HOUSTON, Nov. 1, 2017 /PRNewswire/ - Spectra Energy
Partners, LP (NYSE: SEP) today reported net income of $471 million, including net income from
controlling interests of $460
million, for the third quarter ended September 30, 2017, with diluted earnings per
limited partner unit of $1.15. The
third quarter results included non-recurring special items of
$80 million, which increased diluted
earnings per limited partner unit by $0.26.
HIGHLIGHTS:
- Growth in earnings and cash flow supported by expansion
projects and solid base business performance
- More than $2 billion of projects
to be placed into service in 2017; continued advancement of an
incremental $2.5 billion of
commercially secured projects
- NEXUS received FERC approval in late August and construction is
now underway with a targeted in-service date of third quarter
2018
- Announced 40th consecutive quarterly distribution
increase, representing a 7.4% increase over the distribution
declared in November 2016
Third quarter 2017 ongoing distributable cash flow (DCF) was
$398 million, compared with
$313 million in the prior-year
quarter. Full-year coverage is expected to be at the high end
of the previously provided guidance range of 1.05x-1.15x.
For the quarter, ongoing earnings before interest, taxes,
depreciation and amortization (EBITDA) were $554 million, compared with $469 million in the prior-year quarter. Ongoing
net income from controlling interests was $379 million for the quarter, or $0.89 diluted earnings per limited partner unit,
compared with $313 million, or
$0.76 diluted earnings per limited
partner unit in the prior-year quarter. Net income from controlling
interests was $460 million for the
quarter, or $1.15 diluted earnings
per limited partner unit, compared with $275
million, or $0.64 diluted
earnings per limited partner unit in the prior-year quarter.
QUARTERLY DISTRIBUTION
Spectra Energy Partners announced today that the board of
directors of the general partner declared a quarterly cash
distribution to unitholders of $0.72625 per unit, an increase of 1.25 cents over the previous level of
$0.71375 per unit and a 7.4% increase
compared to third quarter 2016. The cash distribution is
payable on November 29, 2017 to
unitholders of record at the close of business on November 13, 2017. This quarterly cash
distribution equates to $2.905 per
unit on an annual basis.
PRESIDENT COMMENT
"Spectra Energy Partners achieved another solid quarter
primarily due to the contributions from our robust expansion
program," said Bill Yardley,
Chairman and President of Spectra Energy Partners. "We are on
track to place more than $2 billion
of projects into service in 2017 which will support our continued
stable cash flow generation for investors. Most notably,
Sabal Trail was placed into service on-time and on-budget in July
and we are bringing three additional projects into service in
November – Access South, Adair Southwest and the initial phase of
Atlantic Bridge. We are also pleased to have FERC approval
for the NEXUS project, which is now under construction and
scheduled to come into service in third quarter 2018.
"Our base business also continues to perform well. We
realized a renewal rate of 98% of contracted revenues on our U.S.
natural gas pipelines – a solid indication of the value our
customers place on our services and existing strategic
footprint.
"We are pleased to announce our quarterly cash distribution
increase which marks the 10th consecutive year of
quarterly distribution increases demonstrating SEP's low-risk,
stable distributable cash flow model," Mr. Yardley
concluded.
SEGMENT RESULTS
U.S. Transmission
Ongoing EBITDA from U.S. Transmission was $505 million in the third quarter 2017, compared
with $430 million for the third
quarter of 2016 and reflects increased earnings from expansion
projects (AIM, Gulf Markets, NEXUS, Access South and Adair
Southwest) and slightly lower operating costs. The 2017 and 2016
ongoing results exclude special items of $18
million and $38 million in
expenses, respectively, both related to the 2016 Texas Eastern
pipeline incident. The 2017 ongoing results also exclude a
$106 million gain realized as a
result of the deconsolidation and fair value re-measurement of our
interest in Sabal Trail, partially offset by $4 million in expense, primarily from
merger-related costs.
Liquids
Ongoing EBITDA from Liquids was $67
million in the third quarter 2017, compared with
$60 million in the third quarter
2016. The increase is primarily a result of increased revenues due
to the Express Enhancement project placed into service in
October 2016.
Other
Ongoing net expenses from "Other" were $18 million and $21
million in the third quarters 2017 and 2016, respectively.
The 2017 period excludes special items of $3
million, primarily from merger-related costs.
