HOUSTON, Feb. 4, 2015 /PRNewswire/ --
2014 Year-End Highlights
- Exceeded earnings targets for the year
- Distributable cash flow (DCF) up $168
million year-over-year; more than 13 percent
- DCF coverage of the dividend at 1.6x – well above the 2014
target of 1.4x
- Increased annual dividend by 14
cents per share effective in the fourth quarter 2014
- Placed $800 million of growth
projects into service
- Secured $3.5 billion of new
growth projects supported by firm, fee-based contracts
Spectra Energy Corp (NYSE: SE) today reported 2014 net income
from controlling interests of $1.08
billion, or $1.61 diluted
earnings per share (EPS), compared with $1.04 billion, or $1.55 diluted EPS in 2013. Ongoing 2014 net
income from controlling interests was $1.09
billion, or $1.62 diluted EPS,
compared with $1.1 billion, or
$1.64 diluted EPS during the prior
year.
For the quarter, reported earnings before interest, taxes,
depreciation and amortization (EBITDA) were $810 million, compared with $787 million in the prior-year quarter. Ongoing
EBITDA was $810 million compared to
$798 million in the prior-year
quarter. For the year, reported EBITDA was $3.13 billion, up from $3.0 billion in 2013. Ongoing EBITDA for
2014 was $3.15 billion, compared to
$3.03 billion in the prior
year.
Distributable cash flow for fourth quarter 2014 was $316 million, compared with $315 million in the prior-year quarter. For
the year, distributable cash flow was up $168 million over 2013 at $1.46 billion, compared with $1.29 billion in 2013.
"Spectra Energy delivered strong results in 2014 marked by
ongoing execution and steady development of new projects, safe and
reliable operations, EBITDA growth and attractive dividend
increases for our investors," said Greg
Ebel, president and chief executive officer, Spectra
Energy. "We're pleased with our performance for the quarter,
our ability to withstand the commodity volatility late in the year,
and our business portfolio's ability to consistently deliver in
various economic and commodity cycles while also executing on the
growth opportunities that drive our future earnings and cash
flows."
"We improved our annual dividend growth to 14 cents per share, up from 12 cents, and substantially exceeded our
distributable cash flow, dividend coverage ratio, and EBITDA
targets in 2014. As a result, we are in a stronger than
expected financial position as we enter 2015," added Ebel.
EXPANSION PROJECT UPDATES
The company placed $800 million of
capital into service during the year, including the Kingsport
Expansion Project in the fourth quarter 2014. Spectra Energy
secured $3.5 billion of new growth
projects in 2014 supported by firm, fee-based contracts.
Since 2013, Spectra Energy has placed approximately $7 billion into service and currently has an
additional $9.5 billion into
execution. These advancements mark significant progress
towards the company's goal of securing $35
billion in growth opportunities by the end of the
decade.
The company also exceeded its earnings and coverage targets for
the year. Spectra Energy generated a significant amount of
cash in 2014, surpassing the company's distributable cash flow
expectation for the year by nearly 19 percent. And while the
company anticipated cash flow coverage of the dividend during the
year of 1.4x, those expectations were surpassed with actual
coverage of 1.6x. Further, Spectra Energy continued to
deliver value to investors and increased its annual dividend by
14 cents per share effective in the
fourth quarter.
On the growth front, the company is advancing its projects in
execution. The Sabal Trail pipeline into Florida submitted the project's Federal Energy
Regulatory Commission (FERC) application in November and is on
track to meet its planned in-service date of 2017. The
Algonquin Incremental Market project, or AIM, is 100 percent
subscribed by the major local distribution companies (LDCs) in New
England. The project received its final environmental impact
statement (FEIS) from FERC and expects to receive its FERC
certificate in the first quarter of 2015.
The NEXUS pipeline, which will bring supply diversity to the
U.S. Midwest and Eastern Canada by
delivering Utica and Marcellus gas, received its pre-file
authorization from FERC in January 2015. With an in-service
date of 2017, the 1.5 Bcf per day project provides Spectra Energy
with an investment opportunity in the $700
million to $1 billion range.
The Ohio Pipeline Energy Network (OPEN) project and the
Uniontown to Gas City project both received their FERC certificates
in December 2014. The OPEN project and the Uniontown to
Gas City project have scheduled in-service dates in the fourth
quarter of 2015.
Spectra Energy acquired the Brazoria Interconnector Gas (BIG)
Pipeline last month and is expected to close in second quarter
2016, pending final investment decision of the Freeport Liquefied
Natural Gas (LNG) facility. The acquisition is a component of
the Stratton Ridge project, a Texas Eastern expansion to deliver
supplies to Gulf Coast LNG markets. The $200 million capital expansion project, which
includes the BIG Pipeline acquisition cost, is scheduled to be in
service in 2019.
The Texas Eastern South Texas Expansion Project (STEP) is
designed to provide an efficient means to transport Louisiana natural gas supplies to high-demand
markets in South Texas, and is
advancing. The targeted in-service date for STEP is early
2017. Additionally, Access South and Adair Southwest, two
projects that advance bi-directional capabilities on Texas Eastern
are moving forward. The PennEast Pipeline, the Pennsylvania to New
Jersey project that Spectra Energy Partners joined during
the quarter, is progressing.
