Enbridge Energy Partners L.P. EEP reported second-quarter 2015 adjusted earnings of 18 cents per unit, which fell behind the Zacks Consensus Estimate of 26 cents. Earnings also came below the year-earlier profit of 26 cents.
Total revenue of $1,313.1 million in the quarter was down 29.8% from $1,871.1 million in the year-ago quarter. This also came below the Zacks Consensus Estimate of $1,799.0 million.
Distribution
Enbridge declared a quarterly cash distribution rate of 58.3 cents per unit ($2.2332 per unit annualized). The distribution will be paid on Aug 14, 2015 to unitholders of record as of the close of business on Aug 7.
Operational Performance
Operating income in the Liquids segment surged about 37.8% to $270.6 million in the quarter from the year-earlier level of $232.8 million. The segment witnessed an increase in transportation rates and higher deliveries on liquids pipeline systems. Total liquids system deliveries increased approximately 8% year over year.
Operating income in the Natural Gas segment fell $3.9 million from the prior-year quarter to $2.7 million. The decrease in adjusted operating income was predominantly due to lower natural gas throughput and NGL production volumes on major systems. The decrease in natural gas and NGL volumes was primarily due to the persistently low commodity price environment for natural gas, NGLs, condensate and crude oil that has resulted in lesser drilling activity.
Ranks
Enbridge Energy carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the oil and gas sector are Linn Energy, LLC LINE, Holly Energy PartnersL.P. HEP and Cheniere Energy, Inc. LNG. All these stocks sport a Zacks Rank #1 (Strong Buy).
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