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Enbridge Energy (EEP) Q3 Earnings Top Estimates, Sales Fall


Enbridge Energy Partners, L.P. EEP recently reported third-quarter 2018 adjusted earnings of 19 cents per unit, which surpassed the Zacks Consensus Estimate of 17 cents, thanks to the decline in operating and administrative costs.

The bottom line, however, decreased from the year-ago profit of 24 cents, primarily due to a fall in operating income from the Liquids segment.

Total operating revenues in the quarter fell to $560 million from the year-ago level of $616 million.

Enbridge Energy Partners, L.P. Price, Consensus and EPS Surprise

Enbridge Energy Partners, L.P. Price, Consensus and EPS Surprise | Enbridge Energy Partners, L.P. Quote


Enbridge Energy declared a quarterly cash distribution of 35 cents per unit ($1.40 per unit on an annualized basis) for the quarter ended Sep 30, 2018. The distribution is payable on Nov 14 to its unitholders of record at the close of business on Nov 7.

Segment Performance

The partnership manages business under one head — Liquids. All other businesses are reported under the head — Other.

Liquids: Adjusted operating income in the Liquids segment decreased to $402 million from $428 million in the comparable period of 2017. While adjusted income from Bakken Assets and Mid-Continent increased to $68 million (38.8% year over year) and $13 million (8.3% from a year ago), respectively, the same from the Lakehead system plunged to $321 million from $367 in the year-ago period.

Total third-quarter delivery volumes in the segment amounted to 3,005 thousand barrels per day (MBPD), higher than 2,923 MBPD in the year-ago period.

Other: The unit reported operating income of $1 million against an operating loss of $2 million in the year-ago quarter.


The partnership’s third-quarter 2018 operating and administrative costs fell 22.2% year over year to $126 million.

Balance Sheet

At the end of Sep 30, 2018, the partnership’s available liquidity was around $900 million, while total debt was $7.3 billion.

Zacks Rank & Key Picks

Currently, Houston, TX-based Enbridge Energyhas a Zacks Rank #3 (Hold). Investors interested in the energy sector can opt for some better-ranked stocks given below:

Fort Worth, TX-based Range Resources Corporation RRC holds a Zacks Rank #2 (Buy). The company’s earnings for 2018 are expected to surge more than 100% year over year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

El Dorado, AR-based Murphy Oil Corporation MUR carries a Zacks Rank #2. The company’s sales for 2018 are expected to grow more than 20% from 2017.

Houston, TX-based Kinder Morgan, Inc. KMI has a Zacks Rank #2. Its earnings for 2018 are expected to surge more than 30% from the 2017 level.

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