Further, the Atlantic Bridge project, an expansion of the
company's Algonquin and Maritimes & Northeast systems, is
moving forward and submitted its pre-file application with FERC in
late January, 2015. A new project in execution, the Loudon
Expansion, is a 10-mile, 12-inch loop of the existing Loudon
Lateral to move incremental supplies of natural gas on the
East Tennessee system. The
project is advancing with an in-service target of third quarter
2016.
At Union Gas, the 2015 Dawn-Parkway project is headed towards
in-service in fourth quarter 2015. In addition, the 2016
Dawn-Parkway project filed its facilities application with the
Ontario Energy Board in September and expects a decision in the
first half of 2015, with an expected in-service date of late
2016. In development is the 2017 Dawn-Parkway
project. The company held an open season for incremental
capacity on its Dawn-Parkway system for 2017 and 2018 and is in the
process of evaluating the bids for both years.
In Western Canada, two new
projects on Spectra Energy's BC Pipeline are moving into execution
and are advancing. The Reliability and Maintainability
(RAM) Project is a demand-pull project serving the company's
existing customers. This $300
million capital expansion project is expected to be
in-service in 2017. Additionally, Jackfish Lake is a
supply-push project and is contracted by various producers.
This $200 million capital expansion
project will be in-service in the 2016-2017 timeframe.
Beyond the above listed projects in execution, Spectra Energy
also is advancing several other development projects. Access
Northeast will provide improved electric reliability in New England
by directly supplying approximately 70 percent of the region's most
efficient gas-fired power generation. The project will expand the
Algonquin and Maritimes & Northeast transmission systems by
using existing pipeline footprints. Spectra Energy is
partnering with Northeast Utilities and also has a strategic
alliance with Iroquois Gas Transmission to advance this
$3 billion pipeline development.
Also in development is the Texas Eastern Appalachian Lease
Project, which will provide pipeline transportation capacity to
deliver incremental production from the Appalachian Basin to gas
distribution and end-use markets in the U.S. Midwest and
Canada via a lease of the capacity
to NEXUS. The target in-service date for the approximately
$180 million project is November 1, 2017.
In its liquids business, the company is continuing to work on
further enhancements to its Express and Platte pipelines. On Express, Spectra
Energy is pursuing the construction of on-system storage to allow
for additional contracted capacity. An open season on the
Express pipeline enhancement, for service commencing in 2016, is
currently under way. Separately, the new pipeline from
Wyoming to Illinois, which was announced in October, is
being re-scoped to reflect market dynamics and will likely be
incorporated into a larger long-term project to twin the Express
and Platte systems later in the
decade.
Spectra Energy is also continuing development work on the Inland
California Express oil transportation project with Questar
Corporation, which includes a new rail terminal in Southern California and reactivation of an
existing pipeline into the Los
Angeles/Long Beach refining complex. The company has
selected a site for the terminal and will complete preliminary
engineering and submit permits in the next few months. The project
has a targeted in-service date of 2017.
Finally, during the quarter, the second phase of the drop-down
of assets from Spectra Energy to Spectra Energy Partners was
completed, which involved dropping 24.95 percent of the Southeast
Supply Header (SESH) into the company. This drop-down moved
the asset from "Other" into Spectra Energy Partners.
SEGMENT RESULTS
Spectra Energy Partners
Spectra Energy Partners
reported fourth quarter 2014 earnings before interest, taxes,
depreciation and amortization (EBITDA) of $444 million, compared with $368 million in fourth quarter 2013.
Quarterly EBITDA results reflect increased earnings from
expansions, primarily on Texas Eastern, as well as higher equity
earnings due to the continued ramp-up of volumes on the Sand Hills
and Southern Hills NGL pipelines. The increase also reflects
higher crude transportation revenues mainly as a result of higher
average tariff rates on the Express Pipeline.
Year-end reported EBITDA for Spectra Energy Partners
was $1.67 billion, compared with $1.43 billion in
2013.
Distribution
Distribution reported fourth quarter
2014 EBITDA of $132 million, compared
with $156 million in fourth quarter
2013. The decrease was mainly due to the effect of a weaker
Canadian dollar and lower customer usage as a result of warmer
weather.
Year-end reported EBITDA for Distribution was $552 million,
compared with $574 million in 2013.
Western Canada Transmission & Processing
Western
Canada Transmission & Processing reported fourth quarter 2014
EBITDA of $250 million, compared with
$215 million in fourth quarter
2013. The results were higher due to improved earnings from
the Empress processing facility due largely to non-cash
mark-to-market gains associated with the risk management program
implemented in early 2014, partially offset by lower NGL sales
prices in fourth quarter 2014. Gathering and processing
revenues were higher as well, with all increases being partially
offset by the effect of the weaker Canadian dollar.
Year-end reported EBITDA for Western Canada Transmission &
Processing was $754 million, compared with $736
million in 2013.
Field Services
Spectra Energy reported its 50 percent
share of equity earnings from Field Services of ($18) million in fourth quarter 2014, compared
with equity earnings of $72 million
in fourth quarter 2013. The decrease in equity earnings was
primarily attributable to lower commodity prices and an increase in
noncontrolling interests as a result of increased drop-downs to
DPM. These decreases were partially offset by additional
equity earnings associated with new assets.
For the year, Spectra Energy's share of equity earnings from
Field Services was $229 million,
compared with $343 million in
2013.
