,090
  5,924
  8,104
  10,651
  13,576
  16,890
  20,594
  24,689
  29,170
  33,950
  39,183
  44,780
  50,732
  57,030
  63,668
  70,639
  77,942
  85,573
  93,534
  101,828
  110,459
  119,436
  128,769
  138,469
  148,550
  159,029
  169,924
  181,255
  193,045
Change in working capital, $m
  -14
  -17
  -21
  -25
  -29
  -33
  -38
  -42
  -46
  -51
  -55
  -59
  -63
  -68
  -71
  -75
  -79
  -83
  -87
  -90
  -94
  -98
  -102
  -106
  -110
  -114
  -119
  -123
  -128
  -134
Cash from operations, $m
  2,593
  4,107
  5,944
  8,129
  10,680
  13,610
  16,927
  20,636
  24,736
  29,221
  34,005
  39,243
  44,844
  50,799
  57,101
  63,743
  70,719
  78,025
  85,660
  93,624
  101,922
  110,557
  119,538
  128,875
  138,579
  148,664
  159,148
  170,047
  181,384
  193,178
Maintenance CAPEX, $m
  -952
  -1,286
  -1,697
  -2,194
  -2,784
  -3,471
  -4,259
  -5,151
  -6,148
  -7,249
  -8,454
  -9,761
  -11,168
  -12,673
  -14,273
  -15,966
  -17,751
  -19,625
  -21,588
  -23,640
  -25,780
  -28,009
  -30,329
  -32,741
  -35,249
  -37,855
  -40,563
  -43,377
  -46,303
  -49,345
New CAPEX, $m
  -3,331
  -4,114
  -4,972
  -5,896
  -6,871
  -7,884
  -8,920
  -9,967
  -11,013
  -12,050
  -13,071
  -14,070
  -15,047
  -16,000
  -16,932
  -17,845
  -18,743
  -19,631
  -20,515
  -21,400
  -22,293
  -23,199
  -24,125
  -25,076
  -26,060
  -27,080
  -28,144
  -29,256
  -30,421
  -31,645
Cash from investing activities, $m
  -4,283
  -5,400
  -6,669
  -8,090
  -9,655
  -11,355
  -13,179
  -15,118
  -17,161
  -19,299
  -21,525
  -23,831
  -26,215
  -28,673
  -31,205
  -33,811
  -36,494
  -39,256
  -42,103
  -45,040
  -48,073
  -51,208
  -54,454
  -57,817
  -61,309
  -64,935
  -68,707
  -72,633
  -76,724
  -80,990
Free cash flow, $m
  -1,690
  -1,292
  -724
  39
  1,025
  2,255
  3,748
  5,518
  7,574
  9,922
  12,480
  15,411
  18,628
  22,126
  25,896
  29,932
  34,225
  38,768
  43,556
  48,585
  53,849
  59,349
  65,085
  71,057
  77,270
  83,729
  90,441
  97,414
  104,659
  112,188
Issuance/(repayment) of debt, $m
  3,015
  3,722
  4,498
  5,334
  6,216
  7,133
  8,070
  9,017
  9,964
  10,902
  11,825
  12,730
  13,613
  14,476
  15,319
  16,145
  16,957
  17,761
  18,560
  19,361
  20,168
  20,988
  21,826
  22,687
  23,576
  24,500
  25,462
  26,468
  27,522
  28,630
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  
  3,015
  3,722
  4,498
  5,334
  6,216
  7,133
  8,070
  9,017
  9,964
  10,902
  11,825
  12,730
  13,613
  14,476
  15,319
  16,145
  16,957
  17,761
  18,560
  19,361
  20,168
  20,988
  21,826
  22,687
  23,576
  24,500
  25,462
  26,468
  27,522
  28,630
Total cash flow (excl. dividends), $m
  1,324
  2,430
  3,774
  5,373
  7,241
  9,388
  11,818
  14,535
  17,538
  20,824
  24,305
  28,141
  32,242
  36,602
  41,215
  46,076
  51,182
  56,529
  62,117
  67,945
  74,018
  80,338
  86,910
  93,744
  100,846
  108,229
  115,903
  123,882
  132,182
  140,818
Retained Cash Flow (-), $m
  -666
  -828
  -1,001
  -1,187
  -1,383
  -1,587
  -1,796
  -2,006
  -2,217
  -2,426
  -2,631
  -2,832
  -3,029
  -3,221
  -3,408
  -3,592
  -3,773
  -3,952
  -4,130
  -4,308
  -4,487
  -4,670
  -4,856
  -5,048
  -5,246
  -5,451
  -5,665
  -5,889
  -6,124
  -6,370
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
  46
  62
  82
  106
  134
  167
  205
  248
  296
  350
  408
  471
  539
  611
  688
  770
  856
  946
  1,041
  1,140
  1,243
  1,351
  1,463
  1,579
  1,700
  1,825
  1,956
  2,092
  2,233
  2,380
Cash available for distribution, $m
  659
  1,602
  2,773
  4,186
  5,858
  7,801
  10,023
  12,529
  15,321
  18,398
  21,674
  25,308
  29,213
  33,381
  37,807
  42,484
  47,409
  52,577
  57,987
  63,638
  69,530
  75,668
  82,054
  88,696
  95,601
  102,778
  110,238
  117,993
  126,058
  134,448
Discount rate, %
  9.30
  9.77
  10.25
  10.77
  11.30
  11.87
  12.46
  13.09
  13.74
  14.43
  15.15
  15.91
  16.70
  17.54
  18.41
  19.33
  20.30
  21.32
  22.38
  23.50
  24.68
  25.91
  27.20
  28.57
  29.99
  31.49
  33.07
  34.72
  36.46
  38.28
PV of cash for distribution, $m
  603
  1,329
  2,069
  2,781
  3,429
  3,980
  4,405
  4,684
  4,809
  4,781
  4,593
  4,305
  3,923
  3,476
  2,996
  2,512
  2,048
  1,623
  1,249
  934
  677
  476
  324
  213
  136
  83
  49
  28
  15
  8
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 -6.8
Price to Sales 0.7
Price to Book 1.7
Price to Tangible Book
Price to Cash Flow 4.7
Price to Free Cash Flow 1041.3
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 $5740 million for the last fiscal year's total revenue generated by EnLink Midstream. The default revenue input number comes from 2017 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 35% 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 9.3%, 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 0.8%.

