Laura Sayavedra
Vice President & Treasurer – Spectra Energy
Barclays Investment Grade & Energy Pipeline Conference
Spectra...
Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy
Safe Harbor Statement
Some of what we’ll discuss to...
Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy
Our Strong Portfolio of Assets
Gas storage facility...
Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy
NYSE: SE
• Diversified portfolio of natural gas,
na...
Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy
Disciplined Growth
5
• ~$6B of assets acquired or p...
Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy
Diverse Portfolio
of Assets
Fee-Based
Revenues
Stro...
Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy
NYSE: SE
Current Asset Structure
Reporting Segment ...
BARCLAYS INVESTMENT GRADE & ENERGY PIPELINE CONFERENCE
Spectra Energy Partners, LP
Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy
Spectra Energy Partners:
Overview
9
2013 2014e 2015...
Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy
U.S. Transmission:
Asset Strength & Flexibility
10
...
Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy
U.S. Transmission:
Solid Fee-Based Business
11
95% ...
Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy
Liquids:
Overview
An Exceptional Launch of Our Liqu...
Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy
Liquids:
Maximizing Revenue from Existing Assets
13...
Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy
$130
$170
$200 $220
$40
$75
$85
0
50
100
150
200
25...
BARCLAYS INVESTMENT GRADE & ENERGY PIPELINE CONFERENCE
Financial Overview
Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy
Disciplined financial
management and balance
sheet ...
Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy
Customer Credit Exposure as of 12/31/13
Spectra Ene...
Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy
Investment Grade Balance Sheets
18
12/31/13 12/31/1...
Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy
What our investors can expect
from Spectra Energy g...
Spectra present14
Upcoming SlideShare
Loading in …5
×

Spectra present14

1,147 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,147
On SlideShare
0
From Embeds
0
Number of Embeds
778
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Spectra present14

  1. 1. Laura Sayavedra Vice President & Treasurer – Spectra Energy Barclays Investment Grade & Energy Pipeline Conference Spectra Energy March 5, 2014
  2. 2. Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy 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. Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy Our Strong Portfolio of Assets Gas storage facility Gas processing plant Propane terminal NGL storage Shale gas formations Crude storage Major oil pipeline terminal $1,560 Spectra Energy Partners $555 Distribution “Union Gas” $690 Western Canada $305 Field Services “DCP” 3 2014e EBITDA* = $3,035 (US $MM) *2014e EBITDA includes $(75) MM of Other • One of North America's leading pipeline and midstream companies • Strong base of contracts with high credit quality customers and a high rate of contract renewal • One of the largest pipeline systems in North America (12% of gas consumed) • Largest transporter of natural gas to New England, 2nd largest to NYC