During the fourth quarters of 2014 and 2013, DCP Midstream's
realized NGL prices averaged $0.68
per gallon and $0.99 per gallon,
respectively, NYMEX natural gas averaged $4.00 per million British thermal units (MMBtu)
and $3.60 per MMBtu, respectively,
and crude oil averaged $73 per barrel
and $97 per barrel, respectively.
On a full-year basis for 2014 and 2013, DCP Midstream's realized
NGL prices averaged $0.89 per gallon
and $0.90 per gallon, respectively,
NYMEX natural gas averaged $4.41
MMBtu and $3.65 per MMBtu,
respectively, and crude oil averaged $93 per barrel and $98 per barrel, respectively.
Other
"Other," which is primarily comprised of
corporate costs, including benefits and captive insurance, reported
an ongoing net benefit of $2 million
and net costs of $14 million in the
fourth quarters of 2014 and 2013, respectively. The
$16 million decrease in costs is
primarily due to lower benefit costs in 2014. The 2013 fourth
quarter period excludes a special item of $10 million for transaction related
costs.
Year-end ongoing net costs for "Other" were $58 million, compared with $59 million in 2013. The year-end 2013
period excludes a special item of $27
million for transaction related costs.
ADDITIONAL FINANCIAL INFORMATION
Interest Expense
Interest expense was $158 million in fourth quarter 2014, compared
with $181 million in fourth quarter
2013. The decrease is mainly driven by lower average debt
balances and a weaker Canadian dollar.
Income Taxes
Fourth quarter 2014 income tax expense
was $77 million, compared with
$142 million in fourth quarter
2013. The lower tax expense was primarily due to a lower
effective state tax rate and a special item in 2013 related to the
revaluation of our accumulated deferred state taxes due to the
dropdown of assets. The effective tax rate was 17 percent in
the fourth quarter of 2014, compared with 34 percent in the fourth
quarter of 2013.
Liquidity and Capital Expenditures
Total debt
outstanding at Spectra Energy as of December
31, 2014, was $14.7 billion.
At the end of the year, there was $1.2
billion of available liquidity at Spectra Energy Partners
and $1.2 billion of available
liquidity at all other Spectra Energy subsidiaries.
Total capital and investment spending for the quarter was
$629 million, excluding contributions
from noncontrolling interests. The spending was comprised of
$342 million of growth capital
expenditures and $287 million of
maintenance capital expenditures. For the year, total capital and
investment spending was $2.29
billion, excluding contributions from noncontrolling
interests, and was mainly comprised of approximately $1.36 billion of growth capital expenditures and
$740 million of maintenance capital
expenditures.
Additional Information
Additional information about
fourth quarter and year-end 2014 earnings can be obtained via the
Spectra Energy website: www.spectraenergy.com.
The analyst call, held jointly with Spectra Energy Partners, is
scheduled for today, Wednesday, February 4,
2015, at 8:00 a.m. CT. The
webcast will be available via the Investors Section of Spectra
Energy's website or Spectra Energy Partners' website. The
conference call can be accessed by dialing (866) 285-7461 in
the United States or Canada or (706) 634-8942 internationally. The
conference code is 47716328 or "Spectra Energy and Spectra Energy
Partners Quarterly Earnings Call."
Please call five to ten minutes prior to the scheduled start
time. A replay of the call will be available until 5:00 p.m. CT, May 5,
2015, by dialing (800) 585-8367 with conference ID 47716328.
The international replay number is (404) 537-3406, with the
above conference ID. A replay and transcript also will be available
by accessing Spectra Energy's or Spectra Energy Partners'
websites.
Non-GAAP Financial Measures
We use ongoing net income
from controlling interests and ongoing diluted EPS as measures to
evaluate operations of the company. These measures are non-GAAP
financial measures as they represent net income from controlling
interests and diluted EPS, adjusted for special items.
Special items represent certain charges and credits which we
believe will not be recurring on a regular basis. We believe that
the presentation of ongoing net income and ongoing diluted EPS
provide useful information to investors, as it allows them to more
accurately compare our ongoing performance across periods. The most
directly comparable GAAP measures for ongoing net income from
controlling interests and ongoing diluted EPS are net income from
controlling interests and diluted EPS.
The primary performance measure used by us to evaluate segment
performance is segment earnings from continuing operations before
interest, income taxes, and depreciation and amortization (EBITDA).
We consider segment EBITDA, which is the GAAP measure used to
report segment results, to be a good indicator of each segment's
operating performance from its continuing operations as it
represents the results of our segments' operations before
depreciation and amortization without regard to financing methods
or capital structures. Our segment EBITDA may not be comparable to
similarly titled measures of other companies because other
companies may not calculate EBITDA in the same manner.
We also use ongoing segment EBITDA and Other EBITDA (net costs)
as measures of performance. Ongoing segment and Other EBITDA are
non-GAAP financial measures as they represent reported segment and
Other EBITDA adjusted for special items. We believe that the
presentation of ongoing segment and Other EBITDA provides useful
information to investors, as they allow investors to more
accurately compare a segment's or Other's ongoing performance
across periods. The most directly comparable GAAP measures for
ongoing segment or Other EBITDA are reported segment or Other
EBITDA.
We have also presented Distributable Cash Flow, which is a
non-GAAP financial measure. We believe that the presentation
of Distributable Cash Flow provides useful information to investors
as it represents the cash generation capabilities of the company to
support dividend growth. The most directly comparable GAAP measure
for Distributable Cash Flow is net income.
