Enbridge Energy Partners (EEP) Earnings Beat Estimates In Q4

Enbridge Energy Partners L.P. (NYSE:EEP) reported fourth-quarter 2017 adjusted earnings of 26 cents per unit, which came in above the Zacks Consensus Estimate of 20 cents. The bottom line also improved from the year-earlier level of 14 cents. The upside was mainly driven by higher income from the Bakken assets.

Full-year 2016 earnings of 80 cents per unit topped the Zacks Consensus Estimate of 71 cents. Enbridge Energy Partners posted earnings of 62 cents per unit in 2016.

Segment Performance

Liquids: Adjusted operating income at the Liquids segment declined to $433 million from $434 million in the comparable period of 2016. The downside was driven by lower revenues from the Lakehead system as well as the Mid-Continent system. This was partially offset by the rise in revenue from the Bakken assets.

Other: The Natural Gas unit reported operating loss of $3 million, compared with an operating income of $35 million in the year-ago quarter.

Distribution

Enbridge Energy declared a quarterly cash distribution of 35 cents or $1.40 per unit on an annualized basis for the quarter ended on Dec 31, 2017. The approved distribution remains unchanged from the previous quarter. The distribution was paid on Feb 14, to unit-holders of record at the close of business as of Feb 7.

Price Performance

During the fourth quarter, Enbridge Energy Partners’ shares have underperformed the industry. The company’s shares have lost 13.6%, compared with the industry’s decline of 4%.

Zacks Rank & Key Picks

Enbridge Energy Partners currently carries a Zacks Rank #4 (Sell).

A few better-ranked players in the same sector are EOG Resources (NYSE:EOG) , Pioneer Natural Resources Company (NYSE:PXD) and Devon Energy (NYSE:DVN) . All of these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Houston, TX-based EOG Resources is a major independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 40.94% in the preceding four quarters.

Headquartered in Irving, TX, Pioneer Natural Resources is an independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 66.92% in the preceding four quarters.

Devon Energy, based in Oklahoma City, is an independent energy company, engaged primarily in the exploration, development and production of oil and natural gas. The company delivered a positive earnings surprise of 13.77% in the preceding quarter.

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