HOUSTON, Feb. 3, 2016 /PRNewswire/ --
Year-End Highlights:
- 2015 distributable cash flow of $1.3
billion, with dividend coverage ratio of 1.3x, exceeding the
2015 forecast of 1.2x
- Brought OPEN and 2015 Dawn-Parkway projects into service in
fourth quarter
- Added almost $2 billion to
execution backlog during 2015
- Announced annual dividend increase of 14
cents per share for 2016
Spectra Energy Corp (NYSE: SE) today reported fourth quarter and
year-end 2015 financial results. For the quarter, ongoing earnings
before interest, taxes, depreciation, and amortization (EBITDA)
were $672 million, compared with
$810 million in the prior-year
quarter. For the year, ongoing EBITDA was $2.75 billion, compared with $3.15 billion in the prior year.
Ongoing distributable cash flow (DCF) for the quarter was
$201 million, compared with
$316 million in the same quarter last
year. For the year, ongoing DCF was $1.29
billion, compared with $1.46
billion in 2014.
Fourth quarter 2015 ongoing net income from controlling
interests was $189 million, or
$0.28 diluted earnings per share
(EPS), compared with $316 million, or
$0.47 diluted EPS, during the
prior-year quarter. Reported net income from controlling interests
for the quarter was $(263) million,
or $(0.39) diluted EPS, compared with
$316 million, or $0.47 diluted EPS, in 2014. Fourth quarter 2015
results include special items of $452
million, or $0.67 diluted EPS,
driven largely by non-cash goodwill and asset impairments totaling
$445 million.
Ongoing net income from controlling interests was $775 million in 2015, or $1.15 diluted EPS, compared with $1.09 billion, or $1.62 diluted EPS, during the prior year.
Reported net income from controlling interests was $196 million in 2015, or $0.29 diluted EPS, compared with $1.08 billion, or $1.61 diluted EPS, in 2014. Full year 2015
results include special items of $579
million, or $0.86 diluted EPS,
driven largely by non-cash goodwill and asset impairments totaling
$561 million.
Tables detailing the fourth quarter and full-year special items
are shown later in this release.
CEO COMMENT
"Our 2015 results illustrate the resiliency of our business
model. Even in a year with dramatically lower commodity prices and
a lower Canadian dollar than we had projected, we managed to beat
our DCF expectations by 7 percent and ended the year with a higher
than expected dividend coverage ratio of 1.3 times," said
Greg Ebel, chief executive officer,
Spectra Energy. "We continued to build on our solid natural gas
transmission portfolio, which generates 90 percent of its revenue
from long-term, fixed-fee contracts with high credit-quality
customers and little volume risk. As a result of this stability, we
are positioned to continue providing reliable and growing dividends
for our investors, as demonstrated by the 14-cent per share increase for 2016 that we
recently announced.
"Looking forward, we continue to have more than $8 billion of contractually secured projects in
our execution backlog, 75 percent of which are supported by
demand-pull customers such as local utilities. The growing demand
for our assets, as well as the decisive actions we took in 2015 to
strengthen our business, have prepared us well for 2016 and
beyond."
SEGMENT RESULTS
Spectra Energy Partners
Spectra Energy Partners reported fourth quarter 2015 EBITDA of
$484 million, compared with
$444 million in fourth quarter 2014.
These results reflect increased earnings from expansion projects in
the natural gas transmission business. The increase was partially
offset by lower equity earnings from Sand Hills and Southern Hills
natural gas liquids (NGL) pipelines, which Spectra Energy Partners
owned for approximately one month of the quarter.
Year-end 2015 ongoing EBITDA for Spectra Energy Partners was
$1.91 billion, compared with
$1.67 billion in 2014. The 2015
period excludes a special item of $9
million related to a non-cash impairment of the Ozark Gas
Gathering asset.
Distribution
Distribution reported fourth quarter 2015 EBITDA of $113 million, compared with $132 million in fourth quarter 2014. The decrease
was mainly due to the effect of a lower Canadian dollar.
Year-end 2015 EBITDA for Distribution was $473 million, compared with $552 million in 2014.
Western Canada Transmission & Processing
Western Canada Transmission & Processing fourth quarter 2015
ongoing EBITDA was $123 million,
compared with $250 million in fourth
quarter 2014. The 2015 period excludes special items of
$7 million for employee and overhead
reductions and $7 million for a
non-cash asset impairment. The segment's ongoing results reflect
the effect of a lower Canadian dollar and lower earnings at
Empress, largely due to the net effect of the unrealized
mark-to-market value associated with the risk management
program.
Year-end 2015 ongoing EBITDA for Western Canada Transmission
& Processing was $516 million,
compared with $754 million in 2014.
The 2015 period excludes special items totaling $25 million, which were primarily associated with
employee and overhead reductions.
Field Services
Spectra Energy reported ongoing EBITDA from Field Services of
$(36) million in fourth quarter 2015,
compared with $(18) million in fourth
quarter 2014. The 2015 period excludes special items of
$172 million, primarily from non-cash
asset impairments as a result of the continuing low commodity price
environment. The decrease in ongoing EBITDA was primarily
attributable to lower commodity prices, partially offset by asset
growth, improved operating efficiencies, and other initiatives, as
well as the increase in ownership of the Sand Hills and Southern
Hills NGL pipelines for approximately two months of the quarter. As
a reminder, Spectra Energy's EBITDA from Field Services represents
the company's 50 percent share of DCP Midstream's net income plus
gains from DPM unit issuances.