The non-GAAP financial measures presented in this press release
should not be considered in isolation or as an alternative to
financial measures presented in accordance with GAAP. These
non-GAAP financial measures may not be comparable to similarly
titled measures of other companies because other companies may not
calculate these measures in the same manner.
Forward-Looking Statements
This release includes
"forward-looking statements" within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements are
based on our beliefs and assumptions. These forward-looking
statements are identified by terms and phrases such as: anticipate,
believe, intend, estimate, expect, continue, should, could, may,
plan, project, predict, will, potential, forecast, and similar
expressions. Forward-looking statements involve risks and
uncertainties that may cause actual results to be materially
different from the results predicted. Factors that could
cause actual results to differ materially from those indicated in
any forward-looking statement include, but are not limited to: the
success of the completed drop-down; state, federal and foreign
legislative and regulatory initiatives that affect cost and
investment recovery, have an effect on rate structure, and affect
the speed at and degree to which competition enters the natural gas
and oil industries; outcomes of litigation and regulatory
investigations, proceedings or inquiries; weather and other natural
phenomena, including the economic, operational and other effects of
hurricanes and storms; the timing and extent of changes in
commodity prices, interest rates and foreign currency exchange
rates; general economic conditions, including the risk of a
prolonged economic slowdown or decline, or the risk of delay in a
recovery, which can affect the long-term demand for natural gas and
oil and related services; potential effects arising from terrorist
attacks and any consequential or other hostilities; changes in
environmental, safety and other laws and regulations; the
development of alternative energy resources; results and costs of
financing efforts, including the ability to obtain financing on
favorable terms, which can be affected by various factors,
including credit ratings and general market and economic
conditions; increases in the cost of goods and services required to
complete capital projects; declines in the market prices of equity
and debt securities and resulting funding requirements for defined
benefit pension plans; growth in opportunities, including the
timing and success of efforts to develop U.S. and Canadian
pipeline, storage, gathering, processing and other related
infrastructure projects and the effects of competition; the
performance of natural gas and oil transmission and storage,
distribution, and gathering and processing facilities; the extent
of success in connecting natural gas and oil supplies to gathering,
processing and transmission systems and in connecting to expanding
gas and oil markets; the effects of accounting pronouncements
issued periodically by accounting standard-setting bodies;
conditions of the capital markets during the periods covered by
forward-looking statements; and the ability to successfully
complete merger, acquisition or divestiture plans; regulatory or
other limitations imposed as a result of a merger, acquisition or
divestiture; and the success of the business following a merger,
acquisition or divestiture. These factors, as well as
additional factors that could affect our forward-looking
statements, are described under the headings "Risk Factors" and
"Cautionary Statement Regarding Forward-Looking Information" in our
2013 Form 10-K, filed on February 28,
2014, and in our other filings made with the Securities and
Exchange Commission (SEC), which are available via the SEC's
website at www.sec.gov. In light of these risks, uncertainties and
assumptions, the events described in the forward-looking statements
might not occur or might occur to a different extent or at a
different time than we have described. All forward-looking
statements in this release are made as of the date hereof and we
undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Spectra Energy Corp (NYSE: SE), a FORTUNE 500 company, is one of
North America's leading pipeline
and midstream companies. Based in Houston, Texas, the company's operations in
the United States and Canada include more than 22,000 miles of
natural gas, natural gas liquids, and crude oil pipelines;
approximately 305 billion cubic feet (Bcf) of natural gas storage;
4.8 million barrels of crude oil storage; as well as natural gas
gathering, processing, and local distribution operations. Spectra
Energy is the general partner of Spectra Energy Partners (NYSE:
SEP), one of the largest pipeline master limited partnerships in
the United States and owner of the
natural gas, natural gas liquids, and crude oil assets in Spectra
Energy's U.S. portfolio. Spectra Energy also has a 50 percent
ownership in DCP Midstream, the largest producer of natural gas
liquids and the largest natural gas processor in the United States. Spectra Energy has served
North American customers and communities for more than a century.
The company's longstanding values are recognized through its
inclusion in the Dow Jones Sustainability World and North America
Indexes and the CDP S&P 500 Climate Disclosure and Performance
Leadership Indexes. For more information, visit
www.spectraenergy.com and www.spectraenergypartners.com.
