HOUSTON, Feb. 4, 2015 /PRNewswire/ --
2014 Year-End Highlights
- 2014 distributable cash flow in excess of $1 billion; strong distribution coverage ratio of
1.2x
- Higher revenues from natural gas expansion projects and crude
transportation pipelines bolster EBITDA
- 29th consecutive quarterly cash
distribution increase
- Growth projects advanced safely, on time and on budget
Spectra Energy Partners, LP (NYSE: SEP) today reported fourth
quarter 2014 distributable cash flow of $245
million, compared with $120
million in the prior-year quarter. For the year,
distributable cash flow was up $740
million over 2013, with distributable cash flow of
$1.06 billion, compared with
$315 million in 2013.
Distributions per limited partner unit for 2014 were
$2.2875, compared with $2.07 per limited partner unit in 2013.
"Spectra Energy Partners had an outstanding fourth quarter,
closing out a great year driven by our fee-based business and
successful execution of our capital expansion program," said
Greg Ebel, president and chief
executive officer, Spectra Energy Partners. "2014 exceeded
our expectations in every way – financially, operationally, through
our origination and execution efforts as well as on the safety
front. With no commodity exposure, our suite of fee-based
assets and expansion projects are well positioned to deliver
continued steady growth and value creation for our investors."
For the quarter, reported earnings before interest, taxes,
depreciation and amortization (EBITDA) were $424 million, compared with $351 million in the prior-year quarter.
Ongoing EBITDA was $424 million for
the quarter, compared with $352
million in the prior-year quarter. For the year,
reported EBITDA was $1.59 billion, up
from $1.38 billion in 2013.
Ongoing EBITDA for 2014 was $1.59
billion, compared with $1.39
billion in 2013.
Reported net income from controlling interests was $283 million for the fourth quarter 2014,
compared with $540 million in the
fourth quarter 2013. For the year, reported net income from
controlling interests was $1.0
billion. Excluding a special item related
to the elimination of deferred income tax liabilities associated
with the November 2013 dropdown,
ongoing net income from controlling interests was $283 million for the fourth quarter 2014 compared
with $187 million in the fourth
quarter 2013 and $1.0 billion in
2014, up $304 million compared to
2013.
The drop-down of Spectra Energy's remaining U.S. transmission,
storage and liquids assets, including the remaining 60 percent of
Express-Platte U.S., occurred on November
1, 2013. Financial results, other than distributable
cash flow, for the U.S. Transmission and Liquids segments have been
recast throughout this release. The recast of the U.S.
Transmission segment represents results as if the drop-down assets
were owned by Spectra Energy Partners for the full periods
reflected. The Liquids segment represents results as if
Express-Platte was owned 100 percent by Spectra Energy Partners
since the date Spectra Energy acquired the asset on March 13, 2013.
EXPANSION PROJECT UPDATES
Spectra Energy Partners placed $550
million of capital into service during the year, including
the Kingsport Expansion Project in the fourth quarter 2014. The
company secured $2.4 billion of new
growth projects supported by firm, fee-based contracts.
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 Uniontown to Gas City
project have scheduled in-service dates in the fourth quarter of
2015.
Spectra Energy Partners acquired the Brazoria Interconnector Gas
(BIG) Pipeline last month and is expected to close in the 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 also 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.
Beyond the above listed projects in execution, Spectra Energy
Partners 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 Partners 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 Partners 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 Partners 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.
SEGMENT RESULTS
U. S. Transmission
U.S. Transmission reported fourth quarter 2014 earnings before
interest, taxes, depreciation and amortization (EBITDA) of
$369 million, compared with
$322 million in fourth quarter
2013.
Quarterly EBITDA results reflect increased earnings from
expansions, mainly related to TEAM 2014 and TEAM South coming into
service.
Year-end reported EBITDA for U.S. Transmission was $1.42 billion, compared with $1.28 billion in 2013.
Liquids
Liquids reported fourth quarter 2014 EBITDA of $71 million,
compared with $41 million in fourth quarter 2013.
Quarterly EBITDA results reflect higher equity earnings due to
the continued ramp-up of volumes on the Sand Hills and Southern
Hills natural gas liquids (NGL) pipelines, as well as higher crude
transportation revenues, mainly as a result of increased tariff
rates on the Express Pipeline.
Year-end reported EBITDA for Liquids was $240 million, compared with $132 million in 2013.
Other
Ongoing costs for "Other" were $16
million in the fourth quarter of 2014, compared with
$11 million in fourth quarter 2013,
which excludes $1 million of
transaction costs related to the dropdown in fourth quarter
2013. This increase was due to a full quarter of allocated
governance costs in fourth quarter 2014 associated with the U.S.
Transmission and Liquids assets that were dropped down in
November 2013.
Year-end ongoing costs for "Other" were $64 million, compared with $20 million in 2013, which excludes $7 million of transaction costs related to the
dropdown in 2013. This increase was due to allocated
governance costs associated with the U.S. Transmission and Liquids
assets that were dropped down in 2013.
ADDITIONAL FINANCIAL INFORMATION
Interest Expense
Interest expense was $55 million
for fourth quarter 2014, compared with $84
million for fourth quarter 2013. The decrease was
mainly due to the restructuring of an intercompany loan contributed
to Spectra Energy Partners as part of the dropdown on November 1, 2013, and lower average debt
balances.
Liquidity and Capital Resources
Total debt outstanding at Spectra Energy Partners as of
December 31, 2014, was $6.1 billion. At the end of the year, Spectra
Energy Partners had available liquidity of $1.2 billion. Spectra Energy Partners' capital
expansion program continues to be funded through a combination of
debt and equity. In late 2013, Spectra Energy Partners initiated an
"At the Market" (ATM) equity issuance program. In 2014, Spectra
Energy Partners received net proceeds of approximately $327 million from public limited partner units
sold under the ATM program. In January
2015, Spectra Energy Partners filed a new $500 million shelf with the Securities Exchange
Commission (SEC) to support the company's next stage of the ATM
program, which will become active after the current $400 million program is fully utilized.
Capital and Investment Expenditures
Total capital and investment spending for the quarter was
$352 million, excluding contributions
from noncontrolling interests. The spending was mainly comprised of
approximately $239 million of growth
capital expenditures and $113 million
of maintenance capital expenditures. For the year, total capital
and investment spending was $1.24
billion, excluding contributions from noncontrolling
interests, and was mainly comprised of approximately $888 million of growth capital expenditures and
$259 million of maintenance capital
expenditures. Expansion capital was primarily for TEAM 2014 and
Sabal Trail.
Additional Information
Additional information about fourth quarter and year-end 2014
earnings can be obtained via the Spectra Energy Partners' website:
www.spectraenergypartners.com.
The analyst call, held jointly with Spectra Energy, 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 as a
measure to evaluate operations of the company. This measure is a
non-GAAP financial measure as it represents net income from
controlling interests 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 provides useful information to investors, as it
allows them to more accurately compare our ongoing performance
across periods. The most directly comparable GAAP measure for
ongoing net income from controlling interests is net income from
controlling interests.
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 as a measure of performance.
Ongoing segment EBITDA is a non-GAAP financial measure as it
represents reported segment EBITDA adjusted for special items. We
believe that the presentation of ongoing segment EBITDA provides
useful information to investors, as it allows investors to more
accurately compare a segment's ongoing performance across periods.
The most directly comparable GAAP measure for ongoing segment
EBITDA is reported segment 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 distribution 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 and interest
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; 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 Partners, LP (NYSE: SEP) is a Houston-based master limited partnership,
formed by Spectra Energy Corp (NYSE: SE). SEP is one of the largest
pipeline MLPs in the United States
and connects growing supply areas to high-demand markets for
natural gas, natural gas liquids, and crude oil. These assets
include more than 17,000 miles of transmission and gathering
pipelines, approximately 150 billion cubic feet of natural gas
storage, and approximately 4.8 million barrels of crude oil
storage.
