HOUSTON, Sept. 10, 2013 /PRNewswire/ -- Spectra Energy Corp (NYSE: SE) and Spectra Energy Partners (NYSE: SEP) today announced new long-term agreements for shipments on the Express crude oil pipeline. As a result of a recent open season, firm contracted commitments on the pipeline have increased from 119 thousand barrels per day (mbpd) to 225 mbpd, with the average contract length going from 1.5 years to more than 11 years. Contracts stemming from this open season are effective as early as October 2013 and phase in over two years.
"The success of this open season demonstrates the Express pipeline's strong positioning to meet growing oil transportation needs. We received shipping requests well in excess of the pipeline's capacity," said Duane Rae, president of Spectra Energy Liquids. "Our team has moved quickly to leverage the pipeline's growth potential, increasing the firm contract flow on Express by almost 90 percent and increasing the average contract length by about 10 years."
The company now expects 2014 EBITDA of $160 million for the Express-Platte pipeline system.The 785-mile Express pipeline, which has a design capacity of 280 mbpd, begins in Hardisty, Alberta, and terminates in Casper, Wyoming, where it connects to the Platte pipeline system. Non-GAAP Financial Measures This press release includes a discussion of projected EBITDA (earnings before interest, taxes and depreciation and amortization), which is a non-GAAP measure, for the Express-Platte system. The most directly comparable GAAP measure for projected 2014 EBITDA of $160 million is earnings before interest expense and income taxes of approximately $131 million plus depreciation and amortization expense of approximately $29 million. Forward-Looking Statements This press release contains forward-looking statements as defined under the federal securities laws, including projections, plans and objectives. Although Spectra Energy Corp and Spectra Energy Partners believe that expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. In addition, these statements are subject to certain risks, uncertainties and other assumptions that are difficult to predict and may be beyond the companies' control. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results may vary materially from what the companies anticipated, estimated, projected or expected. The key risk factors that may have a direct bearing on the forward-looking statements are described in the filings that each company makes with the Securities and Exchange Commission. 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 as described. All forward-looking statements in this release are made as of the date hereof and the companies undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.