HOUSTON, Feb. 17, 2017 /PRNewswire/ -- Spectra Energy
Partners, LP (NYSE: SEP) today reported net income of
$327 million, including net income
from controlling interests of $301
million, for the fourth quarter ended December 31, 2016, with diluted earnings per
limited partner unit of $0.70. For
the year, net income was $1.24
billion, including net income from controlling interests of
$1.16 billion, with diluted earnings
per limited partner unit of $2.84.
The fourth quarter and yearly results included non-recurring
special items of $36 million and
$80 million, respectively, which
decreased diluted earnings per limited partner unit by $0.11 for the quarter and $0.26 for the year.
Highlights:
- 2016 ongoing distributable cash flow (DCF) of $1.3 billion, with a distribution coverage ratio
of 1.2 times
- Brought six projects online, totaling an investment of nearly
$1.5 billion
- Announced 37th consecutive quarterly distribution
increase
- Reaffirmed quarterly penny-and-a-quarter distribution increases
through 2017 and coverage ratio within targeted range of 1.05 to
1.15 times
Fourth quarter 2016 ongoing DCF was $330 million, compared
with $260 million in the prior-year quarter. For the
year, ongoing DCF was $1.3 billion, a
$90 million increase from
$1.21 billion in 2015. Distributions
per limited partner unit for 2016 were $2.63, compared
with $2.43 per limited partner unit in 2015.
For the quarter, ongoing earnings before interest, taxes,
depreciation and amortization (EBITDA) were $510 million, compared with $457 million in the prior-year quarter. For
the year, ongoing EBITDA was $1.87
billion, compared with $1.83
billion in 2015.
Ongoing net income from controlling interests was $337
million for the quarter, or $0.81 diluted earnings per limited partner unit,
compared with $305 million, or $0.82 diluted earnings per limited partner unit,
in the prior-year quarter. Net income from controlling interests
was $301 million for the quarter, or $0.70 diluted earnings per limited partner unit,
compared with $304 million, or $0.82 diluted earnings per limited partner
unit, in the prior-year quarter.
For the year, ongoing net income from controlling interests
was $1.24 billion, or $3.10
diluted earnings per limited partner unit, compared with $1.24
billion, or $3.33 diluted
earnings per limited partner unit, in 2015. Net income from
controlling interests was $1.16 billion in 2016, or
$2.84 diluted earnings per limited
partner unit, compared with $1.23 billion, or $3.30 diluted earnings per limited partner
unit, in 2015.
CEO COMMENT
"Spectra Energy Partners posted strong quarter and year-end
results that continue to reflect our ability to generate solid cash
flows and increased earnings. The expansion projects we placed into
service in 2016 are driving additional value for our investors, as
earlier this month we announced our 37th consecutive
quarterly distribution increase," said Greg
Ebel, chief executive officer, Spectra Energy Partners.
"While the General Partner of Spectra Energy Partners will
change once the merger with Enbridge is complete, the stable
underpinnings of our business will not. Spectra Energy Partners'
strategic and competitive asset footprint – with virtually no
direct commodity or volume risk, high-quality demand-pull
customers, excellent liquidity, and access to favorable capital
markets – will continue to generate steady cash flows. For 2017, we
plan to continue our quarterly penny-and-a-quarter distribution
increases while maintaining DCF coverage in our targeted range of
1.05 to 1.15 times."
SEGMENT RESULTS
U.S.
Transmission
Ongoing EBITDA from U.S. Transmission was $466 million in fourth quarter 2016, compared
with $413 million in fourth quarter
2015. Fourth quarter 2016 results reflect increased earnings from
expansion projects placed into service in the second half of 2016,
as well as higher Allowance for Funds Used During Construction
(AFUDC), primarily from the Sabal Trail project. Fourth quarter
2016 results exclude a special item of $36
million for inspection and repair efforts associated with
the Texas Eastern pipeline incident.
For the year 2016, ongoing EBITDA for U.S. Transmission was
$1.72 billion, compared with
$1.61 billion in 2015. The 2016
period excludes a special item of $80
million for inspection and repair efforts associated with
the Texas Eastern pipeline incident. The 2015 period excludes a
special item of $9 million related to
a non-cash impairment of the Ozark Gas Gathering asset.
