EnLink Midstream, LLC (NYSE:ENLC) Q1 2024 Earnings Call Transcript

Ben Lamb: Hey Harry. There has been a lot to unpack there. I mean I think the good news on most of the debt structure is that, it was put in place at a time when the base rates were significantly lower than they are today. And so, while the upgrade to investment grade is recent, we already had a very low cost debt structure in place. And so I don’t think that there are that many opportunities to optimize within the existing debt structure. Now, on the preferred side, in general, we still think that it’s better value to focus our excess free cash flow on returning capital to the common unit holder, but we have opportunistically reduced the preferreds, particularly when we can get them below par, which frankly lately hasn’t been very easy to do.

Don’t be surprised to continue to see us do a little bit of that opportunistically, but we don’t have anything, no current plans to do anything bigger on the preferreds including by using the — as you say a little bit of leverage capacity that we have because, having just gotten the upgrade from triple-B minus, we want to be clear we’re committed to it retaining that triple-B minus rating. And I think that increasing leverage to do that to deal with the preferreds with at this point would maybe not be in keeping with that goal.

Harry Mateer: Got it. Very clear. Thank you.

Operator: There are no further questions at this time. I’d like to pass the floor back over to Jesse for closing comments.

Jesse Arenivas: Thank you Alicia for facilitating our call this morning and thank everyone for being on the call. As always, we appreciate your continued interest and investment in EnLink. We look forward to updating you with our second quarter results in August. In the meantime, we wish you well and have a great day.

Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.