Employee Incentive Plans (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Amounts Recognized in Consolidated Financial Statements

Amounts recognized on the consolidated financial statements with respect to these plans are as follows (in millions):

	Year Ended December 31,
	2020		2019		2018
Cost of unit-based compensation charged to general and administrative expense	$	21.3	$	32.7	$	30.3
Cost of unit-based compensation charged to operating expense	7.1		6.7		10.8
Total unit-based compensation expense	$	28.4	$	39.4	$	41.1
Non-controlling interest in unit-based compensation	$	—	$	0.5	$	15.7
Amount of related income tax benefit recognized in net loss (1)	$	6.7	$	9.1	$	5.3

____________________________

(1)For the years ended December 31, 2020, 2019, and 2018 the amount of related income tax expense recognized in net loss excluded $6.0 million, $2.2 million, and $0.7 million, respectively, related to book-to-tax differences recorded upon vesting of restricted units.

Summary of Restricted Incentive Unit Activity

A summary of the restricted incentive unit activity for the year ended December 31, 2020 is provided below:

	Year Ended December 31, 2020
ENLC Restricted Incentive Units:	Number of Units		Weighted Average Grant-Date Fair Value
Non-vested, beginning of period	4,063,605		$	13.85
Granted (1)	4,897,329		5.41
Vested (1)(2)	(2,880,968)		10.92
Forfeited	(729,880)		8.32
Non-vested, end of period	5,350,086		$	8.45
Aggregate intrinsic value, end of period (in millions)	$	19.8

____________________________

(1)Restricted incentive units typically vest at the end of three years. In February 2020, ENLC granted 1,144,842 restricted incentive units with a fair value of $5.2 million to officers and certain employees as bonus payments for 2019, and these restricted incentive units vested immediately and are included in the restricted incentive units granted and vested line items.

(2)Vested units included 1,020,412 units withheld for payroll taxes paid on behalf of employees.

Summary of Restricted Units' Aggregate Intrinsic Value

A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the years ended December 31, 2020, 2019, and 2018 is provided below (in millions):

	Year Ended December 31,
ENLC Restricted Incentive Units:	2020		2019		2018
Aggregate intrinsic value of units vested	$	12.1	$	17.3	$	12.8
Fair value of units vested	$	31.5	$	22.8	$	16.5

Summary of Grant-Date Fair Values

The following table sets out the levels at which the Tranche TSR Units may vest (using linear interpolation) based on the ENLC TSR percentile ranking for the applicable performance period relative to the TSR achievement of the Designated Peer Companies:

Performance Level	Achieved ENLC TSR Position Relative to Designated Peer Companies	Vesting percentage of the Tranche TSR Units
Below Threshold	Less than 25%	0%
Threshold	Equal to 25%	50%
Target	Equal to 50%	100%
Maximum	Greater than or Equal to 75%	200%

The following table sets out the levels at which the Tranche CF Units were eligible to vest (using linear interpolation) based on the Cash Flow performance of ENLC for the performance period ending December 31, 2020:

Performance Level	ENLC’s Achieved Cash Flow	Vesting percentage of the Tranche CF Units
Below Threshold	Less than $1.345	0%
Threshold	Equal to $1.345	50%
Target	Equal to $1.494	100%
Maximum	Greater than or Equal to $1.643	200%

The following table sets out the levels at which the Tranche CF Units were eligible to vest (using linear interpolation) based on the Cash Flow performance of ENLC for the performance period ending December 31, 2019:

Performance Level	ENLC’s Achieved Cash Flow	Vesting percentage of the Tranche CF Units
Below Threshold	Less than $1.43	0%
Threshold	Equal to $1.43	50%
Target	Equal to $1.55	100%
Maximum	Greater than or Equal to $1.72	200%

The fair value of each performance unit is estimated as of the date of grant using a Monte Carlo simulation with the following assumptions used for all performance unit grants made under the plan: (i) a risk-free interest rate based on United States Treasury rates as of the grant date; (ii) a volatility assumption based on the historical realized price volatility of ENLC’s common units and the Designated Peer Companies’ or Peer Companies’ securities as applicable; (iii) an estimated ranking of ENLC (or for outstanding performance units granted prior to the Merger, ENLC and ENLK) among the Designated Peer Companies or Peer Companies, and (iv) the distribution yield. The fair value of the performance unit on the date of grant is expensed over a vesting period of approximately three years.

The following table presents a summary of the grant-date fair value assumptions by performance unit grant date:

ENLC Performance Units:	July 2020			March 2020			January 2020			October 2019			June 2019			March 2019			March 2018
Grant-date fair value	$	2.33		$	1.13		$	7.69		$	7.29		$	9.92		$	13.10		$	21.63
Beginning TSR price	$	2.52		$	1.25		$	6.13		$	7.42		$	9.84		$	10.92		$	16.55
Risk-free interest rate	0.17		%	0.42		%	1.62		%	1.44		%	1.72		%	2.42		%	2.38		%
Volatility factor	67.00		%	51.00		%	37.00		%	35.00		%	33.50		%	33.86		%	51.36		%

Summary of Performance Units

The following table presents a summary of the performance units:

	Year Ended December 31, 2020
ENLC Performance Units:	Number of Units		Weighted Average Grant-Date Fair Value
Non-vested, beginning of period	1,317,856		$	14.22
Granted	1,361,986		6.63
Vested (1)	(181,647)		30.31
Forfeited	(146,954)		10.30
Non-vested, end of period	2,351,241		$	8.82
Aggregate intrinsic value, end of period (in millions)	$	8.7

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(1)Vested units included 69,052 units withheld for payroll taxes paid on behalf of employees.

A summary of the performance units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the years ended December 31, 2020, 2019, and 2018 is provided below (in millions).

	Year Ended December 31,
ENLC Performance Units:	2020		2019		2018
Aggregate intrinsic value of units vested	$	0.9	$	3.4	$	4.7
Fair value of units vested	$	5.5	$	7.9	$	7.7

ENLK Performance Units:	March 2018
Grant-date fair value	$	19.24
Beginning TSR price	$	15.44
Risk-free interest rate	2.38		%
Volatility factor	43.85		%

A summary of the performance units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the years ended December 31, 2019 and 2018 is provided below (in millions). Since the Legacy ENLK Awards converted into ENLC unit-based awards as a result of the Merger, no additional performance units will vest as ENLK units under the GP Plan (such performance units, as converted, are eligible to vest as ENLC units) and no additional expense will be recognized after the closing of the Merger on January 25, 2019 under the GP Plan.

	Year Ended December 31,
ENLK Performance Units:	2019		2018
Aggregate intrinsic value of units vested	$	2.1	$	5.0
Fair value of units vested	$	1.7	$	7.7

Schedule of Restricted Stock and Restricted Stock Units, Vested and Fair Value Vested

A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the years ended December 31, 2019 and 2018 is provided below (in millions). Since the Legacy ENLK Awards converted into ENLC unit-based awards as a result of the Merger, no additional restricted incentive

units will vest as ENLK units under the GP Plan (such restricted incentive units, as converted, are eligible to vest as ENLC units) and no additional expense will be recognized after the closing of the Merger on January 25, 2019 under the GP Plan.

	Year Ended December 31,
ENLK Restricted Incentive Units:	2019		2018
Aggregate intrinsic value of units vested	$	8.0	$	13.1
Fair value of units vested	$	7.2	$	16.4