Intrinsic value of EnLink Midstream Partners - ENLK

Previous Close

$18.09

  Intrinsic Value

$53.03

stock screener

  Rating & Target

str. buy

+193%

Previous close

$18.09

 
Intrinsic value

$53.03

 
Up/down potential

+193%

 
Rating

str. buy

We calculate the intrinsic value of ENLK 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 6.3

 

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
  4,226
  5,517
  7,077
  8,927
  11,083
  13,557
  16,356
  19,483
  22,939
  26,720
  30,629
  35,044
  39,766
  44,787
  50,100
  55,699
  61,581
  67,741
  74,178
  80,893
  87,888
  95,167
  102,737
  110,606
  118,783
  127,280
  136,111
  145,291
  154,837
  164,767
Fixed operating expenses, $m
  2,363
  2,415
  2,468
  2,522
  2,578
  2,634
  2,692
  2,752
  2,812
  2,874
  2,937
  3,002
  3,068
  3,135
  3,204
  3,275
  3,347
  3,421
  3,496
  3,573
  3,651
  3,732
  3,814
  3,898
  3,983
  4,071
  4,161
  4,252
  4,346
  4,441
Total operating expenses, $m
  6,589
  7,932
  9,545
  11,449
  13,661
  16,191
  19,048
  22,235
  25,751
  29,594
  33,566
  38,046
  42,834
  47,922
  53,304
  58,974
  64,928
  71,162
  77,674
  84,466
  91,539
  98,899
  106,551
  114,504
  122,766
  131,351
  140,272
  149,543
  159,183
  169,208
Operating income, $m
  1,160
  2,297
  3,681
  5,330
  7,261
  9,482
  12,002
  14,823
  17,945
  21,366
  25,272
  29,273
  33,556
  38,112
  42,936
  48,023
  53,367
  58,967
  64,820
  70,928
  77,292
  83,915
  90,805
  97,968
  105,413
  113,151
  121,195
  129,558
  138,256
  147,305
EBITDA, $m
  2,487
  3,987
  5,809
  7,979
  10,515
  13,433
  16,740
  20,440
  24,534
  29,018
  33,886
  39,129
  44,739
  50,708
  57,026
  63,687
  70,686
  78,018
  85,682
  93,677
  102,008
  110,679
  119,698
  129,074
  138,818
  148,946
  159,474
  170,418
  181,801
  193,643
Interest expense (income), $m
  133
  201
  315
  512
  751
  1,034
  1,364
  1,743
  2,171
  2,650
  3,179
  3,757
  4,385
  5,061
  5,783
  6,552
  7,365
  8,222
  9,122
  10,065
  11,050
  12,078
  13,148
  14,262
  15,421
  16,625
  17,877
  19,177
  20,529
  21,934
  23,395
Earnings before tax, $m
  960
  1,983
  3,169
  4,580
  6,227
  8,118
  10,259
  12,652
  15,296
  18,187
  21,515
  24,888
  28,495
  32,329
  36,385
  40,658
  45,146
  49,845
  54,756
  59,878
  65,214
  70,767
  76,543
  82,547
  88,788
  95,275
  102,018
  109,029
  116,322
  123,911
Tax expense, $m
  259
  535
  856
  1,236
  1,681
  2,192
  2,770
  3,416
  4,130
  4,911
  5,809
  6,720
  7,694
  8,729
  9,824
  10,978
  12,189
  13,458
  14,784
  16,167
  17,608
  19,107
  20,666
  22,288
  23,973
  25,724
  27,545
  29,438
  31,407
  33,456
Net income, $m
  701
  1,447
  2,313
  3,343
  4,545
  5,926
  7,489
  9,236
  11,166
  13,277
  15,706
  18,168
  20,801
  23,600
  26,561
  29,680
  32,956
  36,387
  39,972
  43,711
  47,606
  51,660
  55,876
  60,259
  64,815
  69,550
  74,473
  79,591
  84,915
  90,455

