Employee Incentive Plans (Tables)

12 Months Ended

Dec. 31, 2022

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,
	2022		2021		2020
Cost of unit-based compensation charged to operating expense	$	5.7	$	6.6	$	7.1
Cost of unit-based compensation charged to general and administrative expense	24.7		18.7		21.3
Total unit-based compensation expense	$	30.4	$	25.3	$	28.4
Amount of related income tax benefit recognized in net income (loss) (1)	$	7.1	$	5.9	$	6.7

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(1)For the years ended December 31, 2022, 2021, and 2020 the amount of related income tax benefit recognized in net income (loss) excluded $0.7 million of income tax benefit and $3.1 million, and $6.0 million of income tax expense, respectively, related to book-to-tax differences recorded upon the vesting of restricted units.

Summary of Restricted Incentive Unit Activity

A summary of the restricted incentive unit activity for the year ended December 31, 2022 is provided below:

	Year Ended December 31, 2022
Restricted Incentive Units:	Number of Units		Weighted Average Grant-Date Fair Value
Unvested, beginning of period	7,507,471		$	5.46
Granted (1)	2,461,950		8.83
Vested (1)(2)	(2,615,805)		7.28
Forfeited	(578,430)		6.53
Unvested, end of period	6,775,186		$	5.89
Aggregate intrinsic value, end of period (in millions)	$	83.3

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(1)Restricted incentive units typically vest at the end of three years. In March 2022, we granted 193,935 restricted incentive units with a fair value of $1.7 million. These restricted incentive units vested immediately and are included in the restricted incentive units granted and vested line items.

(2)Vested units included 863,909 ENLC common 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, 2022, 2021, and 2020 is provided below (in millions):

	Year Ended December 31,
Restricted Incentive Units:	2022		2021		2020
Aggregate intrinsic value of units vested	$	24.4	$	5.6	$	12.1
Fair value of units vested	$	19.0	$	16.3	$	31.5

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 FCFAD performance of ENLC for the performance period ending December 31, 2022:

Performance Level	ENLC’s Achieved FCFAD	Vesting percentage of the Tranche CF Units
Below Threshold	Less than $154 million	0%
Threshold	Equal to $154 million	50%
Target	Equal to $202 million	100%
Maximum	Greater than or Equal to $241 million	200%

The following table sets out the levels at which the Tranche CF Units were eligible to vest (using linear interpolation) based on the FCFAD performance of ENLC for the performance period ending December 31, 2021:

Performance Level	ENLC’s Achieved FCFAD	Vesting percentage of the Tranche CF Units
Below Threshold	Less than $205 million	0%
Threshold	Equal to $205 million	50%
Target	Equal to $256 million	100%
Maximum	Greater than or Equal to $300 million	200%

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

Performance Level	ENLC’s Achieved  DCF per Unit	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 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 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:

Performance Units:	June 2022			March 2022 (1)			January 2021			July 2020			March 2020			January 2020
Grant-date fair value	$	11.71		$	11.90		$	4.70		$	2.33		$	1.13		$	7.69
Beginning TSR price	$	8.54		$	8.83		$	3.71		$	2.52		$	1.25		$	6.13
Risk-free interest rate	3.35		%	2.15		%	0.17		%	0.17		%	0.42		%	1.62		%
Volatility factor	76.00		%	75.00		%	71.00		%	67.00		%	51.00		%	37.00		%

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(1)Excludes certain performance units awarded March 1, 2022 with vesting conditions based on performance metrics. The 88,863 performance units have a grant-date fair value of $8.90 and were scheduled to vest in February 2023. However, this award partially vested in October 2022 and is reflected in the “Vested” row of the summary of the performance units table below.

Summary of Performance Units

The following table presents a summary of the performance units:

	Year Ended December 31, 2022
Performance Units:	Number of Units		Weighted Average Grant-Date Fair Value
Unvested, beginning of period	3,574,827		$	6.40
Granted	1,204,882		11.60
Vested (1)	(1,480,802)		9.32
Forfeited	(319,753)		12.11
Unvested, end of period	2,979,154		$	6.44
Aggregate intrinsic value, end of period (in millions)	$	36.6

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(1)Vested units included 806,918 ENLC common 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, 2022, 2021, and 2020 is provided below (in millions).

	Year Ended December 31,
Performance Units:	2022		2021		2020
Aggregate intrinsic value of units vested	$	20.4	$	0.6	$	0.9
Fair value of units vested	$	26.2	$	4.4	$	5.5