HOUSTON, Aug. 3, 2016 /PRNewswire/ -- Spectra Energy
Partners, LP (NYSE: SEP) today reported net income of
$305 million, including net income
from controlling interests of $287
million, for the second quarter ended June 30, 2016, with diluted earnings per limited
partner unit of $0.71. The second
quarter included a non-recurring special item of $6 million, which decreased diluted earnings per
limited partner unit by $0.02.
Second Quarter Highlights:
- Continued earnings growth from capital expansions
- Approximately $6 billion of
expansion projects in execution on track
- 35th consecutive quarterly distribution increase
Second quarter 2016 ongoing distributable cash flow
was $281 million, compared with $321 million in the
prior-year quarter. Distributions per limited partner unit for
second quarter 2016 were $0.66375, compared with $0.61375
per limited partner unit in second quarter 2015.
For the quarter, ongoing earnings before interest, taxes,
depreciation and amortization (EBITDA) were $448 million,
compared with $456 million in the prior-year quarter.
Ongoing net income from controlling interests was $293
million for the quarter, or $0.73 diluted earnings per limited partner unit,
compared with $307 million, or $0.83 diluted earnings per limited partner unit,
in the prior-year quarter. Net income from controlling interests
was $287 million for the quarter, or $0.71 diluted earnings per limited partner unit,
compared with $307 million, or $0.83 diluted earnings per limited partner
unit, in the prior-year quarter.
CEO COMMENT
"Spectra Energy Partners once again demonstrated strong ongoing
earnings and cash generation thanks to our solid, fee-based
business model – one which has no direct commodity exposure and
little volume exposure. Our robust expansion program continued to
progress as expected with projects remaining on track for their
respective in-service dates," said Greg
Ebel, chief executive officer, Spectra Energy Partners. "We
have increased our liquidity, enhanced our balance sheet and taken
advantage of our access to attractive financing options in order to
advance our continued growth."
"We also announced our 35th consecutive quarterly cash
distribution increase today, confirming the plans we shared with
investors at the start of the year and our portfolio strength and
cash flow reliability," continued Ebel.
SEGMENT RESULTS
U.S.
Transmission
Ongoing EBITDA from U.S. Transmission was $412 million in second quarter 2016, compared
with $396 million in second quarter
2015. These results exclude a special item of $6 million in expense related to the Texas
Eastern pipeline incident in Pennsylvania in second quarter 2016 and
reflect increased earnings from expansion projects. These results
were partially offset by a positive property tax adjustment in
second quarter 2015.
Liquids
Liquids' second quarter 2016 EBITDA was $58 million, compared with $78 million in second quarter 2015. The decrease
is due almost entirely to the absence of equity earnings from Sand
Hills and Southern Hills natural gas liquids (NGL) pipelines, which
Spectra Energy Partners owned until October
2015.
Other
"Other" net expenses were $22
million in second quarter 2016, compared with $18 million in second quarter 2015.
Interest Expense
Interest expense was $56 million
in second quarter 2016, compared with $63
million in second quarter 2015, reflecting higher
capitalized interest.
Liquidity and Capital Expenditures
Total debt outstanding at Spectra Energy Partners as of
June 30, 2016, was $6.6 billion, with available liquidity of
$2.0 billion. Including contributions
from noncontrolling interests, Spectra Energy Partners has
$1.8 billion of capital expansion
spending planned in 2016, which will be funded through a
combination of debt and equity.
Including contributions from noncontrolling interests of
$81 million, total capital spending
in second quarter 2016 was $559
million, consisting of $486
million of growth capital expenditures and $73 million of maintenance capital
expenditures.
Through its "At the Market" (ATM) equity issuance program,
Spectra Energy Partners has received net proceeds of $358 million this year.
In addition, in April 2016,
Spectra Energy purchased 10.4 million newly issued common units and
0.2 million general partner units of Spectra Energy Partners for
total net proceeds of $489
million.
EXPANSION PROJECT UPDATES
The Ozark Conversion project went into service on time
and began flowing product in July. Spectra Energy Partners' other
projects scheduled for 2016 in-service are on track to meet their
timelines, including AIM, Loudon Expansion, Salem
Lateral, and Express Enhancement.
Pre-construction work is currently under way on Sabal
Trail, with full construction scheduled to begin in late
summer, and in-service targeted for early summer 2017.
In July, the NEXUS and TEAL projects received a
favorable FERC Draft Environmental Impact Statement (DEIS). The
FERC Final Environmental Impact Statement is expected later this
year, and the FERC Certificate is expected in first quarter 2017,
keeping the projects on track to be in service in fourth quarter
2017.
