(PLN) – EnLink Midstream’s executive chairman, Barry E. Davis, who led the company as CEO from its founding in 2014 to 2018, has resumed his role of CEO, replacing Michael J. Garberding, who has left the company.
The management changes were announced as EnLink reported a net loss of $16.1 million in the second quarter of 2019, compared with net income of $28 million in the same period last year. Results for the 2019 period reflect a $40.5 million after-tax loss related to the bankruptcy filing of a customer, White Star Petroleum Holdings.
“The Board of Directors and I have decided that given how the world in energy has changed, now is the right time for me to return full time as CEO to advance EnLink’s growth strategy and take advantage of the significant opportunities we see in the sector,” Davis said during a conference call with investors to discuss the company’s second-quarter financial results. He described it as a defining time for the industry and the company.
“The playbook for producers continues to evolve with producers prioritizing capital discipline, focusing on strengthening their balance sheets with debt repurchases, returning capital to shareholders through dividend increases and share buybacks and moderating production growth in response to commodity price volatility and limited access to attractive capital,” Davis said.
“Lower production means less infrastructure needed. And less infrastructure needed means more competition and more capabilities required to win,” Davis said. “Midstream companies that will win in today’s environment are those that have deep customer relationships and are able to deliver the best solutions that are integrated across the value chain, are proactive and opportunistic in identifying new growth opportunities and have the financial resources to move quickly and capitalize on opportunities.”
EnLink also announced that it has signed a long-term natural gas transport agreement with Venture Global Calcasieu Pass related to its planned Calcasieu Pass LNG export facility in Louisiana. EnLink said it expects to spend approximately $20 million on the project during 2020.
Venture Global has secured equity funding and is in the late stages of completing debt financing for the Calcasieu Pass facility. If Venture Global reaches a positive final investment decision, EnLink’s said its project is expected to be operational during 2021.
During the second quarter, EnLink reported that it placed its Thunderbird natural gas processing plant into service in Oklahoma, and its Cajun Sibon III NGL pipeline expansion also became operational.
With the addition of its 200 Mcf/d Thunderbird plant in Oklahoma, EnLink said it has reached a total gas processing capacity in Central Oklahoma of 1.2 Bcf/d. The new processing plant averaged a utilization rate of approximately 50% for the month of July, EnLink said.
The Cajun-Sibon III expansion increased the company’s liquids transportation capabilities from the Mont Belvieu NGL hub region to EnLink’s fractionation facilities on the Louisiana Gulf Coast. With Cajun-Sibon III, EnLink’s NGL transport capacity is now approximately 185,000 bpd.