Spectra Energy
Partners, LP
|
Quarterly
Highlights
|
December
2014
|
(Unaudited)
|
(In millions, except
per-unit amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters
Ended
|
|
Years
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
INCOME
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
599
|
|
|
$
|
520
|
|
|
$
|
2,269
|
|
|
$
|
1,965
|
|
Total Reportable
Segment EBITDA
|
|
440
|
|
|
363
|
|
|
1,655
|
|
|
1,411
|
|
Net Income -
Controlling Interests
|
|
283
|
|
|
540
|
|
|
1,004
|
|
|
1,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA BY BUSINESS
SEGMENT (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
$
|
369
|
|
|
$
|
322
|
|
|
$
|
1,415
|
|
|
$
|
1,279
|
|
Liquids
|
|
71
|
|
|
41
|
|
|
240
|
|
|
132
|
|
Total Reportable
Segment EBITDA
|
|
440
|
|
|
363
|
|
|
1,655
|
|
|
1,411
|
|
Other
EBITDA
|
|
(16)
|
|
|
(12)
|
|
|
(64)
|
|
|
(27)
|
|
Total Reportable
Segment and Other EBITDA
|
|
$
|
424
|
|
|
$
|
351
|
|
|
$
|
1,591
|
|
|
$
|
1,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PARTNERS' CAPITAL
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Declared Cash
Distribution per Limited Partner Unit
|
|
$
|
0.58875
|
|
|
$
|
0.54625
|
|
|
$
|
2.2875
|
|
|
$
|
2.0725
|
|
Weighted Average
Units Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited Partner
Units
|
|
293
|
|
|
227
|
|
|
288
|
|
|
138
|
|
General Partner
Units
|
|
6
|
|
|
5
|
|
|
6
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTABLE CASH
FLOW (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable Cash
Flow
|
|
$
|
245
|
|
|
$
|
120
|
|
|
$
|
1,055
|
|
|
$
|
315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL AND
INVESTMENT EXPENDITURES (a,b,c)
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
- U.S. Transmission
|
|
|
|
|
|
|
|
$
|
1,063
|
|
|
$
|
1,000
|
|
Capital expenditures
- Liquids
|
|
|
|
|
|
|
|
18
|
|
|
19
|
|
Investment
Expenditures
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in Sand
Hills / Southern Hills / SESH
|
|
|
|
|
|
|
|
160
|
|
|
280
|
|
Total
|
|
|
|
|
|
|
|
$
|
1,241
|
|
|
$
|
1,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. TRANSMISSION
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
508
|
|
|
$
|
444
|
|
|
$
|
1,939
|
|
|
$
|
1,727
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating,
Maintenance and Other
|
|
177
|
|
|
154
|
|
|
647
|
|
|
594
|
|
Other Income and
Expenses
|
|
38
|
|
|
32
|
|
|
123
|
|
|
146
|
|
EBITDA
|
|
$
|
369
|
|
|
$
|
322
|
|
|
$
|
1,415
|
|
|
$
|
1,279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIQUIDS
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
91
|
|
|
$
|
76
|
|
|
$
|
330
|
|
|
$
|
238
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating,
Maintenance and Other
|
|
35
|
|
|
37
|
|
|
134
|
|
|
109
|
|
Other Income and
Expenses
|
|
15
|
|
|
2
|
|
|
44
|
|
|
3
|
|
EBITDA
|
|
$
|
71
|
|
|
$
|
41
|
|
|
$
|
240
|
|
|
$
|
132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Express Pipeline
Revenue Receipts, MBbl/d (d,e)
|
|
240
|
|
|
238
|
|
|
223
|
|
|
219
|
|
Platte PADD II
Deliveries, MBbl/d (e)
|
|
168
|
|
|
167
|
|
|
170
|
|
|
168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
|
|
|
|
|
|
|
|
$
|
6,092
|
|
|
$
|
5,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual Units
Outstanding
|
|
|
|
|
|
|
|
301
|
|
|
290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) 2013 financial
results, excluding distributable cash flow, limited partner units
and general partner units, have been recast to include the U.S.