Spectra Energy Partners also received the FERC Notice of
Schedule for Access South, Adair Southwest, and the
Lebanon Extension in July, and expects to receive the FERC
Environmental Assessment soon, keeping these projects on target for
in-service in the second half of 2017.
PennEast received its DEIS in July as well, and is
expected to be in service in the second half of 2018.
Atlantic Bridge received its FERC Environmental
Assessment in May and continues to move forward toward an
in-service date in the second half of 2017.
The South Texas Expansion Project (STEP) in-service date
has shifted to fourth quarter 2018 at the request of the customer,
Comisión Federal de Electricidad (CFE), the Mexico state-owned power utility.
We continue to make progress on Access Northeast, and
anticipate moving the project into execution later this year.
Access Northeast is uniquely designed – both physically and
contractually – to serve the needs of New England power generators,
improve reliability, and save consumers an average of $1 billion per year in energy costs.
Spectra Energy continues working with co-developers Eversource
and National Grid to advance state approvals for the customer
agreements and is participating in the various processes currently
under way:
- In Maine, the Public Utilities
Commission voted in July to endorse a contract with Access
Northeast and approved the business model allowing electric
utilities to enter into pipeline capacity contracts.
- The Massachusetts Department of Public Utilities commenced
hearings August 2 to review the
pipeline capacity contracts submitted by affiliates of Eversource
and National Grid, and is expected to deliver a decision later this
year. The department ruled last fall that it had authority to
approve such contracts.
- Connecticut's Department of
Energy and Environmental Protection issued an RFP in early June for
natural gas capacity, and is evaluating the submissions, with a
decision expected in late August.
- In Rhode Island, a long-term
pipeline capacity contract with Access Northeast was submitted to
the Public Utilities Commission in June, with a decision expected
by the end of October.
The Access Northeast solution is designed to meet the needs of
New England by maximizing the use of existing utility corridors and
the Algonquin and Maritimes & Northeast pipelines, which
directly connect to more than 60 percent of the existing ISO-New
England gas-fired electric generation capacity and more than 80
percent of the new capacity that has recently cleared the ISO-New
England forward capacity market. Access Northeast will
cost-effectively deliver affordable natural gas when power
generators need it, with new services to handle peak hours,
seasonal needs, and quick starts to support intermittent wind and
solar energy. In April, FERC issued the Notice of Intent to prepare
an Environmental Impact Statement for Access Northeast, which
continues to advance toward a late 2018 initial in-service
date.
ADDITIONAL INFORMATION
Additional information about second quarter 2016 earnings can be
obtained via the Spectra Energy website: www.spectraenergy.com.
The analyst call, held jointly with Spectra Energy, is scheduled
for today, Wednesday, August 3, 2016,
at 8 a.m. CT. The webcast will be
available via the Spectra Energy and Spectra Energy
Partners Investors pages. 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 70917862 or "Spectra
Energy / Spectra Energy Partners Earnings Call."
A replay of the call will be available until 5 p.m.
CT on Friday, September 2, 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 Spectra
Energy and Spectra Energy Partners Investors pages.
Non-GAAP Financial Measures
We use ongoing net income from controlling interests as a
measure to evaluate operations of the partnership. This measure is
a non-GAAP financial measure as it represents net income from
controlling interests, 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 provides useful
information to investors, as it allows investors 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.
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 Partners, LP. 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 Partners, LP's performance across periods. The most
directly comparable GAAP measure for EBITDA and ongoing EBITDA for
Spectra Energy Partners, LP is net income.
The primary performance measures used by us to evaluate segment
performance are segment EBITDA and Other EBITDA. We consider
segment EBITDA and Other EBITDA, which are the GAAP measures used
to report segment results, to be good indicators of each segment's
operating performance from its continuing operations as they
represent the results of our segments' operations before
depreciation and amortization without regard to financing methods
or capital structures. Our segment EBITDA and Other 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, excluding 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 segment EBITDA.
We also present 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 partnership to support distribution
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
distributions declared on partnership units. The most directly
comparable GAAP measure for DCF coverage is Earnings-Per-Unit
(EPU).
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 partnerships because other partnerships
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 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.
