Wells Fargo Upgrades Enbridge Energy Partners (EEP) to Outperform; Recent Market Weakness Provides An Attractive Entry Point

Wells Fargo upgraded Enbridge Energy Partners (NYSE: EEP) from Market Perform to Outperform with a price target range of $31-$33.

Wells analyst says, "EEP’s cash flow is split roughly 60% from crude oil pipelines and 40% from natural gas gathering and processing. The partnership is likely to continue to benefit from strong underlying fundamentals for both of these business segments, in our view. For crude oil, EEP forecasts a 4.2% CAGR in Western Canadian Sedimentary Basin crude oil supply over the next 9 years, which directly benefits utilization on EEP’s Lakehead pipeline system. In addition, EEP is well positioned to benefit from future investment opportunities in the emerging Bakken Shale (i.e. above and beyond announced projects of $370MM) as production is on pace to exceed takeaway capacity by 2014-15 based on management's projections. On the natural gas side, high NGL prices are prompting E&P producers to actively drill in NGLrich plays."

For more ratings news on Enbridge Energy Partners click here and for the rating history of Enbridge Energy Partners click here.

Shares of Enbridge Energy Partners closed at $28.50 yesterday.

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