Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Enbridge Energy Partners Working A Tricky Balance

A lot is going on these days in the energy MLP sector, as companies try to balance their needs for cash distribution growth to shareholders/unitholders, keep a sustainable balance sheet, and fund the capital spending needed to exploit what could well be a once-in-a-career buildout of new infrastructure to handle North America's growing energy output.

When it comes to Enbridge Energy Partners, L.P. (NYSE:EEP), the balancing act is a little trickier. Enbridge's (NYSE:ENB) recent decision to cut its top incentive distribution rights is a positive for EEP, as was a drop-down to Midcoast Energy Partners, L.P. (NYSE:MEP), but the company is still stretched on its distribution coverage and has a delicate balancing act...

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