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
  12,703
  16,768
  21,681
  27,507
  34,297
  42,087
  50,902
  60,751
  71,634
  83,541
  96,457
  110,360
  125,229
  141,040
  157,771
  175,405
  193,926
  213,325
  233,597
  254,743
  276,772
  299,696
  323,534
  348,314
  374,064
  400,824
  428,634
  457,543
  487,604
  518,874
Adjusted assets (=assets-cash), $m
  12,703
  16,768
  21,681
  27,507
  34,297
  42,087
  50,902
  60,751
  71,634
  83,541
  96,457
  110,360
  125,229
  141,040
  157,771
  175,405
  193,926
  213,325
  233,597
  254,743
  276,772
  299,696
  323,534
  348,314
  374,064
  400,824
  428,634
  457,543
  487,604
  518,874
Revenue / Adjusted assets
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
  0.610
Average production assets, $m
  11,345
  14,975
  19,362
  24,565
  30,628
  37,586
  45,457
  54,253
  63,972
  74,605
  86,140
  98,556
  111,834
  125,954
  140,896
  156,644
  173,184
  190,508
  208,611
  227,496
  247,168
  267,640
  288,929
  311,058
  334,054
  357,952
  382,787
  408,605
  435,450
  463,376
Working capital, $m
  31
  41
  53
  67
  84
  103
  124
  148
  175
  204
  235
  269
  306
  344
  385
  428
  473
  521
  570
  622
  675
  731
  789
  850
  913
  978
  1,046
  1,116
  1,190
  1,266
Total debt, $m
  5,825
  9,484
  13,906
  19,149
  25,259
  32,271
  40,204
  49,068
  58,862
  69,579
  81,203
  93,716
  107,098
  121,328
  136,387
  152,257
  168,926
  186,385
  204,630
  223,661
  243,487
  264,118
  285,573
  307,874
  331,050
  355,134
  380,163
  406,181
  433,236
  461,379
Total liabilities, $m
  11,433
  15,091
  19,513
  24,757
  30,867
  37,879
  45,812
  54,676
  64,470
  75,187
  86,811
  99,324
  112,706
  126,936
  141,994
  157,865
  174,534
  191,992
  210,237
  229,269
  249,095
  269,726
  291,181
  313,482
  336,658
  360,741
  385,771
  411,789
  438,844
  466,987
Total equity, $m
  1,270
  1,677
  2,168
  2,751
  3,430
  4,209
  5,090
  6,075
  7,163
  8,354
  9,646
  11,036
  12,523
  14,104
  15,777
  17,541
  19,393
  21,332
  23,360
  25,474
  27,677
  29,970
  32,353
  34,831
  37,406
  40,082
  42,863
  45,754
  48,760
  51,887
Total liabilities and equity, $m
  12,703
  16,768
  21,681
  27,508
  34,297
  42,088
  50,902
  60,751
  71,633
  83,541
  96,457
  110,360
  125,229
  141,040
  157,771
  175,406
  193,927
  213,324
  233,597
  254,743
  276,772
  299,696
  323,534
  348,313
  374,064
  400,823
  428,634
  457,543
  487,604
  518,874
Debt-to-equity ratio
  4.590
  5.660
  6.410
  6.960
  7.360
  7.670
  7.900
  8.080
  8.220
  8.330
  8.420
  8.490
  8.550
  8.600
  8.640
  8.680
  8.710
  8.740
  8.760
  8.780
  8.800
  8.810
  8.830
  8.840
  8.850
  8.860
  8.870
  8.880
  8.880
  8.890
Adjusted equity ratio
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  701
  1,447
  2,313
  3,343
  4,545
  5,926
  7,489
  9,236
  11,166
  13,277
  15,706
  18,168
  20,801
  23,600
  26,561
  29,680
  32,956
  36,387
  39,972
  43,711
  47,606
  51,660
  55,876
  60,259
  64,815
  69,550
  74,473
  79,591
  84,915
  90,455
Depreciation, amort., depletion, $m
  1,326
  1,689
  2,128
  2,648
  3,255
  3,950
  4,738
  5,617
  6,589
  7,652
  8,614
  9,856
  11,183
  12,595
  14,090
  15,664
  17,318
  19,051
  20,861
  22,750
  24,717
  26,764
  28,893
  31,106
  33,405
  35,795
  38,279
  40,860
  43,545
  46,338
Funds from operations, $m
  2,027
  3,137
  4,441
  5,991
  7,800
  9,877
  12,227
  14,853
  17,755
  20,929
  24,320
  28,024
  31,985
  36,195
  40,650
  45,345
  50,275
  55,438
  60,833
  66,460
  72,323
  78,424
  84,769
  91,365
  98,220
  105,346
  112,752
  120,452
  128,460
  136,792
Change in working capital, $m
  8
  10
  12
  14
  17
  19
  22
  24
  27
  29
