Enbridge Energy Partners L.P.

Enbridge Energy Partners, L.P. (EEP - Analyst Report) estimates continue to climb as the company's most recent project is expected to go into production next year.

Company Description

Enbridge is an energy transportation company based in Texas. The partnership delivers crude oil, petroleum, and nat gas through pipelines near the Gulf Coast and the Mid-Continental region.

Crushed Estimates

On Oct 29th, the company reported third-quarter results that saw a 44% increase in adjusted net income. This lead to net income per share of 86 cents, up from 71 cents.

The Zacks Consensus Estimate was just 60 cents heading into the report, making this the second earnings surprise in a row and the third in the past 4 quarters.

Project Underway

Currently the partnership expects to complete its most recent project, Alberta Clipper, in mid-2010. The 1,000 mile heavy crude pipeline from Canada to Wisconsin will have capacity of 450,000 Bpd at first, but could expand to 800,000.

Estimates Jump

After analysts heard the earnings news, the Zacks Consensus Estimate jumped to $2.73 for this year, up from $2.37. Next year's forecasts average $2.98, up from $2.64. These levels are lower than last year's $3.15, but the earnings momentum is quite strong.

Units are currently trading at just over 18 times forward earnings.

The Chart

Units of EEP continue to set new 52-week highs and are quickly approaching multi-year highs. Momentum came back strong after the recent dip. Take a look at the chart below.

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service

Read the full analyst report on EEP