February 18, 2015
Enbridge Energy Partners, L.P. (NYSE:EEP) ("Enbridge Partners" or "the Partnership") reports adjusted EBITDA for the three months ended December 31, 2014 and full year 2014 of $443.3 million and $1.55 billion, respectively.
"In 2014, the Partnership’s strong financial performance was supported by record deliveries on our Lakehead and North Dakota liquids pipeline systems, in addition to the meaningful cash flow contributions from the execution of our multi-billion dollar organic growth program."
Senior VP & President, EEP
"In 2014, the Partnership's strong financial performance was supported by record deliveries on our Lakehead and North Dakota liquids pipeline systems, in addition to the meaningful cash flow contributions from the execution of our multi-billion dollar organic growth program. We expect deliveries on our liquids pipeline systems to remain strong in 2015 as we continue to progress our market access programs, providing our customers with expanded pipeline takeaway capacity from Western Canada and the Bakken formation to premium North American crude oil markets. With the backdrop of volatile commodity prices, the Partnership's competitive transportation rates and resulting cash flows are predominantly underpinned by long term low-risk commercial structures, such as cost of service and take-or-pay, which largely mitigate the sensitivity to volume and commodity prices to our business's distributable cash flow," said Mark Maki, president for the Partnership.
"Looking forward, our organic growth program is proceeding well and we expect to place several projects into service during 2015 that will increase our cash flows. The Partnership recently closed on the previously announced $1 billion drop down acquisition of the remaining 66.7 percent interest in the U.S. segment of the Alberta Clipper Pipeline from Enbridge. With full year contribution from the Eastern Access projects placed into service during 2014 and organic growth projects targeted to enter service this year, the Partnership anticipates earnings and distributable cash flow growth in 2015. This growth in distributable cash flow positions the Partnership to deliver annual distribution growth of 2 to 5 percent for 2015.” “We are excited about the long term outlook for the Partnership. A key development in the fourth quarter was the announcement by Enbridge that it is reviewing a potential restructuring plan that would involve the transfer of its directly held U.S. liquids pipeline assets to the Partnership. While we expect this review to be concluded by mid-year, the potential drop down of Enbridge’s U.S. liquids pipelines systems would add substantial new sources of long-lived and growing cash flows to the Partnership’s already exceptional portfolio of liquids pipeline systems. The restructuring plan under consideration by Enbridge once again demonstrates the strategic alignment and support of our sponsor Enbridge, and its commitment to enhancing the value of the Partnership for all of our investors,” noted Maki.
Enbridge Energy Partners, L.P. Reports 2014 Earnings and Announces 2015 Financial Guidance
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