By Tess Stynes
Spectra Energy Corp. (SE) unveiled capital spending plans for
expansion projects totaling $1.3 billion for this year, as well as
average annual increases to capital spending of roughly $2 billion
through 2016.
"Our three year plan is built upon 2013's strong performance in
which we placed $6 billion of capital into service, secured $7
billion in new projects and bolstered our [master-limited
partnership] to a $20 billion enterprise by dropping substantially
all U.S. transmission, storage and liquids assets into Spectra
Energy Partners," President and Chief Executive Greg Ebel said in a
statement.
Mr. Ebel said the company plans to expand its footprint by
continuing its disciplined "build and buy" strategy.
"Our enterprise value has more than doubled in just four years,
and we intend to double it again by the end of the decade," he
added.
Spectra Energy Partners LP (SEP) will account for about 70% of
Spectra's capital spending budget this year, with the MLP's share
declining to 60% next year and 45% in 2016.
In addition to this year's budget for expansion plans, Spectra
also is earmarking capital expenditures of $755 million for
maintenance programs.
Through the end of the decade, Spectra expects to pursue an
additional $10 billion of natural gas and liquids opportunities
over the $25 billion previously announced.
Spectra Energy also expects its dividends to increase by at
least 9% a year through 2016.
The companies plan to provide more details about their business
outlook and 2014 financial plans at an analyst/investor meeting
Wednesday in New York.
Write to Tess Stynes at tess.stynes@wsj.com
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