Spectra Energy Partners LP's (SEP) first-quarter profit jumped
25%, which the company primarily attributed to a November
acquisition.
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, has grown in recent years through
acquisitions.
Spectra Energy Partners' recent results have benefited from its
acquisition of an additional 24.5% interest in gas transportation
system owner Gulfstream Natural Gas System LLC from Spectra Energy
Corp. The deal boosted the buyer's stake in the entity to 49%.
Spectra Energy Partners posted a first-quarter profit of $48.9
million, or 50 cents a limited partner unit, up from $39.1 million,
or 46 cents a unit. Revenue edged up 1.4% to $51.2 million.
Analysts had expected a 46-cent profit on $50 million in
revenue, according to a Thomson Reuters poll.
Master limited partnerships typically own natural-gas and oil
pipelines and storage facilities. They collect a steady stream of
payments from users of their properties and many have benefited
from soaring production from on-shore drilling targeting resources
trapped in shale rock formations.
Spectra Energy Partners units closed Tuesday at $33.91 and were
inactive in recent premarket trading. Through the latest close, the
units are up 6.9% the past year.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; matthew.jarzemsky@dowjones.com