EEP’s 30% fall
Enbridge Energy Partners (EEP) has fallen nearly 30% since January 27, 2017—the day it announced its guidance for 2017 and hinted at a possible distribution cut. The stock crossed below both its 50-day and its 200-day moving averages on the same day.
The above chart shows the stock’s movement over the past year, along with its 50- and 200-day moving averages. Apart from EEP’s natural gas and processing business—which the company is considering selling—the company’s Liquids segment seems to be performing well. However, a reduction in drilling activity in the Bakken region is expected to impact EEP’s earnings negatively in 2017.
The stock may continue to remain under pressure over the next few months until an outcome of Enbridge’s (ENB) ongoing strategic review is not announced. The expectation of a distribution cut may also keep the stock weak.
Now let’s examine what Wall Street analysts are recommending for EEP.