X
<

How Enbridge Energy Partners Looks 5 Months after Dividend Cut

PART:
1 2 3 4 5 6 7 8
Part 3
How Enbridge Energy Partners Looks 5 Months after Dividend Cut PART 3 OF 8

Why Enbridge Energy Partners’ Leverage Is Increasing

EEP’s debt-to-EBITDA ratio

Enbridge Energy Partners’ (EEP) net-debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) ratio was 5.8x at the end of 2Q17. The ratio remained relatively stable in 2016 but increased in the first half of 2017.

Why Enbridge Energy Partners’ Leverage Is Increasing

Interested in EEP? Don't miss the next report.

Receive e-mail alerts for new research on EEP

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

As the above graph shows, EEP’s debt-to-EBITDA ratio rose in the first and second quarters of 2017, even though the debt in 1Q17 was at the same level as in 3Q16. Moreover, the debt actually fell in 2Q17.

The rise in EEP’s debt-to-EBITDA ratio in 2017 despite the fall in debt can be attributed to the fall in EBITDA during the year. As we discussed in the previous part, EEP’s EBITDA fell in both the first and second quarters of 2017.

Even though Enbridge Energy Partners is taking steps such as a distribution cut and the sale of its natural gas business to strengthen its balance sheet, its EBITDA growth remains constrained, which might concern investors.

In the next part, we’ll discuss Enbridge Energy Partners’ distributable cash flow as well as its upcoming capital projects.

X

Please select a profession that best describes you: