Revenues and net income increase in 4Q14
In the previous section of this series, we discussed Enbridge Energy Partners (EEP) revenues and earnings compared to analysts’ consensus estimates. In this article, we’ll analyze the company’s 4Q14 revenues and profits.
Enbridge Energy Partners (EEP) released its 4Q14 financial results on February 18, 2015. Operating revenues increased 5.6% to $2.07 billion in 4Q14, up from $1.96 billion recorded in 4Q13.
In 4Q14, Sunoco Logistics Partners (SXL) saw its quarterly revenues decrease by 21%. Meanwhile, MarkWest Energy Partners revenues increased 14%. Regency Energy Partners (RGP), another midstream operator, increased its revenues by 110% in 4Q14. Williams Companies (WMB) reported a revenue increase of 3.5%.
Williams Companies makes up 2.9% of the Energy Select Sector SPDR Fund (XLE).
In 4Q14, Enbridge Energy Partners net income before non-controlling interest and preferred unit distribution surged nearly eight times to $354.3 million, up from $43.1 million recorded in 4Q13. The company net income margin—or net income as a percentage of revenues—also jumped to 17.1% in 4Q14, up from 2.2% in the same quarter a year ago.
In 4Q14, net income attributable to its limited partners, adjusted for additional environmental costs and mark-to-market gains, was $59.4 million higher than in 4Q13.
Change in operating income by segment
From 4Q13 to 4Q14, operating income for both Enbridge Energy Partners (EEP) segments, Liquids and Natural Gas, increased. Its Liquids segment gained the most—65%. Meanwhile, the Natural Gas segment saw 16% growth compared to the same quarter a year ago.
Higher transportation rates and more liquids delivered via the pipeline systems were the primary contributors to the higher operating income in the Liquids segment.
The increase in Liquids volume stemmed from stronger Bakken and Western Canada crude oil production. Also, completed projects like the Line 6B Replacement Project under the Eastern Access Program contributed to volumes.
The volume of liquids delivered increased 19.8% in 4Q14 over 4Q13. Natural gas pipeline throughput, meanwhile, fell 0.5% during the same period.