EnLink Midstream, LLC focuses on providing midstream energy services.
The company primarily focuses on owning, operating, investing in, and developing midstream energy infrastructure assets to provide midstream energy services, including gathering, compressing, treating, processing, transporting, storing, and selling natural gas; fractionating, transporting, storing, and selling NGLs; and gathering, transporting, storing, trans-loading, and selling crude oil and condensate.
As of December 31,...
EnLink Midstream, LLC focuses on providing midstream energy services.
The company primarily focuses on owning, operating, investing in, and developing midstream energy infrastructure assets to provide midstream energy services, including gathering, compressing, treating, processing, transporting, storing, and selling natural gas; fractionating, transporting, storing, and selling NGLs; and gathering, transporting, storing, trans-loading, and selling crude oil and condensate.
As of December 31, 2023, the company's midstream infrastructure network includes approximately 13,600 miles of pipelines, 25 natural gas processing plants with approximately 5.8 Bcf/d of processing capacity, seven fractionators with approximately 316,300 Bbls/d of fractionation capacity, barge and rail terminals, product storage facilities, purchasing and marketing capabilities, and equity investments in certain joint ventures. The company's operations are based in the United States, and its sales are derived primarily from domestic customers.
The company's natural gas gathering business includes connecting the wells of producers in its market areas to its gathering systems. The company's gathering systems consist of networks of pipelines that collect natural gas from points at or near producing wells and transport it to its processing plants or to larger diameter pipelines for further transmission. The company's processing plants remove natural gas liquids (NGLs) from the natural gas stream that is transported to the processing plants by the company's own gathering systems or by third-party pipelines. In conjunction with its gathering and processing business, the company may purchase natural gas and NGLs from producers and other supply sources and sell that natural gas or NGLs to utilities, industrial consumers, marketers, and pipelines. The company also stores natural gas and NGLs on behalf of third parties for a fee or to balance its own purchases and sales in marketing natural gas and NGLs for its customers.
The company's large diameter natural gas transmission pipelines provide access to multiple domestic production basins to a variety of customers, such as industrial end-users, LNG facilities, and utilities. The company's large diameter natural gas transmission pipelines are connected to its gathering systems or third party gathering systems, natural gas transmission pipeline systems, and natural gas storage caverns.
The company's fractionators separate NGLs into separate purity products, including ethane, propane, iso-butane, normal butane, and natural gasoline. The company's fractionators receive NGLs primarily through its transmission lines that transport NGLs from East Texas and from its South Louisiana processing plants. The company's fractionators also have the capability to receive NGLs by truck or rail terminals. The company also has agreements pursuant to which it transports NGLs from its West Texas and Central Oklahoma operations on third party pipelines to its NGL transmission lines that then transport the NGLs to its fractionators. In addition, the company has NGL storage capacity to provide storage for customers.
The company's crude oil and condensate business includes the gathering and transmission of crude oil and condensate via pipelines, in addition to condensate stabilization. The company also purchases crude oil and condensate from producers and other supply sources and sell that crude oil and condensate through its terminal facilities to various markets.
Across its businesses, the company primarily earns its fees through various fee-based contractual arrangements, which include stated fee-only contract arrangements or arrangements with fee-based components where it purchases and resells commodities in connection with providing the related service and earn a net margin as its fee.
Segments
The company operates through five segments:
Permian: The Permian segment includes the company's natural gas gathering, processing, and transmission activities and its crude oil operations in the Midland and Delaware Basins in West Texas and Eastern New Mexico.
Louisiana: The Louisiana segment includes the company's natural gas and NGL transmission pipelines, natural gas processing plants, natural gas and NGL storage facilities, and fractionation facilities located in Louisiana and, prior to its sale in November 2023, the company's crude oil operations in Ohio River Valley (ORV).
Oklahoma: The Oklahoma segment includes the company's natural gas gathering, processing, and transmission activities, and its crude oil operations in Cana-Woodford, Arkoma-Woodford, northern Oklahoma Woodford, Sooner Trend Anadarko Basin Canadian and Kingfisher Counties in Oklahoma (STACK), and adjacent areas.
