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Enbridge Energy Partners Inside Out: Segments and Assets

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EEP’s 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 Midcoast Energy Partners (MEP). Enbridge (ENB) holds a ~42% stake in EEP.

Enbridge Energy Partners owns stakes in several group companies that manage different areas of operations. EEP owns the general partner and limited partner interests in Midcoast Energy Partners, which is largely into the natural gas and natural gas liquids midstream business.

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Natural gas business

In January 2017, Enbridge (ENB) announced an agreement to acquire all of the outstanding publicly held common units of MEP. The public interest to be acquired by Enbridge represents a ~25% effective interest in Enbridge Energy Partners’ natural gas gathering and processing business.

Midcoast Energy Partners’ performance has been severely impacted over the last couple of years due to low commodity prices. EEP is currently considering “the sale of a portion or all of its remaining interests in the natural gas gathering and processing assets, including to ENB.”

Pipeline Systems

Enbridge Energy Partners has liquid transportation system starting from Western Canada’s oil reserves and Bakken formation in North Dakota. The pipeline network includes the Lakehead system, the Mid-continent system, and the North Dakota system, as you can see in the above graph.

Now let’s analyze the recent performance of Enbridge Energy Partners’ individual segments.

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