During the fourth quarters of 2015 and 2014, respectively, NGL
prices averaged $0.42 per gallon
versus $0.68 per gallon, NYMEX
natural gas averaged $2.27 per
million British thermal units (MMBtu) versus $4.00 per MMBtu, and crude oil averaged
approximately $42 per barrel versus
$73 per barrel.
On a full-year basis for 2015 and 2014, respectively, NGL prices
averaged $0.45 per gallon versus
$0.89 per gallon, NYMEX natural gas
averaged $2.66 per MMBtu versus
$4.41 per MMBtu, and crude oil
averaged approximately $49 per barrel
versus $93 per
barrel.
Year-end 2015 ongoing EBITDA for Field Services was $(106) million, compared with $229 million in 2014. The 2015 period excludes
special items of $355 million,
primarily due to non-cash goodwill and asset impairments. The 2014
period excludes special items of $12
million, primarily due to a non-cash goodwill
impairment.
Other
"Other" reported ongoing net expenses of $12 million and a net benefit of $2 million in the fourth quarters of 2015 and
2014, respectively, reflecting higher corporate costs, including
employee benefits costs. Full-year 2015 ongoing net expenses for
"Other" were $51 million, compared
with $58 million in 2014. Both the
2015 quarter and year-end periods exclude a special item of
$333 million related to non-cash
goodwill impairments associated with the Westcoast acquisition in
2002.
"Other" primarily consists of corporate expenses, including
benefits, and captive insurance.
ADDITIONAL FINANCIAL INFORMATION
Interest Expense
Interest expense was $156 million
in fourth quarter 2015, compared with $158
million in fourth quarter 2014, reflecting a lower Canadian
dollar and lower average rates, partially offset by higher average
long-term debt balances.
Income Taxes
Excluding a $62 million tax
benefit related to asset impairments in the current quarter, income
tax expense was $59 million in fourth
quarter 2015, compared with $77
million in fourth quarter 2014. The decrease in tax
expense was mainly due to lower earnings and a lower effective
state tax rate.
Excluding the tax impact of special items, the effective tax
rate was 20 percent in fourth quarter 2015, compared with 17
percent in fourth quarter 2014.
Foreign Currency
Net income from controlling interests for the quarter was lower
by $6 million due to the lower
Canadian dollar.
Liquidity and Capital Expenditures
Total debt outstanding at Spectra Energy as of December 31, 2015, was $14.7 billion. Total Spectra Energy liquidity at
the end of the quarter was $2.8
billion, including $1.7
billion of available liquidity at Spectra Energy Partners.
Total capital and investment spending for the quarter was
$1.06 billion, excluding
contributions from noncontrolling interests. The spending consisted
of $848 million of growth capital
expenditures and $216 million of
maintenance capital expenditures.
For the year, total capital and investment spending was
$2.97 billion, excluding
contributions from noncontrolling interests, and was mainly
comprised of approximately $2.28
billion of growth capital expenditures and $691 million of maintenance capital
expenditures.
Effects of Fourth Quarter 2015 Special Items
($MM)
|
EBITDA
|
Net Income(1)
|
EPS
|
Cash
|
Ongoing
|
$ 672
|
$ 189
|
$ 0.28
|
|
Adjustments related
to Special
Items
|
|
|
|
|
Goodwill impairments (2)
|
$ (333)
|
$ (333)
|
$ (0.49)
|
$ 0
|
DCP special
items
|
(172)
|
(110)
|
(0.16)
|
0
|
Other special items
|
(14)
|
(9)
|
(0.02)
|
(7)
|
Total
Special Items
|
$ (519)
|
$ (452)
|
$ (0.67)
|
$ (7)
|
Reported
|
$ 153
|
$ (263)
|
$ (0.39)
|
|
(1) Represents net income from controlling
interests
(2) Recorded in Other at
SE
|
|
|
|
|
Effects of Year-to-Date 2015 Special Items
($MM)
|
EBITDA
|
Net Income(1)
|
EPS
|
Cash
|
Ongoing
|
$2,746
|
$ 775
|
$ 1.15
|
|
Adjustments related
to Special
Items
|
|
|
|
|
Goodwill impairments (2)
|
$ (333)
|
$ (333)
|
$ (0.49)
|
$ 0
|
DCP special
items
|
(355)
|
(224)
|
(0.33)
|
0
|
Other special items
|
(34)
|
(22)
|
(0.04)
|
(18)
|
Total
Special Items
|
$ (722)
|
$ (579)
|
$ (0.86)
|
$ (18)
|
Reported
|
$ 2,024
|
$ 196
|
$ 0.29
|
|
(1) Represents net income from controlling
interests
(2) Recorded in Other at
SE
|
|
|
|
|
EXPANSION PROJECT UPDATES
Spectra Energy continues to make progress on securing
$35 billion in new projects by the
end of the decade. At the end of 2015, the company had:
- $10.1 billion – in service and
delivering solid cash flows
- $8.2 billion – in execution
- $20+ billion – in development
Spectra Energy Partners
Spectra Energy Partners has advanced numerous projects across
the system. The company filed Federal Energy Regulatory Commission
(FERC) certificate applications in the quarter for the Atlantic
Bridge, Access South, Adair Southwest, and
Lebanon Extension projects.