North Texas: The North Texas segment includes the company's natural gas gathering, processing, fractionation, and transmission activities in North Texas.
Corporate: The Corporate segment includes the company's unconsolidated affiliate investments in the Cedar Cove JV in Oklahoma, GCF in South Texas, and the Matterhorn JV in West Texas, as well as its corporate assets and expenses.
Business Strategies
The company develops, owns, and operates midstream energy infrastructure assets and uses these infrastructure assets to provide midstream services, including gathering and processing, long-haul transportation, fractionation, and storage, across a range of hydrocarbons, including natural gas, crude oil, NGLs, and CO2. The company's asset platforms operate in premier production basins, transportation hubs, and core demand centers, including the Permian Basin, Louisiana, Oklahoma, and North Texas. The company expects to grow its natural gas and NGL transportation network along the Gulf Coast by leveraging its existing infrastructure and operations to optimize our network of connections and expand its footprint. The company also expects to grow its gathering and processing systems organically over time by meeting its customers' midstream service needs that result from their drilling activity in its areas of operation.
Assets
Permian Segment Assets: The company's Permian segment assets include natural gas gathering pipelines, crude oil gathering systems and storage, natural gas processing facilities, and a fractionation facility, which assets are primarily in West Texas and New Mexico.
Natural Gas Gathering Systems. The company's natural gas gathering pipelines in the Permian segment consist of the following:
MEGA Gas Gathering System: This gathering system in the Midland Basin serves as an interconnected system of pipelines and compressors to deliver natural gas from wellheads in the Permian Basin to the Midland Energy Gathering Area in Midland, Martin, and Glasscock counties (MEGA) system processing facilities.
Delaware Gas Gathering System: This rich natural gas gathering system consists of gathering pipeline and compression assets in the Delaware Basin in Texas and New Mexico. These gathering systems are connected to the company's Lobo processing facilities and Tiger processing plants, which are owned by the Delaware Basin JV.
Crude Oil Gathering Systems: The company's crude oil gathering systems in the Permian segment consist of crude oil and condensate pipelines and above ground storage, including:
Avenger Crude Gathering System: Avenger crude gathering system is located in the northern Delaware Basin in Eddy and Lea counties in New Mexico.
Greater Chickadee Crude Gathering System: The Greater Chickadee crude gathering system delivers crude oil for customers to Enterprise Product Partners L.P.'s crude oil terminal in West Texas. The Greater Chickadee crude gathering system also includes multiple central tank batteries with pump, truck injection, and storage stations to maximize shipping and delivery options for producers.
Natural Gas Processing Facilities: The company's natural gas processing facilities in the Permian segment consist of the following:
MEGA System Processing Facilities: The company's MEGA system processing facilities are located in Midland, Martin, and Glasscock counties, Texas and operate as a connected system. These assets consist of the Bearkat processing facility with a capacity of 75 MMcf/d, the Deadwood processing facility with a capacity of 50 MMcf/d, the Midmar processing facilities with a capacity of 207 MMcf/d, the Riptide processing facility with a capacity of 270 MMcf/d, the War Horse processing plant with a capacity of 105 MMcf/d, and the Phantom processing plant with a capacity of 268 MMcf/d.
Delaware Processing Facilities: The Delaware processing facilities include the company's Lobo natural gas processing facilities and the Tiger I processing plant. The company's Lobo natural gas processing facilities are located in Loving County, Texas and include Lobo I, Lobo II, and Lobo III processing plants which account for 35 MMcf/d, 140 MMcf/d, and 220 MMcf/d of processing capacity, respectively. The Lobo I processing plant is not operational. The company's Tiger I processing plant is located in Culberson County, Texas, and accounts for 240 MMcf/d of processing capacity. The Tiger II Processing Plant is under construction and is expected to add 150 MMcf/d of processing capacity beginning in the second quarter of 2024. The Lobo processing facilities and the connected gathering system and the Tiger processing plants are owned by the Delaware Basin JV.
