EnLink Midstream, LLC (NYSE:ENLC) Q2 2023 Earnings Call Transcript - Page 3 of 3 - InvestingChannel

EnLink Midstream, LLC (NYSE:ENLC) Q2 2023 Earnings Call Transcript

Ben Lamb : Yeah, Gabe. There’ll be some detail on that in the notes in the 10-Q that will get filed later today that you can go take a look at. And I don’t want to get too deep here. But let me say our normal practice is to start hedging four quarters in advance. And so, over a four-quarter period, we end up being fully hedged for the top quarter [ph]. What we did for 2023 is we were almost fully hedged on natural gas before the year 2022, even ended. And that has obviously served us well this year. And our observation on the gas market is we like the price that’s available to us in the market today for 2024 natural gas price that works well for our business. And so, in the ordinary course, we would have done fairly little for 2024. But at this point, we’ve been more aggressive, not to the same extent that we were in ‘22, coming into ‘23. But fairly aggressive in managing the risk for next year.

Gabe Moreen: Thanks, Ben. And then maybe if I can talk about capital to return and I think a little bit more than the $50 million per quarter came into this quarter. Just to what extent you might be willing to go above the stated $200 million for this year? If you have some flexibility, particularly if there’s more volatility out there in the market?

Ben Lamb: Well, I think there’s two parts to that. What we did this quarter was to use the flexibility to lean in a bit when the stock is under pressure, and the repurchases we did in the second quarter came at an average price of $9.94, which we felt like was a good opportunity for us to step in and support the stock. But that doesn’t change the fact that our authorization today is a $200 million authorization. Now as the year progresses, and we see how the FCFAD picture is shaping up as we get closer to the year end of the year, we can always go back to the board and look to expand that authorization a little bit. But right now, we’re focused on getting through our $200 million authorization. We’re just running a little bit ahead of pace.

Gabe Moreen: Thanks, Ben. And maybe just a bigger picture question on CO2. There’s been a little bit of announcements out there over the last couple of weeks in terms of how different players are positioning themselves in the market. Do you see that as having any implications for EnLink’s CCS business, will they need to partner, get more integrated, or whether you’re comfortable? I guess, with the current approach?

Jesse Arenivas: Yeah Gabe. It’s good question, I think the way we look at it is, we’re very well positioned. Our competitive advantage is having multiple pipes across the State of Louisiana, especially heavily weighted in the industrial emissions corridor there. We’ve proven we can work with ExxonMobil. So we think that transaction has opened more doors in its close. I think we — so we see the pie is growing beyond the 80 [ph]. And I think there’s it’s going to take multiple parties to solve that from a transportation perspective. But we feel like we’re our position hasn’t changed. If anything, we’ve just got more options today than we had prior to the transaction.

Gabe Moreen: Thanks Jesse.

Operator: Thank you. We reached the end of our question-and-answer session. I’d like to turn the floor back over to management for any further or closing comments.

Jesse Arenivas: Thanks, Kevin for facilitating the call this morning. And thank everyone for being on the call today and your continued support. As always we appreciate the interest and investment in EnLink. We look forward to updating with our third quarter results in November. And in the meantime, we wish you well, stay healthy and have a great day.

Operator: Thank you. That does conclude today’s teleconference and webcast. You may disconnect your line at this time.

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