Interest Expense
Interest expense was $75 million
in the third quarter 2017, compared with $53
million in the third quarter 2016, reflecting lower
capitalized interest due to Sabal Trail being placed into service
in July 2017, and higher average debt
balances in 2017.
Liquidity and Capital Expenditures
Total debt outstanding as of September
30, 2017, was $8.3 billion,
with available liquidity of approximately $600 million.
This year, Spectra Energy Partners has received net proceeds of
$141 million through its "At the
Market" (ATM) equity issuance program, inclusive of the General
Partner's investment to maintain its 2% ownership.
Including contributions from non-controlling interests, Spectra
Energy Partners has $1.5 billion of
capital expansion spending planned in 2017, which is expected to be
funded through a combination of debt, equity, including the use of
its ATM program, and return of capital from joint venture
asset-level financings. Total capital spending for the three months
ended September 30, 2017, was
$291 million, consisting of
$222 million of growth capital
expenditures and $69 million of
maintenance capital expenditures.
EXPANSION PROJECT UPDATES
Commercially Secured Projects
Following Sabal Trail's on-time placement
into service in early July, commercial operations in
October increased to 700,000 dekatherms per day (Dth/d) from the
initial levels of 400,000 Dth/d. The 515-mile pipeline will
have the capacity to deliver approximately 1.1 billion cubic feet
of natural gas per day to the Southeast U.S. markets once approved
future expansions are completed.
Commercial service has been initiated on Access South and
Adair Southwest. These projects, along with the
Lebanon Extension and the Gulf Markets Expansion that
were placed into service ahead of schedule in early August,
complete the multi-year transformation of a significant portion of
Texas Eastern into a bi-directional system. This expanded
capability, along with Texas Eastern's M3 market access, provides
up to 8 Bcf/d of deliverability out of the Marcellus and
Utica basins.
The Connecticut facilities of
Atlantic Bridge have been placed into service delivering
revenues and incremental volumes on Algonquin to serve a New
England LDC. Full in-service of all project facilities is
expected in the second half of 2018.
Progress also continues on the Bayway Lateral and it
remains on target to achieve in-service at the beginning of
2018.
The NEXUS and TEAL projects
received their FERC certificates in August and NEXUS received its
notice to proceed from FERC in early October. Construction is
now underway on NEXUS and full in-service is targeted for third
quarter 2018. In light of the prolonged lack of quorum at
FERC and associated cost pressures, our portion of the estimated
capex for NEXUS and TEAL has been revised to $1.3 billion and $200
million, respectively.
Progress continues on SEP's other projects in execution with
Stratton Ridge receiving its
Environmental Assessment in early October. We filed our FERC
application for the Texas and
Louisiana Markets Projects adding 157,500 Dth/d of demand-pull
volume to our suite of southern area projects that are in
execution. SEP's other projects in execution continue to
advance through various stages of the regulatory approval process
and remain on track for their respective targeted in-service
dates.
Development Opportunities
We received interest from power generators and other end-use
markets in the Midwest, Mid-Atlantic and Northeast regions through
the Texas Eastern Enhanced Electric Reliability
Project open season that concluded at the end of
September. We are working with the customers who placed bids,
tailoring service offerings to meet their needs. Electric
reliability is receiving significant attention lately due to the
Department of Energy recommending the reimbursement of generators
for fuel security. This renewed focus may provide additional
opportunities for our pipelines to reliably deliver firm
transportation of fuel to the 70 plants attached to our pipeline
systems.
ADDITIONAL INFORMATION
Additional information about third 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 November 2,
2017 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 (877) 930-8043 in North
America or (253) 336-7522 outside North America. The participant passcode is
95724866#.
A replay of the call will be available via the Spectra Energy
Partners Events & Presentations page, or by dialing (855)
859-2056 in North America or (404)
537-3406 outside North America and
using the above passcode.
The conference call format will include prepared remarks from
the executive team followed by a question and answer session for
the analyst and investor community only. Spectra Energy Partners'
media and investor relations teams will be available after the call
for any additional questions.
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.
Distribution Information
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.
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
Spectra Energy Partners, LP is one of the largest pipeline
master limited partnerships 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
is traded on the New York stock
exchange under the symbol SEP; information about the company is
available on its website at www.spectraenergypartners.com.
