Enbridge launches Open Season for Sanish Pipeline, Bakken expansion

HOUSTON, Texas, and CALGARY, Alta. - Enbridge Energy Partners L.P. (NYSE: EEP) and Enbridge Income Fund Holdings Inc. (CA: ENF), affiliates of Enbridge Inc. (NYSE: ENB) on Feb. 28 announced a second Open Season for its Bakken Expansion Program in conjunction with an Open Season for EEP's proposed Sanish Pipeline.

The Sanish Pipeline will transport crude oil production from Johnson's Corner to Beaver Lodge, N.D.

The Bakken Expansion Program Open Season will offer pipeline capacity on Enbridge's system from Beaver Lodge into Enbridge's terminal at Cromer, Manitoba, where it connects with the Enbridge Mainline System, which offers access to refineries throughout the Upper Midwest, eastern Canada, Mid-Continent and as far as the U.S. Gulf Coast.

The two open seasons are being conducted jointly to provide shippers with the option of contracting for capacity from Johnson's Corner to Enbridge's Beaver Lodge and Berthold Stations as well as to Cromer.

EEP's proposed Sanish Pipeline is a new 36-mile, 12-inch crude oil line capable of transporting a minimum 67,000 barrels per day (b/d) from Johnson's Corner into EEP's existing facilities at Beaver Lodge. The Bakken Expansion Program, currently under construction by EEP in the U.S. and by Enbridge Income Fund in Canada, will provide a total of 145,000 b/d of incremental pipeline capacity from Beaver Lodge to Cromer when it comes into service in Q1 2013. At Berthold, EEP is constructing a new 80,000 b/d rail export facility which is planned to be in-service at the same time.

"The Bakken and Three Forks formations have catapulted North Dakota into the position of being one of the leading oil producing states in the U.S. Along with this proposed Sanish Pipeline, we have increased the export capacity of our North Dakota system by almost 350 percent since 2008," said Stephen J. Wuori, president, Liquids Pipelines, Enbridge. "Sanish provides customers located south of the river with an entrance to Enbridge's expanded systems to access a total of 475,000 b/d of capacity out of North Dakota in 2013. Enbridge is developing other projects that will continue our significant capital investment in this prolific region to provide reliable, economical and secure access to a wide variety of refinery markets, including the U.S. Gulf Coast."

Through the open seasons, shippers will have the opportunity to secure space on the Sanish Pipeline, including 15,000 b/d of service from Johnson's Corner to Cromer.

The binding Open Seasons began on Feb. 28, and closes on April 11.

11 large-cap MLP stocks for dividend lovers

For many investors, publicly traded master limited partnerships (MLPs) can be valuable tools for income. As partnerships, MLPs are subject to a special tax code and avoid federal and state corporate income taxes. Their distributions to investors are partially or entirely tax-deferred.

Most MLPs are high yield investments and increase their distributions to investors each quarter, achieving a consistent dividend growth for years. However, investing in MLPs can be tricky due to the disadvantages of holding them in tax-deferred accounts. Investors should consult with their tax advisors before adding MLPs to their portfolios.

The market data for stocks listed below are sourced from Fidelity and data is as of Aug. 26, 2011. All companies on the list have a 12-month dividend yield of at least five percent. The stocks also have market capitalizations above $3 billion and positive average dividend growth over the past five years. The average dividend yield of these 11 stocks is 7.00 percent, while their five-year average dividend growth is 6.29 percent on average.

Boardwalk Pipeline Partners (NYSE: BWP) is a U.S. energy partnership that provides natural gas transportation and storage services in the United States. BWP lost -17.68 percent since the beginning of this year and the stock now has an 8.59 percent dividend yield. In the past five years, BWP increased its dividend payments by 6.68 percent annually. The stock recently traded at $24.56 and has a market cap of $4.84 billion. Jim Simons and Chuck Royce are prominent BWP investors.

Energy Transfer Partners (NYSE: ETP) is a limited partnership that operates in the natural gas transportation business in the United States. ETP lost -8.24 percent year-to-date and the stock now has a 8.24 percent dividend yield. In the past five years, ETP increased its dividend payments by 6.99 percent annually. The stock recently traded at $43.36 and has a market cap of $9.06 billion. Jim Simons holds the largest ETP position.

Enbridge Energy Partners (NYSE: EEP) is a U.S. energy partnership providing crude oil, liquid petroleum and natural gas transportation and storage services in the United States. EEP lost -7.85 percent since the beginning of this year and it has a 7.59 percent dividend yield. In the past five years, EEP increased its dividend payments by 2.86 percent annually. The stock recently traded at $27.34 and has a market cap of $7.17 billion.