  4. 4. Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy NYSE: SE • Diversified portfolio of natural gas, natural gas liquids, and crude oil transportation and storage assets across North America • Substantially all asset cash flows supported by take-or-pay and fee- based contracts with minimal commodity exposure • Spectra Energy currently owns an 84% interest in SEP NYSE: SEP • Union Gas – 2nd largest natural gas distributor in Canada – 1.4 million customers • Dawn storage facility – largest underground storage facility in North America – 150+ Bcf • New incentive regulation framework 2014 – 2018 provides stable platform for growth • 17 gas processing plants with 3.7 Bcf/d processing capability • Transmission pipe = 1,700 miles with total pipeline capacity of 2.9 Bcf/d • Majority of transportation and gathering & processing capacity is sold under multi-year firm contracts • 50/50 JV with Phillips 66 • 64 gas processing plants with 7.1 Bcf/d net nameplate capacity • Largest U.S. NGL producer • DCP currently owns a 23% interest in DCP Midstream Partners, LP NYSE: DPM Business Segment Overview 4 Distribution “Union Gas” Spectra Energy Partners “SEP” Western Canada Transmission & Processing Field Services “DCP”
  5. 5. Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy Disciplined Growth 5 • ~$6B of assets acquired or placed into service in 2013; including – $1.5B acquisition of Express-Platte crude oil pipeline – $1.2B NJ-NY project in service on time • ~$7B of projects currently in execution; including – $1.6B Sabal Trail project (Spectra Energy’s expected portion) • ~$2B average annual growth capital through 2016e – $1.4B in 2014 – Primarily U.S. fee-based projects, making SEP the primary financing vehicle • ~$10-$20B of potential projects between now and the end of the decade Continued investment in midstream fee-based business Acquired or in-service in 2013 Currently in execution
  6. 6. Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy Diverse Portfolio of Assets Fee-Based Revenues Strong Financial Results Strong Balance Sheet •Leading natural gas infrastructure connecting high- demand markets with growing supplies •Expanding into crude oil and natural gas liquids infrastructure •Unparalleled asset footprint •~ 90% of 2013 revenues derived from fee-based services, of which most are regulated •Transmission pipelines supported by long-term contracts •Cash flows supported by a growing, diverse portfolio of fee-based revenues •Ongoing growth in EBITDA Key Value Considerations 6 •Committed to maintaining a capital structure and liquidity profile that supports investment grade credit rating •SE Capital and SEP have been investment grade since their first debt offerings •Revolving credit facilities provide ample liquidity Consistent strategy and balance sheet strength
  7. 7. Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy NYSE: SE Current Asset Structure Reporting Segment Assets in Segment Spectra Energy Partners NYSE: SEP U.S. Transmission • Algonquin Gas Transmission • Big Sandy Pipeline • Bobcat Gas Storage • East Tennessee Natural Gas • Market Hub Partners • Ozark Gas Transmission • Saltville Gas Storage • Texas Eastern Transmission • Maritimes & Northeast, US (78%) • Gulfstream Natural Gas (50%) • Southeast Supply Header (50%) • Steckman Ridge (50%) Liquids • Express-Platte Pipeline System • Southern Hills Pipeline (33%) • Sand Hills Pipeline (33%) Distribution • Union Gas Western Canada Transmission & Processing • BC Pipeline • Gathering & Processing • Natural Gas Liquids • Maritimes & Northeast Canada (78%) Field Services • DCP Midstream (50%) • DCP Midstream Partners 7 NYSE: DPM
  8. 8. BARCLAYS INVESTMENT GRADE & ENERGY PIPELINE CONFERENCE Spectra Energy Partners, LP
  9. 9. Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy Spectra Energy Partners: Overview 9 2013 2014e 2015e 2016e U.S. Transmission Liquids Other Leading fee-based MLP in the U.S. with significant investment opportunities $1,391 $1,485 Current Asset Profile $1,665 $1,840 Ongoing EBITDA by Segment* ($MM) * Spectra Energy Partners, LP stand-alone EBITDA includes allocated corporate costs from Spectra Energy and, as a non-taxpaying partnership, excludes the effect of the Deferred Tax Liability impact of AFUDC.
