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Key Takeaways from Enbridge Energy Partners’ 3Q15 Results



Enbridge Energy Partners’ 3Q15 results highlights

Enbridge Energy Partners (EEP) reported its third quarter results on November 2, 2015. Below are some key points of those results:

  • Flat quarterly distributions: Enbridge Energy Partners declared a cash distribution of $0.583 per unit, the same as its 2Q15 per unit distribution. However, it was 5% higher compared to its 3Q14 distribution per unit.
  • Enbridge Energy Partners reported its 3Q15 adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $460.7 million, 13% higher than its 3Q14 reported EBITDA. Its distributable cash flow for the quarter was $248.8 million.
  • Enbridge Energy Partners is on track to achieve the high end of the full year 2015 adjusted EBITDA and distributable cash flow guidance ranges of $1.68 billion–$1.78 billion and $900 million–$960 million, respectively.
  • Enbridge Energy Partners reported 6.5% year-over-year growth in volumes on its liquids pipeline system.

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EEP’s year-to-date returns

Enbridge Energy Partners’ (EEP) units closed 2.3% higher on the day of its 3Q15 results announcement compared to the previous close. EEP has generated a total return of -24.7% since the start of 2015. Over the same period, peers Plains All American Pipeline (PAA), ONEOK Partners (OKS), and Williams Partners (WPZ) generated -34.6%, -10.6%, and -28.9% returns, respectively. The Alerian MLP ETF’s (AMLP) year-to-date total returns are -17.0%.

The chart above shows the total returns of EEP, PAA, OKS, WPZ, and AMLP since the start of 2015. As the graph shows, WPZ was predominantly moving in line with its peers until the announcement of its merger with Williams Companies (WMB) in May, which caused the spike in its units. The merger plan was later terminated when Williams Companies agreed to merge with Energy Transfer Equity (ETE).

In this series, we’ll take a look at Enbridge Energy Partners’ revenue and EBITDA growth in 3Q15, the performance of its segments, and its distribution growth. We’ll also look at its valuation and future prospects.


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