DOW JONES NEWSWIRES Spectra Energy Partners LP's (SEP) fourth-quarter profit rose 11% on higher earnings from its interest in a natural-gas transportation system, though revenue slipped. The company, a master limited partnership that was formed by Spectra Energy Corp. (SE) out of some of Duke Energy Corp.'s (DUK) former holdings mostly in the Southeast, has grown in recent years through acquisitions. Master limited partnerships are typically companies that operate and own natural-gas and oil pipelines and storage facilities. They collect a steady stream of payments from users of their properties and have benefited over the years from rapid growth in energy infrastructure spurred by soaring production from alternative shale-gas plays. Federal regulators also disclosed in November an investigation into Spectra Energy Partners and rival Kinder Morgan Energy Partners L.P. (KMP) over allegations the companies overcharged customers to use their pipelines. The announcement, which Spectra said wouldn't affect its business operations, brought the number of pipeline rate investigations filed to five since the government in 2008 increased the amount of financial data pipeline owners must file with regulators. Spectra Energy Partners reported a fourth-quarter profit of $37.2 million, or 41 cents a limited partner unit, up from $33.4 million, or 39 cents a unit, a year earlier. Operating revenue decreased 2.7% to $50.8 million. Results were in line with analysts polled by Thomson Reuters, who most recently projected a profit of 41 cents a unit on revenue of $50 million. Operating margin fell to 36.4% from 38.3% as operating expenses remained mostly flat. The company booked $11.8 million of equity earnings from its interest in Gulfstream Natural Gas System, up 40% from a year earlier. That increase came on higher demand and as Spectra Energy Partners acquired an added 24.5% interest in Gulfstream, bringing its stake to 49%. Units closed Thursday at $33.14 and were inactive premarket. They have lost 5.5% over the past three months. -By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com
