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Enbridge Energy (EEP) Q1 Earnings and Revenues Fall YoY

Oil and natural gas transporter Enbridge Energy Partners L.P. EEP reported first-quarter 2016 adjusted earnings of 17 cents per unit, which came above the Zacks Consensus Estimate of 11 cents. The bottom line however deteriorated from the year-earlier profit of 26 cents.
 

Total revenue in the quarter fell to $1,061.6 million from the year-ago level of $1,428.6 million.

Segment Performance

Liquids: Adjusted operating income in the Liquids segment increased $38.1 million from the comparable period in 2015 to $310.5 million. The upside came from higher transportation rates attributable to new assets placed into service and higher system deliveries. This was partially offset by increased power and operating expenses.

Natural Gas: The Natural Gas unit reported adjusted loss of $1.6 million, deteriorating decreased $8.7 million from the comparable period in 2015. The decrease was predominantly attributable to lower natural gas prices and NGL system production volumes. Lower system volumes were primarily attributable to the continued low commodity price environment for hydrocarbons. The decrease was partially offset by lower operating and administrative expenses from enacted cost-reduction measures.

Distribution

Enbridge raised its first-quarter cash distribution by 2.3% year over year. However, the distribution remained flat sequentially at 58.3 cents per unit ($2.332 per unit annualized). The distribution is payable on May 13, 2016, to unitholders of record at the close of business on May 6.

Zacks Rank

Enbridge Energy currently carries a Zacks Rank #4 (Sell). Some better-ranked players from the energy sector are ReneSola Ltd. SOL, Seadrill Partners LLC SDLP and Braskem S.A. BAK. Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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ENBRIDGE EGY PT (EEP): Free Stock Analysis Report
 
BRASKEM SA (BAK): Free Stock Analysis Report
 
RENESOLA LT-ADR (SOL): Free Stock Analysis Report
 
SEADRILL PTNRS (SDLP): Free Stock Analysis Report
 
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