Fractionation Facility: The Mesquite fractionator has an approximate capacity of 15,000 Bbls/d and is located at the company's MEGA system processing facilities. The Mesquite fractionator is not operational.
Louisiana Segment Assets: The company's Louisiana segment assets consist of interstate and intrastate natural gas gathering and transmission pipelines, natural gas processing facilities, natural gas storage, NGL pipelines and storage, and four fractionation facilities.
Natural Gas Transmission Pipelines and Gathering Systems: The company's natural gas pipeline systems in the Louisiana segment include a portfolio of large capacity interconnections within the Gulf Coast pipeline grid, providing customers with access to multiple domestic production basins and a variety of customers, including major industrial customers located in the Mississippi River corridor between Baton Rouge, Louisiana and New Orleans, Louisiana, as well as utilities and Gulf Coast LNG facilities.
Sabine Pipeline: The Sabine pipeline is an interstate natural gas pipeline system that offers both interruptible and firm transportation services to its customers. The Sabine pipeline is used to transport natural gas between Port Arthur, Texas and the Henry Hub. The Sabine pipeline owns and operates the Henry Hub, the official delivery mechanism and pricing point for Chicago Mercantile Exchange's NYMEX natural gas futures contracts, as well as the Over-the-counter (OTC) swaps traded on the Intercontinental Exchange.
Bridgeline Pipeline: The Bridgeline pipeline is a Louisiana intrastate natural gas pipeline system providing transportation and storage services to a variety of customers including South Louisiana industrials, power companies, utilities, and Gulf Coast LNG facilities.
Louisiana Intrastate Gas (LIG) Pipeline: The LIG pipeline is an intrastate natural gas gathering and transmission pipeline system providing a fully integrated wellhead to burner tip value chain that includes local gathering, processing, transmission, and treating services to Louisiana producers. The LIG pipeline is connected to several other natural gas pipelines, providing additional system supply, and the Jefferson Island storage facility.
Natural Gas Processing and Storage Facilities: The company's natural gas processing facilities and storage facilities in the Louisiana segment consist of the following:
Gibson Processing Plant: The Gibson processing plant has 110 MMcf/d of processing capacity and is located in Gibson, Louisiana. The Gibson processing plant is connected to the company's Louisiana gas gathering system.
Pelican Processing Plant: The Pelican processing plant complex is located in Patterson, Louisiana and has a designed capacity of 600 MMcf/d of natural gas. The Pelican processing plant is connected with continental shelf and deepwater production and has downstream connections to the ANR pipeline. This plant has an interconnection with the Louisiana natural gas pipeline systems allowing the company to process natural gas from this system at our Pelican processing plant when markets are favorable.
Belle Rose Gas Storage Facility: The Belle Rose natural gas storage facility is located in Assumption Parish, Louisiana. This facility is designed for injecting pipeline quality natural gas into storage or withdrawing stored natural gas for delivery by pipeline.
Sorrento Gas Storage Facility: The Sorrento natural gas storage facility is located in Ascension Parish, Louisiana. This facility is designed for injecting pipeline quality natural gas into storage or withdrawing stored natural gas for delivery by pipeline.
Jefferson Island Storage Facility: The Jefferson Island storage facility and pipeline header system is located in Iberville and Vermilion Parishes in Louisiana and is connected to the company's extensive Louisiana natural gas system. This facility is designed for injecting pipeline quality natural gas into storage or withdrawing stored natural gas for delivery by pipeline.
Non-Operational Processing Plants
Blue Water Gas Processing Plant: The company operates and owns a 64.29% interest in the Blue Water natural gas processing plant. The Blue Water natural gas processing plant is located in Crowley, Louisiana and is connected to the Blue Water pipeline system. The company's share of the plant's capacity is approximately 193 MMcf/d. The Blue Water natural gas processing plant is not operational and it does not expect to operate it in the near future unless volumes are sufficient to run the plant.
