Enbridge Energy Partners L.P. (EEP, Financial) filed Quarterly Report for the period ended 2009-03-31.
Enbridge Energy Partners L.P. owns the U.S. portion of the world's longest liquid petroleum pipeline. Enbridge Energy Company Inc. an indirect wholly owned subsidiary of Enbridge Inc. of Calgary Alberta holds an effective 14.5% interest in the Partnership. (Press Release) Enbridge Energy Partners L.P. has a market cap of $2.77 billion; its shares were traded at around $36.39 with a P/E ratio of 13 and P/S ratio of 0.3. The dividend yield of Enbridge Energy Partners L.P. stocks is 10.9%. Enbridge Energy Partners L.P. had an annual average earning growth of 0.4% over the past 10 years.
Operating income from our Natural Gas segment decreased by $55.0 million to $17.2 million for the three months ended March 31, 2009, from the $72.2 million for the same period of 2008. The following factors affected the operating income of our Natural Gas business:
Operating income from our Marketing segment increased by $3.4 million to $3.9 million for the three months ended March 31, 2009 compared to $0.5 million in the same period in 2008. The operating results of our Marketing segment for the three months ended March 31, 2009 were positively affected by $6.0 million fewer
Operating revenue for the three months ended March 31, 2009 increased by $62.4 million to $219.4 million from $157 million for the same period in 2008. The increase in operating revenue is due to the following:
During the three months ended March 31, 2009, we recorded approximately $13.8 million of previously unbilled operating revenues associated with our Lakehead system that relate to incorrectly invoicing shippers from October 2005 through December 2008. Enbridge Energy, Limited Partnership (the Enbridge Partnership), our wholly-owned subsidiary, is party to a joint tariff agreement with Mustang, a business partially-owned by Enbridge Inc. (Enbridge) (30%) and a major integrated oil company (70%.) Mustang receives crude oil from the Enbridge Partnership system in the Chicago, Illinois market area. Crude oil delivered to Mustang is then transported on their pipeline system to markets south of Chicago. The joint tariff agreement in place with Mustang allows for shippers on our Lakehead system to reach markets downstream of Chicago by providing committed shippers with a discounted transportation rate for their commitments to transport crude oil exiting our Lakehead system in the Chicago region through the Mustang pipeline. Since October 2005, a shipper on our Lakehead system, which was not a committed shipper, was incorrectly invoiced at the discounted transportation rate. Additionally, we continued to invoice two shippers whose commitments expired in September 2008 at discounted transportation rates rather than the undiscounted non-committed shipper rates. As a result of invoicing these shippers at the discounted rate rather than the undiscounted rate, we did not record approximately $13.8 million of operating revenues on our Lakehead system from October 2005 through December 2008. The unrecorded revenues were not material to prior financial statement periods and we have included the entire $13.8 million in our consolidated statement of income for the three months ended March 31, 2009.
In connection with the development of a diluent pipeline being constructed by Enbridge Pipelines (Southern Lights), L.L.C. (Southern Lights), a wholly-owned subsidiary of our general partner, we completed the transfer of a 156-mile section of pipeline from our Lakehead system (Line 13) to Southern Lights, in exchange for a newly constructed light sour pipeline. In connection with the exchange, at the request of shippers and to ensure adequate southbound pipeline capacity prior to the completion of the Alberta Clipper project, we agreed to lease Line 13 back for monthly payments of $1.8 million. The transfer and lease became effective February 20, 2009, which was the in-service date for the light sour pipeline. The lease of Line 13 will be effective until the earliest of (i) July 1, 2010, (ii) upon the transfer of the Canadian portion of Line 13 from Enbridge Pipelines Inc. (Enbridge Pipelines), a subsidiary of Enbridge, to Enbridge Southern Lights LP, a wholly-owned subsidiary of Enbridge Pipelines, or (iii) early termination of the lease. We are able to terminate the lease at any time during the term by providing Southern Lights with written notice, at which time we would only be required to return Line 13 to Southern Lights. The costs associated with the lease will be recovered through a tolling surcharge on our Lakehead system and the net effect on our cash flow is expected to approximate zero. The exchange resulted in a $160.7 million increase in Property, plant and equipment and the capital account of our general partner included in Partners capital on our March 31, 2009 consolidated statement of financial position for the $165.7 million cost of the light sour pipeline that was in excess of the $5.0 million net book value of the Line 13 assets we exchanged. The light sour line is newer and has a slightly higher capacity than the Line 13 pipeline, which will allow us to transport additional volumes of light sour crude oil on our Lakehead system with less integrity and maintenance costs, although depreciation expense is anticipated to increase in future periods due to the higher book value associated with these assets.
