Enbridge Energy Partners sees FY18 DCF $775M-$825M
"EEP's business outlook for the 2018 - 2020 planning period remains strong," the company said. "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 $1.6B, namely: 20% of the Bakken Pipeline System investment, 15% of the Mainline Expansion Project and 39% of the Line 3 Replacement Program." The Partnership expects 2018 Distributable Cash Flow to be in a range of $775M-$825M after taking into account DCF attributable to Non-Controlling Interests. DCF also assumes core maintenance capital expenditures of approximately $40M. 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.