How will Spectra Energy Partners (SEP) shares be affected if it gives up its IDR to Enbridge?

Our Answer

Susan asked this question on Dec. 11, 2017.

Hi Susan,

Eliminating IDRs reduces SEP’s cost of capital to compete for third-party organic projects and M&A and, over time, should translate into a stronger valuation for SEP. This potential action positions SEP to continue to be an effective MLP generating accretive DCF growth.