Quarterly distribution increase of 1.25 cents to $0.68875 per unit
HOUSTON, Feb. 7, 2017 /CNW/ -- Spectra Energy
Partners, LP (NYSE: SEP) announced today that the board of
directors of its general partner declared a quarterly cash
distribution to unitholders of $0.68875 per unit, an increase of 1.25 cents over the previous level of
$0.67625 per unit. The cash
distribution is payable on February 28,
2017, to unitholders of record at the close of business on
February 17, 2017. This quarterly
cash distribution equates to $2.755
per unit on an annual basis.
"We are pleased to announce the company's 37th
consecutive quarterly cash distribution increase. And due to our
ongoing growth and reliable and disciplined approach, we are
reaffirming our plan to continue quarterly penny-and-a-quarter
distribution increases in 2017 while maintaining distributable cash
flow coverage in our targeted range of 1.05 to 1.15 times," said
Greg Ebel, chief executive officer,
Spectra Energy Partners. "The General Partner of Spectra Energy
Partners will change once the merger with Enbridge is complete, but
the stable underpinnings of our business will not – Spectra Energy
Partners will continue generating reliable cash flows."
This information is intended to be a qualified notice under
Treasury Regulation Section 1.1446-4(b). Under rules applicable to
publicly-traded partnerships, our distributions to non-U.S.
unitholders are subject to withholding tax at the highest effective
applicable rate to the extent attributable to income that is
effectively connected with the conduct of a U.S. trade or business.
Given the uncertainty at the time of making distributions regarding
the amount of any distribution that is attributable to income that
is so effectively connected, we intend to treat all of our
distributions as attributable to our U.S. operations, and as a
result, the entire distribution will be subject to withholding.
Non-GAAP Financial Measures
Distributable Cash Flow (DCF) is a non-GAAP financial measure,
which represents the cash generation capabilities of the
partnership to support distribution growth. The most directly
comparable GAAP measure for DCF is net income.
DCF coverage is a non-GAAP financial measure, which represents
DCF divided by distributions declared on partnership units. The
most directly comparable GAAP measure for DCF coverage is Earnings
Per Unit (EPU).
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 2015 Form 10-K, filed on February 25, 2016, 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 and crude oil. These assets include more than 15,000
miles of transmission and gathering pipelines, approximately 170
billion cubic feet of natural gas storage, and approximately 4.8
million barrels of crude oil storage.
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SOURCE Spectra Energy Partners, LP