An Enbridge Inc. gas metre is seen in this file photo.Brent Lewin/Bloomberg
Enbridge Energy Partners LP is looking at a possible sale of its main natural gas business in the United States, which has experienced a 51 per cent decline in first-quarter revenue and a higher operating loss compared with last year.
The Enbridge-run limited partnership, which is primarily involved in transporting oil from Western Canada and North Dakota, says it is reviewing its holdings in Midcoast Energy Partners and Midcoast Operating LP – its main natural gas holdings.
Enbridge Energy Partners also announced a 43 per cent decline in net income and a 26 per cent decline in overall revenue in the first quarter, mainly attributed to weakness in natural gas.
Total revenue was US$1.06-billion, including $431.9-million from natural gas. That's down from US$1.43-billion, including US$873.5-million from natural gas, in the first quarter of 2015.
Net income dropped to US$80-million or seven cents per unit from US$140.1-million or 26 cents per unit. Adjusted net income dropped 20 per cent to US$113.8-million or 17 cents per unit from US$142.8-million or 26 cents per unit.
The natural gas segment's operating loss increased to US$29.9-million from US$26-million and it reduced total net income by $22.8-million. The liquids business increased its operating profit to $301.4-million from $270.2-million.
Enbridge says its strategic review of the natural gas business is in its early stages and no decision has been reached.