DOW JONES NEWSWIRES
Spectra Energy Partners LP's (SEP) fourth-quarter profit rose
11% on higher earnings from its interest in a natural-gas
transportation system, though revenue slipped.
The company, a master limited partnership that was formed by
Spectra Energy Corp. (SE) out of some of Duke Energy Corp.'s (DUK)
former holdings mostly in the Southeast, has grown in recent years
through acquisitions.
Master limited partnerships are typically companies that operate
and own natural-gas and oil pipelines and storage facilities. They
collect a steady stream of payments from users of their properties
and have benefited over the years from rapid growth in energy
infrastructure spurred by soaring production from alternative
shale-gas plays.
Federal regulators also disclosed in November an investigation
into Spectra Energy Partners and rival Kinder Morgan Energy
Partners L.P. (KMP) over allegations the companies overcharged
customers to use their pipelines. The announcement, which Spectra
said wouldn't affect its business operations, brought the number of
pipeline rate investigations filed to five since the government in
2008 increased the amount of financial data pipeline owners must
file with regulators.
Spectra Energy Partners reported a fourth-quarter profit of
$37.2 million, or 41 cents a limited partner unit, up from $33.4
million, or 39 cents a unit, a year earlier. Operating revenue
decreased 2.7% to $50.8 million.
Results were in line with analysts polled by Thomson Reuters,
who most recently projected a profit of 41 cents a unit on revenue
of $50 million.
Operating margin fell to 36.4% from 38.3% as operating expenses
remained mostly flat.
The company booked $11.8 million of equity earnings from its
interest in Gulfstream Natural Gas System, up 40% from a year
earlier. That increase came on higher demand and as Spectra Energy
Partners acquired an added 24.5% interest in Gulfstream, bringing
its stake to 49%.
Units closed Thursday at $33.14 and were inactive premarket.
They have lost 5.5% over the past three months.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com