Enbridge Energy Partners (NYSE:EEP) is a company in North America with the capacity to deliver averagely 2.9 million barrels of crude oil on a daily basis. It does this through its Express and Mainline pipeline. The business guru today unveiled the second quarter 2018 financial results.
Current state of affairs
In line with announcing the second quarter financial results, the business guru also provided a quarterly business update. EEP achieved a net income of about $187 million. Reports indicate that $95 million of the figure resulted from the company’s controlling interests over the second quarter of this particular year.
Part of the company’s second quarter results entailed the net non-recurring special items of $17 million. The associated net income per unit according to sources shot up by $0.04 per unit.
Enbridge Inc says that anytime soon it will enter a definitive agreement. This move will see it buy all the public equity of Enbridge energy management and Enbridge energy partners. The business giant achieved major milestones towards corporate structure simplification according to recent reports.
The terms of the agreement provide that each of the EEP public unitholders will get 0.3350 common shares of Enbridge .That is for each one with the Class A common unit of EEP which of course represents about 8.7% rise to Enbridge’s proposed exchange ratio.
The future Enbridge shareholders have a lot of good things to look forward to in the near future especially in line with the buy-ins of EEP and EEQ. Sources indicate that these are economically and strategically attractive for all of them since they pull along with substantial benefits.
These shareholders expect increased ownership in this company’s core business as well as from its further advancement of the low-risk profile. The EEP assets generates great amounts of cash and this helps a lot in supporting self-funded growth as well as continued strong dividend coverage.
Enbridge’s U.S. subsidiaries manage all the assets under EEQ and EEP after which Enbridge consolidates everything before it for accounting purposes.
The company’s recent asset divestiture program turned out to be a major success and in fact analysts say it exceeded the set expectations.