Enbridge Energy Partners, L.P. (NYSE:EEP) currently trades at $19.01 which is about -10.88% lower than the 52-week high of $26.36. The trading volume at ready counter moved to 7.49M shares as compared to 1.14M shares average traded volume. The stock failed to get pushed above the $21.00 barrier, the intraday high, after opening at $20.91. Analysts have a consensus target price of $25.39 in the 12-month period. Its market capitalization has now reached to $5.48B.
Enbridge Energy Partners, L.P. (NYSE:EEP) was dropped to Underweight from Equal Weight at Barclays. It has earned a consensus buy rating, according to Zacks Investment Research. No analyst has rated the stock with a sell rating, 2 have assigned a hold rating, Zero says it’s a buy and 3 have assigned a strong buy rating to the company.
Enbridge Energy Partners, L.P. (EEP) on January 27, 2017 announced that the Board of Directors of the delegate of the Partnership’s general partner has declared a quarterly cash distribution of $0.583 per unit, or $2.332 per unit on an annualized basis, on all of the Partnership’s outstanding units for the quarter ended December 31, 2016. The approved distribution remains unchanged from the previous quarter. The distribution is payable on February 14, 2017, to unitholders of record at the close of business on February 7, 2017.
Financial Update
Following a review of EEP’s near-term financial outlook, the Partnership expects to meet its 2016 adjusted EBITDA and Distributable Cash Flow (DCF) guidance of $1.8 – $1.9 billion and $860 – $920 million, respectively. The full 2016 results are expected to be reported on February 16, 2017.
Management expects 2017 adjusted EBITDA and DCF to be $1.7 – $1.8 billion and $750 – $800 million, respectively. The Partnership’s expected financial performance for 2017 reflects further weakening of its natural gas gathering and processing business due to lower realized commodity prices and volume flows. Also, a reduction in drilling activity in the Bakken region has resulted in reduced revenue projections from portions of EEP’s existing North Dakota Liquids assets and in the previously announced deferral of the Sandpiper Pipeline.
Strategic Review
As the Partnership and its sponsor, Enbridge Inc. (“ENB” or “Enbridge”), have previously announced, a strategic review of EEP is ongoing with the objectives of improving EEP’s financial position and future outlook. The review is expected to continue into the second quarter of 2017. Three initial strengthening actions are being undertaken now which together alleviate short-term capital expenditure requirements and enhance EEP’s cash flows. These actions are reflected in the Partnership’s 2017 financial outlook.