Plaquemine Processing Plant: The Plaquemine processing plant has 225 MMcf/d of processing capacity and is connected to the Plaquemine fractionation facility. The Plaquemine processing plant is not operational and the company does not expect to operate it in the near future unless volumes are sufficient to run the plant.
Eunice Processing Plant: The Eunice processing plant is located in South Central Louisiana and has a capacity of 350 MMcf/d. The Eunice processing plant is not operational and the company does not expect the plant to operate in the near future unless volumes are sufficient to run the plant.
NGL Pipeline Systems: The company's NGL pipeline systems in the Louisiana segment consist of NGL pipelines and underground NGL storage.
Cajun-Sibon Pipeline: The Cajun-Sibon pipeline transports unfractionated NGLs from interconnects near Mont Belvieu, Texas, and, from time to time, the company's Pelican processing plant in South Louisiana to either the Plaquemine or Eunice fractionators or to third-party fractionators when necessary.
Ascension Pipeline: The Ascension pipeline is an NGL pipeline that connects the company's Riverside fractionator to Marathon Petroleum Corporation's Garyville refinery and is owned by the Ascension JV.
Napoleonville Storage Facility: The Napoleonville NGL storage facility is connected to the Riverside facility and includes two existing caverns. The caverns currently provide butane storage.
Fractionation Facilities: There are four fractionation facilities located in the Louisiana segment that are connected to the company's processing facilities and to Mont Belvieu, Texas and other hubs through the company's Cajun-Sibon pipeline.
Plaquemine Fractionation Facility: The Plaquemine fractionator is located at the company's Plaquemine natural gas processing plant complex and is connected to its Cajun-Sibon pipeline. The Plaquemine fractionation facility produces purity ethane and propane for sale to markets via pipeline, while butane and heavier products are sent to the company's Riverside facility for further processing. The Plaquemine fractionator, collectively with the Riverside Fractionation Facility, has an approximate capacity of 136,800 Bbls/d of raw-make NGL products.
Plaquemine Natural Gas Processing Plant: In addition to the Plaquemine fractionation facility, the adjacent Plaquemine natural gas processing plant also has an on-site fractionator.
Eunice Fractionation Facility: The Eunice fractionation facility is located in South Central Louisiana. Liquids are delivered to the Eunice fractionation facility by the Cajun-Sibon pipeline. The Eunice fractionation facility fractionates butane and heavier products from the company's Riverside facility and is directly connected to NGL markets and to a third-party storage facility.
Riverside Fractionation Facility: The Riverside fractionator and loading facility are located on the Mississippi River upriver from Geismar, Louisiana. Liquids are delivered to the Riverside fractionator by pipeline from the Pelican processing plants or by third-party truck and rail assets. The loading/unloading facility has the capacity to transload 15,000 Bbls/d of crude oil and condensate from rail cars to barges.
Oklahoma Segment Assets: The company's Oklahoma segment assets consist of natural gas gathering pipelines, natural gas processing facilities, and crude oil gathering pipelines and storage in Southern and Central Oklahoma.
Natural Gas Gathering Systems: The company's natural gas gathering pipelines in the Oklahoma segment consist of the following:
Central Oklahoma Gas Gathering System: The Central Oklahoma gas gathering system serves the STACK play and adjacent areas.
Northridge Gas Gathering System: The company's Northridge gas gathering system is located in the Arkoma-Woodford Shale in Southeastern Oklahoma.
Natural Gas Processing Facilities: The company's natural gas processing facilities in the Oklahoma segment consist of the following:
Central Oklahoma Processing Facilities: The Central Oklahoma processing facilities include three processing plants: the Chisholm processing plant, the Cana processing plant, and the Redcliff processing plant, acquired in the Central Oklahoma Acquisition in December 2022, which account for 600 MMcf/d, 400 MMcf/d, and 220 MMcf/d of processing capacity, respectively.
Northridge Processing Facility: The company's Northridge processing facility is located in Hughes County in the Arkoma-Woodford Shale in Southeastern Oklahoma and accounts for 200 MMcf/d of processing capacity.
