Enbridge Energy Partners Reports Earnings On July 31

| About: Enbridge Energy (EEP)

Enbridge Energy Partners LP (EEP) is scheduled to report its Q2 2012 results on July 31, 2012, before market opens. The street expects EPS and revenue of $0.31 and $1.77B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from EEP and the news from its closest competitors.

Enbridge Energy Partners LP Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has failed to meet analysts' estimates in the last four quarters. In the last quarter it reported $0.28 EPS, failing to meet analyst estimates of $0.37.

Enbridge Energy Partners LP EPS Historical Results vs Estimates

The consensus EPS estimate is $0.31 based on 14 analysts' estimates, down from $0.32 a year ago. Revenue estimates are $1.77B, down from $2.37B a year ago. The median target price by analysts for the stock is $34.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On July 18, 2012, Global Hunter Securities downgraded the company from Buy to Neutral.
  • On July 3, 2012, Wells Fargo upgraded the company from Hold to Strong Buy.
  • On June 28, 2012, Oppenheimer upgraded the company from Perform to Outperform.
  • On April 16, 2012, Global Hunter Securities initiated Buy rating for the company.
  • On January 30, 2012, Morgan Keegan downgraded the company from Outperform to Mkt Perform.

Latest News

  • On July 2, 2012, Enbridge Energy Partners, L.P. announced that, given the decline in the natural gas liquids ("NGL") commodity price environment, it is updating its financial outlook for full year 2012. The Partnership expects full year adjusted net income for the current year to be between $440 million and $470 million, with adjusted EBITDA forecasted to be between $1.12 and $1.17 billion. Although the near term outlook for its natural gas business is being affected by the recent declines in NGL prices, the impact of commodity prices is significantly mitigated by the Partnership's existing commodity hedging arrangements.
  • On May 16, 2012, Enbridge Energy Partners, L.P. announced that it is moving forward with further expansions of its crude oil mainline pipeline system. The Lakehead System expansions are designed to increase deliveries to various refinery markets in the Upper Midwest, eastern Canada and, through connecting Enbridge pipelines, the U.S. Gulf Coast.
  • On May 16, 2012, Enbridge Energy Partners, L.P. announced that it has secured commercial support to proceed with additional Eastern Access projects. Enbridge and Enbridge Energy Partners, L.P. also expect to proceed with supporting expansions of the U.S. mainline system between Flanagan, Illinois and Sarnia, Ontario.
  • On May 16, 2012, Enbridge Inc. (TSX: ENB) and Enbridge Energy Partners L.P. announced approximately $0.4 billion of projects to expand capacity of the Lakehead System mainline between its origin near Neche, North Dakota, to its growing terminal hub in Flanagan, Illinois, southwest of Chicago.
  • On April 30, 2012, Enbridge Energy Partners, L.P. declared a cash distribution of $0.53250 per unit payable May 15, 2012 to unitholders of record on May 7, 2012.
  • On March 7, 2012, Enbridge Energy Partners LP announced that for fiscal 2012, it expects the earnings to be between $510-$550 million.
  • On January 31, 2012, Enbridge Energy Partners LP announced that for fiscal 2012, it expects adjusted net income will be between $510-$550 million, adjusted EBITDA will be between $1.19-$1.25 billion and operating income (EBIT) to be between $870-$910 million.

Competitors

Enterprise Products Partners (EPD), Energy Transfer Partners (ETP), Kinder Morgan Energy Partners (KMP), ONEOK Partners (OKS), and Williams Companies (WMB) are considered competitors for Enbridge Energy Partners and the table below provides the key metrics for these companies and the industry.

Enbridge Energy Partners LP key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

EEP ChartClick to enlarge
(Click to enlarge)

