9.79 0.00 (0.00%)
After hours: 5:06PM EDT
|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||9.61 - 9.95|
|52 Week Range||9.19 - 19.64|
|PE Ratio (TTM)||19.58|
|Forward Dividend & Yield||1.40 (14.37%)|
|1y Target Est||N/A|
In 2018, Enbridge Energy Partners' (EEP) revenues might fall by nearly $100 million and distributable cash flow by $60 million, provided FERC's new policy is approved as has been announced.
The Federal Energy Regulatory Commission announced March 15 that it will change a policy regarding master limited partnerships' tax benefits. MLPs for interstate natural gas and oil pipelines will no longer be allowed to “recover an income tax allowance in cost-of-service rates,” according to a press release . The change was spurred by an appeals court decision in United Airlines Inc. v. FERC that said FERC failed to demonstrate that a pipeline operator was not receiving “double recovery” of “both an income tax allowance and a return on equity determined by the discounted cash flow methodology,” per the release.
Federal regulators eliminated a key tax benefit for some pipeline companies, a move that could force some pipelines to lower their rates and make it even more difficult for the struggling sector to raise ...
ST. PAUL, Minn. (AP) — Minnesota regulators approved the final environmental review Thursday for Enbridge Energy's proposal to replace its aging Line 3 crude oil pipeline in northern Minnesota, setting the stage for a final decision on the disputed project in June.
In an unprecedented move, FERC (the Federal Energy Regulatory Commission) revised its income tax policy for MLPs. MLPs, which aren’t taxed at the corporate level and which operate as pass-through entities, allocate their income to investors. To compensate investors for the income tax burden, MLPs have been receiving an income tax allowance from customers on FERC-regulated pipelines.
With a yield of 11.1%, Enbridge Energy Partners (EEP), the MLP subsidiary of Enbridge (ENB), is trading at a yield close to Buckeye Partners (BPL), which we looked at in the previous part of this series. Enbridge Energy Partners paid a distribution of $0.35 per share in 4Q17, the same as the previous quarter. Enbridge Energy Partners’ coverage ratios for 4Q17 and 2017 were 1.3x and 1.22x, respectively.
Plains All American Pipeline (PAA) was trading 1.5% below its 50-day simple moving average and 4.5% below its 200-day simple moving average as of March 2, 2018, which might indicate bearish sentiment in the stock. In comparison, Buckeye Partners (BPL) and Enbridge Energy Partners (EEP) were trading 20.3% and 17.4% below their long-term moving average. Gains in crude oil prices, an increase in drilling activity, and the successful completion of the open season for its Cactus II pipeline project could push Plains All American Pipeline above its long-term moving average, which could result in bullish sentiment.