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Higher interest expense cuts into Enbridge Energy Partners' Q1'16 earnings

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Higher interest expense cuts into Enbridge Energy Partners' Q1'16 earnings

onMay 2 reported first-quarter 2016 adjusted net income of $113.8 million, or 17cents per unit, compared to $142.8 million, or 26 cents per unit, in the firstquarter of 2015.

TheS&P Capital IQ consensus normalized EPS estimate for the first quarter was11 cents.

Adjustednet income eliminates the effect of non-cash, mark-to-market net gains andlosses; environmental costs, net of insurance recoveries for the ; and Line2 hydrotest expenses, net of recoveries; among other adjustments.

Thedecrease in adjusted net income was attributed to higher interest expense,which more than offset higher operating income in the liquids pipeline businessdue to new projects coming online, the partnership said in the earnings release.

First-quarternet income was posted at $80.0 million, or 7 cents per unit, compared to $140.1million, or 26 cents per unit, in the year-ago quarter.

AdjustedEBITDA for the first quarter amounted to $466.2 million, compared to $432.2million in the year-ago quarter, while distributable cash flow for the quartertotaled $244.5 million, compared to $253.7 million in the same quarter lastyear.

"Thepartnership's financial results for the first quarter are in line with ourexpectations and supported by the record deliveries on our liquids pipelinesystems, which averaged 3.3 million barrels per day in the first quarter. Theincrease in system deliveries over the fourth quarter of 2015 is due to … thereversal and expansion of Line 9B to Eastern Canada and the Southern AccessExtension into the Patoka, Ill. market," said Mark Maki, president ofEnbridge Energy Partners.

In aseparate earnings release, MidcoastEnergy Partners LP reported a first-quarter 2016 adjusted net lossattributable to limited partners of $5.5 million, or a loss of 12 cents perunit, compared to an adjusted net loss of $2.8 million, or a loss of 6 centsper unit, in the first quarter of 2015.

The S&PCapital IQ consensus normalized EPS estimate for the first quarter was a lossof 17 cents.

First-quarteradjusted EBITDA attributable to the partnership was reported at $23.6 million,compared to $24.4 million in the year-ago quarter. Distributable cash flow forthe first quarter amounted to $16.5 million, compared to $18.6 million in theyear-ago quarter.

Midcoastwas formed by Enbridge Energy Partners to own its natural gas and NGLsmidstream business in the U.S.