EnLink Midstream is a subsidiary of Devon Energy Corp (NYSE: DVN) and owns approximately 9,200 miles of pipelines, 17 natural gas processing plants with 3.6 billion cubic feet per day (bcf/d) of processing capacity, seven fractionators with 280,000 barrels per day (bpd) of fractionation capacity, and truck, barge, and rail transportation.
Income Investor
The reasons we like ENLC are still intact. ENLK, the operating business, has a conservative business model with 95% of its revenue being fee-based. Approximately 85% of its gross margin comes from customers with an investment-grade credit rating, and 80% of its margin is supported by long-term take-or-pay contracts called minimum volume commitments (MVC). We expect ENLC will be able to grow distributions approximately 7% annually for the next few years. - Michael Corcoran
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ENLC was first recommended here on December 18, 2015