HOUSTON, Feb. 4, 2014 /PRNewswire/ -- Spectra Energy Partners, LP (NYSE: SEP) announced that the board of directors of its general partner declared a quarterly cash distribution to unitholders of $0.54625 per unit, an increase of 3 cents over the previous distribution. This is the 25 th consecutive quarter that Spectra Energy Partners has increased its quarterly cash distribution. The cash distribution is payable on February 28, 2014, to unitholders of record at the close of business on February 14, 2014. This quarterly cash distribution equates to $2.185 per unit on an annual basis.
"I'm pleased to announce this significant distribution increase, enabled by the drop down of substantially all of Spectra Energy's U.S. transmission, storage and liquids assets to Spectra Energy Partners in 2013," said Greg Ebel, president and chief executive officer, Spectra Energy Partners. "The 3 cent increase is a significant one-time recognition of the dropdown of U.S. assets from the general partner, and going forward, unitholders can expect at least a 1 cent per unit increase per quarter through 2015."
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.