Liquids
Liquids EBITDA was $63 million in
fourth quarter 2016, compared with $62
million in fourth quarter 2015. The increase is attributable
to expansion revenue from the Express Enhancement project placed
into service in October 2016, which
was offset by the absence of equity earnings from Sand Hills and
Southern Hills natural gas liquids (NGL) pipelines, which Spectra
Energy Partners owned through October
2015.
For the year 2016, EBITDA for Liquids was $237 million, compared with $283 million in 2015.
Other
"Other" net expenses were $19
million in fourth quarter 2016, compared with $18 million in fourth quarter 2015.
For the year 2016, net expenses were $82
million, compared with $66
million in 2015.
Interest Expense
Interest expense was $59 million
in fourth quarter 2016, compared with $60
million in fourth quarter 2015.
For the year 2016, interest expense was $224 million, compared with $239 million in 2015.
Liquidity and Capital Expenditures
Total debt outstanding at Spectra Energy Partners as
of December 31, 2016, was $7.2 billion. Available
liquidity at the end of the quarter was $2.1
billion. Spectra Energy Partners' capital expansion
program continues to be funded through a combination of debt and
equity.
Including contributions from noncontrolling interests of
$743 million, total capital and
investment spending for the year was approximately $1.8
billion, and consisted of about $1.5 billion of growth
capital expenditures and about $268 million of
maintenance capital expenditures. Maintenance capital expenditures
include a $28 million special item
related to the Texas Eastern pipeline incident.
In 2016, Spectra Energy Partners successfully completed an
$800 million debt offering. Also in
2016, Spectra Energy Partners received net proceeds
of $579 million through its "At the Market" (ATM) equity
issuance program, with $106
million raised in the fourth quarter, plus an additional
$501 million from equity issuances to
its general partner.
Spectra Energy Partners expects to file its 2016 10-K with the
Securities and Exchange Commission on or before March 1, 2017.
EXPANSION PROJECT UPDATES
Spectra Energy Partners' 2016 capital expansion program
concluded with six projects placed into service, representing
nearly $1.5 billion of capital
expansion, including:
- Ozark Conversion
- Loudon
- Gulf Markets Expansion – Phase I
- Express Enhancement
- Salem Lateral
- AIM
Projects Scheduled for 2017 In-Service
Construction on Sabal Trail continues to progress, and
the project remains on track to be in-service during the first half
of 2017.
The Access South, Adair Southwest, and Lebanon
Extension projects commenced construction in January, and are
scheduled to be placed in-service in the second half of this
year.
The second phase of the Gulf Markets Expansion project
continues to advance toward a second half of 2017 in-service date.
The project has received all its regulatory permits and is under
construction.
Atlantic Bridge received its FERC Certificate of Public
Convenience and Necessity in January, and is targeting initial
in-service in the fourth quarter of this year.
NEXUS and TEAL anticipate receiving their FERC
certificates shortly after FERC again has a quorum. Subject to a
prompt issuance of these certificates, the project team has a safe
and environmentally responsible plan to place the facilities into
service in the fourth quarter of 2017, within the prescribed
construction windows, in order to meet shipper requirements.
Infrastructure projects are a top priority for the new
administration and we are confident it will take swift action to
restore a FERC quorum.
Projects Scheduled for 2018 In-Service
The STEP project continues to target in-service in the
second half of 2018.
The PennEast project continues to advance as well. FERC
is expected to issue its Final Environmental Impact Statement
(FEIS) in April, and the project is still targeting a late-2018
in-service date.
Projects Scheduled for 2019 In-Service
The Stratton Ridge project filed its FERC application
earlier this month and remains on schedule for in-service in the
first half of 2019.
Projects in Development
The Access Northeast project would help alleviate New
England's well-documented issues of energy reliability and cost
volatility. The project's partners continue to pursue a viable
commercial and operational model to provide clean-burning natural
gas to gas-fired electric generators in New England in support of
the region's emission goals.
While the project has been in discussions on other contracting
strategies, including participation among gas distribution
companies, the complexity of any regional solution requires clarity
among the New England states regarding the support and legal
authority for electric distribution companies to contract for
project capacity. When the states achieve alignment – in the form
of consistent legislative or other legal authority supporting
natural gas infrastructure for electric reliability – the project's
partners remain able and committed to bringing Access Northeast to
New England consumers.
With increasing reliance on natural gas for electric generation,
this project provides a critical opportunity to improve New
England's future energy reliability, cost volatility and
competitiveness. Access Northeast's partners will continue working
with state and federal agencies, as well as other stakeholders, to
help close gaps in legal authority that are currently prohibiting
the region from achieving its significant environmental goals, as
the current system configuration requires the continued operation
of older, higher emitting generation units, such as coal and oil
plants.
Spectra Energy Partners conducted solicitations of interest on
the Express Pipeline and Platte Pipeline in late 2016, and is
currently conducting subsequent solicitations, which will close by
the end of February.
Spectra Energy Partners has secured a commitment from an
industrial market shipper in the STX Zone of its Texas Eastern
system, and on February 15 launched a
Texas-Louisiana Markets open season, which will close in early
March, to solicit additional interest.
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 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
|
December
2016
|
(Unaudited)
|
(In millions, except
per-unit amounts)
|
Reported - These
results include the impact of special items
|
|
|
|
|
|
|
|
Quarters
Ended
|
|
Years
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
INCOME
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
663
|
|
|
$
|
634
|
|
|
$
|
2,533
|
|
|
$
|
2,455
|
|
Total Reportable
Segment EBITDA
|
|
493
|
|
|
475
|
|
|
1,876
|
|
|
1,882
|
|
Net Income -
Controlling Interests
|
|
301
|
|
|
304
|
|
|
1,161
|
|
|
1,225
|
|
|
|
|
|
|
|
|
|
|
EBITDA BY BUSINESS
SEGMENT
|
|
|
|
|
|
|
|
|
U.S.
Transmission
|
|
$
|
430
|
|
|
$
|
413
|
|
|
$
|
1,639
|
|
|
$
|
1,599
|
|
Liquids
|
|
63
|
|
|
62
|
|
|
237
|
|
|
283
|
|
Total Reportable
Segment EBITDA
|
|
493
|
|
|
475
|
|
|
1,876
|
|
|
1,882
|
|
Other
EBITDA
|
|
(19)
|
|
|
(18)
|
|
|
(82)
|
|
|
(66)
|
|
Total Reportable
Segment and Other EBITDA
|
|
$
|
474
|
|
|
$
|
457
|
|
|
$
|
1,794
|
|
|
$
|
1,816
|
|
|
|
|
|
|
|
|
|
|
PARTNERS'
CAPITAL
|
|
|
|
|
|
|
|
|
Declared Cash
Distribution per Limited Partner Unit
|
|
$
|
0.68875
|
|
|
$
|
0.63875
|
|
|
$
|
2.6800
|
|
|
$
|
2.4800
|
|
Weighted Average
Units Outstanding
|
|
|
|
|
|
|
|
|
Limited Partner
Units
|
|
307
|
|
|
290
|
|
|
299
|
|
|
296
|
|
General Partner
Units
|
|
6
|
|
|
6
|
|
|
6
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTABLE CASH
FLOW
|
|
|
|
|
|
|
|
|
Distributable Cash
Flow
|
|
$
|
271
|
|
|
$
|
260
|
|
|
$
|
1,187
|
|
|
$
|
1,205
|
|
Coverage
Ratio
|
|
|
|
|
|
1.1x
|
|
1.2x
|
|
|
|
|
|
|
|
|
|
CAPITAL AND
INVESTMENT EXPENDITURES (a)
|
|
|
|
|
|
|
|
Capital expenditures
- U.S. Transmission
|
|
|
|
|
|
$
|
2,263
|
|
|
$
|
1,857
|
|
Capital expenditures
- Liquids
|
|
|
|
|
|
71
|
|
|
26
|
|
Investment
expenditures - Sand Hills/Southern Hills/SESH/Penn
East/Nexus
|
|
|
|
|
|
251
|
|
|
124
|
|
Total
|
|
|
|
|
|
$
|
2,585
|
|
|
$
|
2,007
|
|
|
|
|
|
|
|
|
|
|
U.S.
TRANSMISSION
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
565
|
|
|
$
|
541
|
|
|
$
|
2,167
|
|
|
$
|
2,087
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Operating,
Maintenance and Other
|
|
207
|
|
|
184
|
|
|
779
|
|
|
680
|
|
Other Income and
Expenses
|
|
72
|
|
|
56
|
|
|
251
|
|
|
192
|
|
EBITDA
|
|
$
|
430
|
|
|
$
|
413
|
|
|
$
|
1,639
|
|
|
$
|
1,599
|
|
|
|
|
|
|
|
|
|
|
LIQUIDS
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
98
|
|
|
$
|
93
|
|
|
$
|
366
|
|
|
$
|
368
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Operating,
Maintenance and Other
|
|
36
|
|
|
36
|
|
|
130
|
|
|
141
|
|
Other Income and
Expenses
|
|
1
|
|
|
5
|
|
|
1
|
|
|
56
|
|
EBITDA
|
|
$
|
63
|
|
|
$
|
62
|
|
|
$
|
237
|
|
|
$
|
283
|
|
|
|
|
|
|
|
|
|
|
Express Pipeline
Revenue Receipts, MBbl/d (b)
|
|
259
|
|
|
239
|
|
|
241
|
|
|
239
|
|
Platte PADD II
Deliveries, MBbl/d
|
|
127
|
|
|
140
|
|
|
130
|
|
|
162
|
|
Canadian Dollar
Exchange Rate, Average
|
|
1.33
|
|
|
1.34
|
|
|
1.33
|
|
|
1.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Debt
|
|
|
|
|
|
$
|
7,213
|
|
|
$
|
6,604
|
|
|
|
|
|
|
|
|
|
|
Actual Units
Outstanding (c)
|
|
|
|
|
|
315
|
|
|
291
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes
contributions received from noncontrolling interests of $641
million in 2016 and $216 million in 2015. Excludes sale of Sabal
Trail interest of $102 million in 2016.
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
663
|
|
|
$
|
634
|
|
|
$
|
2,533
|
|
|
$
|
2,455
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
344
|
|
|
313
|
|
|
1,305
|
|
|
1,182
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
319
|
|
|
321
|
|
|
1,228
|
|
|
1,273
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income and
Expenses
|
|
72
|
|
|
60
|
|
|
253
|
|
|
243
|
|
Interest
Expense
|
|
59
|
|
|
60
|
|
|
224
|
|
|
239
|
|
|
|
|
|
|
|
|
Earnings Before
Income Taxes
|
|
332
|
|
|
321
|
|
|
1,257
|
|
|
1,277
|
|
Income Tax
Expense
|
|
5
|
|
|
4
|
|
|
18
|
|
|
12
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
327
|
|
|
317
|
|
|
1,239
|
|
|
1,265
|
|
Net Income -
Noncontrolling Interests
|
|
26
|
|
|
13
|
|
|
78
|
|
|
40
|
|
Net Income -
Controlling Interests
|
|
$
|
301
|
|
|
$
|
304
|
|
|
$
|
1,161
|
|
|
$
|
1,225
|
|
Spectra Energy
Partners, LP
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
Assets
|
|
|
$
|
660
|
|
|
$
|
544
|
|
Investments and Other
Assets
|
|
4,469
|
|
|
4,180
|
|
Net Property, Plant
and Equipment
|
|
16,092
|
|
|
13,837
|
|
Regulatory Assets and
Deferred Debits
|
|
385
|
|
|
290
|
|
|
Total
Assets
|
|
|
$
|
21,606
|
|
|
$
|
18,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
$
|
1,779
|
|
|
$
|
1,471
|
|
Long-term
Debt
|
|
|
6,223
|
|
|
5,845
|
|
Deferred Credits and
Other Liabilities
|
|
200
|
|
|
189
|
|
Equity
|
|
|
|
13,404
|
|
|
11,346
|
|
|
Total Liabilities
and Equity
|
|
$
|
21,606
|
|
|
$
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended
December 31,
|
|
|
Years Ended
December 31,
|
|
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
Net
Income
|
|
$
327
|
|
$
317
|
|
|
$
1,239
|
|
$
1,265
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
59
|
|
60
|
|
|
224
|
|
239
|
|
|
Income tax
expense
|
|
5
|
|
4
|
|
|
18
|
|
12
|
|
|
Depreciation and
amortization
|
|
82
|
|
75
|
|
|
314
|
|
295
|
|
|
Foreign currency
loss
|
|
1
|
|
1
|
|
|
1
|
|
6
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Third party interest
income
|
|
-
|
|
-
|
|
|
2
|
|
1
|
|
|
EBITDA
|
|
474
|
|
457
|
|