The NEXUS project, which is supported by local
distribution companies (LDCs) as well as Marcellus and Utica producers, also filed its application
with FERC, and reached another regulatory milestone in the quarter
with the receipt of Ontario Energy Board (OEB) approval for the
Canadian utility shippers. The joint venture with DTE will allow
customers to move up to 1.5 billion cubic feet per day (Bcf/d)
through Ohio and Michigan markets to the Dawn Hub, which is the
second largest physically traded gas hub in North America and is owned and operated by
Union Gas. NEXUS has secured additional connections with four
natural gas distribution companies in Ohio, including the two largest in the state,
two natural gas-fired power plants, and three industrial parks,
demonstrating the value of the project path connecting to the
largest natural gas supply source in North America. These connections could add
incremental load across northern Ohio of up to 1.4 Bcf/d. NEXUS is on
target for a November 2017 in-service
date.
The AIM project, supported by New England LDCs, has made
significant construction progress and is well on the way to its
planned in-service date in the second half of 2016. A number of
other projects are on track to meet their respective in-service
dates, including the Sabal Trail, Ozark, Salem
Lateral, Gulf Markets, Loudon Expansion,
TEAL, and PennEast projects.
In the liquids business, the Express Enhancement project
is supported by long-term contracts and is on schedule for
completion by the end of 2016. The strong response to this system
optimization project demonstrates that the Express pipeline's
incumbent position is a substantial advantage in responding quickly
to market demand.
Access Northeast is focused on the New England electric
power market and saving consumers money while improving the
reliability of the region's energy system. This solution maximizes
existing infrastructure corridors, by utilizing the Algonquin and
Maritimes & Northeast pipelines, which directly connect to more
than 60 percent of the ISO-New England power plants. In addition,
the four new natural gas-fired electric generation plants that have
cleared the 2017 and 2018 ISO-NE forward capacity auctions will be
located on the Algonquin pipeline, further demonstrating the
company's very strong position in New England.
Access Northeast will carry natural gas from the least expensive
supply areas, via multiple optional paths, directly to the majority
of the power plants in New England. It will cost-effectively
deliver supply when power generators need it, with new tariff
services to handle the peak hour, quick start, and seasonal
needs.
Access Northeast submitted its FERC pre-file application during
the quarter and has recently executed electric distribution
contracts in Massachusetts
equaling more than 40 percent of the 0.9 Bcf/d capacity designed
for generators. Progress is being made in other states, and Access
Northeast anticipates state approvals for contracts later this
year. The project continues to advance toward a late 2018 initial
in-service date.
Distribution
Union Gas' storage and transmission system continues to grow and
increase in importance to Eastern
Canada and the Northeast U.S.
The 2015 Dawn-Parkway expansion project was placed into
service on time and under budget during the quarter. Future growth
opportunities also solidified with OEB approvals for the
2016 and 2017 Dawn-Parkway expansions, along with the
Burlington-Oakville transmission reinforcement
project. These expansion projects are now in execution and on
schedule for their respective in-service dates.
Western Canada Transmission & Processing
Western Canada originated two
new supply-push projects in 2015, totaling about 290 million cubic
feet per day in capacity: High Pine and Wyndwood.
These projects are underpinned by long-term contracts with
Montney producers holding
substantial land bases and seeking markets at Station 2 in
British Columbia, AECO in
Alberta, as well as export markets
via multiple paths. High Pine is on schedule to go into service in
2016, while Wyndwood, which was placed into execution in the fourth
quarter, has an expected in-service date of 2018. Both projects
will drive growth on the company's BC Pipeline, which provides
producer access to downstream markets.
The Jackfish Lake
project is proceeding on schedule to be in service in 2017. The
RAM project will increase reliability and maintainability on
our fully contracted 1.5 Bcf/d T-South system, is proceeding on
schedule, and will come on-line in stages, with full in-service in
2018. Upon completion, RAM will allow significantly higher summer
load factors than previous years, to meet increased demands for
low-cost British Columbia
production in the Pacific Northwest.
High Pine, Jackfish Lake and
RAM were all filed with the National Energy Board (NEB) during the
quarter.
Additional Information
Additional information about fourth quarter 2015 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 3,
2016, at 8 a.m. CT. The
webcast will be available via the Investors sections of the Spectra
Energy and Spectra Energy Partners websites. The conference call
can be accessed by dialing (888) 252-3715 in the U.S. or
Canada, or (706) 634-8942
internationally. The conference ID is 89326071 or "Spectra Energy /
Spectra Energy Partners Earnings Call."
A replay of the call will be available until 5 p.m. CT on Tuesday, May
3, 2016, by dialing (800) 585-8367 in the U.S. or
Canada, or (404) 537-3406
internationally, and using the above conference ID. A replay and
transcript also will be available via the Investors sections of the
Spectra Energy and 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, excluding
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 from
controlling interests and ongoing diluted EPS provides useful
information to investors, as it allows investors 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 reported net income from
controlling interests and reported diluted EPS.
We use earnings from continuing operations before interest,
income taxes, and depreciation and amortization (EBITDA) and
ongoing EBITDA, non-GAAP financial measures, as performance
measures for Spectra Energy Corp. Ongoing EBITDA represents EBITDA
excluding special items. We believe that the presentation of EBITDA
and ongoing EBITDA provides useful information to investors, as it
allows investors to more accurately compare Spectra Energy Corp's
performance across periods. The most directly comparable GAAP
measure for EBITDA and ongoing EBITDA for Spectra Energy Corp is
net income.
The primary performance measure used by us to evaluate segment
performance is segment 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 ongoing Other EBITDA (net
expenses) as measures of performance. Ongoing segment EBITDA and
ongoing Other EBITDA are non-GAAP financial measures, as they
represent reported segment EBITDA and reported Other EBITDA,
excluding special items. We believe that the presentation of
ongoing segment EBITDA and ongoing Other EBITDA provides useful
information to investors, as it allows investors to more accurately
compare a segment's or Other's ongoing performance across periods.
