Enbridge Energy Partners Unit Starts Binding Open Season
Enbridge Pipelines (Ozark) L.L.C., an affiliate of Enbridge Energy Partners, L.P. EEP, recently announced the binding open season for its proposed expansion of the Enbridge Ozark Pipeline (“Enbridge Ozark”).
The pipeline, which extends from Cushing, OK, to Wood River, IL, is expected to increase the capacity of the pipeline by enhancing horsepower at pump stations and adding drag reducing agents (DRAs) to the crude petroleum. The expansion is scheduled to be in service by the second quarter of 2018.
The open season allows interested shippers to support the expansion by making firm commitments for a minimum of 10 years. Upon fulfillment of the regulatory terms of the Federal Energy Regulatory Commission (FERC), committed volumes will not be put through pro-rationing to include uncommitted volumes under ordinary operating conditions.
To offer financial support for the expansion, the volume commitment of any existing historical shipper on Enbridge Ozark would be over and above the shipper's previous shipments of crude petroleum on Enbridge Ozark.
The binding open season period began on Dec 15, 2016, and will end on Jan 19, 2017.
Genuine potential shippers that aspire to obtain access to the Open Season documents, including the Transportation Services Agreement, need to sign a Confidentiality Agreement. No edits or amendments to the Confidentiality Agreement will be accepted.
Enbridge Energy Partners’ focus on fee-based and diversified businesses has enabled it to dilute its business risks as well as provide a stable and steadily growing earnings profile. We remain positive on Enbridge given its increased exposure to the Bakken Shale, the Haynesville Shale and Granite Wash. Owing to its strong fundamentals the company outperformed the Zacks categorized Oil/Gas Production Pipeline MLP industry in the last one month. During the aforesaid period, Enbridge gained 1.8% compared with 1.1% improvement for the Zacks categorized Oil/Gas Production Pipeline MLP industry.
Enbridge Energy Partners currently has a Zacks Rank #3 (Hold). Some better-ranked players in the same sector include SunCoke Energy Inc. SXC, Suncor Energy, Inc. SU and Futurefuel Corp. FF. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SunCoke Energy posted a positive earnings surprise of 177.78% in the last reported quarter. It reported a positive earnings surprise in three of the four preceding quarters.
Suncor Energy posted a positive earnings surprise of 300.00% in the preceding quarter. It reported an average earnings surprise of 40.55% for the four trailing quarters.
Futurefuel Corp. posted a positive earnings surprise of 20.83% in the last reported quarter. It reported a positive earnings surprise in all of the last four quarters.
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