|
1,794
|
|
1,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from equity
investments
|
|
(35)
|
|
(33)
|
|
|
(127)
|
|
(167)
|
|
|
Distributions from
equity investments (a)
|
|
28
|
|
24
|
|
|
160
|
|
207
|
|
|
Non-cash impairment at
Ozark Gas Gathering
|
|
-
|
|
-
|
|
|
-
|
|
9
|
|
|
Other
|
|
1
|
|
4
|
|
|
13
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
59
|
|
60
|
|
|
224
|
|
239
|
|
|
Equity
AFUDC
|
|
37
|
|
26
|
|
|
121
|
|
76
|
|
|
Net cash paid for
income taxes
|
|
3
|
|
4
|
|
|
10
|
|
12
|
|
|
Distributions to
non-controlling interests
|
|
8
|
|
8
|
|
|
30
|
|
31
|
|
|
Maintenance capital
expenditures
|
|
90
|
|
94
|
|
|
268
|
|
314
|
|
|
Total
Distributable Cash Flow
|
|
$
271
|
|
$
260
|
|
|
$
1,187
|
|
$
1,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
(b)
|
|
|
|
|
|
|
$
1,113
|
|
$
976
|
|
|
Coverage -
DCF/Distributions
|
|
|
|
|
|
|
1.1X
|
|
1.2X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes $403
million of distributions for the twelve month period ended December
31, 2015.
|
(b) Includes a $4
million reduction of distribution to Spectra Energy (as holder of
incentive distribution rights) per quarter beginning in December
2015.
|
Spectra Energy
Partners, LP
|
|
Reported to
Ongoing Earnings Reconciliation
|
|
December 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
|
|
|
|
$
|
430
|
|
|
$
|
(36)
|
A
|
|
$
|
466
|
|
|
Liquids
|
|
|
|
63
|
|
|
—
|
|
|
63
|
|
|
Total Reportable Segment EBITDA
|
|
|
493
|
|
|
(36)
|
|
|
529
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(19)
|
|
|
—
|
|
|
(19)
|
|
|
Total Reportable Segment and other EBITDA
|
|
|
$
|
474
|
|
|
$
|
(36)
|
|
|
$
|
510
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
474
|
|
|
$
|
(36)
|
|
|
$
|
510
|
|
|
Depreciation and
Amortization
|
|
(82)
|
|
|
—
|
|
|
(82)
|
|
|
Interest
Expense
|
|
(59)
|
|
|
—
|
|
|
(59)
|
|
|
Other Income and
Expenses
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
Income Tax
Expense
|
|
(5)
|
|
|
—
|
|
|
(5)
|
|
|
Total Net
Income
|
|
327
|
|
|
(36)
|
|
|
363
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(26)
|
|
|
—
|
|
|
(26)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
301
|
|
|
$
|
(36)
|
|
|
$
|
337
|
|
|
|
|
|
|
|
|
|
|
|
|
A - Inspection and
repair costs related to Texas Eastern pipeline incident in
Pennsylvania.
|
|
Spectra Energy
Partners, LP
|
|
Reported to
Ongoing Earnings Reconciliation
|
|
December 2015
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
|
|
|
|
$
|
413
|
|
|
$
|
—
|
|
|
$
|
413
|
|
|
Liquids
|
|
|
|
62
|
|
|
—
|
|
|
62
|
|
|
Total Reportable Segment EBITDA
|
|
|
475
|
|
|
—
|
|
|
475
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(18)
|
|
|
—
|
|
|
(18)
|
|
|
Total Reportable Segment and other EBITDA
|
|
|
$
|
457
|
|
|
$
|
—
|
|
|
$
|
457
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
457
|
|
|
$
|
—
|
|
|
$
|
457
|
|
|
Depreciation and
Amortization
|
|
(75)
|
|
|
—
|
|
|
(75)
|
|
|
Interest
Expense
|
|
(60)
|
|
|
(1)
|
A
|
|
(59)
|
|
|
Other Income and
Expenses
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
Income Tax
Expense
|
|
(4)
|
|
|
—
|
|
|
(4)
|
|
|
Total Net
Income
|
|
317
|
|
|
(1)
|
|
|
318
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(13)
|
|
|
—
|
|
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
304
|
|
|
$
|
(1)
|
|
|
$
|
305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A - Net write-off of
regulatory assets and liabilities at Ozark Gas Transmission due to
discontinuance of regulatory accounting.
