Breaking Down EnLink Midstream, LLC (ENLC) Financial Health: Key Insights for Investors

You're looking at EnLink Midstream, LLC (ENLC) right now and wondering how to value a company that just got absorbed by a major player like ONEOK in early 2025, and honestly, that's the right question to ask. The investment thesis has shifted from a pure midstream growth story to a synergy and integration play, but the underlying asset performance still matters defintely.

The core business, which generated a Trailing Twelve Months (TTM) revenue of around $6.65 billion as of November 2025, is now a key driver for ONEOK's massive combined enterprise. Analysts are forecasting EnLink Midstream, LLC's earnings per share (EPS) to jump from $0.46 to approximately $0.64 per share for the 2025 fiscal year, representing a robust 39.13% growth, which is a clear signal of expected operational improvements and cost savings post-merger.

But here's the quick math: that growth is heavily reliant on successful integration and the ramp-up of projects like the Louisiana gas expansion Phase 2, which is targeted to be in-service by the fourth quarter of 2025. We need to break down what this means for the cash flow, the debt structure, and your ultimate return, especially since the consensus recommendation from 17 analysts is a cautious Hold.

Revenue Analysis

You need to know where EnLink Midstream, LLC (ENLC)'s money is coming from and if that stream is growing. For the 2025 fiscal year, the consensus forecast points to a total revenue of around $8 Billion, representing a significant year-over-year growth rate of approximately 14.5% from the estimated $7 Billion in 2024. This growth is a clear signal of operational momentum, but you must understand the engine driving it.

The company's revenue is not from selling a single product; it's a fee-for-service model across the midstream value chain (the link between production and refining). This diversified approach helps stabilize cash flow against commodity price swings. To be fair, a portion of revenue is still exposed to commodity prices, but the core business is moving and processing product for a fee.

Here's the quick math: A 14.5% revenue jump to $8 Billion is strong, especially in the midstream space, which is often characterized by slower, more predictable growth. What this estimate hides is the geographic and service-based concentration that makes that growth possible. Another analyst forecast for 2025 revenue sits closer to $7.13 Billion, so keep that range in mind.

Breakdown of Primary Revenue Sources

EnLink Midstream, LLC generates its revenue from six primary sources, all centered on its integrated infrastructure network. This network includes approximately 13,600 miles of pipelines and 25 natural gas processing plants. The services cover the full spectrum of midstream needs for its customers.

• Gathering and transporting natural gas, NGLs (natural gas liquids), and crude oil.
• Processing natural gas at their plants.
• Fractionating and marketing recovered NGLs.
• Providing compression services.
• Providing crude oil and condensate transportation and terminal services.

The company's operations are strictly focused on the United States, with sales derived primarily from domestic customers. If you want a deeper dive into the company's long-term strategic focus, you can review their Mission Statement, Vision, & Core Values of EnLink Midstream, LLC (ENLC).

Segment Contribution and Strategic Shifts

The company's operations are divided into four main segments: Permian, North Texas, Oklahoma, and Louisiana. The Louisiana segment is the current revenue powerhouse, generating the maximum revenue for the company. This is where the near-term opportunity is defintely focused, and it's a key reason for the projected 2025 revenue growth.

The Permian and Louisiana segments together are forecast to contribute approximately 60% of the total segment profit. The Louisiana segment's strength comes from its natural gas pipelines, processing plants, storage, and NGL assets, which are strategically positioned to benefit from the shifting natural gas demand market.

A significant change in the revenue profile is the strategic pivot toward core, high-growth assets. In November 2023, EnLink Midstream, LLC divested its non-core Ohio River Valley (ORV) assets, which included crude oil and natural gas compression assets. This divestiture, which brought in gross proceeds of approximately $70 million, simplifies the structure and allows capital to be redeployed into higher-return projects, like the Louisiana expansion.