The most directly comparable GAAP measures for ongoing segment
EBITDA and ongoing Other EBITDA are reported segment EBITDA and
reported Other EBITDA.
We have also presented Distributable Cash Flow (DCF), which is a
non-GAAP financial measure. We believe that the presentation of DCF
provides useful information to investors, as it represents the cash
generation capabilities of the company to support dividend growth.
We also use ongoing DCF, which is a non-GAAP financial measure, as
it represents DCF excluding the cash effect of special items. The
most directly comparable GAAP measure for DCF and ongoing DCF is
net income. We also use DCF coverage, which is a non-GAAP financial
measure, as it represents DCF divided by dividends declared on
common stock. The most directly comparable GAAP measure for DCF
coverage is reported EPS.
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: 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 2014 Form 10-K, filed on February 27, 2015, 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 21,000 miles of
natural gas, natural gas liquids, and crude oil pipelines;
approximately 300 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 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. For more
information, visit www.spectraenergy.com and
www.spectraenergypartners.com.
Spectra Energy
Corp
|
Quarterly
Highlights
|
December
2015
|
(Unaudited)
|
(In millions, except
per-share amounts and where noted)
|
These results
include the impact of special items
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
COMMON STOCK
DATA
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per
Share, Diluted
|
|
$
|
(0.39)
|
|
|
$
|
0.47
|
|
|
$
|
0.29
|
|
|
$
|
1.61
|
|
Dividends Per
Share
|
|
$
|
0.370
|
|
|
$
|
0.370
|
|
|
$
|
1.480
|
|
|
$
|
1.375
|
|
Weighted-Average
Shares Outstanding, Diluted
|
|
673
|
|
|
672
|
|
|
672
|
|
|
672
|
|
|
|
|
|
|
|
|
|
|
INCOME
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
1,316
|
|
|
$
|
1,600
|
|
|
$
|
5,234
|
|
|
$
|
5,903
|
|
Total Reportable
Segment EBITDA
|
|
498
|
|
|
808
|
|
|
2,408
|
|
|
3,192
|
|
Net Income (Loss) -
Controlling Interests
|
|
(263)
|
|
|
316
|
|
|
196
|
|
|
1,082
|
|
|
|
|
|
|
|
|
|
|
EBITDA BY BUSINESS
SEGMENT
|
|
|
|
|
|
|
|
|
Spectra Energy
Partners
|
|
$
|
484
|
|
|
$
|
444
|
|
|
$
|
1,905
|
|
|
$
|
1,669
|
|
Distribution
|
|
113
|
|
|
132
|
|
|
473
|
|
|
552
|
|
Western Canada
Transmission & Processing
|
|
109
|
|
|
250
|
|
|
491
|
|
|
754
|
|
Field
Services
|
|
(208)
|
|
|
(18)
|
|
|
(461)
|
|
|
217
|
|
Total Reportable
Segment EBITDA
|
|
498
|
|
|
808
|
|
|
2,408
|
|
|
3,192
|
|
Other
EBITDA
|
|
(345)
|
|
|
2
|
|
|
(384)
|
|
|
(58)
|
|
Total Reportable
Segment and Other EBITDA
|
$
|
153
|
|
|
$
|
810
|
|
|
$
|
2,024
|
|
|
$
|
3,134
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTABLE CASH
FLOW
|
|
|
|
|
|
|
|
|
Distributable Cash
Flow
|
|
$
|
194
|
|
|
$
|
316
|
|
|
$
|
1,274
|
|
|
$
|
1,460
|
|
Coverage
Ratio
|
|
|
|
|
|
1.3x
|
|
|
1.6x
|
|
CAPITAL AND
INVESTMENT EXPENDITURES
|
|
|
|
|
|
|
|
|
Spectra Energy
Partners (a)
|
|
|
|
|
|
$
|
2,007
|
|
|
$
|
1,241
|
|
Distribution
|
|
|
|
|
|
544
|
|
|
427
|
|
Western Canada
Transmission & Processing
|
|
|
|
|
|
360
|
|
|
473
|
|
Other (b)
|
|
|
|
|
|
61
|
|
|
146
|
|
Total Capital and Investment
Expenditures (a,b)
|
|
|
|
$
|
2,972
|
|
|
$
|
2,287
|
|
|
|
|
|
|
|
|
|
|
Expansion and
Investment (a,b)
|
|
|
|
|
|
$
|
2,281
|
|
|
$
|
1,547
|
|
Maintenance and
Other
|
|
|
|
|
|
691
|
|
|
740
|
|
Total Capital and Investment
Expenditures (a,b)
|
|
|
|
$
|
2,972
|
|
|
$
|
2,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
2015
|
|
2014
|
CAPITALIZATION
|
|
|
|
|
|
|
|
|
Common Equity -
Controlling Interests
|
|
|
|
|
|
26.6
|
%
|
|
32.2
|
%
|
Noncontrolling
Interests and Preferred Stock
|
|
|
|
|
|
13.6
|
%
|
|
9.9
|
%
|
Total Debt
|
|
|
|
|
|
59.8
|
%
|
|
57.9
|
%
|
|
|
|
|
|
|
|
|
|
Total Debt
|
|
|
|
|
|
$
|
14,656
|
|
|
$
|
14,637
|
|
Book Value Per Share
(c)
|
|
|
|
|
|
$
|
9.73
|
|
|
$
|
12.16
|
|
Actual Shares
Outstanding
|
|
|
|
|
|
671
|
|
|
671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes
contributions received from noncontrolling interests of $216
million in 2015 and $53 million in 2014. 2014 period includes an
investment in SESH of $94 million, used by SESH to retire
debt.
