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Why Is Enbridge Energy Partners, L.P. (EEP) Up 1.4% Since Last Earnings Report?

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A month has gone by since the last earnings report for Enbridge Energy Partners, L.P. (EEP - Free Report) . Shares have added about 1.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Enbridge Energy Partners, L.P. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Enbridge Energy Q3 Earnings Top Estimates, Falls Y/Y

Enbridge Energy Partners, L.P. recently reported third-quarter 2018 adjusted earnings of 19 cents per unit, which surpassed the Zacks Consensus Estimate of 17 cents, thanks to the decline in operating and administrative costs.

The bottom line, however, decreased from the year-ago profit of 24 cents, primarily due to a fall in operating income from the Liquids segment.

Total operating revenues in the quarter fell to $560 million from the year-ago level of $616 million.

Enbridge Energy Partners third-quarter 2018 earnings beat the Zacks Consensus Estimate. However, both earnings and revenues fell year over year.

Distribution

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

Segment Performance

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

Liquids: Adjusted operating income in the Liquids segment decreased to $402 million from $428 million in the comparable period of 2017. While adjusted income from Bakken Assets and Mid-Continent increased to $68 million (38.8% year over year) and $13 million (8.3% from a year ago), respectively, the same from the Lakehead system plunged to $321 million from $367 in the year-ago period.

Total third-quarter delivery volumes in the segment amounted to 3,005 thousand barrels per day (MBPD), higher than 2,923 MBPD in the year-ago period.

Other: The unit reported operating income of $1 million against an operating loss of $2 million in the year-ago quarter.

Expenses

The partnership’s third-quarter 2018 operating and administrative costs fell 22.2% year over year to $126 million.

Balance Sheet

At the end of Sep 30, 2018, the partnership’s available liquidity was around $900 million, while total debt was $7.3 billion.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, Enbridge Energy Partners, L.P. has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Enbridge Energy Partners, L.P. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.




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