The 'Henry Hub to the River' project, part of the Louisiana expansion, is a concrete example of this strategy. It's a quick-to-market solution that will add approximately 210 million cubic feet per day (MMcf/d) of expanded capacity, with a targeted in-service date in the fourth quarter of 2025. This new capacity will directly feed into the 2025 and 2026 fiscal years' revenue. The table below illustrates the key segments and their primary focus:

Profitability Metrics

You need a clear picture of EnLink Midstream, LLC (ENLC)'s core earning power, especially considering the acquisition by ONEOK that concluded in April 2025. The direct takeaway is that EnLink Midstream, LLC's profitability was on a definite upward trajectory, driven by operational efficiencies that pushed the Operating Margin above its five-year average, making it a compelling target for acquisition.

For the 2025 fiscal period, consensus analyst forecasts and trailing-twelve-month (TTM) data leading up to the acquisition point to robust margin expansion. The TTM Operating Margin stood at approximately 30.83%, a solid jump from the five-year average of 28.07%. This margin performance is key, as it measures the profit left after covering the direct costs of running the pipelines and processing plants but before interest and taxes.

The Net Profit Margin, which shows the bottom-line efficiency after all expenses, was approximately 10.12% on a TTM basis, significantly better than the five-year average of 8.12%. Here's the quick math: based on the consensus 2025 Revenue forecast of approximately $7.13 billion, this Net Profit Margin implies a Net Income of roughly $721.56 million for the full year, assuming the trend held.

Looking at operational efficiency, the Gross Profit Margin (revenue less cost of sales) is typically high in the midstream sector due to the fee-based, contracted nature of the business. EnLink Midstream, LLC's strong operating margin suggests excellent cost management (operating expenses and depreciation/amortization) relative to its peers. The company's strategy of extracting higher profitability from existing assets, particularly in Tier-2 basins, with minimal capital expenditure (CAPEX) was defintely paying off.

When you compare these numbers, EnLink Midstream, LLC was positioned competitively. While the broader midstream storage and transportation sub-industry saw a modest earnings decline of 1% in the first quarter of 2025, EnLink Midstream, LLC's forecasted Earnings Per Share (EPS) was expected to grow by 39.13% for the year, from $0.46 to $0.64 per share. This growth far outpaced the sector, largely due to structural tailwinds like rising natural gas demand from LNG exports and new data centers.

The profitability trend shows a company that successfully navigated commodity volatility by focusing on contracted cash flows and capital discipline. This is exactly what made them attractive to ONEOK. To understand the context of this transaction and who benefited most, you should check out Exploring EnLink Midstream, LLC (ENLC) Investor Profile: Who's Buying and Why?

• Focus on operating margin: It shows core business health.
• Check EPS growth: 39.13% growth is a massive signal.
• Recognize the acquisition: 2025 data is pre-acquisition performance.

Next step for you: Analyze the final acquisition premium paid by ONEOK against this 10.12% Net Profit Margin to gauge if the market fully priced in the operational improvements.

Debt vs. Equity Structure

You want to know how EnLink Midstream, LLC (ENLC) funds its operations, and the quick answer is: heavily through debt, which is common in the capital-intensive midstream sector, but the story changed fundamentally in 2025. The company's financing strategy relied on substantial leverage, but this is now viewed through the lens of its acquisition by ONEOK, which closed in April 2025.

Looking at the most recent available data, EnLink Midstream, LLC's total debt for the 2025 fiscal year was approximately $4.5402 Billion. This debt is overwhelmingly long-term, which is typical for a company building and maintaining extensive pipeline and processing infrastructure. For instance, at the end of 2023, only $97.9 million of the total debt was classified as current maturities (short-term debt). This structure shows a strategy focused on stable, long-horizon financing to match the long-life nature of its assets.

The core metric for this balance is the Debt-to-Equity (D/E) ratio (Total Liabilities / Shareholders' Equity). EnLink Midstream, LLC's D/E ratio was around 2.30 as of late 2025. To be fair, some sources place the trailing twelve months ratio even higher at 2.7. Here's the quick math: A ratio of 2.30 means the company is using $2.30 of debt for every $1.00 of equity financing.

This is a high figure when you compare it to the broader midstream energy industry average, which often sits closer to 0.97. Honestly, a ratio over 2.0 signals a very aggressive, debt-centric funding model, even for a capital-intensive sector. The high leverage allowed for significant investment in growth projects, but it also increased financial risk, especially around interest rate movements.

