HOUSTON, Feb. 5, 2015 /PRNewswire/ -- Spectra Energy
Corp (NYSE: SE) and Spectra Energy Partners (NYSE: SEP) today
announced their business outlook and 2015-2017 financial plan.
Key highlights include:
- Spectra Energy 2015 distributable cash flow of more than
$1.2 billion
- Dividend increase of 14 cents per
share annually, or 9 percent, through 2017 at Spectra Energy;
dividend coverage of 1.2x in 2015 and 1.0x per year in 2016 and
2017
- SEP distributable cash flow in 2015 of $1.1 billion with a compound annual growth rate
(CAGR) of 12.7 percent through 2017
- Distribution increases of one and a quarter cents each quarter,
or 8 percent annually, through 2017 at SEP; distribution coverage
of 1.1x in 2015 and 1.02x in 2016 and 2017
- 2015 Spectra Energy enterprise-wide EBITDA of more than
$2.8 billion; with a CAGR of 10.5
percent through 2017
- Investment of approximately $8
billion in expansion capital (CapEx) over the plan period
with $2.5 billion invested in 2015
and $2.8 billion in both 2016 and
2017; SEP's share of CapEx is about 75 percent in 2015;
approximately 60 percent in 2016, and nearly 70 percent in
2017
"Spectra Energy continues to provide solid, reliable cash flows
supported by high-performing fee-based assets – with negligible
commodity or volume exposure across our portfolio. We
improved our annual dividend growth to 14
cents per share, up from the 12
cents per share we committed to investors last year, while
also increasing our 2015 DCF forecast above the 2015 DCF
expectation presented in last year's plan," said Greg Ebel, president and chief executive
officer, Spectra Energy. "This three-year outlook speaks to
the strength of our base business and ability to deliver in various
economic and commodity cycles."
Key assumptions underlying the three-year financial plan
include:
- An average natural gas liquids price of 55 cents per gallon; a natural gas price of
$3.60 per thousand cubic feet (Mcf);
and crude oil averaging $60 per
barrel
- A Canadian to U.S dollar exchange rate of 1.15
- Maintenance CapEx of $2.2
billion; with $746 million in
2015, $731 million in 2016, and
$762 million in 2017
- Cash tax rates of 0.5 percent in 2015, 18.9 percent in 2016,
and 21 percent in 2017
"Our growing asset footprint, the power of our portfolio, our
first and last mile advantage and our existing infrastructure
already serving high-demand markets set us apart and create an
unmatched position from which we will continue to grow," added
Ebel. "Our expansion plans are well under way, and we
are on track to deliver on our pledge to secure $35 billion in growth projects through the end of
the decade. In fact, since 2013, we have placed approximately
$7 billion of expansion projects into
service and currently have nearly $9.5
billion in execution. Further, our three-year
plan will add to enhanced cash flows and coverage beyond 2017, when
virtually all the projects we currently have in execution go into
service."
Spectra Energy Corp and Spectra Energy Partners will discuss
their business outlook and three-year financial plan in greater
detail during an analyst/investor meeting today.
The presentation is scheduled to begin at 8:30 a.m. ET and will be webcast via the
Investors Sections of www.spectraenergy.com and
www.spectraenergypartners.com. Interested parties can also
call into the discussion by dialing 888-252-3715 in the U.S. or
706-634-8942 internationally. The conference ID is 47700640 or
"Spectra Energy 2015 Plan." An audio replay will be available
until 5 p.m. ET, May 5, 2015, by dialing 800-585-8367 in the U.S.
with the above conference ID. The international replay number is
404-537-3406.
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 a 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 in our filings that we
make with the 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.
About Spectra Energy and Spectra Energy Partners
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.
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SOURCE Spectra Energy Corp; Spectra Energy Partners