Texas-based Enbridge Energy Partners LP (EEP) announced an increase of 2.7% in its quarterly cash distribution from that of the previous quarter.
For the quarter ended Dec 31, 2014, the partnership declared a cash distribution of $0.57 per unit or $2.28 per unit on an annualized basis on all of its outstanding units. This represents a hike of 4.9% over the fourth quarter of 2013.
The distribution is payable on Feb 13, 2015, to unitholders on record as of Feb 6, 2015.
Enbridge Energy Partners, a master limited partnership, is engaged in the gathering, processing and transmission of natural gas and crude oil. The partnership is best known for its Lakehead System – one of the world’s longest petroleum pipeline systems. It forms the U.S. portion of the main artery for the delivery of crude oil supply from Western Canada to refining centers in the Upper Midwest of the U.S. and Ontario in Canada.
Recently, Enbridge Energy Partners announced its plans to make huge expansions in the crude oil mainline pipeline system. The project, estimated to cost $2.6 billion, will transfer crude from western Canada to Eastern refineries along with avoiding obstacles in the U.S. Midwest.
The initiative by the partnership and its general partner, Enbridge Energy Company Inc., would add more capacity to the company's Lakehead System and the Eastern Access Projects. With the execution of these two large plans, the partnership will benefit from the access to new markets in North America to grow yield from western Canada and the Bakken. These projects are believed to bring distribution growth, which is projected to be 2–5%, over the next couple of years.
Enbridge Energy Partners currently carries a Zacks Rank #3 (Hold). Better-ranked players from the energy sector include Cheniere Energy Partners LP (CQP), Transocean Partners LLC (RIGP) and Phillips 66 Partners LP (PSXP). All the stocks sport a Zacks Rank #1 (Strong Buy).
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