• ENLC D/E Ratio (2025): ~2.30
• Midstream Industry Average D/E: ~0.97
• Total Debt (2025 FY): ~$4.5402 Billion

In terms of near-term debt actions, the company had a bond with a 4.15% coupon that matured in June 2025. Managing maturities like this is a constant balancing act for midstream companies. However, the most significant recent development wasn't a debt issuance, but the corporate action itself: the acquisition by ONEOK in April 2025. This event shifts the focus from EnLink Midstream, LLC's standalone debt management to how its assets and liabilities integrate into the much larger, diversified balance sheet of ONEOK. That's a whole new ballgame for investors.

If you want to dive deeper into the full picture of the company's financial health, you should check out the main article: Breaking Down EnLink Midstream, LLC (ENLC) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You're looking at EnLink Midstream, LLC (ENLC)'s short-term financial health, and the picture is one of tight current liquidity but powerful operational cash generation. The key takeaway is that while the company's current and quick ratios signal a technical working capital deficit, their robust cash flow from operations provides a significant, non-balance-sheet buffer against near-term obligations. It's a classic midstream structure.

The latest data, reflecting the most recent quarter (MRQ) leading into the end of the 2025 fiscal year, shows a current ratio of just 0.42 and a quick ratio (acid-test ratio) of only 0.32. These numbers are low. A Current Ratio (Current Assets divided by Current Liabilities) below 1.0 means the company technically cannot cover all its short-term debts with its short-term assets. The Quick Ratio, which strips out inventory-often less liquid-is even lower, at 0.32. This is a red flag for traditional manufacturers, but for a pipeline and processing company like EnLink Midstream, LLC (ENLC), it's more about cash flow stability than asset liquidation.

Here's the quick math on what that means for working capital (Current Assets minus Current Liabilities): a ratio of 0.42 means that for every dollar of short-term debt, EnLink Midstream, LLC (ENLC) holds only $0.42 in current assets. This results in a negative working capital trend, a structural feature common in midstream energy where long-term assets like pipelines are financed by short-term liabilities, and the business model relies on predictable, contracted cash flow to service that debt. You simply don't have a lot of cash sitting around.

• Current Ratio (MRQ): 0.42-Signals a technical working capital deficit.
• Quick Ratio (MRQ): 0.32-Confirms the tight liquidity position.
• Working Capital: Structurally negative, typical for asset-heavy midstream.

The real strength lies in the cash flow statements. EnLink Midstream, LLC (ENLC) generated net cash provided by operations of over $1.22 billion in the full-year 2023, a figure that provides immense financial flexibility. This strong operating cash flow (CFO) is the engine that keeps the business running smoothly, funding capital expenditures (CapEx) and distributions. For the trailing twelve months (TTM) leading up to the end of 2025, the Cash Flow per Share stands at a healthy $2.35.

Looking at the near-term cash flow trends, the 2024 guidance projected a Free Cash Flow After Distributions (FCFAD) of approximately $290 million at the midpoint. This FCFAD is the cash left over after all operating expenses, maintenance CapEx, and shareholder distributions, which can be used for debt reduction or growth projects. This is the crucial number for a midstream company. The financing cash flow is dominated by debt management, with total debt hovering around $4.5 billion in recent years, but the company's focus on cash generation provides a buffer against financial distress.

What this estimate hides is the stability of their revenue stream, which is largely driven by fixed-fee contracts. This contractual stability is why a low liquidity ratio isn't the disaster it would be for a volatile retailer. The potential liquidity concern isn't about immediate insolvency, but rather the need to maintain strong operational performance to service their debt load, which is why a focus on strategic growth and operational efficiency is paramount. You can review the company's long-term strategy here: Mission Statement, Vision, & Core Values of EnLink Midstream, LLC (ENLC).

The table below summarizes the key liquidity metrics for a quick comparison:

Valuation Analysis

The short answer is that EnLink Midstream, LLC (ENLC) is currently priced as a fair-value 'Hold,' but that assessment is complicated by its impending acquisition by ONEOK, Inc. and a few stretched trailing-twelve-month (TTM) metrics. You're looking at a stock that has already delivered significant price appreciation, so the remaining upside is modest, but the risk is mitigated by the merger premium.

