Enbridge Energy (EEP) Q1 Earnings & Revenues Beat Estimates
Zacks Investment Research | May 10, 2017 09:28PM ET
Oil and natural gas transporter Enbridge Energy Partners L.P. (NYSE:EEP) reported first-quarter 2017 adjusted earnings of 16 cents per unit, which surpassed the Zacks Consensus Estimate of 7 cents. The upside was mainly driven by higher deliveries on the Lakehead pipeline system and increased revenues from additional projects placed into service in 2016.
The bottom line, however, decreased from the year-earlier level of 17 cents per unit. The decrease mainly stemmed from lower income by both the liquid and natural gas segments.
Total revenue in the quarter increased to $1,178.7 million from the year-ago level of $1,061.6 million and also came in above the Zacks Consensus Estimate of $1,133 million.
Segment Performance
Liquids: Adjusted operating income in the Liquids segment decreased to $277.3 million from $310.5 million in the comparable period of 2016. The downside stemmed from lower average rates and weak transportation volumes in the North Dakota system.
Natural Gas: The Natural Gas unit reported adjusted loss of $21.8 million, significantly wider than an operating loss of $1.6 million in the year-ago quarter. The deterioration mainly stemmed from lower natural gas and NGL system production volumes. Reduced system volumes were primarily attributable to the still low commodity price environment for hydrocarbons.
Distribution
Enbridge Energy Partners decreased its quarterly cash distribution to 35 cents per unit from 58.3 cents per unit, or $1.40 per unit on an annualized basis. The distribution will be paid on May 15, to unitholders on record at the close of business on May 8.
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