Enbridge Energy Partners L.P. EEP reported first-quarter 2015 adjusted earnings of 26 cents per unit, which increased 30% from the year-earlier profit of 20 cents.
Total revenue in the quarter was down 31.3% year over year at $1,428.6 million from the year-ago level of $2,079.6 million.
Distribution
Enbridge declared quarterly cash distribution rate of 57 cents per unit ($2.28 per unit annualized).
Operational Performance
Operating income in the Liquids segment surged about 33% to $272.4 million in the quarter from the year-earlier level of $205.2 million. The segment witnessed higher indexed transportation rates, in addition to higher deliveries. Contributions from growth projects that were commissioned during 2014, in particular the completion of a large component of its Eastern Access Program, led to higher revenues. The Line 6B Replacement project from Griffith, IN to the International Border and the first phase of Mainline Expansions deserve a special mention in this regard.
The partnership’s volumes in the Liquids system rose 16.9% year over year to 2,871 thousand barrels per day.
Operating income of the Natural Gas segment increased 6% year over year to $7.1 million. The increase was primarily due to higher natural gas liquids production volumes, in addition to lower operating and administrative costs, which are attributable to workforce reductions and other cost savings measures implemented in Dec 2014.
During the quarter, Natural Gas throughput dropped to 2,125,000 million British thermal units per day (MMBtu/d) from the year-earlier level of 2,067,000 MMBtu/d.
Ranks
Enbridge Energy carries a Zacks Rank #3 (Hold). Better-ranked stocks from the oil and gas sector include Suncor Energy Inc. SU, CNOOC Ltd CEO and Hallador Energy Co. HNRG. These stocks sport a Zacks Rank #1 (Strong Buy).
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