HOUSTON, Nov. 2, 2016 /PRNewswire/ -- Spectra Energy
Partners, LP (NYSE: SEP) today reported net income of
$296 million, including net income
from controlling interests of $275
million, for the third quarter ended September 30, 2016, with diluted earnings per
limited partner unit of $0.64. The
third quarter included a non-recurring special item of $38 million, which decreased diluted earnings per
limited partner unit by $0.12.
Highlights:
- Expansion projects continue to contribute to growth
- Express Enhancement and phase one of Gulf Markets placed into
service ahead of schedule
- An additional $1.2 billion of
expansion projects have been or will be placed into service in
fourth quarter 2016, for a total of more than $1.4 billion in 2016 in-service projects
- 36th consecutive quarterly distribution increase
Third quarter 2016 ongoing distributable cash flow was $313
million, compared with $270 million in the prior-year
quarter. Distributions per limited partner unit for third quarter
2016 were $0.67625, compared with $0.62625 per limited
partner unit in third quarter 2015.
For the quarter, ongoing earnings before interest, taxes,
depreciation and amortization (EBITDA) were $469 million,
compared with $467 million in the prior-year quarter.
Ongoing net income from controlling interests was $313
million for the quarter, or $0.76 diluted earnings per limited partner unit,
compared with $321 million, or $0.85 diluted earnings per limited partner unit,
in the prior-year quarter. Net income from controlling interests
was $275 million for the quarter, or $0.64 diluted earnings per limited partner unit,
compared with $321 million, or $0.85 diluted earnings per limited partner
unit, in the prior-year quarter.
CEO COMMENT
"Spectra Energy Partners' results once again benefited from our
robust expansion program, and reflect the strength of our fee-based
business model that has no direct commodity exposure, virtually no
volume exposure, and high credit-quality customers," said
Greg Ebel, chief executive officer,
Spectra Energy Partners. "Our base business continues to perform
well, and we achieved a renewal rate of more than 98 percent of
contracted revenues on our U.S. natural gas pipelines – a very
solid indication of the value our customers place on our system and
the strategic value of having assets in the ground to build upon.
We continue to generate strong and reliable cash flows that support
the growth in the distributions we promised to investors at the
beginning of the year.
"Spectra Energy Partners is a must-own investment, and will
remain a key financing vehicle for our U.S. pipeline projects when
the proposed Spectra Energy and Enbridge merger is completed. Upon
closing the merger, SEP will maintain its low-risk, stable
distributable cash flow model that has served investors so well
since its inception. SEP has excellent liquidity and access to
capital markets at very attractive rates, allowing it to fund the
visible, high-quality growth projects we have in execution today
and those that we will move into execution in the future."
SEGMENT RESULTS
U.S. Transmission
Ongoing EBITDA from U.S. Transmission was $430 million in third quarter 2016, compared with
$401 million in third quarter 2015.
The third quarter 2016 results exclude a special item of
$38 million in expense related to the
Texas Eastern pipeline incident in Pennsylvania and reflect increased earnings
from expansion projects.
Liquids
Liquids EBITDA was $60 million in
third quarter 2016, compared with $79
million in third 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 $21
million in third quarter 2016, compared with $13 million in third quarter 2015, reflecting
higher allocated benefits costs.
Interest Expense
Interest expense was $53 million
in third quarter 2016, compared with $59
million in third quarter 2015, reflecting higher capitalized
interest.
Liquidity and Capital Expenditures
Total debt outstanding at Spectra Energy Partners as
of September 30, 2016, was $7.1 billion, with available
liquidity of $1.7 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 $437 million,
total capital spending for the nine months ended September 30, 2016, was $1.3 billion,
consisting of $1.1 billion of growth capital expenditures
and $178 million of maintenance capital expenditures.
This year, Spectra Energy Partners has received net
proceeds of $493 million through its "At the Market"
(ATM) equity issuance program, plus an additional $489 million from equity issuances to its general
partner.
EXPANSION PROJECT UPDATES
Spectra Energy Partners placed the Loudon Expansion into
service on time in September, while the Express Enhancement
and phase one of Gulf Markets came online in October – both
earlier than expected. Additionally, the Salem Lateral went
into service in October. The AIM project is intended to be
fully in service in the fourth quarter.
Construction on Sabal Trail began in the third quarter,
with the project scheduled to be placed into service in the first
half of 2017.
In the third quarter, Spectra Energy Partners received the FERC
Environmental Assessment for Access South, Adair
Southwest, and Lebanon Extension, keeping these projects
on target for in-service in the second half of 2017.
Atlantic Bridge is expected to receive its FERC
certificate in the fourth quarter, keeping the project on schedule
for a second half of 2017 in-service date.
FERC certificates are expected for the NEXUS and
TEAL projects in the first quarter of 2017, with in-service
scheduled for the fourth quarter of 2017.
The Bayway Lateral project is on schedule for its first
half of 2018 in-service, and PennEast continues to make
progress toward being placed into service in the second half of
2018.
Development work also continues in New England with the
Access Northeast project, which is designed to both
physically and contractually serve the needs of New England power
generators by providing significant additional natural gas
transmission capacity into the region, and will improve reliability
and save consumers an average of $1
billion a year in energy costs during a normal winter.
The Independent System Operator in New England, which is
responsible for operating the electric grid, recently stated that
New England's power generation situation is "precarious" during the
winter months, and that by 2019 – without immediate action to
solidify the region's energy infrastructure – it may be
unsustainable during extreme cold conditions.
Spectra Energy – along with co-developers Eversource and
National Grid – are extremely disappointed by some of the recent
actions by certain New England states. Despite this, Access
Northeast remains the solution for the region, and Spectra Energy
remains committed to delivering the reliable and affordable energy
to help consumers and to help each state meet its energy and
environmental goals.
ADDITIONAL INFORMATION
Additional information about third 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, November 2,
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 70917863 or "Spectra Energy / Spectra Energy
Partners Earnings Call."
A replay of the call will be available until 5 p.m.
CT on Friday, December 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
|
September
2016
|
(Unaudited)
|
(In millions, except
per-unit amounts)
|
Reported - These
results include the impact of special items
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
INCOME
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
628
|
|
|
$
|
612
|
|
|
$
|
1,870
|
|
|
$
|
1,821
|
|
Total Reportable
Segment EBITDA
|
|
452
|
|
|
480
|
|
|
1,383
|
|
|
1,407
|
|
Net Income -
Controlling Interests
|
|
275
|
|
|
321
|
|
|
860
|
|
|
921
|
|
|
|
|
|
|
|
|
|
|
EBITDA BY BUSINESS
SEGMENT
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
$
|
392
|
|
|
$
|
401
|
|
|
$
|
1,209
|
|
|
$
|
1,186
|
|
Liquids
|
|
60
|
|
|
79
|
|
|
174
|
|
|
221
|
|
Total Reportable Segment
EBITDA
|
|
452
|
|
|
480
|
|
|
1,383
|
|
|
1,407
|
|
Other
EBITDA
|
|
(21)
|
|
|
(13)
|
|
|
(63)
|
|
|
(48)
|
|
Total Reportable Segment and Other
EBITDA
|
|
$
|
431
|
|
|
$
|
467
|
|
|
$
|
1,320
|
|
|
$
|
1,359
|
|
|
|
|
|
|
|
|
|
|
PARTNERS'
CAPITAL
|
|
|
|
|
|
|
|
|
Declared Cash
Distribution per Limited Partner Unit
|
|
$
|
0.67625
|
|
|
$
|
0.62625
|
|
|
$
|
1.99125
|
|
|
$
|
1.84125
|
|
Weighted Average
Units Outstanding
|
|
|
|
|
|
|
|
|
Limited Partner Units
|
|
304
|
|
|
301
|
|
|
296
|
|
|
297
|
|
General Partner Units
|
|
6
|
|
|
6
|
|
|
6
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTABLE CASH
FLOW
|
|
|
|
|
|
|
|
|
Distributable Cash
Flow
|
|
$
|
270
|
|
|
$
|
270
|
|
|
$
|
916
|
|
|
$
|
945
|
|
|
|
|
|
|
|
|
|
|
CAPITAL AND
INVESTMENT EXPENDITURES (a)
|
|
|
|
|
|
|
|
|
Capital expenditures
- U.S. Transmission
|
|
|
|
|
|
$
|
1,492
|
|
|
$
|
1,144
|
|
Capital expenditures
- Liquids
|
|
|
|
|
|
54
|
|
|
17
|
|
Investment
expenditures - Sand Hills/Southern Hills/SESH/Penn
East/Nexus
|
|
|
|
|
|
181
|
|
|
91
|
|
Total
|
|
|
|
|
|
$
|
1,727
|
|
|
$
|
1,252
|
|
|
|
|
|
|
|
|
|
|
U.S.
TRANSMISSION
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
535
|
|
|
$
|
515
|
|
|
$
|
1,602
|
|
|
$
|
1,546
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Operating, Maintenance and
Other
|
|
217
|
|
|
169
|
|
|
572
|
|
|
496
|
|
Other Income and
Expenses
|
|
74
|
|
|
55
|
|
|
179
|
|
|
136
|
|
EBITDA
|
|
$
|
392
|
|
|
$
|
401
|
|
|
$
|
1,209
|
|
|
$
|
1,186
|
|
|
|
|
|
|
|
|
|
|
LIQUIDS
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
93
|
|
|
$
|
97
|
|
|
$
|
268
|
|
|
$
|
275
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Operating, Maintenance and
Other
|
|
32
|
|
|
37
|
|
|
94
|
|
|
105
|
|
Other Income and
Expenses
|
|
(1)
|
|
|
19
|
|
|
—
|
|
|
51
|
|
EBITDA
|
|
$
|
60
|
|
|
$
|
79
|
|
|
$
|
174
|
|
|
$
|
221
|
|
|
|
|
|
|
|
|
|
|
Express Pipeline
Revenue Receipts, MBbl/d (b)
|
|
235
|
|
|
234
|
|
|
234
|
|
|
239
|
|
Platte PADD II
Deliveries, MBbl/d
|
|
131
|
|
|
167
|
|
|
131
|
|
|
169
|
|
Canadian Dollar
Exchange Rate, Average
|
|
1.30
|
|
|
1.31
|
|
|
1.32
|
|
|
1.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Debt
|
|
|
|
|
|
$
|
7,053
|
|
|
$
|
6,604
|
|
|
|
|
|
|
|
|
|
|
Actual Units
Outstanding (c)
|
|
|
|
|
|
312
|
|
|
291
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes
contributions received from noncontrolling interests of $335
million in 2016 and $132 million in 2015. 2016 period also excludes
sale of Sabal Trail interest of $102 million.
|
(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 September 30,
|
|
Nine Months
Ended September 30,
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
628
|
|
|
$
|
612
|
|
|
$
|
1,870
|
|
|
$
|
1,821
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
348
|
|
|
293
|
|
|
961
|
|
|
869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
280
|
|
|
319
|
|
|
909
|
|
|
952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income and
Expenses
|
|
73
|
|
|
72
|
|
|
181
|
|
|
183
|
|
|
Interest
Expense
|
|
53
|
|
|
59
|
|
|
165
|
|
|
179
|
|
|
|
|
|
|
|
|
|
|
Earnings Before
Income Taxes
|
|
300
|
|
|
332
|
|
|
925
|
|
|
956
|
|
|
Income Tax
Expense
|
|
4
|
|
|
1
|
|
|
13
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
296
|
|
|
331
|
|
|
912
|
|
|
948
|
|
|
Net Income -
Noncontrolling Interests
|
|
21
|
|
|
10
|
|
|
52
|
|
|
27
|
|
|
Net Income -
Controlling Interests
|
|
$
|
275
|
|
|
$
|
321
|
|
|
$
|
860
|
|
|
$
|
921
|
|
|
Spectra Energy
Partners, LP
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
Assets
|
|
|
$
|
761
|
|
|
$
|
544
|
|
Investments and Other
Assets
|
|
4,418
|
|
|
4,180
|
|
Net Property, Plant
and Equipment
|
|
15,317
|
|
|
13,837
|
|
Regulatory Assets and
Deferred Debits
|
|
355
|
|
|
290
|
|
Total
Assets
|
|
|
$
|
20,851
|
|
|
$
|
18,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
$
|
2,261
|
|
|
$
|
1,471
|
|
Long-term
Debt
|
|
|
5,454
|
|
|
5,845
|
|
Deferred Credits and
Other Liabilities
|
|
204
|
|
|
189
|
|
Equity
|
|
|
|
12,932
|
|
|
11,346
|
|
Total Liabilities
and Equity
|
|
$
|
20,851
|
|
|
$
|
18,851
|
|
Spectra Energy
Partners, LP
|
Distributable Cash
Flow
|
(Unaudited)
|
(In
millions)
|
Reported - These
results include the impact of special items
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Net
Income
|
|
$
296
|
|
$
331
|
|
$
912
|
|
$
948
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
53
|
|
59
|
|
165
|
|
179
|
|
Income tax
expense
|
|
4
|
|
1
|
|
13
|
|
8
|
|
Depreciation and
amortization
|
|
78
|
|
74
|
|
232
|
|
220
|
|
Foreign currency
loss
|
|
-
|
|
2
|
|
-
|
|
5
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Third party interest
income
|
|
-
|
|
-
|
|
2
|
|
1
|
|
EBITDA
|
|
431
|
|
467
|
|
1,320
|
|
1,359
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Earnings from equity
investments
|
|
(35)
|
|
(49)
|
|
(92)
|
|
(134)
|
|
Distributions from
equity investments
|
|
35
|
|
59
|
|
132
|
|
183
|
|
Non-cash impairment
at Ozark Gas Gathering
|
|
-
|
|
-
|
|
-
|
|
9
|
|
Other
|
|
9
|
|
2
|
|
12
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
53
|
|
59
|
|
165
|
|
179
|
|
Equity
AFUDC
|
|
38
|
|
23
|
|
84
|
|
50
|
|
Net cash paid for
income taxes
|
|
2
|
|
1
|
|
7
|
|
8
|
|
Distributions to
non-controlling interests
|
|
7
|
|
7
|
|
22
|
|
23
|
|
Maintenance capital
expenditures
|
|
70
|
|
119
|
|
178
|
|
220
|
|
Total
Distributable Cash Flow
|
|
$
270
|
|
$
270
|
|
$
916
|
|
$
945
|
|
Spectra Energy
Partners, LP
|
|
Reported to
Ongoing Earnings Reconciliation
|
|
September 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
|
|
|
|
$
|
392
|
|
|
$
|
(38)
|
|
A
|
$
|
430
|
|
|
Liquids
|
|
|
|
60
|
|
|
—
|
|
|
60
|
|
|
Total Reportable Segment EBITDA
|
|
|
452
|
|
|
(38)
|
|
|
490
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(21)
|
|
|
—
|
|
|
(21)
|
|
|
Total Reportable Segment and other EBITDA
|
|
|
$
|
431
|
|
|
$
|
(38)
|
|
|
$
|
469
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
431
|
|
|
$
|
(38)
|
|
|
$
|
469
|
|
|
Depreciation and
Amortization
|
|
(78)
|
|
|
—
|
|
|
(78)
|
|
|
Interest
Expense
|
|
(53)
|
|
|
—
|
|
|
(53)
|
|
|
Income Tax
Expense
|
|
(4)
|
|
|
—
|
|
|
(4)
|
|
|
Total Net
Income
|
|
296
|
|
|
(38)
|
|
|
334
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(21)
|
|
|
—
|
|
|
(21)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
275
|
|
|
$
|
(38)
|
|
|
$
|
313
|
|
|
|
|
|
|
|
|
|
|
|
|
A - Inspection and
repair costs related to Texas Eastern pipeline incident in
Pennsylvania
|
|
Spectra Energy
Partners, LP
|
|
Reported to
Ongoing Earnings Reconciliation
|
|
September 2015
Quarter-to-Date
|
|
(Unaudited)
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND DEPRECIATION AND
AMORTIZATION
|
|
Reported/
Ongoing
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
|
|
$
|
401
|
|
|
|
Liquids
|
|
|
|
79
|
|
|
|
Total Reportable Segment EBITDA
|
|
|
480
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(13)
|
|
|
|
Total Reportable Segment and other EBITDA
|
|
|
$
|
467
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
467
|
|
|
|
Depreciation and
Amortization
|
|
(74)
|
|
|
|
Interest
Expense
|
|
(59)
|
|
|
|
Other Income and
Expenses
|
|
(2)
|
|
|
|
Income Tax
Expense
|
|
(1)
|
|
|
|
Total Net
Income
|
|
331
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(10)
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
321
|
|
|
|
|
|
|
|
|
|
|
|
|
Spectra Energy
Partners, LP
|
Reported to
Ongoing Distributable Cash Flow Reconciliation
|
Unaudited
|
(In
millions)
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
September 30,
2016
|
|
September 30,
2015
|
|
|
|
Reported
|
|
Less:
Special Items
|
|
Ongoing
|
|
Reported
|
|
Less:
Special Items
|
|
Ongoing
|
|
Net
Income
|
|
$
296
|
|
$
(38)
|
|
$
334
|
|
$
331
|
|
$
-
|
|
$
331
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
53
|
|
-
|
|
53
|
|
59
|
|
-
|
|
59
|
|
Income tax
expense
|
|
4
|
|
-
|
|
4
|
|
1
|
|
-
|
|
1
|
|
Depreciation and
amortization
|
|
78
|
|
-
|
|
78
|
|
74
|
|
-
|
|
74
|
|
Foreign currency
loss
|
|
-
|
|
-
|
|
-
|
|
2
|
|
-
|
|
2
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third party interest
income
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
EBITDA
|
|
431
|
|
(38)
|
|
469
|
|
467
|
|
-
|
|
467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from equity
investments
|
|
(35)
|
|
-
|
|
(35)
|
|
(49)
|
|
-
|
|
(49)
|
|
Distributions from
equity investments
|
|
35
|
|
-
|
|
35
|
|
59
|
|
-
|
|
59
|
|
Other
|
|
9
|
|
-
|
|
9
|
|
2
|
|
-
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
53
|
|
-
|
|
53
|
|
59
|
|
-
|
|
59
|
|
Equity
AFUDC
|
|
38
|
|
-
|
|
38
|
|
23
|
|
-
|
|
23
|
|
Net cash paid for
income taxes
|
|
2
|
|
-
|
|
2
|
|
1
|
|
-
|
|
1
|
|
Distributions to
non-controlling interests
|
|
7
|
|
-
|
|
7
|
|
7
|
|
-
|
|
7
|
|
Maintenance capital
expenditures
|
|
70
|
|
5
|
|
65
|
|
119
|
|
-
|
|
119
|
|
Total
Distributable Cash Flow
|
|
$
270
|
|
$
(43)
|
|
$
313
|
|
$
270
|
|
$
-
|
|
$
270
|
|
Logo - http://photos.prnewswire.com/prnh/20071107/CLW064
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/spectra-energy-partners-reports-third-quarter-2016-results-300355465.html
SOURCE Spectra Energy Partners, LP