HOUSTON, TEXAS--(Marketwired - Nov. 29, 2017) - Enbridge Energy Partners, L.P. (NYSE:EEP) (EEP or the Partnership) announced today its financial guidance for 2018 as well as its long term business and financial outlook. This guidance reflects the first full year since the Partnership was restructured in 2017 to position EEP as a pure-play, liquids pipeline MLP with a low-risk commercial profile, stable cash flows, a strong balance sheet, healthy distribution coverage, visible growth and limited external capital needs.
Business Outlook
EEP's business outlook for the 2018 - 2020 planning period remains strong. The Lakehead system is expected to continue to deliver stable, low-risk regulated cash flow, and the volume outlook on the North Dakota assets is expected to remain robust. Cash flow growth throughout the period will be underpinned by various sources, including rising contracted volumes on the Bakken Pipeline System and higher toll surcharges on its existing 25% interest in the Mainline Expansion Project when it fully enters service. In addition, EEP holds purchase options under existing joint funding arrangements to acquire additional interests in three projects at net book value aggregating to $1.6 billion, namely: 20% of the Bakken Pipeline System investment, 15% of the Mainline Expansion Project and 39% of the Line 3 Replacement Program.
Distributable Cash Flow Guidance for 2018
The Partnership expects 2018 Distributable Cash Flow (DCF) to be in a range of $775 - $825 million after taking into account DCF attributable to Non-Controlling Interests. DCF also assumes core maintenance capital expenditures of approximately $40 million.
Distribution Guidance
EEP expects annual total distribution coverage in 2018 of approximately 1.2x. EEP will target distribution coverage ratios similar to these levels through the 2020 planning horizon. The Partnership also expects to grow its distributable cash flow per unit by approximately 3% per year on average through this period.
Target Credit Metrics
EEP expects to maintain a solid investment grade credit profile with strengthening credit metrics over the planning horizon. The Partnership expects consolidated Debt to EBITDA to be approximately 4.0x by 2020, predicated upon its liquids pipeline growth projects being placed into service and the joint funding arrangement call options being exercised.
The Partnership's outlook will be discussed in further detail at the upcoming Enbridge Inc. (NYSE:ENB) investor conferences in New York and Toronto on December 12th and 13 th , respectively.
Forward-Looking Statements
This news release includes forward-looking statements, which are statements that frequently use words such as "anticipate," "believe," "consider," "continue," "could," "estimate," "evaluate," "expect," "explore," "forecast," "intend," "may," "opportunity," "plan," "position," "projection," "should," "strategy," "target," "will" and similar words. Although the Partnership believes that such forward-looking statements are reasonable based on currently available information, such statements involve risks, uncertainties and assumptions and are not guarantees of performance. Future actions, conditions or events and future results of operations may differ materially from those expressed in these forward-looking statements. Any forward-looking statement made by the Partnership in this release speaks only as of the date on which it is made, and the Partnership undertakes no obligation to publicly update any forward-looking statement. Many of the factors that will determine these results are beyond the Partnership's ability to control or predict. Specific factors that could cause actual results to differ from those in the forward-looking statements include: (1) the effectiveness of the various actions the Partnership has announced resulting from its strategic review process; (2) changes in the demand for the supply of, forecast data for, and price trends related to crude oil, liquid petroleum, including the rate of development of the Alberta Oil Sands; (3) the Partnership's ability to successfully complete and finance expansion projects; (4) the effects of competition, in particular, by other pipeline systems; (5) shut-downs or cutbacks at the Partnership's facilities or refineries, petrochemical plants, utilities or other businesses for which the Partnership transports products or to whom it sell products; (6) hazards and operating risks that may not be covered fully by insurance; (7) changes in or challenges to the Partnership's tariff rates; (8) changes in laws or regulations to which the Partnership is subject, including compliance with environmental and operational safety regulations that may increase costs of system integrity testing and maintenance; and (9) permitting at federal, state and local level or renewals of rights of way. Any statements regarding sponsor expectations or intentions are based on information communicated to the Partnership by Enbridge Inc., but there can be no assurance that these expectations or intentions will not change in the future.
Except to the extent required by law, we assume no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Reference should also be made to the Partnership's filings with the U.S. Securities and Exchange Commission (the "SEC"), including its most recently filed Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q or current reports on Form 8-K for additional factors that may affect results. These filings are available to the public over the Internet at the SEC's website ( www.sec.gov ) and at the Partnership's website.
Non-GAAP Reconciliations
Reconciliations of forward looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges with estimating some of the items, particularly with estimating non-cash unrealized derivative fair value losses and gains, which are subject to market variability and therefore a reconciliation is not available without unreasonable effort.
About Enbridge Energy Partners, L.P.
Enbridge Energy Partners, L.P. owns and operates a diversified portfolio of crude oil transportation systems in the United States. Its principal crude oil system is the largest pipeline transporter of growing oil production from western Canada and the North Dakota Bakken formation. The system's deliveries to refining centers and connected carriers in the United States account for approximately 23% of total U.S. oil imports. Enbridge Energy Partners, L.P. is traded on the New York stock exchange under the symbol EEP; information about the company is available on its website at www.enbridgepartners.com .
About Enbridge Energy Management, L.L.C.
Enbridge Energy Management, L.L.C. manages the business and affairs of the Partnership, and its sole asset is an approximate 19.5% limited partner interest in the Partnership. Enbridge Energy Company, Inc., an indirect wholly owned subsidiary of Enbridge Inc. of Calgary, Alberta, Canada (NYSE: ENB) (TSX: ENB) is the General Partner of the Partnership and holds an approximate 35% interest in the Partnership. Enbridge Management is the delegate of the General Partner of the Partnership.