Spectra Energy
Corp
|
Quarterly
Highlights
|
December
2014
|
(Unaudited)
|
(In millions, except
per-share amounts and where noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters
Ended December 31,
|
|
Years
Ended December 31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
COMMON STOCK
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share,
Diluted
|
|
$
|
0.47
|
|
|
$
|
0.35
|
|
|
$
|
1.61
|
|
|
$
|
1.55
|
|
Dividends Per
Share
|
|
$
|
0.370
|
|
|
$
|
0.305
|
|
|
$
|
1.375
|
|
|
$
|
1.220
|
|
Weighted-Average
Shares Outstanding, Diluted
|
|
672
|
|
|
672
|
|
|
672
|
|
|
671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
1,600
|
|
|
$
|
1,565
|
|
|
$
|
5,903
|
|
|
$
|
5,518
|
|
Total Reportable
Segment EBITDA
|
|
808
|
|
|
811
|
|
|
3,192
|
|
|
3,086
|
|
Net Income -
Controlling Interests
|
|
316
|
|
|
236
|
|
|
1,082
|
|
|
1,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA BY BUSINESS
SEGMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
Spectra Energy
Partners
|
|
$
|
444
|
|
|
$
|
368
|
|
|
$
|
1,669
|
|
|
$
|
1,433
|
|
Distribution
|
|
132
|
|
|
156
|
|
|
552
|
|
|
574
|
|
Western Canada
Transmission & Processing
|
|
250
|
|
|
215
|
|
|
754
|
|
|
736
|
|
Field
Services
|
|
(18)
|
|
|
72
|
|
|
217
|
|
|
343
|
|
Total Reportable
Segment EBITDA
|
|
808
|
|
|
811
|
|
|
3,192
|
|
|
3,086
|
|
Other
EBITDA
|
|
2
|
|
|
(24)
|
|
|
(58)
|
|
|
(86)
|
|
Total Reportable
Segment and Other EBITDA
|
$
|
810
|
|
|
$
|
787
|
|
|
$
|
3,134
|
|
|
$
|
3,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTABLE CASH
FLOW
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable Cash
Flow
|
|
$
|
316
|
|
|
$
|
315
|
|
|
$
|
1,460
|
|
|
$
|
1,292
|
|
CAPITAL AND
INVESTMENT EXPENDITURES
|
|
|
|
|
|
|
|
|
|
|
|
|
Spectra Energy
Partners (a)
|
|
|
|
|
|
|
|
$
|
1,241
|
|
|
$
|
1,299
|
|
Distribution
|
|
|
|
|
|
|
|
427
|
|
|
357
|
|
Western Canada
Transmission & Processing
|
|
|
|
|
|
|
|
473
|
|
|
561
|
|
Other (b)
|
|
|
|
|
|
|
|
146
|
|
|
42
|
|
Total Capital and Investment
Expenditures, Excluding Acquisitions (a,b)
|
|
|
|
|
$
|
2,287
|
|
|
$
|
2,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expansion and
Investment (a,b)
|
|
|
|
|
|
|
|
$
|
1,547
|
|
|
$
|
1,591
|
|
Maintenance and
Other
|
|
|
|
|
|
|
|
740
|
|
|
668
|
|
Total Capital and Investment
Expenditures, Excluding Acquisitions (a,b)
|
|
|
|
|
$
|
2,287
|
|
|
$
|
2,259
|
|
Acquisitions
(c)
|
|
|
|
|
|
|
|
$
|
—
|
|
|
$
|
1,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
CAPITALIZATION
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity -
Controlling Interests
|
|
|
|
|
|
|
|
32
|
%
|
|
34
|
%
|
Noncontrolling
Interests and Preferred Stock
|
|
|
|
|
|
|
|
10
|
%
|
|
8
|
%
|
Total Debt
|
|
|
|
|
|
|
|
58
|
%
|
|
58
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt
|
|
|
|
|
|
|
|
$
|
14,679
|
|
|
$
|
14,717
|
|
Book Value Per Share
(d)
|
|
|
|
|
|
|
|
$
|
12.16
|
|
|
$
|
12.68
|
|
Actual Shares
Outstanding
|
|
|
|
|
|
|
|
671
|
|
|
670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) 2014 period
includes an investment in SESH of $94 million, used by SESH to
retire debt and excludes contributions received from noncontrolling
interests of $53 million. 2013 period excludes acquisitions of
Express-Platte.
|
(b) 2014 period
includes an investment in SESH of $95 million, used by SESH to
retire debt.
|
(c) Represents
2013 acquisition of Express-Platte.
|
|
|
|
|
|
|
|
|
|
|
|
(d) Represents
controlling interests.
|
|
|
|
|
|
|
|
|
|
|
|
|
Spectra Energy
Corp
|
Quarterly
Highlights
|
December
2014
|
(Unaudited)
|
(In millions, except
where noted)
|
|
|
Quarters
Ended December 31,
|
|
Years
Ended December 31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
SPECTRA ENERGY
PARTNERS
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
599
|
|
|
$
|
520
|
|
|
$
|
2,269
|
|
|
$
|
1,965
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating,
Maintenance and Other
|
|
213
|
|
|
191
|
|
|
781
|
|
|
715
|
|
Other Income
and Expenses
|
|
58
|
|
|
39
|
|
|
181
|
|
|
183
|
|
EBITDA
|
|
$
|
444
|
|
|
$
|
368
|
|
|
$
|
1,669
|
|
|
$
|
1,433
|
|
Express
Pipeline Revenue Receipts, MBbl/d (a,b)
|
|
240
|
|
|
238
|
|
|
223
|
|
|
219
|
|
Platte PADD II
Deliveries, MBbl/d (b)
|
|
168
|
|
|
167
|
|
|
170
|
|
|
168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTION
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
505
|
|
|
$
|
533
|
|
|
$
|
1,843
|
|
|
$
|
1,848
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
Purchased
|
|
261
|
|
|
259
|
|
|
879
|
|
|
826
|
|
Operating,
Maintenance and Other
|
|
112
|
|
|
118
|
|
|
411
|
|
|
448
|
|
Other Income
and Expenses
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
EBITDA
|
|
$
|
132
|
|
|
$
|
156
|
|
|
$
|
552
|
|
|
$
|
574
|
|
Number of