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Enbridge Energy Partners L.P. owns the U.S. portion of the world's longest liquid petroleum pipeline. Enbridge Energy Company Inc. an indirect wholly owned subsidiary of Enbridge Inc. of Calgary Alberta holds an effective 14.5% interest in the Partnership. (Press Release) Enbridge Energy Partners L.P. has a market cap of $2.77 billion; its shares were traded at around $36.39 with a P/E ratio of 13 and P/S ratio of 0.3. The dividend yield of Enbridge Energy Partners L.P. stocks is 10.9%. Enbridge Energy Partners L.P. had an annual average earning growth of 0.4% over the past 10 years.
Highlight of Business Operations:
Operating income from our Liquids segment increased by $40.6 million to $102.2 million for the three months ended March 31, 2009, from the $61.6 million generated during the same period of 2008. The operating income of our Liquids segment was affected by the following:Operating income from our Natural Gas segment decreased by $55.0 million to $17.2 million for the three months ended March 31, 2009, from the $72.2 million for the same period of 2008. The following factors affected the operating income of our Natural Gas business:
Operating income from our Marketing segment increased by $3.4 million to $3.9 million for the three months ended March 31, 2009 compared to $0.5 million in the same period in 2008. The operating results of our Marketing segment for the three months ended March 31, 2009 were positively affected by $6.0 million fewer
Operating revenue for the three months ended March 31, 2009 increased by $62.4 million to $219.4 million from $157 million for the same period in 2008. The increase in operating revenue is due to the following:
During the three months ended March 31, 2009, we recorded approximately $13.8 million of previously unbilled operating revenues associated with our Lakehead system that relate to incorrectly invoicing shippers from October 2005 through December 2008. Enbridge Energy, Limited Partnership (the Enbridge Partnership), our wholly-owned subsidiary, is party to a joint tariff agreement with Mustang, a business partially-owned by Enbridge Inc. (Enbridge) (30%) and a major integrated oil company (70%.) Mustang receives crude oil from the Enbridge Partnership system in the Chicago, Illinois market area. Crude oil delivered to Mustang is then transported on their pipeline system to markets south of Chicago. The joint tariff agreement in place with Mustang allows for shippers on our Lakehead system to reach markets downstream of Chicago by providing committed shippers with a discounted transportation rate for their commitments to transport crude oil exiting our Lakehead system in the Chicago region through the Mustang pipeline. Since October 2005, a shipper on our Lakehead system, which was not a committed shipper, was incorrectly invoiced at the discounted transportation rate. Additionally, we continued to invoice two shippers whose commitments expired in September 2008 at discounted transportation rates rather than the undiscounted non-committed shipper rates. As a result of invoicing these shippers at the discounted rate rather than the undiscounted rate, we did not record approximately $13.8 million of operating revenues on our Lakehead system from October 2005 through December 2008. The unrecorded revenues were not material to prior financial statement periods and we have included the entire $13.8 million in our consolidated statement of income for the three months ended March 31, 2009.
In connection with the development of a diluent pipeline being constructed by Enbridge Pipelines (Southern Lights), L.L.C. (Southern Lights), a wholly-owned subsidiary of our general partner, we completed the transfer of a 156-mile section of pipeline from our Lakehead system (Line 13) to Southern Lights, in exchange for a newly constructed light sour pipeline. In connection with the exchange, at the request of shippers and to ensure adequate southbound pipeline capacity prior to the completion of the Alberta Clipper project, we agreed to lease Line 13 back for monthly payments of $1.8 million. The transfer and lease became effective February 20, 2009, which was the in-service date for the light sour pipeline. The lease of Line 13 will be effective until the earliest of (i) July 1, 2010, (ii) upon the transfer of the Canadian portion of Line 13 from Enbridge Pipelines Inc. (Enbridge Pipelines), a subsidiary of Enbridge, to Enbridge Southern Lights LP, a wholly-owned subsidiary of Enbridge Pipelines, or (iii) early termination of the lease. We are able to terminate the lease at any time during the term by providing Southern Lights with written notice, at which time we would only be required to return Line 13 to Southern Lights. The costs associated with the lease will be recovered through a tolling surcharge on our Lakehead system and the net effect on our cash flow is expected to approximate zero. The exchange resulted in a $160.7 million increase in Property, plant and equipment and the capital account of our general partner included in Partners capital on our March 31, 2009 consolidated statement of financial position for the $165.7 million cost of the light sour pipeline that was in excess of the $5.0 million net book value of the Line 13 assets we exchanged. The light sour line is newer and has a slightly higher capacity than the Line 13 pipeline, which will allow us to transport additional volumes of light sour crude oil on our Lakehead system with less integrity and maintenance costs, although depreciation expense is anticipated to increase in future periods due to the higher book value associated with these assets.
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