  32
  34
  36
  39
  41
  43
  45
  47
  49
  52
  54
  56
  58
  60
  63
  65
  68
  71
  73
  76
Cash from operations, $m
  2,019
  3,127
  4,429
  5,977
  7,784
  9,858
  12,206
  14,829
  17,728
  20,900
  24,288
  27,990
  31,949
  36,157
  40,610
  45,302
  50,229
  55,390
  60,783
  66,409
  72,269
  78,368
  84,711
  91,305
  98,158
  105,280
  112,684
  120,381
  128,387
  136,716
Maintenance CAPEX, $m
  -840
  -1,134
  -1,497
  -1,936
  -2,457
  -3,063
  -3,759
  -4,546
  -5,425
  -6,397
  -7,461
  -8,614
  -9,856
  -11,183
  -12,595
  -14,090
  -15,664
  -17,318
  -19,051
  -20,861
  -22,750
  -24,717
  -26,764
  -28,893
  -31,106
  -33,405
  -35,795
  -38,279
  -40,860
  -43,545
New CAPEX, $m
  -2,940
  -3,630
  -4,388
  -5,203
  -6,063
  -6,957
  -7,872
  -8,795
  -9,719
  -10,634
  -11,534
  -12,416
  -13,278
  -14,120
  -14,942
  -15,748
  -16,540
  -17,324
  -18,104
  -18,885
  -19,672
  -20,472
  -21,289
  -22,129
  -22,996
  -23,897
  -24,836
  -25,817
  -26,845
  -27,926
Cash from investing activities, $m
  -3,780
  -4,764
  -5,885
  -7,139
  -8,520
  -10,020
  -11,631
  -13,341
  -15,144
  -17,031
  -18,995
  -21,030
  -23,134
  -25,303
  -27,537
  -29,838
  -32,204
  -34,642
  -37,155
  -39,746
  -42,422
  -45,189
  -48,053
  -51,022
  -54,102
  -57,302
  -60,631
  -64,096
  -67,705
  -71,471
Free cash flow, $m
  -1,761
  -1,638
  -1,456
  -1,162
  -736
  -162
  575
  1,488
  2,584
  3,869
  5,293
  6,960
  8,815
  10,854
  13,072
  15,465
  18,025
  20,748
  23,629
  26,663
  29,847
  33,179
  36,658
  40,283
  44,055
  47,978
  52,053
  56,285
  60,681
  65,245
Issuance/(repayment) of debt, $m
  2,108
  3,659
  4,422
  5,243
  6,111
  7,011
  7,933
  8,864
  9,795
  10,717
  11,624
  12,513
  13,382
  14,230
  15,058
  15,870
  16,669
  17,459
  18,245
  19,032
  19,826
  20,631
  21,455
  22,301
  23,176
  24,083
  25,029
  26,018
  27,055
  28,143
Issuance/(repurchase) of shares, $m
  481
  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  
  2,589
  3,659
  4,422
  5,243
  6,111
  7,011
  7,933
  8,864
  9,795
  10,717
  11,624
  12,513
  13,382
  14,230
  15,058
  15,870
  16,669
  17,459
  18,245
  19,032
  19,826
  20,631
  21,455
  22,301
  23,176
  24,083
  25,029
  26,018
  27,055
  28,143
Total cash flow (excl. dividends), $m
  827
  2,021
  2,966
  4,082
  5,374
  6,849
  8,508
  10,352
  12,379
  14,586
  16,917
  19,473
  22,196
  25,083
  28,131
  31,335
  34,694
  38,207
  41,874
  45,695
  49,673
  53,811
  58,113
  62,584
  67,231
  72,061
  77,082
  82,304
  87,736
  93,389
Retained Cash Flow (-), $m
  -1,181
  -407
  -491
  -583
  -679
  -779
  -881
  -985
  -1,088
  -1,191
  -1,292
  -1,390
  -1,487
  -1,581
  -1,673
  -1,763
  -1,852
  -1,940
  -2,027
  -2,115
  -2,203
  -2,292
  -2,384
  -2,478
  -2,575
  -2,676
  -2,781
  -2,891
  -3,006
  -3,127
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
  -354
  1,614
  2,475
  3,499
  4,695
  6,070
  7,627
  9,367
  11,291
  13,395
  15,626
  18,083
  20,710
  23,502
  26,457
  29,571
  32,842
  36,267
  39,846
  43,580
  47,470
  51,518
  55,729
  60,106
  64,656
  69,385
  74,301
  79,413
  84,729
  90,262
Discount rate, %
  12.70
  13.34
  14.00
  14.70
  15.44
  16.21
  17.02
  17.87
  18.76
  19.70
  20.69
  21.72
  22.81
  23.95
  25.15
  26.40
  27.72
  29.11
  30.56
  32.09
  33.70
  35.38
  37.15
  39.01
  40.96
  43.01
  45.16
  47.41
  49.79
  52.27
PV of cash for distribution, $m
  -314
  1,257
  1,670
  2,021
  2,291
  2,465
  2,538
  2,514
  2,402
  2,218
  1,975
  1,709
  1,433
  1,164
  915
  696
  513
  365
  251
  167
  107
  66
  39
  22
  12
  6
  3
  2
  1
  0
Current shareholders' claim on cash, %
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9
  64.9