|
(b) 2014 period
includes an investment in SESH of $95 million, used by SESH to
retire debt.
|
(c) Represents
controlling interests.
|
|
|
|
|
|
|
|
|
Spectra Energy
Corp
Quarterly Highlights
December 2015
(Unaudited)
(In millions, except where noted)
These results include the impact of special items
|
|
|
|
Quarters Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
SPECTRA ENERGY
PARTNERS
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
634
|
|
|
$
|
599
|
|
|
$
|
2,455
|
|
|
$
|
2,269
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Operating, Maintenance
and Other
|
|
222
|
|
|
213
|
|
|
828
|
|
|
781
|
|
Other Income
and Expenses
|
|
72
|
|
|
58
|
|
|
278
|
|
|
181
|
|
EBITDA
|
|
$
|
484
|
|
|
$
|
444
|
|
|
$
|
1,905
|
|
|
$
|
1,669
|
|
Express
Pipeline Revenue Receipts, MBbl/d (a)
|
|
239
|
|
|
240
|
|
|
239
|
|
|
223
|
|
Platte PADD II
Deliveries, MBbl/d
|
|
140
|
|
|
168
|
|
|
162
|
|
|
170
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTION
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
366
|
|
|
$
|
505
|
|
|
$
|
1,527
|
|
|
$
|
1,843
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Natural Gas
Purchased
|
|
152
|
|
|
261
|
|
|
691
|
|
|
879
|
|
Operating, Maintenance
and Other
|
|
101
|
|
|
112
|
|
|
363
|
|
|
411
|
|
Other Income
and Expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
EBITDA
|
|
$
|
113
|
|
|
$
|
132
|
|
|
$
|
473
|
|
|
$
|
552
|
|
Number of
Customers, Thousands
|
|
|
|
|
|
1,437
|
|
|
1,420
|
|
Heating Degree
Days, Fahrenheit
|
|
2,017
|
|
|
2,527
|
|
|
7,387
|
|
|
8,111
|
|
Pipeline
Throughput, TBtu (b)
|
|
165
|
|
|
177
|
|
|
759
|
|
|
713
|
|
Canadian Dollar
Exchange Rate, Average
|
|
1.34
|
|
|
1.14
|
|
|
1.28
|
|
|
1.10
|
|
|
|
|
|
|
|
|
|
|
WESTERN CANADA
TRANSMISSION & PROCESSING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
323
|
|
|
$
|
519
|
|
|
$
|
1,285
|
|
|
$
|
1,902
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Natural Gas and
Petroleum Products Purchased
|
|
69
|
|
|
114
|
|
|
193
|
|
|
466
|
|
Operating, Maintenance
and Other
|
|
149
|
|
|
159
|
|
|
611
|
|
|
687
|
|
Other Income
and Expenses
|
|
4
|
|
|
4
|
|
|
10
|
|
|
5
|
|
EBITDA
|
|
$
|
109
|
|
|
$
|
250
|
|
|
$
|
491
|
|
|
$
|
754
|
|
Pipeline
Throughput, TBtu
|
|
234
|
|
|
249
|
|
|
923
|
|
|
934
|
|
Volumes
Processed, TBtu
|
|
165
|
|
|
190
|
|
|
658
|
|
|
721
|
|
Canadian Dollar
Exchange Rate, Average
|
|
1.34
|
|
|
1.14
|
|
|
1.28
|
|
|
1.10
|
|
|
|
|
|
|
|
|
|
|
FIELD
SERVICES
|
|
|
|
|
|
|
|
|
Equity in
Earnings (Loss) of DCP Midstream, LLC
|
|
$
|
(208)
|
|
|
$
|
(18)
|
|
|
$
|
(461)
|
|
|
$
|
217
|
|
Cash
Distributions to Spectra Energy
|
|
$
|
—
|
|
|
$
|
58
|
|
|
$
|
—
|
|
|
$
|
237
|
|
Natural Gas
Gathered and Processed/Transported, TBtu/day (d)
|
|
7.1
|
|
|
7.4
|
|
|
7.1
|
|
|
7.3
|
|
Natural Gas
Liquids Production, MBbl/d (c)
|
|
409
|
|
|
447
|
|
|
410
|
|
|
454
|
|
Average Natural
Gas Price Per MMBtu (d)
|
|
$
|
2.27
|
|
|
$
|
4.00
|
|
|
$
|
2.66
|
|
|
$
|
4.41
|
|
Average Natural
Gas Liquids Price Per Gallon (e)
|
|
$
|
0.42
|
|
|
$
|
0.68
|
|
|
$
|
0.45
|
|
|
$
|
0.89
|
|
Average Crude
Oil Price Per Barrel (f)
|
|
$
|
42.20
|
|
|
$
|
73.33
|
|
|
$
|
48.80
|
|
|
$
|
93.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Thousand
barrels per day.
(b) Trillion British thermal units.
(c) Reflects 100% of DCP Midstream volumes.
(d) Million British thermal units. Average price based on
NYMEX Henry Hub.
(e) Does not reflect results of commodity hedges.