FOR FURTHER
INFORMATION PLEASE CONTACT:
|
|
|
Media:
|
Michael
Barnes
|
|
Toll Free: (877)
496-8142
|
|
michael.barnes@enbridge.com
|
|
|
Analysts and
Investors:
|
Roni
Cappadonna
|
|
(713) 627-4778 or
Toll Free: (800) 481-2804
|
|
roni.cappadonna@enbridge.com
|
Spectra Energy
Partners, LP
|
Quarterly
Highlights
|
September
2017
|
(Unaudited)
|
(millions of dollars,
except per-unit amounts)
|
Reported - These
results include the impact of special items
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
INCOME
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
$
|
693
|
|
$
|
628
|
|
$
|
2,088
|
|
$
|
1,870
|
|
Total Reportable
Segment EBITDA
|
656
|
|
452
|
|
1,745
|
|
1,383
|
|
Net Income -
Controlling Interests
|
460
|
|
275
|
|
1,105
|
|
860
|
EBITDA BY BUSINESS
SEGMENT
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
$
|
589
|
|
$
|
392
|
|
$
|
1,548
|
|
$
|
1,209
|
|
Liquids
|
67
|
|
60
|
|
197
|
|
174
|
|
|
Total Reportable
Segment EBITDA
|
656
|
|
452
|
|
1,745
|
|
1,383
|
|
Other
EBITDA
|
(21)
|
|
(21)
|
|
(92)
|
|
(63)
|
|
|
Total Reportable
Segment and Other EBITDA
|
$
|
635
|
|
$
|
431
|
|
$
|
1,653
|
|
$
|
1,320
|
|
|
|
|
|
|
|
|
PARTNERS'
CAPITAL
|
|
|
|
|
|
|
|
|
Declared Cash
Distribution per Limited Partner Unit
|
$
|
0.72625
|
|
$
|
0.67625
|
|
$
|
2.14125
|
|
$
|
1.99125
|
|
Weighted Average
Units Outstanding
|
|
|
|
|
|
|
|
|
|
Limited Partner
Units
|
311
|
|
304
|
|
310
|
|
296
|
|
|
General Partner
Units
|
6
|
|
6
|
|
6
|
|
6
|
DISTRIBUTABLE CASH
FLOW
|
|
|
|
|
|
|
|
|
Distributable Cash
Flow
|
$
|
363
|
|
$
|
270
|
|
$
|
1,060
|
|
$
|
916
|
CAPITAL AND
INVESTMENT EXPENDITURES (a)
|
|
|
|
|
|
|
|
|
Capital expenditures
- U.S. Transmission
|
|
|
|
|
$
|
1,576
|
|
$
|
1,561
|
|
Capital expenditures
- Liquids
|
|
|
|
|
16
|
|
54
|
|
Investment
expenditures
|
|
|
|
|
218
|
|
112
|
|
|
Total
|
|
|
|
|
$
|
1,810
|
|
$
|
1,727
|
|
|
|
|
|
|
|
|
U.S.
TRANSMISSION
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
$
|
595
|
|
$
|
535
|
|
$
|
1,783
|
|
$
|
1,602
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
Operating,
Maintenance and Other
|
181
|
|
217
|
|
582
|
|
572
|
|
Other Income and
Expenses
|
175
|
|
74
|
|
347
|
|
179
|
|
EBITDA
|
$
|
589
|
|
$
|
392
|
|
$
|
1,548
|
|
$
|
1,209
|
|
|
|
|
|
|
|
|
LIQUIDS
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
$
|
98
|
|
$
|
93
|
|
$
|
305
|
|
$
|
268
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
Operating,
Maintenance and Other
|
28
|
|
32
|
|
104
|
|
94
|
|
Other Income and
Expenses
|
(3)
|
|
(1)
|
|
(4)
|
|
—
|
|
EBITDA
|
$
|
67
|
|
$
|
60
|
|
$
|
197
|
|
$
|
174
|
|
|
|
|
|
|
|
|
|
Express Pipeline
Revenue Receipts, MBbl/d (b)
|
255
|
|
235
|
|
260
|
|
234
|
|
Platte PADD II
Deliveries, MBbl/d
|
119
|
|
131
|
|
133
|
|
131
|
|
Canadian Dollar
Exchange Rate, Average
|
1.25
|
|
1.30
|
|
1.31
|
|
1.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Debt
|
|
|
|
|
$
|
8,253
|
|
$
|
7,213
|
Actual Units
Outstanding
|
|
|
|
|
317
|
|
315
|
(a) Excludes
contributions received from noncontrolling interests of $416
million in 2017 and $437 million in 2016.
