“Sustainability is embedded in how we operate our business. We focus not only on delivering near-term results, but also on building sustainable value for decades to come. Our midstream business is focused on natural gas and NGLs, which will be part of the energy picture for the foreseeable future, and I am particularly excited about the opportunity we have to build a carbon capture and sequestration business to further our role in the energy transition.” – Pablo Mercado, Executive Vice President and Chief Financial Officer

Becoming the Future of Midstream

EnLink continues to advance our vision of becoming the future of midstream by leading in innovation and creating sustainable value. We do this by utilizing our integrated business model and operational excellence to build upon our large-scale, cash-flow generating platform, while pursuing energy solutions for the future, as we are doing with our focus on growing a substantial CCS business. We are doing all of this while being focused on environmentally responsible operations.

Integrated Business Model

  • Gathering and processing positions at scale in key production basins
  • Connected to key downstream demand markets
  • Significant and scalable position in Louisiana provides platform for downstream growth
  • Downstream demand stability balances gathering and processing wellhead exposure
  • Focused on highly accretive investments around our asset footprint
  • Growing alongside our customers in capital light approach through optimizing asset utilization
  • Targeting bolt-on acquisitions that provide operational synergies and are leverage neutral

Large-Scale, Cash-flow-Generating Platform

  • Greater than $1 billion EBITDA platform delivering growth
  • Disciplined investment approach for capital expenditures
  • Dependable return of capital to investors through distributions and common unit repurchases
  • Achieved our near-term leverage goal of less than 4x in 2021
  • Focusing on positive free cash flow after distributions¹ provides financial flexibility to opportunistically improve capital structure
  • Transitioned to a more balanced use of free cash flow after distributions with increasing returns to unitholders while continuing to reduce leverage
  • Repurchased over $40 million in common units and redeemed $50 million in preferred units in 2021

Powered by Operational Excellence

  • Committed to being low-cost, efficient operator through implementation of new technology
  • Leading, experienced operations team maintains a strong safety focus and customer-centric mindset
  • Improving reliability of asset base and implementing progressive automation transformation
  • Committed to operating with the highest safety standards in our industry, as evidenced by the GPA Midstream Association awarding EnLink the 2020 and 2021 Chairman’s Award for Safety Improvement
  • Achieved EnLink’s lowest Total Recordable Incident Rate (TRIR) in EnLink history of 0.44, which is 38% better than the 2020 GPA Midstream Division One² TRIR average of 0.715

Delivering Energy Solutions for the Future

  • Business is 90% natural gas and natural gas liquids (NGLs) – demand expected to grow through energy transition
  • Approximately 85% of our growth capital expenditure plans are focused on building natural gas and NGL systems
  • Low-cost opportunity to build significant carbon capture, transportation, and sequestration (CCS) business over time by repurposing existing assets
  • Signed memorandum of understanding with Talos Energy (NYSE: TALO) to provide complete CCS offering along the Mississippi River corridor, which emits approximately 80 million metric tonnes annually of carbon dioxide (CO₂)

Focused On Environmentally Responsible Operations

  • Near-term emission targets & actions with 30% reduction in scope 1 methane emissions intensity by 2024 and pursuing a path to achieve a 30% reduction in our total scope 1 CO₂-equivalent emissions intensity by 2030
  • Instituting improvements to reduce emissions, improve carbon capture, and strengthen EnLink’s business
  • Completed approximately $92 million of equipment reuse and refurbishing initiatives in 2021
  • Entered into a 15-year agreement to capture CO₂ emitted from our Bridgeport plant in North Texas to sell for use in food-grade products

Investor Material Links

  1. Adjusted EBITDA and Free Cash Flow After Distributions as used in this Sustainability Report are non-GAAP measures and are not substitutes for metrics prepared in accordance with GAAP. For additional information, including a definition of these terms and a reconciliation to the most directly comparable GAAP measure, please see EnLink’s filings with the Securities and Exchange Commission, available on our website at enlink.com.
  2. The GPA Midstream Association classifies companies that complete 1 million or more midstream operational workhours in one year as Division 1. The 2020 industry average for GPA Division One companies, EnLink’s peer group, is 0.715. At the time of this report’s issuance, 2021 industry numbers were not yet available.

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The information and data (collectively, Information) provided in EnLink’s 2021 Sustainability Report (Report) reflects content as of and for the period ending December 31, 2021, unless otherwise indicated. Such Information in this Report is for informational purposes only. EnLink does not make, and hereby expressly disclaims, any representation or warranty as to the accuracy or completeness of the Information contained herein. This Report is being published on May 3, 2022, and EnLink has no obligation or duty to (1) update or correct the Information, (2) provide additional details regarding the Information, or (3) continue to provide the Information, in any form, in the future. EnLink reserves the right, in its sole discretion, to modify, update, change, delete, or supplement the Information from time to time without notice. The Information should not be interpreted as any form of guaranty or assurance of future results or trends. Unless otherwise provided, EnLink is not expressly incorporating by reference any of the Information into any filing of EnLink made with the United States Securities and Exchange Commission or in any other filing, report, application, or statement made by EnLink to any federal, state, or local governmental authority. This Report contains information based upon EnLink’s role in the broader economy, environment, and society and for the purpose of responding to issues that are important to a wide range of interested parties. While events, scenarios, and efforts discussed in this report may be significant, any significance should not be read as necessarily rising to the level of materiality of the disclosures required under U.S. federal securities laws, which have distinct and specific concepts of materiality.