Supplemental Information Appendix September 34, 2014
U.S. Transmission Overview
Spectra Energy Partners: U.S. Transmission Natural Gas Transmission Pipe 13,700 mi System Compression 2.5MM HP Natural Gas Storage Capacity 150 Bcf Regulated gas storage Access to multiple supply sources Marketbased gas storage…
U.S. Transmission: Asset Strength & Flexibility Value of capacity increases with changing supply and demand dynamics Future Growing supply along the system Flows Increasing demand in all areas where our pipelines reach New…
U.S. Transmission: Texas Eastern Supply & Delivery Evolution By 2017, Texas Eastern will be delivering 2.4 Bcf/d to Gulf Coast & Midwest markets via bidirectional flows while retaining full capacity to Northeast markets…
U.S. Transmission: Execution Projects Atlantic Salem Bridge Lateral NEXUS AIM Project (2) Est. CapEx (MM) InService OPEN TEAM…
U.S. Transmission: Development Projects New England Power Gen Opportunity In Service New England Power Gen 20172019 Gulf LNG / Industrials 20162020 Exports to Mexico 20152018 MidAtlantic Midwest, Southeast, and Midwest…
Spectra Energy Partners: U.S. Transmission Contract Portfolio 95% of U.S. Transmission revenue comes from demand charges 2013 TETLP Firm Demand Revenues by 2013 TETLP Firm Demand Revenues by Service Provided Customer Type LDCs 62%…
Spectra Energy Partners: Solid FeeBased Businesses Average Contract Term for Major U.S. Transmission Pipelines (years) 0 5 10 15 20 Texas Eastern 7.2 Algonquin 6.6 East Tennessee 8.1 Maritimes & Northeast (US) 18.1…
Spectra Energy Partners: U.S. Transmission Revenue Stability Based on Transmission Revenues for 12 months ended 12/31/13 100% 90% 95% 98% 97% 98% 98% 98% 93% 80% 70% 60% 50% 40% 30% 20% 2013 Reservation Revenue…
U.S. Transmission: 2014 Priorities Pursue 7B dollars of opportunities; sign 3B in 2014 at 10% ROCE Safely and successfully advance execution projects Ensure recontracting of base Place Team 2014, TEAM South, and revenue…
Liquids: Price Differentials Driving Opportunity North American Crude Oil Prices North American (/Bbl, average 2013 spot prices) Crude Oil Production (MMBPD) 18 WCS ANS 74 16 108 14 12 Shale Oil 10 Bakken 8 Oil Sands 93…
Liquids: Changing Flow Patterns Require New Infrastructure Shifting crude oil flows to major refining regions WCS ANS 74 Major refining markets 108 Increasing flows Decreasing flows Bakken 93 Brent 109 SJVH 95 WTI Oil…
Liquids: Opportunities Abound From a solid base, accessing growth opportunities across North America Synergy Pipeline Synergy Extending upstream from Pipeline Hardisty to oil sands 2019 ExpressPlatte Connecting oil sands &…
Liquids: 2014 Priorities Continue to ramp up ExpressPlatte contracted Ramp existing contracts on volumes and EBITDA Sand Hills & Southern Hills Priceadvantaged crude oil Connecting growing NGL supply transportation to Rockies…
Distribution Overview
Spectra Energy: Distribution Retail Customers 1.4 million Distribution Pipe 39,500 mi Union Gas 2nd largest Natural Gas Storage Capacity 160 Bcf natural gas distributor in Pipeline Capacity Natural Gas Transmission Pipe 6.4…
Distribution: New 5Year Regulatory Framework Comprehensive 5year negotiated settlement Ontario Energy Board (OEB) approval of agreement and new incentive regulation mechanism (IRM) for 2014 2018 64/36 debt/equity capital…
Distribution: Rapidly Changing Supply Dynamics in E. Canada Ontario reduction in supply ON from Western Canada: 3Bcf/d Supplies from the Marcellus/ Utica are increasingly needed in TORONTO Ontario NY Parkway Two options to…
