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A Closer Look at Enbridge Energy Partners’ Business and Assets

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Nov. 11 2016, Published 2:13 p.m. ET

Business

Headquartered in Texas, Enbridge Energy Partners (EEP) owns and operates a crude oil and natural gas transportation business in the United States. Founded in 1991, EEP is part of the Enbridge group. Enbridge Energy Partners manages its natural gas business through its interest in Midcoast Energy Partners (MEP).

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EEP’s corporate structure

The above picture shows the corporate structure of Enbridge Energy Partners. Enbridge holds a ~42% stake in EEP. Enbridge Energy Management (EEQ) controls and manages the business affairs of EEP. EEQ’s only investment is its limited partner interest in EEP, so its profitability completely depends on EEP’s business.

EEP owns stakes in several group companies that manage its different areas of operation. EEP owns general partner and 52% limited partner interest in Midcoast Energy Partners, which is into the natural gas and natural gas liquids (NGLs) midstream businesses on a large scale.

Pipeline systems

EEP has a liquid transportation system from western Canada’s oil reserves through the Bakken formation in North Dakota. The pipeline network includes the Lakehead system, the Mid-Continent system, and the North Dakota system.

Natural gas systems

EEP formed Midcoast Energy Partners to own and grow its natural gas midstream business in the United States. Its natural gas and NGLs assets are located in Texas and Oklahoma—some of the most active gas-producing regions in the United States.

The three natural gas systems—Anadarko, East Texas, and North Texas—include 11,000 miles of natural gas gathering and transportation lines and ~233 miles of NGLs transportation lines.

Let’s analyze the performance of Enbridge Energy Partners’ segments in the next article.

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