EnLink Midstream ( NYSE: ENLC ) +5% in Tuesday's trading after Stifel initiated coverage with a Buy rating and a $12.50 price target, believing the fundamental energy backdrop supports the company's core gathering and processing business, particularly in the Permian Basin and Louisiana.
Stifel also likes EnLink's ( ENLC ) free cash flow generation and financial flexible profile, estimating the company will generate at least $350M of free cash flow after distributions in 2023, while maintaining leverage just above 3.5x with distribution coverage of ~4x.
Over the medium term, Stifel also views carbon capture as a material opportunity given EnLink's ( ENLC ) existing assets, geographic location and incentives from the Inflation Reduction Act.
A majority of EnLink's ( ENLC ) debt matures in 2028 and beyond, giving the firm flexibility and minimal interest rate risk, Stifel said.
EnLink Midstream ( ENLC ) enjoyed very strong results during 2021 which have continued into 2022, Daniel Thurecht writes in a bullish analysis posted recently on Seeking Alpha .
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EnLink Midstream pops as Stifel starts with Buy rating