Distribution: Union Gas Growth Projects Transmission Capacity Growth ON Dawn to Parkway Expansions 2015 DawnParkway 2015 430MM, in execution Expansion 2016 400MM, in execution TORONTO 2017 under development 201617…
Distribution: 2014 Priorities Build off strength and stability of base assets Execute 2015 Advance 201617 Dawn Parkway expansion DawnParkway expansion File OEB application Distribution business delivers strong cash…
Western Canada Transmission & Processing Overview
Spectra Energy: Western Canada Transmission & Processing Western Canadian G&P BC AB SK MB BC Pipeline QC Empress Maritimes & ON Northeast, Canada NB NS Gathering & BC Pipeline Natural Gas Liquids Empress System…
Western Canada: Strong Base Portfolio Horn River Consistent growth in earnings from core assets Liard Cordova Gathering & Processing British Columbia 1 gas processor in British Columbia Processing capacity: 3.8 Bcf/d Montney…
Western Canada: Unconventional Reserves Driving Opportunities Marketable Reserves in British Columbia (Tcf) Producers are realizing 430 attractive returns in developing unconventional Cordova 40 160+ reserves Liard 40 years Horn…
Western Canada: Business Development Opportunities Infrastructure to support domestic Horn River and LNG export markets Liard Multinationals leading LNG Cordova development Large scale incremental G&P and Westcoast pipeline…
Western Canada: 2014 Priorities Substantially derisk Empress Place North Montney project commodity exposure into service in 2Q14 Advance regulatory approvals and obtain Secure G&P, pipeline and NGL environmental permits on…
Field Services Overview
Field Services: Ownership Structure 50% 50% 22% LP & GP Interest Public Unitholders 78% LP Interest Growth from a position of strength Barclays CEO EnergyPower Conference 49
Field Services: DCP Midstream is a Leader in Key Basins Natural Gas Processing1 (MMcf/d) DCP Midstream enterprise 1 Enterprise Products Targa Resources DJ Basin2 MarkWest Energy Partners DPM standalone 5 Wattenburg Encana NGL…
Field Services: Significant Progress Achieved DCP 2010 DCP 2016e Top tier gatherer and processor Midstream logistics services leader Executing ahead of schedule Significant progress achieved toward 2015 goal nearly there now…
Field Services: 201316e EBITDA and Net Income As presented 2/5/14 DCP EBITDA(1) (100%, MM) DCP Net Income(1) (100%, MM) 11% 4% CAGR 555 CAGR 1,595 20132016 545 20132016 1,535 491 510 1,330 1,157 2013e 2014e 2015e 2016e…
Field Services: GrowthforGrowth Strategy As presented 2/5/14 46B 35B 33% 20142016 selffunded 20142016 potential CAGR 20132016 capital program dropdowns to DPM DCP GP/LP from DPM DPM Dropdowns (B, consolidated, includes DPM) DPMs…
Field Services: Delivering Value to Owners As presented 2/5/14 Significant valuation uplift by 2016 with increasing DPM GP/LP distributions DPM GP/LP Distributions to SE & PSX (100%, MM) 275 DPM GP DPM LP 225 100 17x/5.9% yield…
DCP Midstream: 2014 Financial Summary As presented 2/5/14 DCP Midstream Earnings (100%) (MM) 2014e 2015e 2016e EBITDA 1,330 1,535 1,595 Net Income 510 545 555 Distributions to Owners 465 520 520 Commodity Sensitivities…
2014 Plan DCP Midstream: Margin / Volume By Contract As presented 2/5/14 2014e Margin by Contract Type(1) 2014e G&P Volumes & Margin(1) Margins Volumes ( /MMBtu) (TBtu/d)(3) Keepwhole 10% Percent of 0.50 6.0 Other(2)…
Field Services: 2014 Priorities Place projects into service Drop down of at least 1B in Goliad Plant in Eagle Ford OConnor Plant Expansion in DJ assets to DPM Front Range NGL pipeline in service Targeting dropdown of 1/3…
Financial Information: 2014e 2016e Plan (as presented 2/5/14)