Assets Dropdown as of January 1, 2013 and Express-Platte as of
March 14, 2013.
|
(b) Excludes the
acquisition of Express-Platte.
|
(c) 2014 period
includes an investment in SESH of $94 million, used by SESH to
retire debt, and excludes contributions from noncontrolling
interests of $53 million at U.S. Transmission. 2013 period excludes
$2,210 million net cash outlay for the U.S. Assets Dropdown and a
$71 million loan to an unconsolidated affiliate.
|
(d) Thousand barrels
per day.
|
(e) 2013 data
includes only activity since March 14, 2013, the date of
acquisition of Express-Platte by Spectra Energy.
|
Spectra Energy
Partners, LP
|
Condensed
Consolidated Statements of Operations
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
|
|
2014
|
|
2013
(a)
|
|
2014
|
|
2013
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
599
|
|
|
$
|
520
|
|
|
$
|
2,269
|
|
|
$
|
1,965
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
300
|
|
|
273
|
|
|
1,133
|
|
|
992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
299
|
|
|
247
|
|
|
1,136
|
|
|
973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income and
Expenses
|
|
52
|
|
|
33
|
|
|
164
|
|
|
148
|
|
Interest
Expense
|
|
55
|
|
|
84
|
|
|
238
|
|
|
383
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before
Income Taxes
|
|
296
|
|
|
196
|
|
|
1,062
|
|
|
738
|
|
Income Tax Expense
(Benefit) (b)
|
|
6
|
|
|
(348)
|
|
|
35
|
|
|
(348)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
290
|
|
|
544
|
|
|
1,027
|
|
|
1,086
|
|
Net Income -
Noncontrolling Interests
|
|
7
|
|
|
4
|
|
|
23
|
|
|
16
|
|
Net Income -
Controlling Interests
|
|
$
|
283
|
|
|
$
|
540
|
|
|
$
|
1,004
|
|
|
$
|
1,070
|
|
|
(a) 2013 financial
results have been recast to include the U.S. Assets Dropdown as of
January 1, 2013 and Express-Platte as of March 14, 2013. Interest
expense decreased due to the restructuring of a note payable (which
now eliminates within Spectra Energy Partners, LP) resulting from
the U.S. Assets Dropdown. Allocated governance costs increased as
governance costs were not recast during the U.S. Assets
Dropdown.
|
(b) Tax benefit in
2013 is due to the elimination of deferred income tax
liabilities related to the U.S. Assets Dropdown.
|
Spectra Energy
Partners, LP
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
$
|
555
|
|
|
$
|
565
|
|
Investments and Other
Assets
|
|
4,841
|
|
|
4,613
|
|
Property, Plant and
Equipment, net
|
|
12,135
|
|
|
11,363
|
|
Regulatory Assets and
Deferred Debits
|
|
262
|
|
|
253
|
|
|
Total
Assets
|
|
|
$
|
17,793
|
|
|
$
|
16,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
$
|
1,482
|
|
|
$
|
1,335
|
|
Long-term
Debt
|
|
|
5,149
|
|
|
5,178
|
|
Deferred Credits and
Other Liabilities
|
|
156
|
|
|
140
|
|
Equity
|
|
|
|
11,006
|
|
|
10,141
|
|
|
Total Liabilities
and Equity
|
|
$
|
17,793
|
|
|
$
|
16,794
|
|
Spectra Energy
Partners, LP
|
Distributable Cash
Flow
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
$
|
290
|
|
|
$
|
544
|
|
|
$
|
1,027
|
|
|
$
|
1,086
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
55
|
|
|
84
|
|
|
238
|
|
|
383
|
|
Income tax expense
(benefit) (a)
|
|
6
|
|
|
(348)
|
|
|
35
|
|
|
(348)
|
|
Depreciation and
amortization
|
|
72
|
|
|
70
|
|
|
288
|
|
|
262
|
|
Foreign currency
loss
|
|
1
|
|
|
1
|
|
|
3
|
|
|
2
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
EBITDA
|
|
424
|
|
|
351
|
|
|
1,591
|
|
|
1,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated affiliates
|
|
(40)
|
|
|
(24)
|
|
|
(133)
|
|
|
(89)
|
|
Distributions from
equity investments (b)
|
|
45
|
|
|
24
|
|
|
165
|
|
|
117
|
|
Other
|
|
(2)
|
|
|
1
|
|
|
8
|
|
|
8
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
55
|
|
|
84
|
|
|
238
|
|
|
383
|
|
Equity
AFUDC
|
|
13
|
|
|
10
|
|
|
33
|
|
|
58
|
|
Net cash paid for
income taxes
|
|
1
|
|
|
—
|
|
|
6
|
|
|
—
|
|
Distributions to
non-controlling interests
|
|
7
|
|
|
5
|
|
|
29
|
|
|
19
|
|
Maintenance capital
expenditures (c)
|
|
106
|
|
|
90
|
|
|
270
|
|
|
228
|
|
Adjustment
(d)
|
|
—
|
|
|
43
|
|
|
—
|
|
|
417
|
|
Total
Distributable Cash Flow
|
|
$
|
245
|
|
|
$
|
120
|
|
|
$
|
1,055
|
|
|
$
|
315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Tax benefit in
2013 is due to the elimination of deferred income tax liabilities
related to the U.S. Assets Dropdown.