Crude Oil Gathering Systems: The company's crude and condensate assets in the Oklahoma segment have crude oil and condensate pipelines and above ground storage in Central Oklahoma. These assets consist of the following:
Central Oklahoma Crude Gathering System: The company's Central Oklahoma crude gathering system include Black Coyote and Redbud, which operate in the core of the STACK play in Central Oklahoma.
North Texas Segment Assets: The company's North Texas segment assets include natural gas gathering pipelines, a natural gas transmission system, a CO2 capture system, natural gas processing facilities, and a fractionation facility in the Barnett Shale.
Natural Gas Gathering Pipelines: The company's natural gas gathering systems in the North Texas segment consist of the following:
Bridgeport Rich Gas Gathering System: A substantial majority of the natural gas gathered on the Bridgeport rich gas gathering system is delivered to the Bridgeport processing facility.
Bridgeport Lean Gas Gathering System: Natural gas gathered on the Bridgeport lean gas gathering system is delivered to the Acacia pipeline and to intrastate pipelines without processing.
Johnson County Gas Gathering System: Natural gas gathered on this system is processed at the company's Silver Creek processing facilities.
Silver Creek Gas Gathering System: The company's Silver Creek gas gathering system is located primarily in Hood, Parker, and Johnson counties, Texas, and connects to the Silver Creek processing facilities.
Natural Gas Transmission System: The Acacia pipeline is a transmission system that connects production from the Barnett Shale to markets in North Texas.
CO2 Capture System: The company's CO2 capture system captures and transports up to 250,000 metric tonnes per year of CO2 separated from the lean natural gas in its North Texas gathering systems and from the rich natural gas delivered to its natural gas processing plant in Bridgeport, Texas. This CO2 waste stream is then captured, compressed, transported, and sequestered by BKV.
Natural Gas Processing Facilities and Storage Facility: The company's natural gas processing facilities and storage facility in the North Texas segment consist of the following:
Bridgeport Processing Facility: The company's Bridgeport processing facility, located in Wise County, Texas, is one of the largest processing plants in the U.S. with seven cryogenic turboexpander plants.
Silver Creek Processing Facilities: the company's Silver Creek processing facilities is located in Weatherford, Azle, Fort Worth, Cleburne, Granbury, and West Johnson County, Texas, and includes five processing plants: the Azle plant, the Silver Creek plant, the Goforth plant, and the Corvette and West Johnson plants, which were both acquired in the Barnett Shale Acquisition in July 2022. These plants account for 50 MMcf/d, 200 MMcf/d, 30 MMcf/d, 125 MMcf/d, and 100 MMcf/d of processing capacity, respectively. The Azle, Goforth, Corvette, and West Johnson processing plants are not operational due to decreased volumes. In 2023, the company began relocating the equipment and facilities associated with the Cowtown processing plant to the Delaware Basin JV in the Permian segment, where it will operate as the Tiger II processing plant. The processing capacity at the Silver Creek plant is sufficient to process all natural gas at the company's Silver Creek processing facilities.
North Texas Storage Facility: The North Texas natural gas storage facility is located in Palo Pinto County, Texas.
Fractionation Facility: The company's Bridgeport processing facility in North Texas also has fractionation capabilities that provide operational flexibility. Under its contracts, the company owns the NGLs that are allocated to BKV and it generates adjusted gross margin by selling the fractionated NGL products.
Corporate Segment Assets: The company's Corporate segment assets primarily consist of its 38.75% ownership interest in GCF, 30% ownership interest in the Cedar Cove JV, and 15% ownership interest in the Matterhorn JV.
GCF: The company owns a 38.75% interest in GCF. GCF owns an NGL fractionator located on the Gulf Coast at Mont Belvieu, Texas. GCF receives raw mix NGLs from customers, fractionates the raw mix, and redelivers the finished products to customers for a fee. Beginning in January 2021, the GCF assets were idled to reduce operating expenses. In January 2023, the company and its partners began the process to restart the GCF assets and expect operations to commence in the first half of 2024.
