EEP 15.91  0.06%
EEQ 15.32  0.91%
ENB 40.03  1.11%

Quarterly Earnings

May 10, 2017

Enbridge Energy Partners, L.P. (NYSE: EEP) (Enbridge Partners or the Partnership) reported first quarter net income and cash provided by operating activities of $65.4 million and $233.7 million, respectively. Enbridge Partners reports first quarter adjusted EBITDA and distributable cash flow (DCF) of $414.1 million and $197.7 million, respectively.(1)

Q1 2017 HIGHLIGHTS

  • First quarter net income was $65.4 million
  • First quarter cash provided by operating activities was $233.7 million
  • First quarter adjusted earnings before interest, taxes and depreciation (EBITDA) was $414.1 million
  • First quarter distributable cash flow (DCF) was $197.7 million
  • On January 27, 2017, the Partnership announced three initial actions to strengthen its financial outlook
  • On April 28, 2017, the Partnership announced the conclusion and outcomes of its strategic review designed to strengthen and simplify EEP’s commercial and financial profile and position EEP as a pure-play, liquids pipeline MLP
 
Mark Maki - Senior VP & President, EEP

First quarter results were in-line with expectations and the 2017 financial outlook provided on January 27, 2017. First quarter 2017 adjusted EBITDA and DCF were $414.1 million and $197.7 million, respectively. Lakehead system deliveries reached a record level of 2.748 million barrels per day during the quarter. Higher volumes on the Mainline partially offset continued weakness in the natural gas business and lower average transportation rates and volumes on the North Dakota system.

On April 28, the Partnership announced the conclusion of its strategic review and several comprehensive actions to strengthen the Partnership’s financial position and outlook. The actions taken together with its general partner, Enbridge Energy Company, Inc. (EECI or the General Partner), a subsidiary of Enbridge Inc. (NYSE:ENB) (Enbridge), along with the actions taken on January 27 will position the Partnership as a pure-play, liquids pipeline MLP with a low-risk commercial profile, stable cash flows, a strong balance sheet, healthy distribution coverage, visible growth and very limited external capital needs.

Based on the restructuring actions announced on April 28, 2017, the Partnership previously provided pro forma guidance metrics, assuming the restructuring actions were effective January 1, 2017, of:

  • Adjusted EBITDA of $1,580 – $1,680 million
  • DCF of $700 – $750 million

"We believe these restructuring actions re-establish EEP with an attractive and sustainable risk-return value proposition,” said Mark Maki, President for the Partnership. “EEP will be positioned as a pure-play liquids pipeline MLP with one of the lowest risk commercial profiles in the industry, generating stable and predictable cash flows over the long term, irrespective of market conditions. Our first quarter and second quarter mark a transition of the Partnership to the value proposition envisioned in our strategic review. We have executed upon the majority of these actions and expect to complete the balance in the second quarter.”

Mark Maki

President, EEP