|
(b) Excludes $129
million in distributions from equity investments (SESH $99M, Sand
Hills $21M, and Southern Hills $9M) for the year ended December 31,
2014.
Excludes $63 million in distributions from equity investments (Sand
Hills $37M and Southern Hills $26M) for the year ended December 31,
2013.
|
(c) Excludes
reimbursable expenditures.
|
(d) Removes the
results of the U.S. Assets Dropdown for the periods prior to the
dropdown (January 1, 2013 to October 31, 2013) and the results of
Express-Platte for the periods prior to the dropdown (March 14,
2013 to August 1, 2013).
|
Spectra Energy
Partners, LP
|
|
Reported to
Ongoing Earnings Reconciliation
|
|
December 2014
Quarter-to-date
|
|
(Unaudited)
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND DEPRECIATION AND
AMORTIZATION
|
|
Reported
Earnings
|
|
Special
Items
|
|
Ongoing
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
|
|
$
|
369
|
|
|
$
|
—
|
|
|
$
|
369
|
|
|
Liquids
|
|
|
|
71
|
|
|
—
|
|
|
71
|
|
|
Total Reportable Segment EBITDA
|
|
|
440
|
|
|
—
|
|
|
440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(16)
|
|
|
—
|
|
|
(16)
|
|
|
Total Reportable Segment and other EBITDA
|
|
|
$
|
424
|
|
|
$
|
—
|
|
|
$
|
424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
424
|
|
|
$
|
—
|
|
|
$
|
424
|
|
|
Depreciation and
Amortization
|
|
(72)
|
|
|
—
|
|
|
(72)
|
|
|
Interest
Expense
|
|
(55)
|
|
|
—
|
|
|
(55)
|
|
|
Other Income and
Expenses
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
Income Tax
Expense
|
|
(6)
|
|
|
—
|
|
|
(6)
|
|
|
Total Net
Income
|
|
290
|
|
|
—
|
|
|
290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(7)
|
|
|
—
|
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
283
|
|
|
$
|
—
|
|
|
$
|
283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spectra Energy
Partners, LP
|
|
Reported to
Ongoing Earnings Reconciliation
|
|
December 2014
Year-to-date
|
|
(Unaudited)
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND DEPRECIATION AND
AMORTIZATION
|
|
Reported
Earnings
|
|
Special
Items
|
|
Ongoing
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
|
|
$
|
1,415
|
|
|
$
|
—
|
|
|
$
|
1,415
|
|
|
Liquids
|
|
|
|
240
|
|
|
—
|
|
|
240
|
|
|
Total Reportable Segment EBITDA
|
|
|
1,655
|
|
|
—
|
|
|
1,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(64)
|
|
|
—
|
|
|
(64)
|
|
|
Total Reportable Segment and other EBITDA
|
|
|
$
|
1,591
|
|
|
$
|
—
|
|
|
$
|
1,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
1,591
|
|
|
$
|
—
|
|
|
$
|
1,591
|
|
|
Depreciation and
Amortization
|
|
(288)
|
|
|
—
|
|
|
(288)
|
|
|
Interest
Expense
|
|
(238)
|
|
|
—
|
|
|
(238)
|
|
|
Other Income and
Expenses
|
|
(3)
|
|
|
—
|
|
|
(3)
|
|
|
Income Tax
Expense
|
|
(35)
|
|
|
23
|
|
A
|
(12)
|
|
|
Total Net
Income
|
|
1,027
|
|
|
23
|
|
|
1,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(23)
|
|
|
—
|
|
|
(23)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
1,004
|
|
|
$
|
23
|
|
|
$
|
1,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A - adjustment of
federal income tax liabilities related to the dropdown.
