EEQ 15.00  0%
EEP 15.74  0%
ENB 41.23  0.46%

Quarterly Earnings

August 2, 2017

Enbridge Energy Management, L.L.C. (NYSE: EEQ) (Enbridge Management) manages the business and affairs of Enbridge Partners, and its sole asset is an approximate 19 percent limited partner interest in Enbridge Energy Partners, L.P. (EEP)

On July 28, 2017, EEP declared a quarterly cash distribution of $0.35 per unit, or $1.40 per unit on an annualized basis, payable on August 14, 2017 to shareholders of record on August 7, 2017. The distribution will be paid in the form of 2.2758 additional shares of Enbridge Management valued for each 100 shares of record on August 7, 2017.

Q2 2017 EEP Results

Net income for the second quarter of 2017 increased $8.9 million over the same period from the prior year as a result of decreased losses from discontinued operations due to changes in non-cash mark-to-market derivative transactions and reduced operating and administrative costs. Net income from continuing operations decreased $8.3 million over the same period from the prior year as a result of lower earnings, predominately due to lower tolls on the North Dakota system. This decrease was partially offset by higher volumes on the Lakehead system primarily as a result of non-recurrence of the wildfires in northeastern Alberta in the second quarter of 2016, and the sale of unnecessary pipe related to the Sandpiper Project in the current period.

Adjusted net income of $65.3 million for the second quarter of 2017 was $70.3 million lower than the same period from the prior year. The decrease is attributable to discontinued operations, which decreased $27.6 million due to lower commodity prices, decreased processing and storage margins, reduced natural gas throughput and reduced NGL production volumes. The decrease was partially offset by reduced operating and administrative costs due to cost savings in the 2017 period as a result of workforce reductions, lower property taxes and other cost reduction efforts. Continuing operations decreased due to the drivers previously discussed.

Construction has begun on the U.S. L3R Program in Wisconsin and will begin this summer on certain sections of Line 3 in Canada (Canadian L3R Program) owned by Enbridge Income Partners LP (Enbridge). This project will enhance the reliability of EEP’s Lakehead system and is a key execution priority for the Partnership.

Executive Comments

Mark Maki - Senior VP & President, EEP

"With the restructuring actions and transition to a pure play liquids pipeline business now complete, we’re pleased to be moving forward with a stronger balance sheet, healthier distribution coverage, limited external capital needs and a lower risk business overall,” said Mark Maki, President for the Partnership. “With the gas business removed, we’re excited about the return to EEP’s core business of liquids pipelines. The “utility like” value proposition offered by the Partnership is expected to provide our investors with stable and predictable results from some of North America’s most strategic liquids pipeline infrastructure.”

Mark Maki

President, EEP