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Enbridge Energy (EEP) Q2 Earnings Beat, Revenues Decline Y/Y

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Oil and natural gas transporter, Enbridge Energy Partners L.P. (EEP - Free Report) , reported second-quarter 2018 adjusted earnings of 15 cents per unit, which came above the Zacks Consensus Estimate of 14 cents. The bottom line also increased from the year-ago profit of 14 cents.

The uptick was mainly driven by higher deliveries on the Lakehead pipeline system, which was partially offset by loss at the Other segment.

Enbridge Energy Partners, L.P. Price, Consensus and EPS Surprise


Enbridge Energy Partners, L.P. Price, Consensus and EPS Surprise | Enbridge Energy Partners, L.P. Quote

Total revenues in the quarter fell to $537 million from the year-ago level of $596 million.


Enbridge declared a quarterly cash distribution of 35 cents per unit, or $1.40 per unit on an annualized basis, for the quarter ended Jun 30, 2018. The distribution is payable on Aug 14 to unitholders of record at the close of business on Aug 7.

Segment Performance

The partnership manages its business under one head — Liquids. All other businesses are reported under the head — Other.

Liquids: Adjusted operating income in the Liquids segment decreased to $384 million from $393 million over the comparable period in 2017. The downside was due to the FERC’s decision that restricts entities organized as MLPs from recovering an income tax allowance in their cost of service rates. This impacted the partnership’s income.

Other:The unit reported operating loss of $4 million against an operating income of $4 million in the year-ago quarter.

Q2 Price Performance

Enbridge has underperformed the industry during the second quarter. The partnership’s units returned 13.4% compared with the industry's 14.9% rise.


Zacks Rank and Stocks to Consider

Enbridge currently carries a Zacks Rank #3 (Hold).

A few better-ranked players in the same sector are Canadian Natural Resources Limited (CNQ - Free Report) , China Petroleum and Chemical Corporation (SNP - Free Report) , also known as Sinopec, and Sunrun Inc (RUN - Free Report) . All these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Canadian Natural Resources, based in Calgary, Alberta, is an exploration and production (E&P) company. It pulled off an average positive earnings surprise of 4.7% in the last four quarters.

Sinopec is one of the largest petroleum and petrochemical companies in Asia. The company delivered an average positive earnings surprise of 492.8% in the trailing four quarters.

Sunrun is engaged in offering solar services through various channels. The company delivered an average positive earnings surprise of 16.3% in the last four quarters.

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