EnLink Midstream Partners, LP is a midstream company. The Company's business activities are conducted through its subsidiary, EnLink Midstream Operating, LP (the Operating Partnership) and the subsidiaries of the Operating Partnership. The Company operates through five segments: Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate. The Company focuses on providing midstream energy services, including gathering, processing, transmission, fractionation, storage, condensate stabilization, brine services and marketing to producers of natural gas, natural gas liquids (NGLs), crude oil and condensate. As of December 31, 2016, its midstream energy asset network included approximately 11,000 miles of pipelines, 20 natural gas processing plants, seven fractionators, barge and rail terminals, product storage facilities, purchasing and marketing capabilities, brine disposal wells, a crude oil trucking fleet, and equity investments in certain private midstream companies.

FINANCIAL RATIOS  of  EnLink Midstream Partners (ENLK)

Valuation Ratios
P/E Ratio -11
Price to Sales 1.5
Price to Book 1.5
Price to Tangible Book
Price to Cash Flow 9.4
Price to Free Cash Flow 0
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 0.2
LT Debt to Equity 77.9%
Total Debt to Equity 77.9%
Interest Coverage -3
Management Effectiveness
Return On Assets -5%
Ret/ On Assets - 3 Yr. Avg. -4.5%
Return On Total Capital -7.6%
Ret/ On T. Cap. - 3 Yr. Avg. -6.3%
Return On Equity -13.1%
Return On Equity - 3 Yr. Avg. -10.5%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 1.5%
EBITDA Margin - 3 Yr. Avg. 0.3%
Operating Margin -8.6%
Oper. Margin - 3 Yr. Avg. -9.2%
Pre-Tax Margin -13.5%
Pre-Tax Margin - 3 Yr. Avg. -11.7%
Net Profit Margin -13.3%
Net Profit Margin - 3 Yr. Avg. -11.8%
Effective Tax Rate -0.2%
Eff/ Tax Rate - 3 Yr. Avg. 2.2%
Payout Ratio -102.5%

ENLK stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ENLK stock intrinsic value calculation we used $5740 million for the last fiscal year's total revenue generated by EnLink Midstream Partners. The default revenue input number comes from 2017 income statement of EnLink Midstream Partners. 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 ENLK 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 12.7%, whose default value for ENLK is calculated based on our internal credit rating of EnLink Midstream Partners, 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 Partners.
    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 ENLK stock the variable cost ratio is equal to 55.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $2312 million in the base year in the intrinsic value calculation for ENLK 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 Partners.

Corporate tax rate of 27% is the nominal tax rate for EnLink Midstream Partners. 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 ENLK 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 ENLK are equal to 146.4%.

Life of production assets of 10 years is the average useful life of capital assets used in EnLink Midstream Partners 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 ENLK is equal to 0.4%. 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 - $89 million for EnLink Midstream Partners - 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 349 million for EnLink Midstream Partners 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 Partners at the current share price and the inputted number of shares is $6.3 billion.

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COMPANY NEWS

▶ 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]
▶ 5 New Strong Buy Stocks for July 16th   [01:59PM  InvestorPlace]
▶ 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]
▶ Analyzing Energy Transfer Partners Technical Indicators   [Jan-26-18 10:34AM  Market Realist]
▶ How USAC Deal Could Boost ETPs Market Performance   [Jan-17-18 09:03AM  Market Realist]
▶ What Energy Transfer Partners Technical Indicators Say   [Jan-10-18 09:03AM  Market Realist]
▶ EnLink Midstream to Participate in Investor Conferences   [Jan-04-18 05:02PM  PR Newswire]
▶ EnLink Midstream Announces Executive Leadership Changes   [Jan-03-18 08:02AM  PR Newswire]
▶ 3 MLPs That Could Disappear in 2018   [Dec-21-17 09:34PM  Motley Fool]
▶ 4 Top MLP Dividend Stocks to Consider Buying Now   [Nov-29-17 01:20PM  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]
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