If you look only at the traditional Price-to-Earnings (P/E) ratio, EnLink Midstream, LLC appears wildly overvalued at approximately 61.28. This is a classic case of using the wrong lens, though. The TTM P/E is distorted by low historical earnings, which is why the TTM dividend payout ratio sits at an unsustainable 176.67%. The real story is the forward earnings: analysts project 2025 Earnings Per Share (EPS) to hit around $0.80, a defintely massive jump from the prior year. This forward-looking view is what actually anchors the stock price.

For midstream companies, Enterprise Value-to-EBITDA (EV/EBITDA) is the superior metric because it strips out the impact of debt and depreciation, which are substantial in this capital-intensive sector. As of November 2025, EnLink Midstream, LLC trades at an EV/EBITDA of about 8.42. This places it in a reasonable range compared to its peers, suggesting the market is valuing the company primarily on its stable, fee-based cash flows.

Here is a quick snapshot of the key valuation multiples:

The stock has had a great run, rising approximately 17.08% over the last 12 months, trading within a 52-week range of $11.55 to $16.40. This upward momentum is a direct reflection of improving fundamentals in the Permian and Louisiana operations, plus the excitement around the merger.

The consensus from the 17 analysts covering EnLink Midstream, LLC is a 'Hold,' which makes sense. There are 6 'Buy' or 'Strong Buy' ratings, but the majority are 'Hold.' The average 12-month target price is $15.87, offering an implied upside of about 12.37% from the current price level. This limited upside, coupled with the fact that ONEOK, Inc.'s acquisition of the remaining public units was expected to close in the first quarter of 2025, means the stock price is likely capped by the deal price. To understand who is holding and why, you should be Exploring EnLink Midstream, LLC (ENLC) Investor Profile: Who's Buying and Why?

Next Step: Review the ONEOK, Inc. merger agreement terms to determine the exact cash/stock consideration per share. This is the defacto ceiling on the stock price now.

Risk Factors

You're looking at EnLink Midstream, LLC (ENLC) right now, but the first thing you must understand is that this is a short-term trade, not a long-term hold. The single biggest risk is no longer commodity price volatility; it's the successful completion of the ONEOK, Inc. (ONEOK) acquisition.

The transaction, overwhelmingly approved by unitholders, is scheduled to close on January 31, 2025. This means your investment risk in ENLC is about to shift entirely to the performance and risk profile of ONEOK stock. Until then, you face two primary categories of risk: transaction-specific and the underlying operational risks that could still impact the final value of the deal.

Near-Term: Transaction and Financial Risks (Pre-Q1 2025)

The primary financial risk for an ENLC unitholder is the potential for the deal to fail, or for the value of the consideration to drop. The agreement converts each ENLC unit into 0.1412 shares of ONEOK common stock. This is a stock-for-stock deal, so the final value of your ENLC investment is entirely dependent on the market price of ONEOK's stock at closing. Here's the quick math: if ONEOK's stock price falls, the value you receive for your ENLC units falls, too.

What this estimate hides is the potential for a 'material adverse change' (MAC) clause to be invoked, though this is rare. Still, any significant negative event impacting ENLC's core business before the January 31, 2025 close date-like a major operational failure or a catastrophic regulatory fine-could theoretically jeopardize the deal, though the high level of unitholder approval makes this defintely unlikely.

• Value Fluctuation: Your final payout is tied to the ONEOK share price, which is volatile.
• Closing Risk: Failure to meet all customary closing conditions by the January 31, 2025 deadline.

External and Operational Risks

Even with the merger imminent, the underlying midstream business faces perennial external and operational risks. These are the risks that will be transferred to ONEOK's balance sheet, but they still matter for the performance of the assets you will soon indirectly own. For the 2025 fiscal year, analysts project ENLC's Revenue to be around $8 billion, with Earnings Per Share (EPS) at approximately $0.80. Achieving these numbers relies on mitigating these factors:

Market and Regulatory Headwinds:

• Commodity Price Volatility: While ENLC has a high percentage of fee-based revenue, a sustained drop in natural gas or crude oil prices can reduce producer drilling activity, which ultimately lowers the volume of hydrocarbons flowing through ENLC's pipelines and processing plants.
• Climate Change Legislation: Increased federal, state, or local regulations related to greenhouse gas (GHG) emissions or hydraulic fracturing could raise operating costs and reduce demand for the natural gas and natural gas liquid (NGL) services ENLC provides.
• Permitting Risk: The ability to receive or renew required operating permits is a constant hurdle, especially for new infrastructure projects like the Louisiana gas storage expansion, which is expected to cost approximately $85 million.

