DALLAS, June 19, 2017 /PRNewswire/ -- The EnLink Midstream companies (EnLink), EnLink Midstream Partners, LP (NYSE: ENLK) (the Partnership or ENLK) and EnLink Midstream, LLC (NYSE: ENLC) (the General Partner or ENLC), today announced that a subsidiary of EnLink entered into a long-term, fee-based agreement with a subsidiary of ONEOK Inc. to move natural gas liquids (NGLs) from EnLink's premier Central Oklahoma position to EnLink's Cajun-Sibon platform and the Mont Belvieu trading and storage hub.
NGL volumes from EnLink's Chisholm processing complex will directly connect to EnLink's Louisiana franchise, allowing EnLink to preferentially fill its Cajun-Sibon platform and providing new access to the growing Gulf Coast NGL hub. EnLink's Central Oklahoma NGLs will be transported through ONEOK's Arbuckle and Sterling systems, which ONEOK plans to expand by the end of 2018 to handle the incremental volumes. The flexibility built into the agreement benefits EnLink's long-term strategic growth plan by allowing EnLink to retain control of volumes and optimize current operations and future opportunities. The deal is immediately accretive to EnLink's earnings and requires no incremental capital expenditures.
"This arrangement provides a solution to move NGLs from EnLink's premier position in prolific Central Oklahoma to our demand-driven Louisiana system and other Gulf Coast demand centers, through a long-term, attractive agreement with ONEOK," said Barry E. Davis, EnLink Chairman and Chief Executive Officer. "The agreement gives us physical connections from Chisholm directly to Cajun-Sibon via the ONEOK systems, which will enhance the performance and reliability of our platform. We evaluated many options to move NGLs to the Gulf Coast, including building our own pipeline, and this deal was the most economic, secure, and flexible for EnLink and our customers."
This arrangement provides an immediate NGL transportation solution that allows EnLink to appropriately plan for processing capacity expansions to match producer volume growth. Volume commitments in this agreement scale only as EnLink adds processing capacity.
About the EnLink Midstream Companies
EnLink provides integrated midstream services across natural gas, crude oil, condensate, and NGL commodities. EnLink operates in several top U.S. basins and is strategically focused on the core growth areas of the Permian's Midland and Delaware basins, Oklahoma's Midcontinent, and Louisiana's Gulf Coast. Headquartered in Dallas, EnLink is publicly traded through EnLink Midstream, LLC (NYSE: ENLC), the General Partner, and EnLink Midstream Partners, LP (NYSE: ENLK), the Master Limited Partnership. Visit www.EnLink.com for more information on how EnLink connects energy to life.
This press release contains forward-looking statements within the meaning of the federal securities laws. These statements are based on certain assumptions made by the Partnership and the General Partner based upon management's experience and perception of historical trends, current conditions, expected future developments, and other factors that the Partnership and the General Partner believe are appropriate in the circumstances. These statements include, but are not limited to, statements with respect to the arrangement's expected financial results, the arrangement's characteristics, the arrangement's expected impact on the Partnership's other assets, and timing for the arrangement discussed above, as well as the Partnership's future growth and results of operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership and the General Partner, which may cause the Partnership's and the General Partner's actual results to differ materially from those implied or expressed by the forward-looking statements. These risks include, but are not limited to, risks discussed in the Partnership's and the General Partner's filings with the Securities and Exchange Commission. The Partnership and the General Partner have no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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SOURCE EnLink Midstream