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Spectra Energy Corp And Spectra Energy Partners Announce 2014 Business Outlook And Financial Plan

Stocks in this article: SE SEP

HOUSTON, Feb. 5, 2014 /PRNewswire/ -- Spectra Energy Corp (NYSE: SE) and Spectra Energy Partners (NYSE: SEP) today announced their business outlook and three year financial plan.

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Key highlights include:

  • Spectra Energy 2014 distributable cash flow of more than $1.2 billion; SEP distributable cash flow in 2014 of $935 million with a CAGR of 13 percent through 2016
  • At least 9 percent annual growth of Spectra Energy dividends and at least 8-9 percent annual growth of Spectra Energy Partners distributions through 2016
  • 2014 enterprise-wide EBITDA of more than $3 billion; with a compounded annual growth rate (CAGR) of 7 percent through 2016
  • Investment of approximately $1.3 billion in expansion capital in 2014 and an average annual growth CapEx of approximately $2 billion through 2016; SEP's share of CapEx is about 70 percent in 2014; 60 percent in 2015, and 45 percent in 2016
  • Pursuing an additional $10 billion of natural gas and liquids opportunities over the previously announced $25 billion of opportunities through the end of the decade

"Our three year plan is built upon 2013's strong performance in which we placed $6 billion of capital into service, secured $7 billion in new projects and bolstered our MLP to a $20 billion enterprise by dropping substantially all U.S. transmission, storage and liquids assets into Spectra Energy Partners," said Greg Ebel, president and chief executive officer. "We will fully leverage this positive momentum coming out of 2013 to accelerate our growth and value proposition. Success breeds success, and you can expect us to grow from this position of strength."

Key assumptions underlying the financial plan include:

  • An average natural gas liquids price of 94 cents per gallon assuming ethane rejection; natural gas price of $3.75 per thousand cubic feet (Mcf); and crude averaging $95 per barrel.
  • A Canadian to U.S dollar exchange rate of 1.05
  • 2014 Expansion CapEx of $1.3 billion
  • Maintenance CapEx of $755 million

"We will continue to deliver on our value proposition, building off the strength of our exceptional portfolio of assets to ensure the most attractive growth platform for investors; we will maintain our financial strength and stability; and we will expand our footprint by continuing our disciplined 'build and buy' strategy," added Ebel.  "Our enterprise value has more than doubled in just four years, and we intend to double it again by the end of the decade."

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