Cedar Cove JV: The company owns a 30% interest in the Cedar Cove JV, which operates gathering and compression assets in Blaine County, Oklahoma that tie into its existing Oklahoma assets. All natural gas gathered by the Cedar Cove JV is processed by its Central Oklahoma processing facilities.
Matterhorn JV: The company owns a 15% interest in the Matterhorn JV. The Matterhorn JV is constructing a pipeline designed to transport up to 2.5 Bcf/d of natural gas through approximately 490 miles of 42-inch pipeline from the Waha Hub in West Texas to Katy, Texas (the Matterhorn Express Pipeline). Supply for the Matterhorn Express Pipeline will be sourced from multiple upstream connections in the Permian Basin, including direct connections to processing facilities in the Midland Basin through an approximately 75-mile lateral, as well as a direct connection to the 3.2 Bcf/d Agua Blanca Pipeline. The Matterhorn Express Pipeline is expected to be in service in the third quarter of 2024, pending the receipt of customary regulatory and other approvals.
Key Customers
For the year ended Year Ended December 31, 2023, the company's customers included Dow Hydrocarbons and Resources LLC (10.4%) and Marathon Petroleum Corporation (19.3%).
Regulation
Natural Gas Pipeline Regulation
The company owns an interstate natural gas pipeline that is subject to regulation as a natural gas company by the Federal Energy Regulatory Commission (FERC) under the Natural Gas Act of 1938. Certain of the company's intrastate natural gas pipelines and storage facilities provide interstate services and, thus, the rates, terms and conditions of such services are subject to FERC jurisdiction under Section 311 of the Natural Gas Policy Act of 1978 (NGPA).
Liquids Pipeline Regulation
The company owns certain liquids and crude oil pipelines that are regulated by FERC as common carrier interstate pipelines under the Interstate Commerce Act (ICA), the Energy Policy Act of 1992, and related rules and orders.
As the company acquires, constructs, and operates new liquids assets and expands its liquids transportation business, the classification and regulation of its liquids transportation services, including services that its marketing companies provide on its FERC-regulated liquids pipelines, are subject to ongoing assessment and change based on the services it provides and determinations by FERC and the courts.
Gathering Pipeline Regulation
The company owns a number of natural gas pipelines that meet the traditional tests FERC has used to establish that a pipeline is a gathering pipeline and therefore not subject to FERC jurisdiction.
Natural Gas Storage Regulation
The company is in substantial compliance with Pipeline and Hazardous Materials Safety Administration (PHMSA) rules. Certain of the company's field injection and withdrawal wells and water disposal wells are subject to the jurisdiction of the Railroad Commission of Texas. In addition, its underground gas storage caverns in Louisiana are subject to the jurisdiction of the Louisiana Department of Natural Resources (LDNR).
The company also operates brine disposal wells that are regulated as Class II wells under the federal Safe Drinking Water Act (SDWA).
Employee Safety
The company is subject to the requirements of the Occupational Safety and Health Act, and comparable state laws that regulate the protection of the health and safety of workers.
Pipeline Safety Regulations
The company's pipelines are subject to regulation by PHMSA pursuant to the Natural Gas Pipeline Safety Act of 1968 and the Pipeline Safety Improvement Act of 2002 (PSIA).
Environmental Matters
The company also generates, and may in the future generate, both hazardous and nonhazardous solid wastes that are subject to requirements of the federal Resource Conservation and Recovery Act (RCRA) and/or comparable state statutes.
The company's operations are subject to the federal Clean Air Act and regulations promulgated thereunder and under comparable state laws and regulations.
The company is in substantial compliance with the Federal Water Pollution Control Act permitting requirements, as well as the conditions imposed by its permits. It operates brine disposal wells that are regulated as Class II wells under the SDWA. Its brine disposal wells are also subject to comparable state laws and regulations, which in some cases are more stringent than requirements under the SDWA.
History
EnLink Midstream, LLC, a Delaware limited liability company, was founded in 2013. The company was incorporated in 2013.
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