Enbridge Energy Partners L.P. Reports Operating Results (10-Q)
Enbridge Energy Partners L.p. has a market cap of $5.96 billion; its shares were traded at around $61.58 with a P/E ratio of 19.9 and P/S ratio of 1. The dividend yield of Enbridge Energy Partners L.p. stocks is 6.6%. Enbridge Energy Partners L.p. had an annual average earning growth of 4.9% over the past 10 years.EEP is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations: In July 2010, the board of directors of Enbridge Energy Management, L.L.C. as delegate of our General Partner, announced a quarterly distribution that reflected a $0.025 per unit increase over the prior quarterly distribution rate which increased our distribution rate to $4.11 on an annualized basis. This increase is in addition to the $0.0125 per unit quarterly distribution rate increase, or $0.05 per unit on an annualized basis, that we announced in April 2010.
The operating losses of our Liquids segment for the three and nine month periods ended September 30, 2010 resulted from the overall impact of the crude oil releases on Lines 6A and 6B of our Lakehead system. In connection with these incidents, we estimate that, before insurance recoveries, the costs for the emergency response, environmental remediation and cleanup activities associated with the crude oil release, and related pipeline inspection costs were approximately $475 million, excluding fines and penalties, for the three and nine month periods ended September 30, 2010. In addition, during the period the pipelines were shut down for the replacement of the pipeline segments, our operating revenues were lower by approximately $16 million as a result of the volumes that we were unable to transport. We do not maintain insurance coverage for interruption of our operations, except for water crossing, and therefore we will not recover the revenues lost while Lines 6A and 6B were not in service. The operating losses that resulted from the incidents on Lines 6A and 6B were partially offset by transportation rate increases that went into effect in January and April 2010 and higher delivered volumes on our North Dakota system as a result of the completion of the North Dakota Phase VI expansion in the first quarter of 2010.
For the nine month period ended September 30, 2010 we had non-cash, mark-to-market net gains of $14.5 million compared with $13.3 million of non-cash, mark-to-market net losses for the comparable period of 2009.
Included in the operating results of our Marketing segment for the three and nine month periods ended September 30, 2010 were unrealized, non-cash, mark-to-market net gains of $1.3 million and net losses of $3.0 million, respectively, associated with derivative financial instruments that do not qualify for hedge accounting treatment under authoritative accounting guidance, as compared with $9.0 million and $19.6 million, respectively, of unrealized, non-cash, mark-to-market net gains for comparable periods in 2009. Further contributing to lower operating income for the three and nine month periods ended September 30, 2010 were relatively stable natural gas prices during these periods, which limited our opportunities to benefit from significant price differentials between market centers.
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