Based on discussions with our unitholders and other members of the investment community, the following represent their most frequently asked questions, together with responses by Midcoast Energy Partners. To appropriately address questions, some of the responses contain Forward-Looking Statements and you are referred to Legal Notice in this regard.
About Your Investment
- Why was Midcoast Energy Partners formed and why should I invest?
Midcoast Energy Partners, L.P. is a growth-oriented limited partnership recently formed by Enbridge Energy Partners, L.P., or EEP, to serve as EEP’s primary vehicle for owning and growing its natural gas and natural gas liquids, or NGL, midstream business in the United States. As a pure-play U.S. natural gas and NGL midstream business, Midcoast Energy Partners will be able to pursue a more focused and flexible strategy, have direct access to the equity and debt capital markets, and have the opportunity to grow through organic growth opportunities and acquisitions, including drop-down transactions from EEP. See more About us
- Which of Midcoast Energy Partners' securities are available to the public and how do I make an investment?
Class A Common Units of Midcoast Energy Partners, L.P. trade on the New York Stock Exchange (NYSE:MEP). As a publicly traded instrument, these partnership units are available through regular retail brokerage services.
- How do I get prospectuses or other information regarding the limited partner Common Units?
Any new issue of Class A Common Units by Midcoast Energy Partners to the public will be sold pursuant to a prospectus, which is required to be filed with the U.S. Securities and Exchange Commission. Past prospectuses are available via the SEC Filings page on this web site but be aware that any information contained in a prospectus is current only to its date of publication. For more current information filed by Midcoast Energy Partners, consult the most recent Form 10-Q and Form 10-K also available in SEC Filings.
- How do I inquire about the status or make changes to my investment account, including the status of cash distribution payments?
Non-registered owners should contact their investment representative to request any changes to their account. Registered owners should contact the Transfer Agent, listed under Investor Contacts
. The Partnership is not able to make address or name changes, confirm holdings or transactions, or perform other administrative tasks affecting the accounts of either registered or non-registered owners of Midcoast Energy Partners' Class A Commun Units.
- What is the difference between registered and non-registered security ownership?
Registered owners hold their securities directly and their names will appear on the books and records of our Transfer Agent. Non-registered owners hold their securities through a brokerage firm or other financial intermediary ("in street name") and are sometimes referred to as beneficial owners. Most investors choose to own securities in non-registered form, primarily for convenience.
- When are Midcoast Energy Partners cash distributions paid?
Upon approval by the Board of Directors of the General Partner, cash distributions are paid quarterly, no later than 45 days following the end of a calendar quarter. Distributions are therefore paid mid-month in February, May, August and November. Non-registered unitholders generally receive their distributions by electronic deposit to their account held with a brokerage firm. Registered unitholders receive their distributions by cheque mailed on each payment date by the Transfer Agent. For more detailed information, see Cash Distributions
- Does Midcoast Energy Partners offer a Direct Purchase Plan or a Distribution Re-Investment Plan?
Midcoast Energy Partners currently does not offer limited partnership units for purchase under either a DPP or a DRIP.
- How can I communicate directly with the Company?
Midcoast Energy Partners encourages questions and discussion with all of its unitholders and potential investors. You’re welcome to contact us
About Income Taxes
- Why doesn't the taxable income amount in my tax package equal the amount of cash I received?
Owning a unit of a partnership is different than owning a share of stock in a corporation. Since the partnership itself is not a tax paying entity, total taxable income of the partnership is allocated among all the partners based upon the number of units owned. You are, therefore, allocated a portion of the partnership's income or loss regardless of how much cash you received.
- What is "unrelated business taxable income" (UBTI)?
This only pertains to you if your unit ownership is through your IRA or other tax-exempt organization. If such is the case, contact the administrator of your IRA or other tax-exempt organization.
- What should I do if I filed my return before I received my tax package?
You may have to file an amended return and should contact your tax advisor. We expect to mail K-1's before the end of February each year.
- Where is my 1099?
1099's are used to report items such as interest and corporate stock dividends. Your investment in Midcoast Energy Partners is an investment in a partnership which requires a K-1 tax form instead of a 1099.
- Do I have to file tax returns in all the states listed on the tax package?
Tax laws vary among the states and ownership of these units may require you to file a return even though you do not reside there. General state tax information has been provided to you on the back of the graphic guide included with your tax package. We encourage you to consult your own tax advisor for help in this area.
- I don't understand the K-1 information and need you to help me do my taxes.
We are not qualified tax accountants and cannot help you prepare your tax return. Please check in your area for a local tax service if you cannot complete your tax forms yourself.
- I need the information now. Can you give it to me over the phone?
We are not allowed to give this information over the phone. It either has to be mailed or faxed to you. This assures that you are provided with the correct information and provides written documentation of your receipt of the information.