EnLink Midstream (ENLC) has wasted no time putting its Tiger II plant to work in the Delaware Basin. Volumes jumped immediately after start-up of the relocated asset, according to data tracked by East Daley Analytics, supporting positive earnings momentum for ENLC’s Permian business in 2024.
EnLink brought the 150 MMcf/d Tiger II plant online in May ’24, expanding its natural gas processing capacity to 785 MMcf/d in the Delaware. Volumes handled on the G&P system jumped 20% that month, according to state-reported plant inlets, a ~105 MMcf/d gain over the April ’24 average. NGL production increased 19% M-o-M on the system.
The figure, available in the G&P System Analysis dashboard in Energy Data Studio, shows the big jump in volumes on the Delaware system following start-up of Tiger II. EnLink relocated the asset (formerly known as the Cowtown plant) from the Barnett play in North Texas after acquiring it from Crestwood Equity in 2022. Plant inlets on the system held near 660 MMcf/d in June and July ‘24, reflecting the ramp at Tiger II.
ENLC - Delaware is a fixed-fee G&P system, and East Daley models EOG Resources (EOG), Matador Resources (MTDR), Coterra Energy (CTRA) and Exxon (XOM) as the primary customers. These four producers account for 96% of system volumes, as shown in the Energy Data Studio dashboard. EDA is tracking 5 rigs on the ENLC system in late September, based on our rig allocation model.
The big step-up in volumes will have a positive impact on EnLink’s Permian Basin segment earnings. In the ENLC Financial Blueprint, EDA estimates the Tiger II expansion will contribute $100M in annual operating margin after the first full year of service. We forecast an average of 6 rigs on ENLC – Delaware through 2028, which only slightly grows volumes over current levels. – James Taylor Tickers: CTRA, ENLC, EOG, MTDR, XOM.
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