EnLink Midstream LLC Allocation Increased

By on November 7, 2019

EnLink Midstream 11-2019Weakness in midstream focused energy entities over the past three months has presented an opportunity to increase the position size in EnLink Midstream, LLC (ENLC). EnLink focuses on providing midstream energy services in the United States.

The company is involved in gathering, compressing, treating, processing, transporting, storing, and selling natural gas; fractionating, transporting, storing, and selling natural gas liquids; and gathering, transporting, stabilizing, storing, trans-loading, and selling crude oil and condensate, as well as providing brine disposal services. Its midstream energy asset network includes approximately 11,000 miles of pipelines; 20 natural gas processing plants; 7 fractionators; barge and rail terminals; product storage facilities; brine disposal wells; and a crude oil trucking fleet.

The company reports earnings after the market close today. CNBC’s Jim Cramer opined today that fears of a bankruptcy in Chesapeake Energy (CHK) were weighing on the group. He said there were concerns that some of CHK’s customers might not get paid.

Cash available was used to increase the allocation to ENLC in the SMA portfolio from 0.3% to 0.5%.

ENLC was purchased at $6.15.

Disclaimer: It is very challenging to outperform a buy and hold strategy. Historically, investors have found themselves well-served over the long-term by investing regularly in a diversified portfolio of stocks or low cost, broadly diversified indexed stock funds. Information presented is based on analysis of past data and assessments by the Tactical Timing System model. Future performance may not reflect past performance. Profitable trades are not guaranteed. No system or methodology ensures stock market profits. Although accuracy is strived for, no guarantee is made regarding the accuracy of data presented.

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