Customers, Thousands
|
|
|
|
|
|
|
|
1,420
|
|
|
1,399
|
|
Heating Degree
Days, Fahrenheit
|
|
2,527
|
|
|
2,696
|
|
|
8,111
|
|
|
7,540
|
|
Pipeline
Throughput, TBtu (c)
|
|
177
|
|
|
241
|
|
|
713
|
|
|
907
|
|
Canadian Dollar
Exchange Rate, Average
|
|
1.14
|
|
|
1.05
|
|
|
1.10
|
|
|
1.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WESTERN CANADA
TRANSMISSION & PROCESSING
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
519
|
|
|
$
|
533
|
|
|
$
|
1,902
|
|
|
$
|
1,767
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas and
Petroleum Products Purchased
|
|
114
|
|
|
153
|
|
|
466
|
|
|
391
|
|
Operating,
Maintenance and Other
|
|
159
|
|
|
167
|
|
|
687
|
|
|
649
|
|
Other Income
and Expenses
|
|
4
|
|
|
2
|
|
|
5
|
|
|
9
|
|
EBITDA
|
|
$
|
250
|
|
|
$
|
215
|
|
|
$
|
754
|
|
|
$
|
736
|
|
Pipeline
Throughput, TBtu
|
|
249
|
|
|
218
|
|
|
934
|
|
|
780
|
|
Volumes
Processed, TBtu
|
|
190
|
|
|
170
|
|
|
721
|
|
|
704
|
|
Canadian Dollar
Exchange Rate, Average
|
|
1.14
|
|
|
1.05
|
|
|
1.10
|
|
|
1.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIELD
SERVICES
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in
Earnings of DCP Midstream, LLC
|
|
$
|
(18)
|
|
|
$
|
72
|
|
|
$
|
217
|
|
|
$
|
343
|
|
Cash
Distributions to Spectra Energy
|
|
$
|
58
|
|
|
$
|
87
|
|
|
$
|
237
|
|
|
$
|
215
|
|
Natural Gas
Gathered and Processed/Transported, TBtu/day (d)
|
|
7.4
|
|
|
7.2
|
|
|
7.3
|
|
|
7.1
|
|
Natural Gas
Liquids Production, MBbl/d (d)
|
|
447
|
|
|
452
|
|
|
454
|
|
|
426
|
|
Average Natural
Gas Price Per MMBtu (e)
|
|
$
|
4.00
|
|
|
$
|
3.60
|
|
|
$
|
4.41
|
|
|
$
|
3.65
|
|
Average Natural
Gas Liquids Price Per Gallon (f)
|
|
$
|
0.68
|
|
|
$
|
0.99
|
|
|
$
|
0.89
|
|
|
$
|
0.90
|
|
Average Crude
Oil Price Per Barrel (g)
|
|
$
|
73.33
|
|
|
$
|
97.48
|
|
|
$
|
93.06
|
|
|
$
|
98.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
Thousand barrels per day.
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) 2013
data includes only activity since March 14, 2013, the date of
acquisition of Express-Platte.
|
(c)
Trillion British thermal units.
|
|
|
|
|
|
|
|
|
|
|
|
|
(d)
Reflects 100% of DCP Midstream volumes.
|
|
|
|
|
|
|
|
|
|
|
|
|
(e)
Million British thermal units. Average price based on NYMEX Henry
Hub.
|
|
|
|
|
|
|
|
|
|
(f) Does
not reflect results of commodity hedges. 2013 NGL price has
been revised to reflect the impact of ethane rejection.
|
(g)
Average price based on NYMEX calendar month.
|
|
|
|
|
|
|
|
|
|
|
|
Spectra Energy
Corp
|
Condensed
Consolidated Statements of Operations
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters
Ended December 31,
|
|
Years
Ended December 31,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
|
$
|
1,600
|
|
|
$
|
1,565
|
|
|
$
|
5,903
|
|
|
$
|
5,518
|
|
Operating
Expenses
|
|
|
1,035
|
|
|
1,092
|
|
|
3,979
|
|
|
3,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
565
|
|
|
473
|
|
|
1,924
|
|
|
1,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income and
Expenses
|
|
|
44
|
|
|
121
|
|
|
420
|
|
|
569
|
|
Interest
Expense
|
|
|
158
|
|
|
181
|
|
|
679
|
|
|
657
|
|
Earnings Before
Income Taxes
|
|
451
|
|
|
413
|
|
|
1,665
|
|
|
1,578
|
|
Income Tax
Expense
|
|
|
77
|
|
|
142
|
|
|
382
|
|
|
419
|
|
Net Income
|
|
|
374
|
|
|
271
|
|
|
1,283
|
|
|
1,159
|
|
Net Income -
Noncontrolling Interests
|
|
|
58
|
|
|
35
|
|
|
201
|
|
|
121
|
|
Net Income -
Controlling Interests
|
|
|
$
|
316
|
|
|
$
|
236
|
|
|
$
|
1,082
|
|
|
$
|
1,038
|
|
Spectra Energy
Corp
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
$
|
2,332
|
|
|
$
|
2,081
|
|
Investments and Other
Assets
|
|
|
8,007
|
|
|
8,238
|
|
Net Property, Plant
and Equipment
|
|
|
22,307
|
|
|
21,829
|
|
Regulatory Assets and
Deferred Debits
|
|
|
1,394
|
|
|
1,385
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
|
$
|
34,040
|
|
|
$
|
33,533
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
$
|
3,809
|
|
|
$
|
4,039
|
|
Long-term
Debt
|
|
|
12,769
|
|
|
12,488
|
|
Deferred Credits and
Other Liabilities
|
|
|
6,806
|
|
|
6,425
|
|
Preferred Stock of
Subsidiaries
|
|
|
258
|
|
|
258
|
|
Equity
|
|
|
10,398
|
|
|
10,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Equity
|
|
|
$
|
34,040
|
|
|
$
|
33,533
|
|
Spectra Energy
Corp
|
Distributable Cash
Flow
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
$
|
374
|
|
|
$
|
271
|
|
|
$
|
1,283
|
|
|
$
|
1,159
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
158
|
|
|
181
|
|
|
679
|
|
|
657
|
|
|
Income tax
expense
|
|
77
|
|
|
142
|
|
|
382
|
|
|
419
|
|
|
Depreciation and
amortization
|
|
196
|
|
|
195
|
|
|
796
|
|
|
772
|
|
|
Foreign currency loss
(gain)
|
|
5
|
|
|
(1)
|
|
|
(3)
|
|
|
(1)
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third party interest