EEP data by YCharts

Competitors' Latest Development

  • On July 19, 2012, Kinder Morgan Energy Partners and BP North America announced the execution of long-term commercial agreements to provide BP condensate processing services and storage at Kinder Morgan's terminals located on the Houston Ship Channel.
  • On July 18, 2012, Kinder Morgan Energy Partners increased its quarterly cash distribution per common unit to $1.23 ($4.92 annualized) payable on Aug. 14, 2012, to unitholders of record as of July 31, 2012.
  • On July 17, 2012, Dow Jones reported that Peabody Energy Corp. has entered an agreement with Kinder Morgan Energy Partners to expand the Gulf Coast coal-export platform for Peabody's Colorado, Powder River Basin and Illinois Basin coal products.
  • On July 12, 2012, Enterprise Products Partners LP announced that the board of directors of its general partner declared an increase in the quarterly cash distribution rate paid to partners to $0.6350 per common unit, or $2.54 per unit on an annualized basis.
  • On June 28, 2012, Energy Transfer Partners LP announced that it has priced a public offering of 13,500,000 common units representing limited partner interests at $44.57 per common unit.
  • On June 19, 2012, Swift Energy Company announced that it has entered into a long term agreement for natural gas gathering and processing services for its LaSalle County, TX natural gas production with Eagle Ford Gathering LLC, a 50/50 joint venture between Kinder Morgan Energy Partners, L.P. and Copano Energy, L.L.C. This agreement is effective as of June 1, 2012.
  • On June 5, 2012, Kinder Morgan Energy Partners announced that it has completed its acquisition of a 50% interest in a joint venture that owns the Altamont gathering, processing and treating assets in the Uinta Basin in Utah and the Camino Real gathering system in the Eagle Ford Shale in Texas from Kohlberg Kravis Roberts & Co. L.P. for $300 million in Kinder Morgan Energy Partners units.
  • On May 1, 2012, Oneok Partners LP reaffirmed fiscal 2012 net income guidance range of $810 million to $870 million.
  • On April 30, 2012, Energy Transfer Partners LP and Sunoco Inc announced that they have entered into a definitive merger agreement whereby ETP will acquire Sunoco in a unit and cash transaction valued at $50.13 per share, or a total consideration of approximately $5.3 billion, based on ETP's closing price on April 27, 2012.
  • On April 25, 2012, Energy Transfer Equity, L.P. announced that its Board of Directors has approved a quarterly distribution of $0.625 per unit ($2.50 annualized) on ETE`s outstanding common units for the quarter ended March 31, 2012.
  • On April 25, 2012, Energy Transfer Partners LP announced that its Board of Directors has approved a quarterly distribution of $0.89375 per unit ($3.575 annualized) on ETP common units for the quarter ended March 31, 2012.
  • On April 13, 2012, Enterprise Products Partners LP announced that the Board of Directors of its general partner declared an increase in the quarterly cash distribution rate paid to partners to $0.6275 per common unit, or $2.51 per unit on an annualized basis.
  • On April 12, 2012, Enterprise Products Partners LP, Anadarko Petroleum Corporation and DCP Midstream, LLC announced an agreement to design and construct a new natural gas liquids (NGL) pipeline that will originate in the Denver-Julesburg Basin (DJ Basin) in Weld County, Colorado and extend approximately 435 miles to Skellytown, Texas in Carson County.
  • On February 27, 2012, Kinder Morgan Energy Partners And Martin Midstream Partners LP announced a new joint venture, Pecos Valley Producer Services LLC, to develop a multi-commodity rail terminal in Pecos, Texas.
  • On February 27, 2012, Oneok Partners LP announced a public offering of 7.0 million of its common units, representing limited partner interests, subject to market and other conditions.
  • On February 20, 2012, Oneok Partners LP announced that for fiscal 2012, it increased its net income guidance by more than 9% to a range of $810 million to $870 million, compared with the previous guidance range of $740 million to $800 million.
  • On February 17, 2012, Energy Transfer Equity, L.P. and Southern Union Company announced that they have filed with the Missouri Public Service Commission (the Commission) a Stipulation and Agreement (the Stipulation) among Southern Union, ETE and the Commission Staff.
  • On February 16, 2012, Energy Transfer Equity, L.P. announced that it has launched the syndication of a new senior secured credit facility of up to $2.30 billion. ETE intends to use the net proceeds from the senior secured credit facility, together with a portion of the proceeds from Southern Union Company's contribution of its 50% interest in Citrus Corp.
  • On February 16, 2012, Energy Transfer Partners, L.P. and Regency Energy Partners LP announced that their joint venture, Lone Star NGL LLC, will construct a second 100,000 barrel per day natural gas liquids fractionation facility at Mont Belvieu, Texas.
  • On February 16, 2012, Energy Transfer Partners, L.P. announced that it has entered into new multiple long-term, fee-based agreements with producers to provide natural gas gathering, processing, and liquids services from the Eagle Ford Shale in South Texas.
  • On February 13, 2012, Enterprise Products Partners LP announced that it has purchased a 37-acre tract of land adjacent to its Enterprise Crude Houston (ECHO) crude oil terminal, which is currently under construction, in southeast Harris County.
  • On February 8, 2012, Enterprise Products Partners LP announced that its operating subsidiary, Enterprise Products Operating LLC (EPO), has priced a public offering of $750 million of senior unsecured notes due on August 15, 2042 (August 2042 Notes).

Technical Overview


The stock has a market capitalization of $8.38B and is currently trading at $29.40 with a 52 week range of $24.66 - $33.85. The stock's year-to-date performance has been -8.35%. It is currently trading below 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.