|
(b) Thousand barrels
per day.
|
Spectra Energy
Partners, LP
|
Condensed
Consolidated Statements of Operations
|
(Unaudited)
|
(millions of
dollars)
|
Reported - These
results include the impact of special items
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
693
|
|
$
|
628
|
|
$
|
2,088
|
|
$
|
1,870
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
319
|
|
348
|
|
1,039
|
|
961
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
374
|
|
280
|
|
1,049
|
|
909
|
|
|
|
|
|
|
|
|
|
Other Income and
Expenses
|
|
176
|
|
73
|
|
348
|
|
181
|
Interest
Expense
|
|
75
|
|
53
|
|
191
|
|
165
|
|
|
|
|
|
|
|
|
|
Earnings Before
Income Taxes
|
|
475
|
|
300
|
|
1,206
|
|
925
|
Income Tax
Expense
|
|
4
|
|
4
|
|
14
|
|
13
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
471
|
|
296
|
|
1,192
|
|
912
|
Net Income -
Noncontrolling Interests
|
|
11
|
|
21
|
|
87
|
|
52
|
Net Income -
Controlling Interests
|
|
$
|
460
|
|
$
|
275
|
|
$
|
1,105
|
|
$
|
860
|
Spectra Energy
Partners, LP
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
(millions of
dollars)
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
Assets
|
|
$
|
504
|
|
$
|
660
|
Investments and Other
Assets
|
|
6,298
|
|
4,469
|
Net Property, Plant
and Equipment
|
|
14,596
|
|
16,092
|
Regulatory Assets and
Deferred Debits
|
|
321
|
|
385
|
|
Total
Assets
|
|
$
|
21,719
|
|
$
|
21,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
Liabilities
|
|
$
|
2,992
|
|
$
|
1,779
|
Long-term
Debt
|
|
5,714
|
|
6,223
|
Deferred Credits and
Other Liabilities
|
|
203
|
|
200
|
Equity
|
|
12,810
|
|
13,404
|
|
Total Liabilities
and Equity
|
|
$
|
21,719
|
|
$
|
21,606
|
Spectra Energy
Partners, LP
|
Distributable Cash
Flow
|
(Unaudited)
|
(millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September
30,
|
|
Nine Months
Ended
September 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
Income
|
|
$
|
471
|
|
$
|
296
|
|
$
|
1,192
|
|
$
|
912
|
Add:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
75
|
|
53
|
|
191
|
|
165
|
Income tax
expense
|
|
4
|
|
4
|
|
14
|
|
13
|
Depreciation and
amortization
|
|
86
|
|
78
|
|
258
|
|
232
|
Foreign currency
(gain) loss
|
|
(1)
|
|
—
|
|
(1)
|
|
—
|
Less:
|
|
|
|
|
|
|
|
|
Third party interest
income
|
|
—
|
|
—
|
|
1
|
|
2
|
EBITDA
|
|
635
|
|
431
|
|
1,653
|
|
1,320
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Earnings from equity
investments
|
|
(161)
|
|
(35)
|
|
(239)
|
|
(92)
|
Distributions from
equity investments
|
|
54
|
|
35
|
|
132
|
|
132
|
|
Other
|
|
9
|
|
9
|
|
9
|
|
12
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
75
|
|
53
|
|
191
|
|
165
|
Equity
AFUDC
|
|
14
|
|
38
|
|
107
|
|
84
|
Net cash paid for
income taxes
|
|
4
|
|
2
|
|
12
|
|
7
|
Distributions to
non-controlling interests
|
|
12
|
|
7
|
|
37
|
|
22
|
Maintenance capital
expenditures
|
|
69
|
|
70
|
|
148
|
|
178
|
Total
Distributable Cash Flow
|
|
$
|
363
|
|
$
|
270
|
|
$
|
1,060
|
|
$
|
916
|
Spectra Energy
Partners, LP
|
Reported to
Ongoing Distributable Cash Flow Reconciliation
|
Unaudited
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September 30,
2017
|
|
September 30,
2016
|
|
|
Reported
|
|
Less: Special
Items
|
|
Ongoing
|
|
Reported
|
|
Less: Special
Items
|
|
Ongoing
|
Net
Income
|
|
$
|
471
|
|
$
|
81
|
|
$
|
390
|
|
$
|
296
|
|
$
|
(38)
|
|
$
|
334
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
75
|
|
—
|
|
75
|
|
53
|
|
—
|
|
53
|
Income tax
expense
|
|
4
|
|
—
|
|
4
|
|
4
|
|
—
|
|
4
|
Depreciation and
amortization
|
|
86
|
|
—
|
|
86
|
|
78
|
|
—
|
|
78
|
Foreign currency
loss
|
|
(1)
|
|
—
|
|
(1)
|
|
—
|
|
—
|
|
—
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Third party interest
income
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
EBITDA
|
|
635
|
|
81
|
|
554
|
|
431
|
|