Spectra Energy
Partners, LP
|
Quarterly
Highlights
|
June
2016
|
(Unaudited)
|
(In millions, except
per-unit amounts)
|
Reported - These
results include the impact of special items
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
INCOME
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
618
|
|
|
$
|
603
|
|
|
$
|
1,242
|
|
|
$
|
1,209
|
|
Total Reportable
Segment EBITDA
|
|
464
|
|
|
474
|
|
|
931
|
|
|
927
|
|
Net Income -
Controlling Interests
|
|
287
|
|
|
307
|
|
|
585
|
|
|
600
|
|
|
|
|
|
|
|
|
|
|
EBITDA BY BUSINESS
SEGMENT
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
$
|
406
|
|
|
$
|
396
|
|
|
$
|
817
|
|
|
$
|
785
|
|
Liquids
|
|
58
|
|
|
78
|
|
|
114
|
|
|
142
|
|
Total Reportable
Segment EBITDA
|
|
464
|
|
|
474
|
|
|
931
|
|
|
927
|
|
Other
EBITDA
|
|
(22)
|
|
|
(18)
|
|
|
(42)
|
|
|
(35)
|
|
Total Reportable
Segment and Other EBITDA
|
|
$
|
442
|
|
|
$
|
456
|
|
|
$
|
889
|
|
|
$
|
892
|
|
|
|
|
|
|
|
|
|
|
PARTNERS'
CAPITAL
|
|
|
|
|
|
|
|
|
Declared Cash
Distribution per Limited Partner Unit
|
|
$
|
0.66375
|
|
|
$
|
0.61375
|
|
|
$
|
1.31500
|
|
|
$
|
1.21500
|
|
Weighted Average
Units Outstanding
|
|
|
|
|
|
|
|
|
Limited Partner
Units
|
|
298
|
|
|
296
|
|
|
292
|
|
|
296
|
|
General Partner
Units
|
|
6
|
|
|
6
|
|
|
6
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTABLE CASH
FLOW
|
|
|
|
|
|
|
|
|
Distributable Cash
Flow
|
|
$
|
275
|
|
|
$
|
321
|
|
|
$
|
646
|
|
|
$
|
675
|
|
|
|
|
|
|
|
|
|
|
CAPITAL AND
INVESTMENT EXPENDITURES (a)
|
|
|
|
|
|
|
|
|
Capital expenditures
- U.S. Transmission
|
|
|
|
|
|
$
|
986
|
|
|
$
|
593
|
|
Capital expenditures
- Liquids
|
|
|
|
|
|
37
|
|
|
11
|
|
Investment
expenditures - Sand Hills/Southern Hills/SESH/Penn
East/Nexus
|
|
|
|
|
|
112
|
|
|
34
|
|
Total
|
|
|
|
|
|
$
|
1,135
|
|
|
$
|
638
|
|
|
|
|
|
|
|
|
|
|
U.S.
TRANSMISSION
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
529
|
|
|
$
|
509
|
|
|
$
|
1,067
|
|
|
$
|
1,031
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Operating, Maintenance
and Other
|
|
183
|
|
|
156
|
|
|
355
|
|
|
327
|
|
Other Income and
Expenses
|
|
60
|
|
|
43
|
|
|
105
|
|
|
81
|
|
EBITDA
|
|
$
|
406
|
|
|
$
|
396
|
|
|
$
|
817
|
|
|
$
|
785
|
|
|
|
|
|
|
|
|
|
|
LIQUIDS
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
89
|
|
|
$
|
94
|
|
|
$
|
175
|
|
|
$
|
178
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Operating, Maintenance
and Other
|
|
31
|
|
|
34
|
|
|
62
|
|
|
68
|
|
Other Income and
Expenses
|
|
—
|
|
|
18
|
|
|
1
|
|
|
32
|
|
EBITDA
|
|
$
|
58
|
|
|
$
|
78
|
|
|
$
|
114
|
|
|
$
|
142
|
|
|
|
|
|
|
|
|
|
|
Express Pipeline
Revenue Receipts, MBbl/d (b)
|
|
233
|
|
|
235
|
|
|
233
|
|
|
242
|
|
Platte PADD II
Deliveries, MBbl/d
|
|
143
|
|
|
172
|
|
|
132
|
|
|
170
|
|
Canadian Dollar
Exchange Rate, Average
|
|
1.29
|
|
|
1.23
|
|
|
1.33
|
|
|
1.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Debt
|
|
|
|
|
|
$
|
6,576
|
|
|
$
|
6,604
|
|
|
|
|
|
|
|
|
|
|
Actual Units
Outstanding (c)
|
|
|
|
|
|
309
|
|
|
291
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes
contributions received from noncontrolling interests of $176
million in 2016 and $58 million in 2015.
|
(b) Thousand barrels
per day.
|
(c) Increase in 2016
resulted from the "At the Market" equity issuance program and
equity issuance to Spectra Energy Corp in April 2016.
|
Spectra Energy
Partners, LP
|
Condensed
Consolidated Statements of Operations
|
(Unaudited)
|
(In
millions)
|
Reported - These
results include the impact of special items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
Ended June
30,
|
|
Six
Months
Ended June
30,
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
618
|
|
|
$
|
603
|
|
|
$
|
1,242
|
|
|
$
|
1,209
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
313
|
|
|
281
|
|
|
613
|
|
|
576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
305
|
|
|
322
|
|
|
629
|
|
|
633
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income and
Expenses
|
|
61
|
|
|
62
|
|
|
108
|
|
|
111
|
|
|
Interest
Expense
|
|
56
|
|
|
63
|
|
|
112
|
|
|
120
|
|
|
|
|
|
|
|
|
|
|
Earnings Before
Income Taxes
|
|
310
|
|
|
321
|
|
|
625
|
|
|
624
|
|
|
Income Tax
Expense
|
|
5
|
|
|
5
|
|
|
9
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
305
|
|
|
316
|
|
|
616
|
|
|
617
|
|
|
Net Income -
Noncontrolling Interests
|
|
18
|
|
|
9
|
|
|
31
|
|
|
17
|
|
|
Net Income -
Controlling Interests
|
|
$
|
287
|
|
|
$
|
307
|
|
|
$
|
585
|
|
|
$
|
600
|
|
|
Spectra Energy
Partners, LP
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
Assets
|
|
|
$
|
553
|
|
|
$
|
544
|
|
Investments and Other
Assets
|
|
4,312
|
|
|
4,180
|
|
Net Property, Plant
and Equipment
|
|
14,844
|
|
|
13,837
|
|
Regulatory Assets and
Deferred Debits
|
|
324
|
|
|
290
|
|
|
Total
Assets
|
|
|
$
|
20,033
|
|
|
$
|
18,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
$
|
1,401
|
|
|
$
|
1,471
|
|
Long-term
Debt
|
|
|
5,861
|
|
|
5,845
|
|
Deferred Credits and
Other Liabilities
|
|
198
|
|
|
189
|
|
Equity
|
|
|
|
12,573
|
|
|
11,346
|
|
|
Total Liabilities
and Equity
|
|
$
|
20,033
|
|
|
$
|
18,851
|
|
Spectra Energy
Partners, LP
|
Distributable Cash
Flow
|
(Unaudited)
|
(Dollars in Millions,
except where noted)
Reported – These
results include the impact of special items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
|
Six Months
Ended
June 30,
|
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
Net
Income
|
|
$
305
|
|
$
316
|
|
|
$
616
|
|
$
617
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
56
|
|
63
|
|
|
112
|
|
120
|
|
Income tax
expense
|
|
5
|
|
5
|
|
|
9
|
|
7
|
|
Depreciation and
amortization
|
|
77
|
|
73
|
|
|
154
|
|
146
|
|
Foreign currency
(gain) loss
|
|
1
|
|
-
|
|
|
-
|
|
3
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Third party interest
income
|
|
2
|
|
1
|
|
|
2
|
|
1
|
|
EBITDA
|
|
442
|
|
456
|
|
|
889
|
|
892
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Earnings from equity
investments
|
|
(30)
|
|
(45)
|
|
|
(57)
|
|
(85)
|
|
Distributions from
equity investments
|
|
32
|
|
70
|
|
|
97
|
|
124
|
|
Non-cash impairment at
Ozark Gas Gathering
|
|
-
|
|
-
|
|
|
-
|
|
9
|
|
Other
|
|
1
|
|
3
|
|
|
3
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
56
|
|
63
|
|
|
112
|
|
120
|
|
Equity
AFUDC
|
|
29
|
|
16
|
|
|
46
|
|
27
|
|
Net cash paid for
income taxes
|
|
4
|
|
2
|
|
|
5
|
|
7
|
|
Distributions to
non-controlling interests
|
|
8
|
|
9
|
|
|
15
|
|
16
|
|
Maintenance capital
expenditures
|
|
73
|
|
73
|
|
|
108
|
|
101
|
|
Total
Distributable Cash Flow
|
|
$
275
|
|
$
321
|
|
|
$
646
|
|
$
675
|
|
|
|
|
|
|
|
|
|
|
|
|
Spectra Energy
Partners, LP
|
|
Reported to
Ongoing Earnings Reconciliation
|
|
June 2016
Quarter-to-date
|
|
(Unaudited)
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND DEPRECIATION AND
AMORTIZATION
|
|
Reported
Earnings
|
|
Less:
Special
Items
|
|
Ongoing
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
|
|
$
|
406
|
|
|
$
|
(6)
|
|
A
|
$
|
412
|
|
|
Liquids
|
|
|
|
58
|
|
|
—
|
|
|
58
|
|
|
Total Reportable Segment EBITDA
|
|
|
464
|
|
|
(6)
|
|
|
470
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(22)
|
|
|
—
|
|
|
(22)
|
|
|
Total Reportable Segment and other EBITDA
|
|
|
$
|
442
|
|
|
$
|
(6)
|
|
|
$
|
448
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
442
|
|
|
$
|
(6)
|
|
|
$
|
448
|
|
|
Depreciation and
Amortization
|
|
(77)
|
|
|
—
|
|
|
(77)
|
|
|
Interest
Expense
|
|
(56)
|
|
|
—
|
|
|
(56)
|
|
|
Other Income and
Expenses
|
|
1
|
|
|
—
|
|
|
1
|
|
|
Income Tax
Expense
|
|
(5)
|
|
|
—
|
|
|
(5)
|
|
|
Total Net
Income
|
|
305
|
|
|
(6)
|
|
|
311
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(18)
|
|
|
—
|
|
|
(18)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
287
|
|
|
$
|
(6)
|
|
|
$
|
293
|
|
|
|
|
|
|
|
|
|
|
|
|
A - Inspection and
repair costs related to Texas Eastern pipeline incident in
Pennsylvania
|
|
Spectra Energy
Partners, LP
|
|
Reported to
Ongoing Earnings Reconciliation
|
|
June 2015
Quarter-to-date
|
|
(Unaudited)
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND DEPRECIATION AND
AMORTIZATION
|
|
Reported/
Ongoing
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
|
|
$
|
396
|
|
|
|
Liquids
|
|
|
|
78
|
|
|
|
Total Reportable Segment EBITDA
|
|
|
474
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(18)
|
|
|
|
Total Reportable Segment and other EBITDA
|
|
|
$
|
456
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
456
|
|
|
|
Depreciation and Amortization
|
|
(73)
|
|
|
|
Interest
Expense
|
|
(63)
|
|
|
|
Other Income and
Expenses
|
|
1
|
|
|
|
Income Tax
Expense
|
|
(5)
|
|
|
|
Total Net
Income
|
|
316
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
307
|
|
|
|
|
|
|
|
|
|
|
|
|
Spectra Energy
Partners, LP
|
Reported to
Ongoing Distributable Cash Flow Reconciliation
|
Unaudited
|
(In
millions)
|
|
|
|
Quarter-To-Date
|
|
Quarter-To-Date
|
|
|
June 30,
2016
|
|
June 30,
2015
|
|
|
Reported
|
|
Less:
Special Items
|
|
Ongoing
|
|
Reported/
Ongoing
|
Net
Income
|
|
$
305
|
|
$
(6)
|
|
$
311
|
|
$
316
|
Add:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
56
|
|
-
|
|
56
|
|
63
|
Income tax
expense
|
|
5
|
|
-
|
|
5
|
|
5
|
Depreciation and
amortization
|
|
77
|
|
-
|
|
77
|
|
73
|
Foreign currency
loss
|
|
1
|
|
-
|
|
1
|
|
-
|
Less:
|
|
|
|
|
|
|
|
|
Third party interest
income
|
|
2
|
|
-
|
|
2
|
|
1
|
EBITDA
|
|
442
|
|
(6)
|
|
448
|
|
456
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Earnings from equity
investments
|
|
(30)
|
|
-
|
|
(30)
|
|
(45)
|
Distributions from
equity investments
|
|
32
|
|
-
|
|
32
|
|
70
|
Other
|
|
1
|
|
-
|
|
1
|
|
3
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
56
|
|
-
|
|
56
|
|
63
|
Equity
AFUDC
|
|
29
|
|
-
|
|
29
|
|
16
|
Net cash paid for
income taxes
|
|
4
|
|
-
|
|
4
|
|
2
|
Distributions to
non-controlling interests
|
|
8
|
|
-
|
|
8
|
|
9
|
Maintenance capital
expenditures
|
|
73
|
|
-
|
|
73
|
|
73
|
Total
Distributable Cash Flow
|
|
$
275
|
|
$
(6)
|
|
$
281
|
|
$
321
|
|
|
|
|
|
|
|
|
|
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visit:http://www.prnewswire.com/news-releases/spectra-energy-partners-reports-second-quarter-2016-results-300308090.html
SOURCE Spectra Energy Partners, LP