Seeking Alpha

Morningstar: Enbridge Energy Partners is not the next Boardwalk

  • Despite outward similarities, Enbridge Energy Partners (EEP -0.2%) is not the next Boardwalk Pipeline, and instead its strong relationship with its general partner offers "unparalleled financial backing and growth prospects," according to Morningstar's Connie Hsu.
  • Distributable cash flow has been short of full coverage for two years, but cash flow and coverage will improve, recent weak profits are attributed mostly to cyclical and exceptional reasons, and EEP's liquids pipelines - by virtue of their connectivity to the Enbridge (ENB) family's expansive pipeline network - remain in high and growing demand, Hsu writes.
  • ENB's recent financial support of EEP shows symbiotic interests, and its yield is "stable and attractive," Hsu believes.
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