Ongoing Objectives for Longterm Value Creation Continue to Exercise prudent Deliver solid dividend Execute on financial & distribution growth growth plan management Attractive, sustainable 1.3B in growth CapEx in Disciplined…
Spectra Energy 2014e16e EBITDA EBITDA by Segment (MM) 2014e 2015e 2016e Spectra Energy Partners (1) 1,560 1,750 1,915 Distribution 555 575 605 Western Canada Transmission & Processing 690 715 730 Field Services (2) 305 295 310…
Spectra Energy 2014e16e Distributable Cash Flow Distributable Cash Flow (MM) 2014e 2015e 2016e EBITDA 3,035 3,255 3,490 ADD: Net cash from equity investments (35) 5 (15) Other 5 15 10 LESS: Interest expense 730 730 760 Equity…
2014 Plan Key Assumptions & Sensitivities Annual Assumption Price Change Sensitivity DCP Midstream NGL: +/ 6 MM +/ 0.01/gal 0.94/gal EBITDA Represents Spectra Energys 50% interest in DCP Midstream Natural Gas: +/ 4 MM +/…
Example of Higher Commodity Effects on EBITDA, DCF, & Coverage (MM) 2014e 2015e 2016e Plan EBITDA 3,035 3,255 3,490 Incremental EBITDA from 1.10 NGL/4.50 gas* 130 130 130 Incremental EBITDA from stronger commodity prices at Empress…
Spectra Energy Partners 2014e16e Distributable Cash Flow Distributable Cash Flow (MM) 2014e 2015e 2016e EBITDA by segment: U.S. Transmission (1) 1,340 1,450 1,600 Liquids 210 275 305 Other (65) (60) (65) TOTAL EBITDA 1,485 1,665…
Spectra Energy Partners 2014e16e Distributions as Paid SEP Distributions Per LP Unit (1) SEP Distributions to SE (MM) 2.75 89% 1,000 CAGR 910 2.50 900 2.57 810 2.25 2.41 800 2.25 715 2.00 700 2.02 1.75 +11% 600 620 1.50…
Spectra Energy Ongoing Net Income and EPS (MM) 2013 2014e 2015e 2016e EBITDA 3,034 3,035 3,255 3,490 DD&A 772 815 855 890 Interest and other 650 730 730 760 Earnings before income taxes 1,612 1,490 1,670 1,840 Income tax…
Ongoing EBITDA by Segment ( US MM) 3,490 3,500 3,255 310 3,035 295 2,900 305 605 575 555 2,300 730 715 690 1,700 1,100 1,750 1,915 1,560 500 100 75 80 70 2014e 2015e 2016e Spectra Energy Partners Western Canada…
Growth from a Position of Strength Powerful asset base supports ongoing dividend and distribution growth and attractive shareholder returns Significant growth in the core natural gas businesses with rapid growth in new…
Liquidity Positions (Millions) Total SE Union SECWEI Total As of 6/30/14 Capital Westcoast Gas UGL SEP Enterprise Revolving Credit Commitments 1,000 281 375 1,656 2,000 3,656 Less: Commercial Paper (220) (220) (549) (769)…
SE Corp Consolidated Debt Maturity Profile as of 6/30/14 USD Millions 450 ExpressPlatte 3,000 400 350 SE Capital 300 SE Partners 250 M&N Can 2,500 200 M&N US 150 Union Gas 100 Westcoast 50 East Tenn 2,000 0…
SEP Consolidated Debt Maturity Profile as of 6/30/14 USD Millions 200 175 1,800 150 ExpressPlatte 125 SE Partners 1,600 100 M&N US 75 East Tenn 1,400 50 Algonquin 25 TETLP 0 1,200 Dec14 Aug14 Oct14 Nov14…
Customer Credit Exposure as of 6/30/14 Spectra Energys customer mix is made up of primarily high quality credits 34% BBB 30% A or Higher 7% 18% NonInvestment Investment Grade Grade Unsecured Equivalent 11% Collateral…
Major SE and SEP Projects
SE and SEP Current Projects in Execution (1) Expansion Project Segment Est. CapEx (MM) InService TEAM South U.S.…
TEAMSouth Expansion Project MARCELLUS Purpose: Expansion of Texas Eastern from Appalachian area receipts to high growth markets in the South M2 UTICA Project Scope: Capacity: 300 MMcf/d…
Texas Eastern Appalachian Market TEAM 2014 Purpose: Provides Producer Customers with diverse firm path options from Marcellus region to Northeast, Midwest TEAM 2014 and Henry Hub market areas TEAM 2014 Project Scope: 600…