(38)
|
|
469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from equity
investments
|
|
(161)
|
|
(106)
|
|
(55)
|
|
(35)
|
|
—
|
|
(35)
|
Distributions from
equity investments
|
|
54
|
|
—
|
|
54
|
|
35
|
|
—
|
|
35
|
Other
|
|
9
|
|
—
|
|
9
|
|
9
|
|
—
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
75
|
|
—
|
|
75
|
|
53
|
|
—
|
|
53
|
Equity
AFUDC
|
|
14
|
|
—
|
|
14
|
|
38
|
|
—
|
|
38
|
Net cash paid for
income taxes
|
|
4
|
|
—
|
|
4
|
|
2
|
|
—
|
|
2
|
Distributions to
non-controlling interests
|
|
12
|
|
—
|
|
12
|
|
7
|
|
—
|
|
7
|
Maintenance capital
expenditures
|
|
69
|
|
10
|
|
59
|
|
70
|
|
5
|
|
65
|
Total
Distributable Cash Flow
|
|
$
|
363
|
|
$
|
(35)
|
|
$
|
398
|
|
$
|
270
|
|
$
|
(43)
|
|
$
|
313
|
Spectra Energy
Partners, LP
|
Reported to
Ongoing Earnings Reconciliation
|
September 2017
Quarter-to-Date
|
(Unaudited)
|
(millions of
dollars)
|
|
|
|
|
|
|
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND
DEPRECIATION AND AMORTIZATION
|
|
Reported
Earnings
|
|
Less:
Special
Items
|
|
Ongoing
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
$
|
589
|
|
$
|
84
|
A
|
$
|
505
|
Liquids
|
|
67
|
|
—
|
|
67
|
|
Total Reportable
Segment EBITDA
|
|
656
|
|
84
|
|
572
|
|
|
|
|
|
|
|
Other
|
|
(21)
|
|
(3)
|
B
|
(18)
|
|
Total Reportable
Segment and other EBITDA
|
|
$
|
635
|
|
$
|
81
|
|
$
|
554
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
635
|
|
$
|
81
|
|
$
|
554
|
Depreciation and
Amortization
|
|
(86)
|
|
—
|
|
(86)
|
Interest
Expense
|
|
(75)
|
|
—
|
|
(75)
|
Other Income and
Expenses
|
|
1
|
|
—
|
|
1
|
Income Tax
Expense
|
|
(4)
|
|
—
|
|
(4)
|
Total Net
Income
|
|
471
|
|
81
|
|
390
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(11)
|
|
—
|
|
(11)
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
460
|
|
$
|
81
|
|
$
|
379
|
A - Primarily
attributable to a gain as a result of the deconsolidation and
re-measurement of Sabal Trail, partially offset by inspection and
repair costs related to Texas Eastern Pipeline incident
|
|
B - Primarily
merger-related severance costs
|
|
Spectra Energy
Partners, LP
|
Reported to
Ongoing Earnings Reconciliation
|
September 2017
Year-to-Date
|
(Unaudited)
|
(millions of
dollars)
|
|
|
|
|
|
|
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND
DEPRECIATION AND AMORTIZATION
|
|
Reported
Earnings
|
|
Less: Special Items
|
|
Ongoing
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
$
|
1,548
|
|
$
|
47
|
A
|
$
|
1,501
|
Liquids
|
|
197
|
|
(3)
|
B
|
200
|
|
Total Reportable
Segment EBITDA
|
|
1,745
|
|
44
|
|
1,701
|
|
|
|
|
|
|
|
Other
|
|
(92)
|
|
(38)
|
B
|
(54)
|
|
Total Reportable
Segment and other EBITDA
|
|
$
|
1,653
|
|
$
|
6
|
|
$
|
1,647
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
1,653
|
|
$
|
6
|
|
$
|
1,647
|
Depreciation and
Amortization
|
|
(258)
|
|
—
|
|
(258)
|
Interest
Expense
|
|
(191)
|
|
—
|
|
(191)
|
Other Income and
Expenses
|
|
2
|
|
—
|
|
2
|
Income Tax
Expense
|
|
(14)
|
|
—
|
|
(14)
|
Total Net
Income
|
|
1,192
|
|
6
|
|
1,186
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(87)
|
|
—
|
|
(87)
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
1,105
|
|
$
|
6
|
|
$
|
1,099
|
A - Primarily
attributable to a gain as a result of the deconsolidation and
re-measurement of Sabal Trail, partially offset by inspection and
repair costs related to Texas Eastern Pipeline incident
|
B - Primarily
merger-related severance costs
|
Spectra Energy
Partners, LP
|
Reported to
Ongoing Earnings Reconciliation
|
September 2016
Quarter-to-Date
|
(Unaudited)
|
(millions of
dollars)
|
|
|
|
|
|
|
|
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)
|
Other Income and
Expenses
|
|
—
|
|
—
|
|
—
|
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 the Texas Eastern pipeline incident in
Pennsylvania.
