What happened 

Shares of energy stock EnLink Midstream (ENLC -1.57%) jumped as much as 14.1% in trading on Friday after the company announced an increase to 2021 guidance. Shares closed the day up 13%. 

So what

Management now expects full-year 2021 net income to be $125 million to $165 million, up from a previous guidance range of $45 million to $105 million. Adjusted EBITDA is expected to be $1.02 billion to $1.06 billion, up from $940 million to $1 billion. As a result of these improvements, debt-to-adjusted-EBITDA is expected to be between 4 times and 4.2 times at year-end.

Energy pipeline above a grassy plain.

Image source: Getty Images.

On the spending side, management did increase capital expenditure estimates to a range of $165 million to $195 million, from a range of $140 million to $180 million. Management sees more growth opportunities in the Permian Basin, Louisiana, Oklahoma, and North Texas.  

Now what

Higher commodity prices generally are helping midstream companies like EnLink. After a year of weak demand for energy commodities and relatively low prices, the market looks like it's reversing for now. We don't know yet how long the boom in prices and demand will last, but management sees a strong rest of the year, and investors liked the news today.