(f) Average price based on NYMEX calendar month.
|
Spectra Energy
Corp
|
Condensed
Consolidated Statements of Operations
|
(Unaudited)
|
(In
millions)
|
These results
include the impact of special items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters
Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
|
$
|
1,316
|
|
|
$
|
1,600
|
|
|
$
|
5,234
|
|
|
$
|
5,903
|
|
Operating
Expenses
|
|
|
1,219
|
|
|
1,035
|
|
|
3,801
|
|
|
3,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
97
|
|
|
565
|
|
|
1,433
|
|
|
1,924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income and
Expenses
|
|
|
(132)
|
|
|
44
|
|
|
(176)
|
|
|
420
|
|
Interest
Expense
|
|
|
156
|
|
|
158
|
|
|
636
|
|
|
679
|
|
Earnings (Loss)
Before Income Taxes
|
|
(191)
|
|
|
451
|
|
|
621
|
|
|
1,665
|
|
Income Tax Expense
(Benefit)
|
|
|
(3)
|
|
|
77
|
|
|
161
|
|
|
382
|
|
Net Income
(Loss)
|
|
|
(188)
|
|
|
374
|
|
|
460
|
|
|
1,283
|
|
Net Income -
Noncontrolling Interests
|
|
|
75
|
|
|
58
|
|
|
264
|
|
|
201
|
|
Net Income (Loss) -
Controlling Interests
|
|
|
$
|
(263)
|
|
|
$
|
316
|
|
|
$
|
196
|
|
|
$
|
1,082
|
|
Spectra Energy
Corp
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2015
|
|
2014
(a)
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
$
|
1,648
|
|
|
$
|
2,332
|
|
Investments and Other
Assets
|
|
|
7,056
|
|
|
8,007
|
|
Net Property, Plant
and Equipment
|
|
|
22,918
|
|
|
22,307
|
|
Regulatory Assets and
Deferred Debits
|
|
|
1,301
|
|
|
1,352
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
|
$
|
32,923
|
|
|
$
|
33,998
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
$
|
3,392
|
|
|
$
|
3,809
|
|
Long-term
Debt
|
|
|
12,892
|
|
|
12,727
|
|
Deferred Credits and
Other Liabilities
|
|
|
6,768
|
|
|
6,806
|
|
Preferred Stock of
Subsidiaries
|
|
|
339
|
|
|
258
|
|
Equity
|
|
|
9,532
|
|
|
10,398
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Equity
|
|
|
$
|
32,923
|
|
|
$
|
33,998
|
|
|
|
|
|
|
|
|
|
(a)
|
The debt issuance
costs of $42 million previously reported in Regulatory Assets and
Deferred Credits at December 31, 2014 was retrospectively
reclassified as a reduction to Long-term Debt at that date, as a
result of the adoption of a new accounting standard.
|
|
Spectra Energy
Corp
|
Distributable Cash
Flow
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Quarters
Ended
December
31,
|
|
Years
Ended
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
|
$
|
(188)
|
|
|
$
|
374
|
|
|
$
|
460
|
|
|
$
|
1,283
|
|
Add:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
156
|
|
|
158
|
|
|
636
|
|
|
679
|
|
Income tax expense
(benefit)
|
|
(3)
|
|
|
77
|
|
|
161
|
|
|
382
|
|
Depreciation and
amortization
|
|
190
|
|
|
196
|
|
|
764
|
|
|
796
|
|
Foreign currency loss
(gain)
|
|
(1)
|
|
|
5
|
|
|
6
|
|
|
(3)
|
|
Less:
|
|
|
|
|
|
|
|
|
Third party interest
income
|
|
1
|
|
|
—
|
|
|
3
|
|
|
3
|
|
EBITDA
|
|
153
|
|
|
810
|
|
|
2,024
|
|
|
3,134
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Earnings from equity
investments
|
|
4
|
|
|
(24)
|
|
|
(76)
|
|
|
(370)
|
|
Non-cash impairments
at DCP
|
|
169
|
|
|
—
|
|
|
366
|
|
|
9
|
|
Distributions from
equity investments (a)
|
|
26
|
|
|
107
|
|
|
209
|
|
|
416
|
|
Empress non-cash
items
|
|
18
|
|
|
(60)
|
|
|
42
|
|
|
(60)
|
|
Non-cash goodwill
impairments associated
with the Westcoast
acquisition in 2002
|
|
333
|
|
|
—
|
|
|
333
|
|
|
—
|
|
Other non-cash asset
impairments (b)
|
|
7
|
|
|
—
|
|
|
16
|
|
|
—
|
|
Other
|
|
(5)
|
|
|
(28)
|
|
|
25
|
|
|
(19)
|
|
Less:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
156
|
|
|
158
|
|
|
636
|
|
|
679
|
|
Equity
AFUDC
|
|
38
|
|
|
20
|
|
|
111
|
|
|
53
|
|
Net cash paid
(refund) for income taxes
|
|
49
|
|
|
(16)
|
|
|
29
|
|
|
(8)
|
|
Distributions to
noncontrolling interests
|
|
58
|
|
|
47
|
|
|
198
|
|
|
175
|
|
Maintenance capital
expenditures
|
|
210
|
|
|
280
|
|
|
691
|
|
|
751
|
|
Total
Distributable Cash Flow
|
|
$
|
194
|
|
|
$
|
316
|
|
|
$
|
1,274
|
|
|
$
|
1,460
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes $403
million and $230 million in distributions from equity investments
for the years ended December 31, 2015 and 2014,
respectively.
|
(b) Includes non-cash
asset impairments at SEP and at WCTP.