income
|
|
—
|
|
|
1
|
|
|
3
|
|
|
6
|
|
|
EBITDA
|
|
810
|
|
|
787
|
|
|
3,134
|
|
|
3,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated affiliates
|
|
(24)
|
|
|
(100)
|
|
|
(361)
|
|
|
(445)
|
|
|
Distributions from
unconsolidated affiliates (a)
|
|
107
|
|
|
116
|
|
|
416
|
|
|
348
|
|
|
Empress non-cash
items
|
|
(60)
|
|
|
—
|
|
|
(60)
|
|
|
—
|
|
|
Other
|
|
(28)
|
|
|
(8)
|
|
|
(19)
|
|
|
6
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
158
|
|
|
181
|
|
|
679
|
|
|
657
|
|
|
Equity
AFUDC
|
|
20
|
|
|
16
|
|
|
53
|
|
|
105
|
|
|
Net cash
paid/(refund) for income taxes
|
|
(16)
|
|
|
14
|
|
|
(8)
|
|
|
43
|
|
|
Distributions to
noncontrolling interests
|
|
47
|
|
|
40
|
|
|
175
|
|
|
144
|
|
|
Maintenance capital
expenditures (b)
|
|
280
|
|
|
229
|
|
|
751
|
|
|
668
|
|
|
Total
Distributable Cash Flow
|
|
$
|
316
|
|
|
$
|
315
|
|
|
$
|
1,460
|
|
|
$
|
1,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes $230
million in distributions from investments in equity method
affiliates (SESH $200M, Sand Hills $21M and Southern Hills $9M) for
the year ended December 31, 2014.
Excludes $63 million
in distributions from investments in equity method affiliates (Sand
Hills $37M and Southern Hills $26M) for the year ended December 31,
2013.
|
|
(b) Excludes
reimbursable expenditures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DCP Midstream
declared distributions of $177M through December 31,
2014.
|
|
Spectra Energy
Corp
|
Reported to
Ongoing Earnings Reconciliation
|
December 2014
Quarter-to-Date
|
(Unaudited)
|
(In millions, except
per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported/ Ongoing
Earnings
|
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND DEPRECIATION AND
AMORTIZATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spectra Energy
Partners
|
|
$
|
444
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
132
|
|
|
|
|
|
|
|
|
|
Western Canada
Transmission & Processing
|
|
250
|
|
|
|
|
|
|
|
|
|
Field
Services
|
|
(18)
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA
|
|
808
|
|
|
|
|
|
|
|
|
|
Other
|
|
2
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment and Other EBITDA
|
|
$
|
810
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
810
|
|
Depreciation and
Amortization
|
|
(196)
|
|
Interest
Expense
|
|
(158)
|
|
Interest Income and
Other
|
|
(5)
|
|
Income Tax
Expense
|
|
(77)
|
|
Total Net
Income
|
|
374
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(58)
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
316
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE, BASIC
|
|
$
|
0.47
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE, DILUTED
|
|
$
|
0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares (reported and ongoing) - in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
672
|
|
|
|
|
|
Spectra Energy
Corp
|
Reported to
Ongoing Earnings Reconciliation
|
December 2014
Year-to-date
|
(Unaudited)
|
(In millions, except
per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
Earnings
|
|
Special
Items
|
|
Ongoing
Earnings
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND DEPRECIATION AND
AMORTIZATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spectra Energy
Partners
|
|
$
|
1,669
|
|
|
$
|
—
|
|
|
$
|
1,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
552
|
|
|
—
|
|
|
552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Western Canada
Transmission & Processing
|
|
754
|
|
|
—
|
|
|
754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Field
Services
|
|
217
|
|
|
12
|
|
A
|
229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA
|
|
3,192
|
|
|
12
|
|
|
3,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
(58)
|
|
|
—
|
|
|
(58)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment and Other EBITDA
|
|
$
|
3,134
|
|
|
$
|
12
|
|
|
$
|
3,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
3,134
|
|
|
$
|
12
|
|
|
$
|
3,146
|
|
Depreciation and
Amortization
|
|
(796)
|
|
|
—
|
|
|
(796)
|
|
Interest
Expense
|
|
(679)
|
|
|
—
|
|
|
(679)
|
|
Interest Income and
Other
|
|
6
|
|
|
—
|
|
|
6
|
|
Income Tax
Expense
|
|
(382)
|
|
|
(4)
|
|
|
(386)
|
|
Total Net
Income
|
|
1,283
|
|
|
8
|
|
|
1,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(201)
|
|
|
—
|
|
|
(201)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
1,082
|
|
|
$
|
8
|
|
|
$
|
1,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE, BASIC
|
|
$
|
1.61
|
|
|
$
|
0.01
|
|
|
$
|
1.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE, DILUTED
|
|
$
|
1.61
|
|
|
$
|
0.01
|
|
|
$
|
1.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A - Loss on sales of
assets and goodwill impairment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares (reported and ongoing) - in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
