US pipeline project pushes Enbridge Energy Partners to $406.4M loss
Plans for Sandpiper on hold following joint venture stake in Bakken Pipeline project.
HOUSTON — Enbridge Energy Partners LP says it had a US$406.4-million loss in the third quarter, primarily due to the long-term deferral of the proposed Sandpiper pipeline in the US Midwest.
Houston-based EEP and its general partner, Calgary-based Enbridge Inc., announced in September that plans for the Sandpiper project would be put on hold indefinitely.
That followed Enbridge’s formation of a joint venture to buy a stake in the alternative Bakken Pipeline project, to transport oil from North Dakota across the Midwest to Texas.
EEP’s loss for the three months ended Sept. 30 amounted to $1.31 per EEP unit, which contrasted with US$82.1 million or seven cents per unit in the third quarter of 2015.
After adjustments that exclude the asset impairment related to Sandpiper and other items, EEP’s net income was US$89.3 million or nine cents per share, down from US$137.4 million or 23 cents per share in the third quarter of 2015.
EEP’s revenue was US$1.12 billion, down from $1.127 billion a year earlier.