|
|
Spectra Energy
Partners, LP
|
|
Reported to
Ongoing Earnings Reconciliation
|
|
December 2016
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
|
|
|
|
$
|
1,639
|
|
|
$
|
(80)
|
A
|
|
$
|
1,719
|
|
|
Liquids
|
|
|
|
237
|
|
|
—
|
|
|
237
|
|
|
Total Reportable Segment EBITDA
|
|
|
1,876
|
|
|
(80)
|
|
|
1,956
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(82)
|
|
|
—
|
|
|
(82)
|
|
|
Total Reportable Segment and other EBITDA
|
|
|
$
|
1,794
|
|
|
$
|
(80)
|
|
|
$
|
1,874
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
1,794
|
|
|
$
|
(80)
|
|
|
$
|
1,874
|
|
|
Depreciation and
Amortization
|
|
(314)
|
|
|
—
|
|
|
(314)
|
|
|
Interest
Expense
|
|
(224)
|
|
|
—
|
|
|
(224)
|
|
|
Other Income and
Expenses
|
|
1
|
|
|
—
|
|
|
1
|
|
|
Income Tax
Expense
|
|
(18)
|
|
|
—
|
|
|
(18)
|
|
|
Total Net
Income
|
|
1,239
|
|
|
(80)
|
|
|
1,319
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(78)
|
|
|
—
|
|
|
(78)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
1,161
|
|
|
$
|
(80)
|
|
|
$
|
1,241
|
|
|
|
|
|
|
|
|
|
|
|
|
A - Inspection and
repair costs related to Texas Eastern pipeline incident in
Pennsylvania.
|
|
Spectra Energy
Partners, LP
|
|
Reported to
Ongoing Earnings Reconciliation
|
|
December 2015
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
|
|
|
|
$
|
1,599
|
|
|
$
|
(9)
|
A
|
|
$
|
1,608
|
|
|
Liquids
|
|
|
|
283
|
|
|
—
|
|
|
283
|
|
|
Total Reportable Segment EBITDA
|
|
|
1,882
|
|
|
(9)
|
|
|
1,891
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(66)
|
|
|
—
|
|
|
(66)
|
|
|
Total Reportable Segment and other EBITDA
|
|
|
$
|
1,816
|
|
|
$
|
(9)
|
|
|
$
|
1,825
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable
Segment EBITDA and Other EBITDA
|
|
$
|
1,816
|
|
|
$
|
(9)
|
|
|
$
|
1,825
|
|
|
Depreciation and
Amortization
|
|
(295)
|
|
|
—
|
|
|
(295)
|
|
|
Interest
Expense
|
|
(239)
|
|
|
(1)
|
B
|
|
(238)
|
|
|
Other Income and
Expenses
|
|
(5)
|
|
|
—
|
|
|
(5)
|
|
|
Income Tax
Expense
|
|
(12)
|
|
|
—
|
|
|
(12)
|
|
|
Total Net
Income
|
|
1,265
|
|
|
(10)
|
|
|
1,275
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Noncontrolling Interests
|
|
(40)
|
|
|
—
|
|
|
(40)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Income - Controlling Interests
|
|
$
|
1,225
|
|
|
$
|
(10)
|
|
|
$
|
1,235
|
|
|
|
|
|
|
|
|
|
|
|
|
A - Non-cash
impairment at Ozark Gas Gathering.
|
|
B - Net write-off of
regulatory assets and liabilities at Ozark Gas Transmission due to
discontinuance of regulatory accounting.
