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Enbridge Energy Partners, L.P.

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Enbridge Energy Partners L.P. has a diversified business portfolio, stable fee-based operating income and a strong liquidity position. Focus on a low risk business profile helps it to optimize returns, as well as generate stable earnings. Moreover, the Liquids system is believed to deliver strong results in the second half of the year. Enbridge Energy Partners’ second-quarter 2018 earnings beat the Zacks Consensus Estimate and also increased from the year-ago profit. However, revenues fell from the year-ago level. The partnership has significant amount of debt, with debt to capitalization ratio of 47.5%, higher than S&P 500‘s 42.9%. Also, the partnership’s cash balance plunged over 74% during the first six months of 2018, reflecting balance sheet weaknesses. Enbridge Energy’s return on capital of only 2.9% compared to industry’s ratio of 4.5%, reflects the partnership’s inefficiency in utilization of capital.

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