NuStar Energy (NYSE: NS) is a U.S. partnership that operates petroleum terminals and provides petroleum transportation services. NS lost -13.11 percent in 2011 and the stock now has a high dividend yield of 7.53 percent. In the past five years, NS increased its dividend payments by 4.35 percent annually. The stock recently traded at $57.40 and has a market cap of $3.62 billion.

Kinder Morgan Energy Partners (NYSE: KMP) is a U.S. energy partnership providing energy products transportation and storage services. KMP has a 6.68 percent dividend yield and returned 1.13 percent since the beginning of this year. In the past five years, KMP increased its dividend payments by 7.26 percent annually. The stock recently traded at $67.82 and has a market cap of $22.38 billion.

Buckeye Partners (NYSE: BPL) is a U.S. energy partnership that distributes petroleum in the United States. BPL lost -5.12 percent since the beginning of this year and it now has a 6.58 percent dividend. In the past five years, BPL increased its dividend payments by 5.84 percent annually. The stock recently traded at $60.45 and has a market cap of $5.55 billion. John Phelan's MSD Capital and Michael Messner’s Seminole Capital are the most prominent BPL investors.

Plains All American Pipeline (NYSE: PAA) is a limited partnership that provides energy products transportation, storage and marketing services in the United States and Canada. PAA has a 6.50 percent dividend yield but lost -1.08 percent since the beginning of this year. In the past five years, PAA increased its dividend payments by 6.27 percent annually. The stock recently traded at $59.36 and has a market cap of $8.78 billion.

Markwest Energy Partners (NYSE: MWE) is a U.S. partnership that provides natural gas transportation and processing services in the United States. MWE has a 6.03 percent dividend yield and gained 6.32 percent since the beginning of this year. In the past five years, MWE increased its dividend payments by 8.76 percent annually. The stock recently traded at $44.10 and has a market cap of $3.45 billion.

Enterprise Product Partners (NYSE: EPD) is a U.S. partnership that distributes natural gas and crude oil in the United States, Canada and the Gulf of Mexico. EPD has a 5.89 percent dividend yield and returned 1.05 percent year-to-date. In the past five years, EPD increased its dividend payments by 5.98 percent annually. The stock recently traded at $40.34 and has a market cap of $33.78 billion.

Williams Partners (NYSE: WPZ) is an American energy partnership that engages in natural gas exploration, processing, storage and transportation. WPZ has a 5.46 percent dividend yield and gained 16.15 percent since the beginning of this year. In the past five years, WPZ raised its dividend payments by 11.50 percent annually. The stock recently traded at $52.00 and has a market cap of $15.03 billion.

Magellan Midstream Partners (NYSE: MMP) is a U.S. partnership that provides transportation and storage services for refined petroleum products. MMP has a 5.29 percent dividend yield and returned 6.50 percent since the beginning of this year. In the past five years, MMP increased its dividend payments by 6.33 percent annually. The stock recently traded at $57.81 and has a market cap of $6.45 billion.

Enbridge Energy Partners Prices seven million Class A common unit offering

NEW YORK - Enbridge Energy Partners, L.P. (NYSE: EEP) announced on June 28 that it has priced an underwritten public offering of seven million of its Class A Common Units at a price to the public of $30 per unit, a 2.9 percent discount to the $30.89 at which units closed on June 27. The offering is expected to close on July 1.

Enbridge Partners granted the underwriters a 30-day option to purchase up to an additional 1.05 Million Class A Common Units to cover any over-allotments.

The partnership expects net proceeds from the offering will be approximately $203 million. The partnership will use the net proceeds from the offering, including the proceeds from any exercise of the overallotment option, to repay a portion of its outstanding commercial paper, to repay any credit facility borrowings that are outstanding, to fund a portion of its capital expansion projects, or any combination of such purposes. The operator of crude oil and natural gas transportation systems has 252.8 million units outstanding.

Enbridge Energy Partners’ Alberta Clipper now in operation

CALGARY, Alta. - Calgary-based Enbridge Energy Partners' Alberta Clipper pipeline made its first shipment of oil to Enbridge's Superior, Wis., terminal, in October.

The Clipper, also called Line 67, made its first shipment on Oct. 1, Enbridge spokeswoman Jennifer Varey said.

The 36-inch Line 67 runs from Hardisty, Alta., to Superior, Wis. It carries heavy crude from Canada’s oil sands. It has an average annual capacity of 450,000 b/d.