S&P turns EnLink view to positive

S&P said it changed its outlook for EnLink Midstream LLC to positive from stable and affirmed all its ratings, including its BB+ senior unsecured rating.

“We expect EnLink's performance to improve in the near term with debt/EBITDA of 4x–4.25x. We expect EnLink's EBITDA to be about $1.2 billion in 2022 and $1.3 billion in 2023, higher than our previous expectations. This is based on volume growth in the Permian Basin and Louisiana segment, driven by increased producer activity and drilling due to the higher commodity price environment. We expect Oklahoma and North Texas volumes to increase, and additional capital spending and expansion programs to continue to drive higher cashflows,” the agency said in a press release.

S&P said it expects EnLink to use free cash flow to fund its capital expenditures for the next 24 months without having to turn to the capital markets.

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