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 165.9%.

Life of production assets of 10 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 -0.7%. 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 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 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 $3.1 billion.

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COMPANY NEWS

▶ 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]
▶ EnLink Midstream to Participate in Investor Conferences   [Jan-04-18 05:02PM  PR Newswire]
▶ 3 MLPs That Could Disappear in 2018   [Dec-21-17 09:34PM  Motley Fool]
▶ WES, ENLK, ENBL, DCP: Gauging Technical Indicators   [Nov-27-17 01:35PM  Market Realist]
▶ Last Weeks MLP Ratings Updates   [Nov-21-17 02:24PM  Market Realist]
▶ EnLink Midstream to Participate in Investor Conferences   [Nov-16-17 05:07PM  PR Newswire]
▶ What Analysts Recommend for ENLK and ENLC after 3Q17 Results   [Nov-06-17 07:32AM  Market Realist]
▶ EnLink Midstream misses 3Q profit forecasts   [Oct-31-17 06:45PM  Associated Press]
▶ MLP Rating Updates Last Week   [03:42PM  Market Realist]
▶ Is EnLink Midstream Partners a Buy before Its 3Q17 Earnings?   [Oct-26-17 04:36PM  Market Realist]
▶ MLPs Rating Updates during the Week Ending October 13   [Oct-17-17 03:06PM  Market Realist]
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