23 Oct

Enbridge Energy Partners’ Returns in 2015 Lag MLP Sector Returns

WRITTEN BY Rekha Khandelwal, CFA

Enbridge Energy Partners’ total returns

Enbridge Energy Partners (EEP) will report its third quarter 2015 results on November 2, 2015. The company has generated a total return of -27.3% since the start of 2015. Over the same period, its peers Plains All American Pipeline (PAA), ONEOK Partners (OKS), and Williams Partners (WPZ) generated -33.4%, -7.9%, and -30.3% returns, respectively.

Enbridge Energy Partners’ Returns in 2015 Lag MLP Sector Returns

More on returns

Low energy prices generally dragged down the energy sector’s returns in 2015. Enbridge Energy Partners underperformed the Alerian MLP ETF (AMLP), with the latter returning -16.5% since the start of 2015. The SPDR S&P 500 ETF Trust (SPY) returned 0.3% year-to-date. Over the same period, the Energy Select Sector SPDR ETF (XLE) generated returns of -12.1%.

The chart above shows the total returns of Enbridge Energy Partners, Plains All American Pipeline, ONEOK Partners, Williams Partners, and the Alerian MLP ETF since the start of 2015. Williams Partners was predominantly moving in line with its peers and with AMLP until the announcement of its merger with Williams Companies (WMB) in May. This announcement caused the spike in its units, as seen in the chart above. The merger plan was later terminated when Williams Companies agreed to merge with Energy Transfer Equity (ETE). Read more about the ETE-WMB deal in A Complete Guide to the Energy Transfer–Williams Merger.

In this series about EEP’s 3Q15 earnings

In this series, we’ll discuss Enbridge Energy Partners’ revenue and EBITDA[1. earnings before interest, tax, depreciation, and amortization] estimates for the third quarter of 2015. We’ll also look at the contribution of various segments to the firm’s earnings, its distribution guidance, and analyst recommendations for Enbridge Energy Partners. This should help you in making an informed decision when it comes to investments in Enbridge Energy Partners. The company forms ~4.7% of the Global X MLP ETF (MLPA).

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