Keeping It Simple

[eastunder]

EEP

http://www.fool.com/investing/2017/01/28/oil-and-gas-stock-roundup-its-all-about-the-outloo.aspx?source=yahoo-2&utm_campaign=article&utm_medium=feed&utm_source=yahoo-2

Finally, Enbridge Energy Partners (NYSE:EEP) plunged this week after revealing its guidance for 2017. The company said that distributable cash flow would decline from a range of $860 million to $920 million in 2016 down to a range of $750 million to $800 million this year. Driving the decline is lower commodity prices, which is hurting the company's volumes and price realizations.

Further, the company's parent, Enbridge (NYSE:ENB), announced this week that it would acquire all the publicly held units of Midcoast Energy Partners (NYSE:MEP), which is an MLP controlled by Enbridge Energy Partners. Enbridge also noted that it continues to evaluate its options for Enbridge Energy Partners. These announcements have investors worried that Enbridge Energy Partners will need to cut its distribution significantly to improve its financial situation because Enbridge made it clear that it intends to leave its MLP as a stand-alone entity.