672
|
|
|
|
|
|
|
|
|
|
|
Spectra Energy
Corp
|
Reported to
Ongoing Earnings Reconciliation
|
December 2013
Quarter-to-date
|
(Unaudited)
|
(In millions, except
per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
Earnings
|
|
Special
Items
|
|
Ongoing
Earnings
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND DEPRECIATION AND
AMORTIZATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spectra Energy
Partners
|
|
$
|
368
|
|
|
$
|
1
|
|
A
|
$
|
369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
156
|
|
|
—
|
|
|
156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Western Canada
Transmission & Processing
|
|
215
|
|
|
—
|
|
|
215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Field
Services
|
|
72
|
|
|
—
|
|
|
72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA
|
|
811
|
|
|
1
|
|
|
812
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
(24)
|
|
|
10
|
|
A
|
(14)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment and Other EBITDA
|
|
$
|
787
|
|
|
$
|
11
|
|
|
$
|
798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
787
|
|
|
$
|
11
|
|
|
$
|
798
|
|
Depreciation and
Amortization
|
|
(195)
|
|
|
—
|
|
|
(195)
|
|
Interest
Expense
|
|
(181)
|
|
|
—
|
|
|
(181)
|
|
Interest Income and
Other
|
|
2
|
|
|
—
|
|
|
2
|
|
Income Tax
Expense
|
|
(142)
|
|
|
31
|
|
B
|
(111)
|
|
Total Net
Income
|
|
271
|
|
|
42
|
|
|
313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(35)
|
|
|
—
|
|
|
(35)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
236
|
|
|
$
|
42
|
|
|
$
|
278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE, BASIC
|
|
$
|
0.35
|
|
|
$
|
0.06
|
|
|
$
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE, DILUTED
|
|
$
|
0.35
|
|
|
$
|
0.06
|
|
|
$
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A - Transaction costs
related to the dropdown of assets into Spectra Energy Partners, LP
and additional merger and acquisition costs.
|
B - Includes income
tax expense of $31 million resulting from a change in state tax
rate related to the dropdown of assets into Spectra Energy
Partners, LP.
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares (reported and ongoing) - in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
672
|
|
|
|
|
|
|
|
|
|
|
Spectra Energy
Corp
|
Reported to
Ongoing Earnings Reconciliation
|
December 2013
Year-to-date
|
(Unaudited)
|
(In millions, except
per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
Earnings
|
|
Special
Items
|
|
Ongoing
Earnings
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND DEPRECIATION AND
AMORTIZATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spectra Energy
Partners
|
|
$
|
1,433
|
|
|
$
|
7
|
|
A
|
$
|
1,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
574
|
|
|
—
|
|
|
574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Western Canada
Transmission & Processing
|
|
736
|
|
|
—
|
|
|
736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Field
Services
|
|
343
|
|
|
—
|
|
|
343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA
|
|
3,086
|
|
|
7
|
|
|
3,093
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
(86)
|
|
|
27
|
|
A
|
(59)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment and Other EBITDA
|
|
$
|
3,000
|
|
|
$
|
34
|
|
|
$
|
3,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
3,000
|
|
|
$
|
34
|
|
|
$
|
3,034
|
|
Depreciation and
Amortization
|
|
(772)
|
|
|
—
|
|
|
(772)
|
|
Interest
Expense
|
|
(657)
|
|
|
—
|
|
|
(657)
|
|
Interest Income and
Other
|
|
7
|
|
|
—
|
|
|
7
|
|
Income Tax
Expense
|
|
(419)
|
|
|
30
|
|
B
|
(389)
|
|
Total Net
Income
|
|
1,159
|
|
|
64
|
|
|
1,223
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(121)
|
|
|
(2)
|
|
|
(123)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
1,038
|
|
|
$
|
62
|
|
|
$
|
1,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE, BASIC
|
|
$
|
1.55
|
|
|
$
|
0.09
|
|
|
$
|
1.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE, DILUTED
|
|
$
|
1.55
|
|
|
$
|
0.09
|
|
|
$
|
1.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A - Transaction costs
related to the dropdown of assets into Spectra Energy Partners, LP
and additional merger and acquisition costs.
|
B - Includes income
tax expense of $31 million resulting from a change in state tax
rate related to the dropdown of assets into Spectra Energy
Partners, LP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares (reported and ongoing) - in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
671
|
|
|
|
|
|
|
|
|
|
|
Logo -
http://photos.prnewswire.com/prnh/20061030/CLM051LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/spectra-energy-reports-fourth-quarter-and-year-end-2014-results-300030585.html
SOURCE Spectra Energy Corp