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Spectra Energy Partners - Investor Presentation

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Third Quarter 2014 Earnings Review

Published in: Investor Relations
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Spectra Energy Partners - Investor Presentation

  1. 1. 2014 THIRD QUARTER EARNINGS UPDATE November 5, 2014 Spectra Energy Growth from a Position of Strength
  2. 2. 2014 Third Quarter Update |Growth from a position of strength Safe Harbor Statement Some of what we’ll discuss today concerning future company performance will be forward-looking information within the meanings of the securities laws. Actual results may materially differ from those discussed in these forward- looking statements, and you should refer to the additional information contained in Spectra Energy and Spectra Energy Partners’ Forms 10-K and other filings made with the SEC concerning factors that could cause those results to differ from those contemplated in today’s discussion. As this is a joint presentation, the terms “we,” “our,” and “us” refer to Spectra Energy and/or Spectra Energy Partners, as appropriate. Reg G Disclosure In addition, today’s discussion will include certain non-GAAP financial measures as defined under SEC Regulation G. A reconciliation of those measures to the most directly comparable GAAP measures is available on our websites. 2
  3. 3. 2014 Third Quarter Update |Growth from a position of strength 3Q14 Results – EBITDA 3 Spectra Energy Partners Distribution Western Canada Field Services • Increased earnings from UST expansions • Continued ramp up of Sand Hills and Southern Hills • Higher crude transportation revenue • Decreased earnings from weaker Canadian dollar • Decreased earnings from: – Higher maintenance and plant turnaround costs – Weaker Canadian dollar • Decreased earnings from: – Increased NCI as a result of the MTM effect of hedges and growth from dropdowns at DPM – Lower gains associated with the issuance of partnership units at DPM • Partially offset by increased earnings from expansions PERFORMANCE DRIVERS FOR THE QUARTER: Ongoing Segment EBITDA ($MM) 3Q13 3Q14 YTD 3Q13 YTD 3Q14 Spectra Energy Partners (1) $366 $422 $1,071 $1,225 Distribution 83 82 418 420 Western Canada 174 156 521 504 Field Services 137 63 271 247 Other (2) (19) (45) (60) Ongoing SE EBITDA $758 $704 $2,236 $2,336 Ongoing SEP EBITDA(1) $350 $401 $1,039 $1,167 (1) EBITDA for SEP is different than the EBITDA reported for the Spectra Energy Partners segment within SE. The difference is because SEP reports its own Corporate Other when SEP is reported standalone. These amounts represent the costs of services rendered by SE in support of SEP. These amounts are included in SE’S Corporate Other at the SE level.
  4. 4. 2014 Third Quarter Update |Growth from a position of strength 3Q14 Results – DCF and Cash Contributions 4 SEP Distributions* ($MM) 3Q14 YTD 3Q14 General Partner $ 44 $123 Limited Partner 134 396 DPM Distributions (2)* ($MM) General Partner $14 $37 Limited Partner 9 26 DCF ($MM) 3Q13 3Q14 YTD 3Q13 YTD 3Q14 SE DCF $226 $236 $977 $1,144 Note: Full year SE coverage expected to be ~1.5x SEP DCF (1) $66 $247 $195 $810 Note: Full year SEP coverage expected to be ~1.2x DCP DCF (2) $112 $61 $211 $184 (1) The effects of the U.S. Asset Dropdown and the Express-Platte acquisition have been excluded from the DCF calculation for periods prior to the dropdown transactions. (2) Represents SE’s 50% interest * Note: Distributions, as paid
  5. 5. 2014 Third Quarter Update |Growth from a position of strength The Drive to 35 Expansion Fueling Dividend Growth 5 ~$16B In-service or in execution $2.7 Billion in growth projects moved into execution YTD 2014 Steady progress in securing $35B in growth projects between 2013 – 2020
  6. 6. 2014 Third Quarter Update |Growth from a position of strength The Drive to 35 ~$9+B Projects In Execution & In Service YTD 6 In Execution Access South Adair Southwest Stratton Ridge PennEast Kingsport Red Lake Spraberry 2015 Dawn-Parkway OPEN U2GC 2016 Dawn-Parkway Ozark Conversion AIM Salem Lateral NEXUS Atlantic Bridge Sabal Trail Gulf Markets DCP Projects* 12 7 13 9 14 8 6 15 16 *100% DCP/DPM financed New for 3Q14 5 3 1 4 2 In-Service TEAM South TEAM 2014 10 11 17 18 19 1 2 12 7 13 9 14 8 6 15 16 5 3 1 4 2 10 11 171819 1 2
  7. 7. 2014 Third Quarter Update |Growth from a position of strength The Drive to 35 Developing Robust Portfolio of Growth Projects 7 Projects Access Northeast New crude pipeline Wyoming to Illinois STEP ICE Organic expansions of crude oil system 2017 Dawn-Parkway W. Canada G&P Appalachia to Market Gulf Coast LNG Union Gas expansions Exports to Mexico Synergy Pipeline Westcoast Connector Express-Platte twinning DCP projects* 5 3 12 7 11 13 9 14 1 10 8 6 4 2 15 *100% DCP/DPM financed New for 3Q14 5 3 12 7 11 13 9 14 110 8 6 4 2 15
  8. 8. 2014 Third Quarter Update |Growth from a position of strength 2014 Priorities 8 US Transmission Liquids Distribution Western Canada Field ServicesSpectra Energy Partners Secure $3B of expansion projects >10% returns Advance execution projects safely and successfully Ensure re- contracting of base revenue through 2016 Continue to ramp up Express-Platte contracted volumes & EBITDA Ramp existing contracts volumes on Sand Hills & Southern Hills Expand on-system pipe and terminals Obtain binding commitments for crude oil growth projects in late 2014-2015 Build off strength and stability of asset base Execute 2015 Dawn-Parkway expansion File OEB application for 2016/17 Dawn-Parkway expansion Advance approvals & permits on Westcoast Connector Secure G&P, pipeline and NGL origination opportunities Place current projects in service Drop down at least $1B in assets to DPM Secure permits and start to construct two new G&P plants Ramp existing contracts volumes on Sand Hills & Southern Hills Substantially de-risk Empress commodity exposure Place N. Montney project in service in 2Q14 Union Gas DCP Midstream Achieved 3Q14
  9. 9. 2014 Third Quarter Update |Growth from a position of strength Execute on growth plan Utilize financial strength & flexibility Deliver solid dividend & distribution growth • Expansive footprint and positive market dynamics provide significant growth opportunities • $35 billion in expansions with attractive returns • Multiple investment currencies – SE, SEP, DPM – support growth objectives • SEP and DPM at-the- market programs underway • No SE equity issuance expected • Attractive, sustainable dividend and distribution growth – 10.5% SE dividend increase announced; effective 4Q14 • Quality cash flows and strong coverage • Upside opportunities for investors Investor Value Creation 9 Strong financial results & track record demonstrate our ability to: Investors can continue to rely on consistent, attractive shareholder returns

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