The document discusses Spectra Energy Corp's non-GAAP financial measures that will be discussed in an earnings release call on August 6, 2008. It provides reconciliations of ongoing diluted EPS, ongoing net income, ongoing EBIT, EBITDA for various segments to the most comparable GAAP measures. These non-GAAP measures exclude special items that management believes are not recurring in order to provide a more meaningful evaluation of the company's ongoing operating performance.

1. Spectra Energy Corp
Non-GAAP Reconciliation for SEC Regulation G
Earnings Release call
August 6, 2008
Ongoing Diluted Earnings-per-share (“EPS”)
The materials for Spectra Energy’s Earnings Release call on August 6, 2008
include a discussion of ongoing diluted EPS. Ongoing diluted EPS is a non-
GAAP financial measure, as it represents diluted EPS from continuing operations
adjusted for the per-share impact of special items. Special items represent
certain charges and credits which management believes will not be recurring on
a regular basis. The most directly comparable GAAP measure for ongoing
diluted EPS is reported diluted EPS, which includes the impact of special items.
Ongoing Net Income
The materials for Spectra Energy’s Earnings Release call on August 6, 2008
include a discussion of ongoing net income. Ongoing net income is a non-GAAP
financial measure, as it represents net income adjusted for the impact of special
items. Special items represent certain charges and credits which management
believes will not be recurring on a regular basis. The most directly comparable
GAAP measure for ongoing net income is reported net income, which includes
the impact of special items.
Employee Incentive Targets
The materials for Spectra Energy’s Earnings Release call on August 6, 2008
include a discussion of the 2008 employee incentive target for Spectra Energy.
The EPS measure used for employee incentive bonuses is based on ongoing
fully diluted EPS from continuing operations. Ongoing fully diluted EPS from
continuing operations is a non-GAAP financial measure as it represents fully
diluted EPS from continuing operations adjusted for the per-share impact of
special items. Due to the forward-looking nature of this non-GAAP financial
measure for future periods, information to reconcile this non-GAAP financial
measure to the most directly comparable GAAP financial measure is not
available at this time, as management is unable to forecast any special items for
future periods.
Ongoing Segment and Other EBIT and EBITDA
The materials for Spectra Energy’s Earnings Release call on August 6, 2008
include a discussion of ongoing EBIT (earnings before interest and taxes) and
EBITDA (earnings before interest, taxes and depreciation and amortization) for
Spectra Energy’s reportable segments and for Other, which represents the
remainder of Spectra Energy’s operations. Ongoing segment and Other EBIT
and EBITDA amounts are non-GAAP financial measures as they reflect segment
and Other EBIT and EBITDA adjusted for the impact of special items. Special
items represent certain charges and credits which management believes will not
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2. be recurring on a regular basis. The most directly comparable GAAP measures
for ongoing segment and Other EBIT and EBITDA are reported segment and
Other EBIT and depreciation and amortization from continuing operations, which
includes the impact of special items. Due to the forward-looking nature of this
non-GAAP financial measure for future periods, information to reconcile this non-
GAAP financial measure to the most directly comparable GAAP financial
measure is not available at this time, as management is unable to forecast any
special items for future periods.
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3. SPECTRA ENERGY CORP
U.S. Transmission Segment
Reconciliation of Ongoing EBITDA
June 2008
(Dollars in millions)
QTD 08 QTD 07 YTD 08 YTD 07
Reported EBIT (Includes 50% Gulfstream's Net Income) $ 244 $ 223 $ 470 $ 443
Depreciation and Amortization 58 52 116 105
Reported EBITDA (Includes 50% of Gulfstream's Net Income) 302 275 586 548
50% of Gulfstream D&A 3 4 7 8
50% of Gulfstream Interest 6 6 12 12
Reported EBITDA 311 285 605 568
Special Item (31) - (31) -
Ongoing EBITDA $ 280 $ 285 $ 574 $ 568
SPECTRA ENERGY CORP
Distribution Segment
Reconciliation of Ongoing EBITDA
June 2008
(Dollars in millions)
QTD 08 QTD 07 YTD 08 YTD 07
Reported EBIT $ 54 $ 54 $ 219 $ 198
Depreciation and Amortization 46 40 93 77
Reported EBITDA 100 94 312 275
Special Item - - - -
Ongoing EBITDA $ 100 $ 94 $ 312 $ 275
SPECTRA ENERGY CORP
Western Canada Transmission & Processing Segment
Reconciliation of Ongoing EBITDA
June 2008
(Dollars in millions)
QTD 08 QTD 07 YTD 08 YTD 07
Reported EBIT $ 87 $ 48 $ 218 $ 122
Depreciation and Amortization 42 34 79 67
Reported EBITDA 129 82 297 189
Special Item - - - -
Ongoing EBITDA $ 129 $ 82 $ 297 $ 189
SPECTRA ENERGY CORP
Field Services Segment
Reconciliation of Ongoing EBITDA
June 2008
(Dollars in millions)
QTD 08 QTD 07 YTD 08 YTD 07
Equity Earnings (50% of DCP Midstream's Net Income) $ 217 $ 123 $ 408 $ 205
O&M Expense (1) - - -
Reported EBIT 216 123 408 205
50% of DCP Midstream D&A 44 37 88 74
50% of DCP Midstream Interest 20 17 40 33
50% of DCP Midstream Income Taxes - 2 1 3
Reported EBITDA 280 179 537 315
Special Items 3 - 6
Ongoing EBITDA $ 280 $ 182 $ 537 $ 321
SPECTRA ENERGY CORP
Other Segment
Reconciliation of Ongoing EBITDA
June 2008
(Dollars in millions)
QTD 08 QTD 07 YTD 08 YTD 07
Reported EBIT $ (28) $ (26) $ (48) $ (41)
Depreciation and Amortization 4 1 7 1
Reported EBITDA (24) (25) (41) (40)
Special Item - 7 - 11
Ongoing EBITDA $ (24) $ (18) $ (41) $ (29)
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