|
|
Spectra Energy
Partners, LP
|
|
Reported to
Ongoing Earnings Reconciliation
|
|
December 2013
Quarter-to-date
|
|
(Unaudited)
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND DEPRECIATION AND
AMORTIZATION
|
|
Reported
Earnings
|
|
Special
Items
|
|
Ongoing
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
|
|
$
|
322
|
|
|
$
|
—
|
|
|
$
|
322
|
|
|
Liquids
|
|
|
|
41
|
|
|
—
|
|
|
41
|
|
|
Total Reportable Segment EBITDA
|
|
|
363
|
|
|
—
|
|
|
363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(12)
|
|
|
1
|
|
A
|
(11)
|
|
|
Total Reportable Segment and other EBITDA
|
|
|
$
|
351
|
|
|
$
|
1
|
|
|
$
|
352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
351
|
|
|
$
|
1
|
|
|
$
|
352
|
|
|
Depreciation and
Amortization
|
|
(70)
|
|
|
—
|
|
|
(70)
|
|
|
Interest
Expense
|
|
(84)
|
|
|
—
|
|
|
(84)
|
|
|
Other Income and
Expenses
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
Income Tax
Expense
|
|
348
|
|
|
(354)
|
|
B
|
(6)
|
|
|
Total Net
Income
|
|
544
|
|
|
(353)
|
|
|
191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(4)
|
|
|
—
|
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
540
|
|
|
$
|
(353)
|
|
|
$
|
187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A - transaction costs
related to the dropdown.
|
|
B - adjustment of
federal income tax liabilities related to the dropdown.
|
|
|
|
Spectra Energy
Partners, LP
|
|
Reported to
Ongoing Earnings Reconciliation
|
|
December 2013
Year-to-date
|
|
(Unaudited)
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND DEPRECIATION AND
AMORTIZATION
|
|
Reported
Earnings
|
|
Special
Items
|
|
Ongoing
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
|
|
$
|
1,279
|
|
|
$
|
—
|
|
|
$
|
1,279
|
|
|
Liquids
|
|
|
|
132
|
|
|
—
|
|
|
132
|
|
|
Total Reportable Segment EBITDA
|
|
|
1,411
|
|
|
—
|
|
|
1,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(27)
|
|
|
7
|
|
A
|
(20)
|
|
|
Total Reportable Segment and other EBITDA
|
|
|
$
|
1,384
|
|
|
$
|
7
|
|
|
$
|
1,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
1,384
|
|
|
$
|
7
|
|
|
$
|
1,391
|
|
|
Depreciation and
Amortization
|
|
(262)
|
|
|
—
|
|
|
(262)
|
|
|
Interest
Expense
|
|
(383)
|
|
|
—
|
|
|
(383)
|
|
|
Other Income and
Expenses
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
Income Tax
Expense
|
|
348
|
|
|
(354)
|
|
B
|
(6)
|
|
|
Total Net
Income
|
|
1,086
|
|
|
(347)
|
|
|
739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(16)
|
|
|
—
|
|
|
(16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
1,070
|
|
|
$
|
(347)
|
|
|
$
|
723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A - transaction costs
related to the dropdown.
|
|
B - adjustment of
federal income tax liabilities related to the dropdown.
|
|
|
|
Logo -
http://photos.prnewswire.com/prnh/20071107/CLW064
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/spectra-energy-partners-reports-fourth-quarter-and-year-end-2014-results-300030597.html
SOURCE Spectra Energy Partners, LP