|
Spectra Energy
Partners, LP
|
Reported to
Ongoing Earnings Reconciliation
|
September 2016
Year-to-Date
|
(Unaudited)
|
(millions of
dollars)
|
|
|
|
|
|
|
|
SEGMENT
EARNINGS BEFORE INTEREST, TAXES, AND
DEPRECIATION AND AMORTIZATION
|
|
Reported/
Ongoing
Earnings
|
|
Less: Special Items
|
|
Ongoing
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
$
|
1,209
|
|
$
|
(44)
|
A
|
$
|
1,253
|
Liquids
|
|
174
|
|
—
|
|
174
|
|
Total Reportable
Segment EBITDA
|
|
1,383
|
|
(44)
|
|
1,427
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
(63)
|
|
—
|
|
(63)
|
|
Total Reportable
Segment and other EBITDA
|
|
$
|
1,320
|
|
$
|
(44)
|
|
$
|
1,364
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
1,320
|
|
$
|
(44)
|
|
$
|
1,364
|
Depreciation and
Amortization
|
|
(232)
|
|
—
|
|
(232)
|
Interest
Expense
|
|
(165)
|
|
—
|
|
(165)
|
Other Income and
Expenses
|
|
2
|
|
—
|
|
2
|
Income Tax
Expense
|
|
(13)
|
|
—
|
|
(13)
|
Total Net
Income
|
|
912
|
|
(44)
|
|
956
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(52)
|
|
—
|
|
(52)
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
860
|
|
$
|
(44)
|
|
$
|
904
|
A - Inspection and
repair costs related to the Texas Eastern pipeline incident in
Pennsylvania
|
Spectra Energy
Partners, LP
|
Distributable Cash
Flow
|
(Unaudited)
|
(millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017e
(low)
|
|
2017e
(mid)
|
|
2017e
(high)
|
Total Reported Net
Income
|
|
$
|
1,525
|
|
$
|
1,565
|
|
$
|
1,605
|
Add:
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
280
|
|
280
|
|
280
|
Income tax
expense
|
|
5
|
|
5
|
|
5
|
Depreciation and
amortization
|
|
350
|
|
350
|
|
350
|
EBITDA
|
|
2,160
|
|
2,200
|
|
2,240
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Earnings from equity
investments
|
|
(200)
|
|
(200)
|
|
(200)
|
Distributions from
equity investments
|
|
150
|
|
150
|
|
150
|
Other
|
|
10
|
|
10
|
|
10
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
280
|
|
280
|
|
280
|
Equity
AFUDC
|
|
115
|
|
115
|
|
115
|
Net cash paid for
income taxes
|
|
15
|
|
15
|
|
15
|
Distributions to
non-controlling interests
|
|
45
|
|
45
|
|
45
|
Maintenance capital
expenditures
|
|
265
|
|
265
|
|
265
|
Total
Distributable Cash Flow
|
|
$
|
1,400
|
|
$
|
1,440
|
|
$
|
1,480
|
|
|
|
|
|
|
|
|
|
|
DCF
Coverage
|
|
1.05x
|
|
1.10x
|
|
1.15x
|
SOURCE Spectra Energy Partners, LP