  10. 10. Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy U.S. Transmission: Asset Strength & Flexibility 10 Traditional Flows Future Flows Value of capacity increases with changing supply and demand dynamics • Growing supply along the system • Increasing demand in all areas where our pipelines reach – Incremental New England capacity required – Continued growth of U.S. gas-fired power generation – Gulf Coast representing 10+ Bcf/d of new industrial and export opportunities • New projects make Texas Eastern bi-directional
  11. 11. Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy U.S. Transmission: Solid Fee-Based Business 11 95% 93% 97% 98% 98% 98% 98% 0% 20% 40% 60% 80% 100% Overall Total Texas Eastern Algonquin East Tenn SESH Gulfstream M&NE 2013 Usage and Other Revenue 2013 Reservation Revenue Note: Based on Revenues for 12 months ended 12/31/13; Overall Total includes Texas Eastern, Gulfstream, Algonquin, East Tennessee, Southeast Supply Header, Ozark Gas Transmission, Big Sandy, and Maritimes & Northeast US 98% 2013 Texas Eastern & Algonquin contract renewal rate Core fee-based businesses provide steady cash flows U.S. Transmission Revenue Stability Percentage Reservation Revenue Weighted Average Contract Term (years) 9 7 7 8 8 16 18
  12. 12. Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy Liquids: Overview An Exceptional Launch of Our Liquids Business • Express-Platte acquired and integrated into Spectra Energy operations – Successful open season for Express Pipeline – Crude oil pipelines operating at or near capacity – Financial results exceeding expectations • Sand Hills and Southern Hills NGL pipelines placed in service ahead of schedule and below budget • Safe and reliable operations from the start • Pursuing multiple expansion opportunities 12 Express-Platte Pipeline System Southern Hills Sand Hills Hardisty Casper Wood River Mont Belvieu Conway Guernsey Express Pipeline Platte Pipeline Express-Platte acquisition has exceeded expectations on all counts – Sand Hills and Southern Hills in service and ramping up
  13. 13. Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy Liquids: Maximizing Revenue from Existing Assets 13 0 50,000 100,000 150,000 200,000 250,000 300,000 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Express ReceiptsCapacity Pre-Acquisition Committed Contracts New Committed Contracts Express Pipeline (Bbl/d) 0 50,000 100,000 150,000 200,000 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Capacity PADD II Deliveries Platte Pipe Line (Bbl/d) Optimization Strategy: • Maximize capacity utilization • Connect to rail and barge to expand market reach • Expand terminals and storage Express Pipeline • Rail enabling increased throughput • Successful open season: all available capacity contracted for 11+ year terms • New committed tolls at higher rates Platte Pipe Line: • Demand for service greatly exceeds physical capacity
  14. 14. Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy $130 $170 $200 $220 $40 $75 $85 0 50 100 150 200 250 300 350 2013 2014e 2015e 2016e $210 $132 $275 $305 Liquids: Financial Growth Exceeding Expectations 14 EBITDA more than doubles by 2016 with firm contracts & minimal capital investment 32% Total Liquids CAGR Liquids EBITDA ($MM) Express-Platte Pipeline System Southern Hills Sand Hills 19% Express-Platte CAGR
  15. 15. BARCLAYS INVESTMENT GRADE & ENERGY PIPELINE CONFERENCE Financial Overview
  16. 16. Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy Disciplined financial management and balance sheet flexibility provides competitive advantage Prudent Financial Management • Committed to maintaining strong balance sheet with investment grade credit metrics and ample liquidity • Maintain low-risk business profile • Sustain high quality credit standards for customers • Utilize SEP to support U.S. fee-based growth 16
  17. 17. Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy Customer Credit Exposure as of 12/31/13 Spectra Energy’s customer mix is made up of primarily high quality credits 35% A or Higher 31% BBB 14% Investment Grade- Equivalent 12% Collateral 8% Non-Investment Grade - Unsecured 17
  18. 18. Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy Investment Grade Balance Sheets 18 12/31/13 12/31/13 Total Debt $14.7B $ 5.9B Debt / Ongoing EBITDA 4.9x 4.3x Credit Ratings Baa2 / BBB- / BBB* Baa2 / BBB / BBB* * Moody’s / S&P / Fitch senior unsecured ratings Committed to maintaining strong investment grade balance sheets
  19. 19. Barclays Investment Grade & Energy Pipeline Conference |Spectra Energy What our investors can expect from Spectra Energy going forward… 19 •Expansive footprint & positive market dynamics provide significant growth opportunities Build & BuyStrong & Stable •Fee-based model provides low risk and steady growth •Commitment to investment grade balance sheets •High quality customer credit profile and long-term contracts Operate & Maximize •Expansive and diversified asset base •Core strengths: safety, reliability, customer service, stakeholder relationships •Best structure in place to support current growth plans Consistent strategy, disciplined growth, strong balance sheets

×