Kingsport Projects Purpose: Provides additional firm transportation capacity to support supply diversity for Eastman Chemical Companys power generation facility in Kingsport, Tennessee Project Scope: 25 Mmcf/d of firm capacity…
Spraberry Zia II Purpose: Extend the existing Rawhide lateral to the NM Sand Hills main line to accommodate Fullerton growing production Project Scope: RED LAKE LATERALS Goldsmith Rawhide 100,000 bpd lateral connecting the…
2015 DawnParkway Expansion Purpose: Capacity increase to meet market Enbridge GTA Project interest for supply access at Dawn TCPL Kings North and other eastern receipt points on Project the TCPL system Parkway West Increase…
Red Lake Zia II Purpose: LEA COUNTY Expands Sand Hills reach into fast NM growing production areas; positions Fullerton Sand Hills for future growth Project Scope: RED LAKE LATERALS Goldsmith Rawhide Two laterals totaling 170…
Ohio Pipeline Energy Network OPEN Project Purpose: Attach emerging Ohio Marcellus and Utica natural gas supplies to new markets Project Scope: 550 MMcf/d expansion of Texas Eastern CapEx: 500 MM Customers (15+ year terms):…
Uniontown to Gas City U2GC Project Purpose: Expansion of Texas Eastern from Appalachian area receipts to markets at Gas City, Indiana Project Scope: Capacity: 425 MMcf/d CapEx: 60 MM Customers (10+ year terms): CONSOL…
Ozark Partial Conversion Purpose: Line remains natural gas Repurpose a portion of the existing Ozark line from natural gas service to refined products service Project Scope: Line to be converted 75,000 bpd conversion of OGT…
Salem Lateral Purpose: Provide natural gas service to a new power plant development on the site of Algonquin Gas Transmission an existing coalfired plant Project Scope: 115 MMcf/d expansion connecting AGT Hubline and MNE to…
Algonquin Incremental Market AIM Expansion Purpose: Provide growing New England demand with access to abundant regional natural gas supplies Project Scope: Providing 340 MMcf/d of additional capacity to move Marcellus…
2016 DawnParkway Expansion Increasing capacity to meet market interest for access to supply at Dawn Hub and other eastern receipt points Project Scope: CapEx: 400 MM Customers: 2016 DawnParkway Expansion Enbridge, Gaz Mtro, Union…
Gulf Markets Expansion Purpose: Provides Texas Eastern transportation service for Gulf Coast markets Project Scope: 350 MMcf/d expansion from Marcellus (M2) to Louisiana (WLA) 150 MMcf/d expansion from Eagle Ford (STX) to…
Sabal Trail Transmission Purpose: New interstate pipeline into Florida providing access to reliable onshore natural gas supply Project Scope: 1 Bcf/d of capacity connecting Transco Station 85 supply to Florida power…
NEXUS Purpose: The new pipeline will serve local distribution companies, power generators and industrial users in Ohio, Michigan, Chicago and Ontario markets Project Path: NEXUS project will provide a seamless transportation…
Atlantic Bridge Purpose: Increased pipeline capacity will allow abundant, economic supplies of natural gas from regional production to flow to the New England and Atlantic Canada markets Project Scope: Further expansion of…
Sustainability Recognition
Sustainability For Spectra Energy, Sustainability means: Providing natural gas, liquids and crude oil pipelines and midstream infrastructure to meet North Americas energy needs in a way that is economically, environmentally and…
Sustainability Recognition Environmental Social Governance Performance Dow Jones Sustainability 4th time on the World Index and 6th consecutive time Indexes on North America Index Member of the CDPs Global 500 and S&P 500 Climate…