|
|
Spectra Energy
Partners, LP
|
|
Reported to
Ongoing Distributable Cash Flow Reconciliation
|
|
Unaudited
|
|
(In
millions)
|
|
|
|
|
|
Quarters
Ended
|
|
|
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
|
|
|
|
|
Reported
|
|
Less:
Special Items
|
|
Ongoing
|
|
Reported
|
|
Less:
Special Items
|
|
Ongoing
|
Net
Income
|
|
$
327
|
|
$
(36)
|
|
$
363
|
|
$
317
|
|
$
(1)
|
|
$
318
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
59
|
|
-
|
|
59
|
|
60
|
|
1
|
|
59
|
Income tax
expense
|
|
5
|
|
-
|
|
5
|
|
4
|
|
-
|
|
4
|
Depreciation and
amortization
|
|
82
|
|
-
|
|
82
|
|
75
|
|
-
|
|
75
|
Foreign currency
loss
|
|
1
|
|
-
|
|
1
|
|
1
|
|
-
|
|
1
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Third party interest
income
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
EBITDA
|
|
474
|
|
(36)
|
|
510
|
|
457
|
|
-
|
|
457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from equity
investments
|
|
(35)
|
|
-
|
|
(35)
|
|
(33)
|
|
-
|
|
(33)
|
Distributions from
equity investments
|
|
28
|
|
-
|
|
28
|
|
24
|
|
-
|
|
24
|
Other
|
|
1
|
|
-
|
|
1
|
|
4
|
|
1
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
59
|
|
-
|
|
59
|
|
60
|
|
1
|
|
59
|
Equity
AFUDC
|
|
37
|
|
-
|
|
37
|
|
26
|
|
-
|
|
26
|
Net cash
paid for income taxes
|
|
3
|
|
-
|
|
3
|
|
4
|
|
-
|
|
4
|
Distributions to non-controlling interests
|
|
8
|
|
-
|
|
8
|
|
8
|
|
-
|
|
8
|
Maintenance capital expenditures
|
|
90
|
|
23
|
|
67
|
|
94
|
|
-
|
|
94
|
Total Distributable
Cash Flow
|
|
$
271
|
|
$
(59)
|
|
$
330
|
|
$
260
|
|
$
-
|
|
$
260
|
Spectra Energy
Partners, LP
|
Reported to
Ongoing Distributable Cash Flow Reconciliation
|
Unaudited
|
(In
millions)
|
|
|
|
Years
Ended
|
|
|
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
|
|
|
|
|
Reported
|
|
Less:
Special Items
|
|
Ongoing
|
|
Reported
|
|
Less:
Special Items
|
|
Ongoing
|
Net
Income
|
|
$
1,239
|
|
$
(80)
|
|
$
1,319
|
|
$
1,265
|
|
$
(10)
|
|
$
1,275
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
224
|
|
-
|
|
224
|
|
239
|
|
1
|
|
238
|
Income tax
expense
|
|
18
|
|
-
|
|
18
|
|
12
|
|
-
|
|
12
|
Depreciation and
amortization
|
|
314
|
|
-
|
|
314
|
|
295
|
|
-
|
|
295
|
Foreign currency
loss
|
|
1
|
|
-
|
|
1
|
|
6
|
|
-
|
|
6
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Third party interest
income
|
|
2
|
|
-
|
|
2
|
|
1
|
|
-
|
|
1
|
EBITDA
|
|
1,794
|
|
(80)
|
|
1,874
|
|
1,816
|
|
(9)
|
|
1,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from equity
investments
|
|
(127)
|
|
-
|
|
(127)
|
|
(167)
|
|
-
|
|
(167)
|
Distributions from
equity investments
|
|
160
|
|
-
|
|
160
|
|
207
|
|
-
|
|
207
|
Non-cash impairment at
Ozark Gas Gathering
|
|
-
|
|
-
|
|
-
|
|
9
|
|
9
|
|
-
|
Other
|
|
13
|
|
-
|
|
13
|
|
12
|
|
1
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
224
|
|
-
|
|
224
|
|
239
|
|
1
|
|
238
|
Equity
AFUDC
|
|
121
|
|
-
|
|
121
|
|
76
|
|
-
|
|
76
|
Net cash paid for
income taxes
|
|
10
|
|
-
|
|
10
|
|
12
|
|
-
|
|
12
|
Distributions to
non-controlling interests
|
|
30
|
|
-
|
|
30
|
|
31
|
|
-
|
|
31
|
Maintenance capital
expenditures
|
|
268
|
|
28
|
|
240
|
|
314
|
|
-
|
|
314
|
Total
Distributable Cash Flow
|
|
$
1,187
|
|
$
(108)
|
|
$
1,295
|
|
$
1,205
|
|
$
-
|
|
$
1,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
|
|
1,113
|
|
|
|
1,113
|
|
976
|
|
|
|
976
|
Coverage -
DCF/Distributions
|
|
1.1X
|
|
|
|
1.2X
|
|
1.2X
|
|
|
|
1.2X
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/spectra-energy-partners-reports-fourth-quarter-and-year-end-2016-results-300409316.html
SOURCE Spectra Energy Partners, LP