|
Spectra Energy
Corp
|
Reported to
Ongoing Earnings Reconciliation
|
December 2015
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
|
|
$
|
484
|
|
|
$
|
—
|
|
|
$
|
484
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
113
|
|
|
—
|
|
|
113
|
|
|
|
|
|
|
|
|
|
|
|
|
Western Canada
Transmission & Processing
|
|
109
|
|
|
14
|
|
A
|
123
|
|
|
|
|
|
|
|
|
|
|
|
|
Field
Services
|
|
(208)
|
|
|
172
|
|
B
|
(36)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA
|
|
498
|
|
|
186
|
|
|
684
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
(345)
|
|
|
333
|
|
C
|
(12)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment and Other EBITDA
|
|
$
|
153
|
|
|
$
|
519
|
|
|
$
|
672
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
153
|
|
|
$
|
519
|
|
|
$
|
672
|
|
|
Depreciation and
Amortization
|
|
(190)
|
|
|
—
|
|
|
(190)
|
|
|
Interest
Expense
|
|
(156)
|
|
|
1
|
|
D
|
(155)
|
|
|
Interest Income and
Other
|
|
2
|
|
|
—
|
|
|
2
|
|
|
Income Tax (Expense)
Benefit
|
|
3
|
|
|
(68)
|
|
|
(65)
|
|
|
Total Net
Income
|
|
(188)
|
|
|
452
|
|
|
264
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(75)
|
|
|
—
|
|
|
(75)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
(263)
|
|
|
$
|
452
|
|
|
$
|
189
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS)
PER SHARE, BASIC
|
|
$
|
(0.39)
|
|
|
$
|
0.67
|
|
|
$
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS)
PER SHARE, DILUTED
|
|
$
|
(0.39)
|
|
|
$
|
0.67
|
|
|
$
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A - Overhead
reduction costs and non-cash asset impairment.
|
|
|
|
|
|
|
|
B - Overhead
reduction costs, non-cash asset impairments and
write-offs.
|
C - Non-cash goodwill
impairments associated with the Westcoast acquisition in
2002.
|
D - Net write-off of
regulatory assets and liabilities at Ozark Gas Transmission due to
discontinuance of regulatory accounting.
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares (reported and ongoing) - in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
673
|
|
|
|
|
|
|
|
|
|
Spectra Energy
Corp
|
|
|
Reported to
Ongoing Earnings Reconciliation
|
|
|
December 2015
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
|
|
$
|
1,905
|
|
|
$
|
9
|
|
A
|
$
|
1,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
473
|
|
|
—
|
|
|
473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Western Canada
Transmission & Processing
|
|
491
|
|
|
25
|
|
B
|
516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Field
Services
|
|
(461)
|
|
|
355
|
|
C
|
(106)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA
|
|
2,408
|
|
|
389
|
|
|
2,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
(384)
|
|
|
333
|
|
D
|
(51)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment and Other EBITDA
|
|
$
|
2,024
|
|
|
$
|
722
|
|
|
$
|
2,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
2,024
|
|
|
$
|
722
|
|
|
$
|
2,746
|
|
|
|
Depreciation and
Amortization
|
|
(764)
|
|
|
—
|
|
|
(764)
|
|
|
|
Interest
Expense
|
|
(636)
|
|
|
1
|
|
E
|
(635)
|
|
|
|
Interest Income and
Other
|
|
(3)
|
|
|
—
|
|
|
(3)
|
|
|
|
Income Tax
Expense
|
|
(161)
|
|
|
(143)
|
|
|
(304)
|
|
|
|
Total Net
Income
|
|
460
|
|
|
580
|
|
|
1,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(264)
|
|
|
(1)
|
|
|
(265)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
196
|
|
|
$
|
579
|
|
|
$
|
775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE, BASIC
|
|
$
|
0.29
|
|
|
$
|
0.86
|
|
|
$
|
1.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE, DILUTED
|
|
$
|
0.29
|
|
|
$
|
0.86
|
|
|
$
|
1.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A - Non-cash
impairment at Ozark Gas Gathering.
|
|
B - Overhead
reduction costs and non-cash asset impairment.
|
|
|
|
|
|
C - Overhead
reduction costs, net gain on asset sales, and non-cash goodwill and
asset impairments and write-offs.
|
|
D - Non-cash goodwill
impairments associated with the Westcoast acquisition in
2002.
|
|
E - Net write-off of
regulatory assets and liabilities at Ozark Gas Transmission due to
discontinuance of regulatory accounting.