Operational and Strategic Risks:

Competition remains fierce in premier basins like the Permian, but also in the high-growth, Tier-2 basins where ENLC operates. Plus, the reliance on a diverse asset mix across the Permian, Louisiana, Oklahoma, and North Texas means a downturn in any one region hits the bottom line. For instance, the Louisiana segment profit in Q2 2024 was $84.3 million, showing its significant contribution.

Mitigation strategies focus on financial flexibility and operational excellence. ENLC has been actively managing its balance sheet, including a unit repurchase program that saw $45.4 million of common units repurchased in Q3 2024 alone. They also prioritize a robust enterprise risk management (ERM) program, reviewing top risks quarterly with the Board and its committees.

To dive deeper into the players who saw the value in these assets and why the merger was a strategic fit, you should check out Exploring EnLink Midstream, LLC (ENLC) Investor Profile: Who's Buying and Why?

Growth Opportunities

You need to understand that the future growth prospects for EnLink Midstream, LLC (ENLC) are now entirely mapped to ONEOK, Inc.'s (OKE) strategy, because the acquisition closed on January 31, 2025. The unit is no longer publicly traded, so your focus shifts from ENLC's independent performance to the value its integrated assets bring to the larger entity. Honestly, this merger is the single biggest growth driver for the former ENLC assets.

The Strategic Value of Integration

The primary near-term opportunity is realizing the substantial financial and commercial synergies (the benefits of combining two companies). The market expects this deal to generate between $100 million and $150 million in total synergies. Here's the quick math on where that value comes from:

• Cost Reduction: The clearest synergy is cutting redundant general and administrative (SG&A) costs, estimated at around $120 million annually.
• Financial Savings: Eliminating interest and preferred distributions, which totaled about $100 million, is another immediate win.
• Commercial Upside: ONEOK gains an easy way to secure volumes on its West Texas NGL pipeline by capturing 150-200 thousand barrels per day (Mb/d) of Permian Natural Gas Liquids (NGLs) that become uncontracted in the next few years.

Key Growth Drivers: Basins and Carbon Solutions

The former ENLC assets are now key growth platforms for ONEOK, especially in two distinct areas: premier production basins and the emerging carbon capture market. EnLink Midstream, LLC (ENLC) was already forecast to earn $1,480 million in 2025 (likely Adjusted EBITDA), exceeding the consensus estimate of $1,416 million, so the assets were already performing well before the merger. Now, they're turbo-charged.

The competitive advantage is simple: location, location, location. The assets fill a major hole in ONEOK's portfolio, specifically:

• Permian Basin: ENLC gives ONEOK its first significant natural gas gathering and processing (G&P) assets in the Permian, the most active U.S. basin.
• Louisiana/LNG: The Louisiana assets are strategically positioned to capitalize on the massive growth in Liquefied Natural Gas (LNG) demand and higher production from the Haynesville shale.
• Carbon Sequestration: ENLC runs a carbon sequestration project along the Mississippi River corridor, providing ONEOK with immediate exposure to this high-growth, energy transition investment area. This is a defintely smart long-term play.

Future Revenue Projections and Action

The acquisition's impact means we look at the combined entity's earnings, but the core asset value is clear. The growth projections for the former ENLC business lines are now baked into ONEOK's overall guidance. The focus is on maximizing the Permian and Louisiana operations, plus expanding the Carbon Solutions business, which is a key strategic initiative. You can read more about the long-term vision here: Mission Statement, Vision, & Core Values of EnLink Midstream, LLC (ENLC).

What this estimate hides is the execution risk of integrating two large companies, but the geographical fit is excellent. The table below outlines the key growth drivers that are now driving the combined company's performance: