HOUSTON, May 10, 2017 /PRNewswire/ -- Spectra Energy
Partners, LP (NYSE: SEP) today reported net income of
$354 million, including net income
from controlling interests of $317
million, for the first quarter ended March 31, 2017, with diluted earnings per limited
partner unit of $0.74. The first
quarter included non-recurring special items of $46 million, which decreased diluted earnings per
limited partner unit by $0.15.
Highlights:
- Strong quarter due to solid base business performance and
increased earnings from expansion projects
- Continued advancement of expansion projects
- Announced 38th consecutive quarterly distribution
increase
- 2017 DCF guidance of a range of $1.4
billion to $1.48 billion
- Reaffirmed quarterly penny-and-a-quarter distribution increases
through 2017, and coverage ratio within targeted range of 1.05 to
1.15 times
First quarter 2017 ongoing distributable cash flow (DCF)
was $403 million, compared with $371 million in the
prior-year quarter. Distributions per limited partner unit for
first quarter 2017 were $0.70125, compared with $0.65125
per limited partner unit in first quarter 2016.
For the quarter, ongoing earnings before interest, taxes,
depreciation and amortization (EBITDA) were $545 million,
compared with $447 million in the prior-year quarter.
Ongoing net income from controlling interests was $363
million for the quarter, or $0.89 diluted earnings per limited partner unit,
compared with $298 million, or $0.80 diluted earnings per limited partner unit,
in the prior-year quarter. Net income from controlling interests
was $317 million for the quarter, or $0.74 diluted earnings per limited partner unit,
compared with $298 million, or $0.80 diluted earnings per limited partner
unit, in the prior-year quarter.
PRESIDENT COMMENT
"As seen in this quarter's results, Spectra Energy Partners'
strong base business continues to perform well, and is being
further enhanced by the expansion projects we placed into service
in 2016 and those that we are advancing," said Bill Yardley, chairman and president of Spectra
Energy Partners. "We continue to generate solid and reliable cash
flows that support our distribution growth, and earlier this month
we announced our 38th consecutive quarterly distribution
increase.
"The progress we are making on the high-quality growth projects
we have in execution, the strength of our fee-based business model
that has no direct commodity exposure and virtually no volume
exposure, and our long-term contracts with high credit-quality
customers are what continue to make Spectra Energy Partners a
compelling investment."
SEGMENT RESULTS
U.S. Transmission
Ongoing EBITDA from U.S. Transmission was $499 million in first quarter 2017, compared with
$411 million in first quarter 2016.
These favorable results reflect increased earnings from expansion
projects, including AIM, Sabal Trail, phase one of Gulf Markets and
NEXUS. The 2017 ongoing results exclude special items of
$18 million, primarily from
merger-related severance costs, and $2
million in expense related to the 2016 Texas Eastern
pipeline incident.
Liquids
Ongoing EBITDA from Liquids was $68
million in first quarter 2017, compared with $56 million in first quarter 2016. These results
reflect expansion revenues from the Express Enhancement project
placed into service in October 2016
and higher transportation revenues due to higher volumes of heavy
oil on the Express Pipeline, partially offset by higher operating
costs (primarily power). The 2017 period excludes a special item of
$2 million for merger-related
severance costs.
Other
Ongoing net expenses from "Other" were $22 million and $20
million in first quarters 2017 and 2016, respectively. The
2017 period excludes special items of $24
million, primarily from merger-related severance
costs.
Interest Expense
Interest expense was $56 million
in first quarters 2017 and 2016, reflecting higher average
long-term debt balances in 2017, offset by higher capitalized
interest.
Liquidity and Capital Expenditures
Total debt outstanding at Spectra Energy Partners as of
March 31, 2017, was $7.7 billion, with available liquidity of
$1.7 billion.
This year, Spectra Energy Partners has received net proceeds of
$47 million through its "At the
Market" (ATM) equity issuance program.
Including contributions from noncontrolling interests, Spectra
Energy Partners has $1.8 billion of
capital expansion spending planned in 2017, which is expected to be
funded through a combination of debt, equity issued primarily
through its ATM program, and return of capital from joint venture
asset-level financings. Including contributions from noncontrolling
interests of $290 million, total
capital spending for the three months ended March 31, 2017, was $518
million, consisting of $492
million of growth capital expenditures and $26 million of maintenance capital
expenditures.
EXPANSION PROJECT UPDATES
Spectra Energy Partners currently has $4.4 billion in capital expansion projects in
execution.
Projects scheduled for 2017 in-service
Construction on Sabal Trail continues to advance on
schedule, with in-service expected by the end of June.
Access South, Adair Southwest, Lebanon
Extension, and the second phase of the Gulf Markets
Expansion project are under construction, keeping these
projects on target for in-service in the second half of this
year.
Construction on Atlantic Bridge began this month, with
initial in-service of the Connecticut facilities scheduled for the
fourth quarter of 2017. Full in-service is expected in the second
half of 2018.
NEXUS and TEAL anticipate receiving their FERC
certificates shortly after FERC again has a quorum. The project
team continues to explore multiple scenarios with its contractors
for a 2017 in-service date, assuming receipt of the certificates in
the second quarter of 2017.
Projects scheduled for 2018 and 2019 in-service
The Bayway Lateral project is on schedule for its first
half of 2018 in-service date and the STEP project continues
to target in-service in the second half of 2018.
The PennEast project continues to advance as well. FERC
issued its Final Environmental Impact Statement (FEIS) in April,
and the project is targeting a late 2018 in-service date. In March,
PennEast announced that Spectra Energy Partners has entered into a
purchase and sale agreement with PSEG Power LLC to acquire its 10
percent equity position in the project, which will increase Spectra
Energy Partners' total equity investment to 20 percent. The sale is
expected to close in the second quarter this year.
Stratton Ridge remains on
schedule for in-service in the first half of 2019.
Open Season Results
Spectra Energy Partners has secured a commitment from an
industrial market shipper in the STX Zone of its Texas Eastern
system and conducted an open season that resulted in another
binding commitment in the Southern
Louisiana market area. These two commitments – making up the
Texas-Louisiana Markets project – total 157,500 dekatherms
per day (Dth/d) of Texas Eastern mainline expansion capacity, with
scheduled in-service in the second half of 2019 and an estimated
capital expenditure of approximately $20
million.
The company also held a successful open season to solicit
interest for the Lambertville-East project, which will
provide 60,000 Dth/d of firm transportation service on Texas
Eastern's Zone M3 near Lambertville, New
Jersey. The Texas Eastern expansion project is scheduled to
be placed into service in the second half of 2019 and has an
estimated capital expenditure of approximately $50 million.
"These projects are primarily driven by sustained demand growth
and represent our ability to continue securing opportunities to
grow our base business and leverage our existing asset footprint,"
Yardley said.
Development Projects
Access Northeast's partners continue to pursue a
viable commercial and operational model to support New England's
emission and reliability goals. The project's partners
continue to discuss the gravity of New England's peak energy supply
situation with regional policymakers, including in Massachusetts, where there is no recent
legislation clarifying electric utilities' ability to sign natural
gas supply contracts, and in New
Hampshire, where an interpretation of the electric
utilities' ability to do so is pending before the Supreme Court.
Additionally, ISO-New England continues to express deep concern
over the region's natural gas infrastructure constraints, and in
the next several months plans to issue a report on the challenges
New England will face during peak demand time if no significant
natural gas transmission capacity is built into the region.
2017 GUIDANCE
Spectra Energy Partners expects 2017 DCF within the range of
$1.4 billion to $1.48 billion. The
partnership reaffirmed plans for quarterly penny-and-a-quarter
distribution increases through 2017, and a coverage ratio within
its targeted range of 1.05 to 1.15 times.
ADDITIONAL INFORMATION
Additional information about 2017 guidance and first quarter
2017 earnings can be obtained via the Spectra Energy Partners
website: www.spectraenergypartners.com.
Spectra Energy Partners will host a joint webcast with Enbridge
Inc. (TSX, NYSE: ENB) on May 11 at
8 a.m. CT.
The webcast will be available via the Spectra Energy
Partners Events & Presentations page, and the conference
call can be accessed by dialing (866) 215-5508 in North America or (514) 841-2157 outside
North America. The participant
passcode is 44798051#.
A replay of the call will be available via the Spectra Energy
Partners Events & Presentations page, or by dialing (888)
843-7419 in North America or (630)
652-3042 outside North America and
using the above passcode.
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 2016 Form 10-K, filed on February 24, 2017, 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), an Enbridge Inc.
company, is a Houston-based master
limited partnership. 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 pipelines, approximately 170 billion cubic feet of
natural gas storage, and approximately 5.6 million barrels of crude
oil storage.
Spectra Energy
Partners, LP
|
Quarterly
Highlights
|
March
2017
|
(Unaudited)
|
(In millions, except
per-unit amounts)
|
Reported - These
results include the impact of special items
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2017
|
|
2016
|
|
INCOME
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
700
|
|
|
$
|
624
|
|
|
Total Reportable
Segment EBITDA
|
|
545
|
|
|
467
|
|
|
Net Income -
Controlling Interests
|
|
317
|
|
|
298
|
|
|
|
|
|
|
|
|
EBITDA BY BUSINESS
SEGMENT
|
|
|
|
|
|
U.S.
Transmission
|
|
$
|
479
|
|
|
$
|
411
|
|
|
Liquids
|
|
66
|
|
|
56
|
|
|
Total Reportable
Segment EBITDA
|
|
545
|
|
|
467
|
|
|
Other
EBITDA
|
|
(46)
|
|
|
(20)
|
|
|
Total Reportable
Segment and Other EBITDA
|
|
$
|
499
|
|
|
$
|
447
|
|
|
|
|
|
|
|
|
PARTNERS'
CAPITAL
|
|
|
|
|
|
Declared Cash
Distribution per Limited Partner Unit
|
|
$
|
0.70125
|
|
|
$
|
0.65125
|
|
|
Weighted Average
Units Outstanding
|
|
|
|
|
|
Limited Partner
Units
|
|
309
|
|
|
285
|
|
|
General Partner
Units
|
|
6
|
|
|
6
|
|
|
|
|
|
|
|
|
DISTRIBUTABLE CASH
FLOW
|
|
|
|
|
|
Distributable Cash
Flow
|
|
$
|
356
|
|
|
$
|
371
|
|
|
|
|
|
|
|
|
CAPITAL AND
INVESTMENT EXPENDITURES (a)
|
|
|
|
|
Capital expenditures
- U.S. Transmission
|
|
$
|
732
|
|
|
$
|
452
|
|
|
Capital expenditures
- Liquids
|
|
6
|
|
|
16
|
|
|
Investment
expenditures
|
|
70
|
|
|
27
|
|
|
Total
|
|
$
|
808
|
|
|
$
|
495
|
|
|
|
|
|
|
|
|
U.S.
TRANSMISSION
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
596
|
|
|
$
|
538
|
|
|
Operating
Expenses
|
|
|
|
|
|
Operating, Maintenance
and Other
|
|
200
|
|
|
172
|
|
|
Other Income and
Expenses
|
|
83
|
|
|
45
|
|
|
EBITDA
|
|
$
|
479
|
|
|
$
|
411
|
|
|
|
|
|
|
|
|
LIQUIDS
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
104
|
|
|
$
|
86
|
|
|
Operating
Expenses
|
|
|
|
|
|
Operating, Maintenance
and Other
|
|
37
|
|
|
31
|
|
|
Other Income and
Expenses
|
|
(1)
|
|
|
1
|
|
|
EBITDA
|
|
$
|
66
|
|
|
$
|
56
|
|
|
|
|
|
|
|
|
Express Pipeline
Revenue Receipts, MBbl/d (b)
|
|
271
|
|
|
233
|
|
|
Platte PADD II
Deliveries, MBbl/d
|
|
146
|
|
|
124
|
|
|
Canadian Dollar
Exchange Rate, Average
|
|
1.32
|
|
|
1.37
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
Debt
|
|
7,678
|
|
|
7,213
|
|
|
Actual Units
Outstanding
|
|
316
|
|
|
315
|
|
|
|
|
|
|
|
|
(a) Excludes
contributions received from noncontrolling interests of $290
million in 2017 and $95 million in 2016.
|
(b) Thousand barrels
per day.
|
|
Spectra Energy
Partners, LP
|
|
Condensed
Consolidated Statements of Operations
|
|
(Unaudited)
|
|
(In
millions)
|
|
Reported - These
results include the impact of special items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
700
|
|
|
$
|
624
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
368
|
|
|
300
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
332
|
|
|
324
|
|
|
|
|
|
|
|
|
|
|
Other Income and
Expenses
|
|
83
|
|
|
47
|
|
|
Interest
Expense
|
|
56
|
|
|
56
|
|
|
|
|
|
|
Earnings Before
Income Taxes
|
|
359
|
|
|
315
|
|
|
Income Tax
Expense
|
|
5
|
|
|
4
|
|
|
|
|
|
|
|
|
Net Income
|
|
354
|
|
|
311
|
|
|
Net Income -
Noncontrolling Interests
|
|
37
|
|
|
13
|
|
|
Net Income -
Controlling Interests
|
|
$
|
317
|
|
|
$
|
298
|
|
|
Spectra Energy
Partners, LP
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
Assets
|
|
|
$
|
685
|
|
|
$
|
660
|
|
Investments and Other
Assets
|
|
4,532
|
|
|
4,469
|
|
Net Property, Plant
and Equipment
|
|
16,795
|
|
|
16,092
|
|
Regulatory Assets and
Deferred Debits
|
|
409
|
|
|
385
|
|
Total
Assets
|
|
|
$
|
22,421
|
|
|
$
|
21,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
$
|
2,199
|
|
|
$
|
1,779
|
|
Long-term
Debt
|
|
|
6,212
|
|
|
6,223
|
|
Deferred Credits and
Other Liabilities
|
|
197
|
|
|
200
|
|
Equity
|
|
|
|
13,813
|
|
|
13,404
|
|
Total Liabilities
and Equity
|
|
$
|
22,421
|
|
|
$
|
21,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spectra Energy
Partners, LP
|
Distributable Cash
Flow
|
(Unaudited)
|
(In
Millions)
|
|
|
|
|
|
|
Reported - These
results include the impact of special items
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
|
2017
|
|
2016
|
|
Net
Income
|
|
$
354
|
|
$
311
|
|
Add:
|
|
|
|
|
|
Interest
expense
|
|
56
|
|
56
|
|
Income tax
expense
|
|
5
|
|
4
|
|
Depreciation and
amortization
|
|
85
|
|
77
|
|
Foreign currency
(gain) loss
|
|
-
|
|
(1)
|
|
Less:
|
|
|
|
|
|
Third party interest
income
|
|
1
|
|
-
|
|
EBITDA
|
|
499
|
|
447
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
Earnings from equity
investments
|
|
(38)
|
|
(27)
|
|
Distributions from
equity investments
|
|
38
|
|
65
|
|
Other
|
|
1
|
|
2
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
Interest
expense
|
|
56
|
|
56
|
|
Equity
AFUDC
|
|
45
|
|
17
|
|
Net cash paid for
income taxes
|
|
5
|
|
1
|
|
Distributions to
non-controlling interests
|
|
12
|
|
7
|
|
Maintenance capital
expenditures
|
|
26
|
|
35
|
|
Total
Distributable Cash Flow
|
|
$
356
|
|
$
371
|
|
Spectra Energy
Partners, LP
|
|
Reported to
Ongoing Earnings Reconciliation
|
|
March 2017
Year-to-Date
|
|
(Unaudited)
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND
DEPRECIATION AND AMORTIZATION
|
|
Reported
Earnings
|
|
Less:
Special
Items
|
|
Ongoing
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
|
|
$
|
479
|
|
|
$
|
(20)
|
|
A
|
$
|
499
|
|
|
Liquids
|
|
|
|
66
|
|
|
(2)
|
|
B
|
68
|
|
|
Total Reportable Segment EBITDA
|
|
|
545
|
|
|
(22)
|
|
|
567
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(46)
|
|
|
(24)
|
|
B
|
(22)
|
|
|
Total Reportable Segment and other EBITDA
|
|
|
$
|
499
|
|
|
$
|
(46)
|
|
|
$
|
545
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
499
|
|
|
$
|
(46)
|
|
|
$
|
545
|
|
|
Depreciation and
Amortization
|
|
(85)
|
|
|
—
|
|
|
(85)
|
|
|
Interest
Expense
|
|
(56)
|
|
|
—
|
|
|
(56)
|
|
|
Other Income and
Expenses
|
|
1
|
|
|
—
|
|
|
1
|
|
|
Income Tax
Expense
|
|
(5)
|
|
|
—
|
|
|
(5)
|
|
|
Total Net
Income
|
|
354
|
|
|
(46)
|
|
|
400
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(37)
|
|
|
—
|
|
|
(37)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
317
|
|
|
$
|
(46)
|
|
|
$
|
363
|
|
|
|
|
|
|
|
|
|
|
|
|
A - Primarily
merger-related severance costs and $2 million in expense related to
the 2016 Texas Eastern pipeline incident
|
|
B - Primarily
merger-related severance costs
|
|
|
|
|
|
|
|
|
|
|
|
Spectra Energy
Partners, LP
|
|
|
Reported to
Ongoing Earnings Reconciliation
|
|
|
March 2016
Year-to-Date
|
|
|
(Unaudited)
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND
DEPRECIATION AND AMORTIZATION
|
|
Reported/
Ongoing
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
|
|
$
|
411
|
|
|
|
Liquids
|
|
|
|
56
|
|
|
|
Total Reportable Segment EBITDA
|
|
|
467
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(20)
|
|
|
|
Total Reportable Segment and other EBITDA
|
|
|
$
|
447
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
447
|
|
|
|
Depreciation and
Amortization
|
|
(77)
|
|
|
|
Interest
Expense
|
|
(56)
|
|
|
|
Other Income and
Expenses
|
|
1
|
|
|
|
Income Tax
Expense
|
|
(4)
|
|
|
|
Total Net
Income
|
|
311
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(13)
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spectra Energy
Partners, LP
|
Reported to
Ongoing Distributable Cash Flow Reconciliation
|
Unaudited
|
(In
millions)
|
|
|
|
Three Months
Ended
|
|
|
March 31,
2017
|
|
March 31,
2016
|
|
|
Reported
|
|
Less:
Special
Items
|
|
Ongoing
|
|
Reported/
Ongoing
|
Net
Income
|
|
$
354
|
|
$
(46)
|
|
$
400
|
|
$
311
|
Add:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
56
|
|
-
|
|
56
|
|
56
|
Income tax
expense
|
|
5
|
|
-
|
|
5
|
|
4
|
Depreciation and
amortization
|
|
85
|
|
-
|
|
85
|
|
77
|
Foreign currency
loss
|
|
-
|
|
-
|
|
-
|
|
(1)
|
Less:
|
|
|
|
|
|
|
|
|
Third party interest
income
|
|
1
|
|
-
|
|
1
|
|
-
|
EBITDA
|
|
499
|
|
(46)
|
|
545
|
|
447
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Earnings from equity
investments
|
|
(38)
|
|
-
|
|
(38)
|
|
(27)
|
Distributions from
equity investments
|
|
38
|
|
-
|
|
38
|
|
65
|
Other
|
|
1
|
|
-
|
|
1
|
|
2
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
56
|
|
-
|
|
56
|
|
56
|
Equity
AFUDC
|
|
45
|
|
-
|
|
45
|
|
17
|
Net cash paid for
income taxes
|
|
5
|
|
-
|
|
5
|
|
1
|
Distributions to
non-controlling interests
|
|
12
|
|
-
|
|
12
|
|
7
|
Maintenance capital
expenditures
|
|
26
|
|
1
|
|
25
|
|
35
|
Total
Distributable Cash Flow
|
|
$
356
|
|
$
(47)
|
|
$
403
|
|
$
371
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/spectra-energy-partners-reports-first-quarter-2017-results-300455432.html
SOURCE Spectra Energy Partners, LP