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares (reported and ongoing) - in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
672
|
|
|
|
|
|
|
|
|
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 Distributable Cash Flow Reconciliation
|
(Unaudited)
|
(In millions, except
where noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
December 31, 2015
|
|
Quarter Ended
December 31, 2014
|
|
|
Reported
|
|
Special
Items
|
|
Ongoing
|
|
Reported
|
|
Special
Items
|
|
Ongoing
|
Net Income
(Loss)
|
|
$
|
(188)
|
|
|
$
|
452
|
|
|
$
|
264
|
|
|
$
|
374
|
|
|
$
|
—
|
|
|
$
|
374
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
156
|
|
|
—
|
|
|
156
|
|
|
158
|
|
|
—
|
|
|
158
|
|
Income tax expense
(benefit)
|
|
(3)
|
|
|
67
|
|
|
64
|
|
|
77
|
|
|
—
|
|
|
77
|
|
Depreciation and
amortization
|
|
190
|
|
|
—
|
|
|
190
|
|
|
196
|
|
|
—
|
|
|
196
|
|
Foreign currency loss
(gain)
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
5
|
|
|
—
|
|
|
5
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Party Interest
Income
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
EBITDA
|
|
153
|
|
|
519
|
|
|
672
|
|
|
810
|
|
|
—
|
|
|
810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from equity
investments
|
|
4
|
|
|
(3)
|
|
|
1
|
|
|
(24)
|
|
|
—
|
|
|
(24)
|
|
Non-cash impairments
at DCP
|
|
169
|
|
|
(169)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Distributions from
equity investments
|
|
26
|
|
|
—
|
|
|
26
|
|
|
107
|
|
|
—
|
|
|
107
|
|
Empress non-cash
items
|
|
18
|
|
|
—
|
|
|
18
|
|
|
(60)
|
|
|
—
|
|
|
(60)
|
|
Non-cash goodwill
impairments associated
with the Westcoast
acquisition in 2002
|
|
333
|
|
|
(333)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other non-cash asset
impairments
|
|
7
|
|
|
(7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other
|
|
(5)
|
|
|
—
|
|
|
(5)
|
|
|
(28)
|
|
|
—
|
|
|
(28)
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
156
|
|
|
—
|
|
|
156
|
|
|
158
|
|
|
—
|
|
|
158
|
|
Equity
AFUDC
|
|
38
|
|
|
—
|
|
|
38
|
|
|
20
|
|
|
—
|
|
|
20
|
|
Net cash paid (refund)
for income taxes
|
|
49
|
|
|
—
|
|
|
49
|
|
|
(16)
|
|
|
—
|
|
|
(16)
|
|
Distributions to
non-controlling interests
|
|
58
|
|
|
—
|
|
|
58
|
|
|
47
|
|
|
—
|
|
|
47
|
|
Maintenance capital
expenditures
|
|
210
|
|
|
—
|
|
|
210
|
|
|
280
|
|
|
—
|
|
|
280
|
|
Total
Distributable Cash Flow
|
|
$
|
194
|
|
|
$
|
7
|
|
|
$
|
201
|
|
|
$
|
316
|
|
|
$
|
—
|
|
|
$
|
316
|
|
Spectra Energy
Corp
|
Reported to
Ongoing Distributable Cash Flow Reconciliation
|
(Unaudited)
|
(In millions, except
where noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
December 31, 2015
|
|
Year Ended
December 31, 2014
|
|
|
Reported
|
|
Special
Items
|
|
Ongoing
|
|
Reported
|
|
Special
Items
|
|
Ongoing
|
Net
Income
|
|
$
|
460
|
|
|
$
|
579
|
|
|
$
|
1,039
|
|
|
$
|
1,283
|
|
|
$
|
8
|
|
|
$
|
1,291
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
636
|
|
|
—
|
|
|
636
|
|
|
679
|
|
|
—
|
|
|
679
|
|
Income tax
expense
|
|
161
|
|
|
143
|
|
|
304
|
|
|
382
|
|
|
4
|
|
|
386
|
|
Depreciation and
amortization
|
|
764
|
|
|
—
|
|
|
764
|
|
|
796
|
|
|
—
|
|
|
796
|
|
Foreign currency loss
(gain)
|
|
6
|
|
|
—
|
|
|
6
|
|
|
(3)
|
|
|
—
|
|
|
(3)
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Party Interest
Income
|
|
3
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
EBITDA
|
|
2,024
|
|
|
722
|
|
|
2,746
|
|
|
3,134
|
|
|
12
|
|
|
3,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from equity
investments
|
|
(76)
|
|
|
11
|
|
|
(65)
|
|
|
(370)
|
|
|
(3)
|
|
|
(373)
|
|
Non-cash impairments
at DCP
|
|
366
|
|
|
(366)
|
|
|
—
|
|
|
9
|
|
|
(9)
|
|
|
—
|
|
Distributions from
equity investments
|
|
209
|
|
|
—
|
|
|
209
|
|
|
416
|
|
|
—
|
|
|
416
|
|
Empress non-cash
items
|
|
42
|
|
|
—
|
|
|
42
|
|
|
(60)
|
|
|
—
|
|
|
(60)
|
|
Non-cash goodwill
impairments associated
with the Westcoast acquisition in
2002
|
|
333
|
|
|
(333)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other non-cash asset
impairments
|
|
16
|
|
|
(16)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other
|
|
25
|
|
|
—
|
|
|
25
|
|
|
(19)
|
|
|
—
|
|
|
(19)
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
636
|
|
|
—
|
|
|
636
|
|
|
679
|
|
|
—
|
|
|
679
|
|
Equity
AFUDC
|
|
111
|
|
|
—
|
|
|
111
|
|
|
53
|
|
|
—
|
|
|
53
|
|
Net cash paid (refund)
for income taxes
|
|
29
|
|
|
—
|
|
|
29
|
|
|
(8)
|
|
|
—
|
|
|
(8)
|
|
Distributions to
non-controlling interests
|
|
198
|
|
|
—
|
|
|
198
|
|
|
175
|
|
|
—
|
|
|
175
|
|
Maintenance capital
expenditures
|
|
691
|
|
|
—
|
|
|
691
|
|
|
751
|
|
|
—
|
|
|
751
|
|
Total
Distributable Cash Flow
|
|
$
|
1,274
|
|
|
$
|
18
|
|
|
$
|
1,292
|
|
|
$
|
1,460
|
|
|
$
|
—
|
|
|
$
|
1,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
declared
|
|
$
|
1,017
|
|
|
|
|
|
|
|
|
$
|
924
|
|
|
|
|
|
|
|
Coverage - DCF /
Dividend
|
|
1.3x
|
|
|
|
|
|
|
1.6x
|
|
|
|
|
|
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-2015-results-300214330.html
SOURCE Spectra Energy Corp