NEW YORK (TheStreet) -- Enbridge Energy Partners (EEP) was gaining 14.6% to $35.45 Thursday after announcing it will sell a 1.26% interest in its natural gas midstream business to Midcoast Energy Partners (MEP).
Enbridge Energy will sell the share in the business for $350 million. After the sale, Enbridge Energy's stake in Midcoast Operating will be down to 48.4%. The company will use the money from the sale to fund its pipeline expansion.
Enbridge Energy and Enbridge (ENB) announced Thursday that its mainline replacement program will cost an estimated $7.5 billion. The program includes replacing pipe in the mainline system that runs from Edmonton, Alberta to Superior, WI.
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TheStreet Ratings team rates ENBRIDGE ENERGY PRTNRS -LP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENBRIDGE ENERGY PRTNRS -LP (EEP) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, growth in earnings per share and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."