Related Party Transactions

12 Months Ended

Dec. 31, 2022

Related Party Transactions [Abstract]

Related Party Transactions

(5) Related Party Transactions

(a)Transactions with Cedar Cove JV

For the years ended December 31, 2022, 2021, and 2020, we recorded cost of sales of $28.2 million, $17.9 million, $8.7 million, respectively, related to our purchase of residue gas and NGLs from the Cedar Cove JV subsequent to processing at our Central Oklahoma processing facilities. Additionally, we had accounts payable balances related to transactions with the Cedar Cove JV of $2.5 million and $1.6 million at December 31, 2022 and 2021, respectively.

(b)Transactions with GIP

General and Administrative Expenses. For the year ended December 31, 2022, we did not record any expenses related to transactions with GIP. For the years ended December 31, 2021 and 2020, we recorded general and administrative expenses of $0.5 million and $0.2 million, respectively, related to personnel secondment services provided by GIP.

In March 2022, our data center provider since 2009, CyrusOne Inc. (“CyrusOne”), was purchased by an entity that is owned collectively by funds affiliated with GIP and Kohlberg Kravis Roberts & Co. L.P. William J. Brilliant, a member of our

Board and a partner of GIP also serves on the CyrusOne board of directors. For the year ended December 31, 2022, we paid CyrusOne $0.2 million in fees for data center services.

GIP Repurchase Agreement. On February 15, 2022, we and GIP entered into an agreement pursuant to which we agreed to repurchase, on a quarterly basis, a pro rata portion of the ENLC common units held by GIP, based upon the number of common units purchased by us during the applicable quarter from public unitholders under our common unit repurchase program. The number of ENLC common units held by GIP that we repurchase in any quarter is calculated such that GIP’s then-existing economic ownership percentage of our outstanding common units is maintained after our repurchases of common units from public unitholders are taken into account, and the per unit price we pay to GIP is the average per unit price paid by us for the common units repurchased from public unitholders. The repurchase agreement was scheduled to terminate as of December 31, 2022 in accordance with its terms.

On December 20, 2022, we renewed the repurchase agreement with GIP for 2023 (the “Repurchase Agreement Renewal”) on terms substantially similar to those of the repurchase agreement entered into by the Company and GIP on February 15, 2022. The Repurchase Agreement Renewal will terminate on the earlier of the date (1) on which the authorized funds under the Company’s 2023 common unit repurchase program have been expended, including funds applied to repurchases under the Repurchase Agreement Renewal, (2) on December 31, 2023, or (3) otherwise upon the mutual agreement of the parties thereto. See “Note 10—Members’ Equity” for additional information on the activity related to the GIP repurchase agreement.

Management believes the foregoing transactions with related parties were executed on terms that are fair and reasonable to us. The amounts related to related party transactions are specified in the accompanying consolidated financial statements.