4th Quarter 2008 Earnings Review and 2009 Outlook February 6, 2009 Spectra Energy Partners February 6, 2009 4th Quarter Earnings Review and 2009 Outlook
Safe Harbor Statement Some of the statements in this document concerning future company performance will be forward-looking within the meanings of the securities laws. Actual results may materially differ from those discussed in these…
2008 Overview Greg Rizzo President & CEO Spectra Energy Partners February 6, 2009 4th Quarter Earnings Review and 2009 Outlook
2008 Accomplishments Net income for 2008 of 101.3 MM 38 Cash Available for Distribution of 119 MM 36 Increased quarterly cash distribution to 36 cents per unit 34 13% growth in 2008 Distribution per LP Unit 32 20% growth since…
Strategy Experienced leadership team executing consistent strategy Build on contracted position Deliver on organic growth projects Opportunistically pursue acquisitions Spectra Energy Partners February 6, 2009 4th Quarter…
Financial Overview Laura Buss Sayavedra Vice President & CFO Spectra Energy Partners February 6, 2009 4th Quarter Earnings Review and 2009 Outlook
2008 Financial Summary 4th Quarter 2008 Net Income of 25.4 million; 0.35 per unit Cash Available for Distribution of 23.8 million Full year 2008 Net Income of 101.3 million; 1.40 per unit Ongoing net income of 98.8 million Cash…
Earnings from Equity Investments - Gulfstream ( millions) Three Months Ended December 31 2008 2007 Gulfstream Operating Income 37.6 30.2 Interest and Other (9.8) (9.6) Net Income 100% 27.8 20.6 Equity in earnings of Gulfstream…
Earnings from Equity Investments Market Hub Partners ( millions) Three Months Ended December 31 2008 2007 Market Hub Partners Operating Income 18.3 17.5 Interest and Other 0.4 0.5 Net Income 100% 18.7 18.0 Equity in earnings of…
Cash Available for Distribution (CAD) ( millions) Three Months Ended December 31 2008 2007 Adjusted EBITDA 19.6 19.5 Cash Available from Equity Investments Gulfstream 5.0 3.0 Market Hub Partners 8.0 6.0 Less: Cash Paid for…
Debt and Available Liquidity ( millions) December 31 2008 Debt East Tennessee Natural Gas (5.71%; Due 2012) 150 Long Term Debt (Floating Rate) 259 Term Loan (Floating Rate) 31 Total Debt 440 Available Liquidity Credit Facility…
2009 Cash Available for Distribution Outlook Nearly 10% growth in CAD to estimated 130 MM Driven primarily by expansions at Gulfstream and MHP Change in CAD calculation for 2009 forward 150 22.3 130.0 8.5 Cash Available for…
2009 Capital Spending Outlook 2009 expansion capex of approximately 60 million Investment in Gulfstream for final completion of Phases III and IV Investment in Market Hub Partners to continue build-out of Egan Cavern 3 and Moss…
Business Overview Greg Rizzo President & CEO Spectra Energy Partners February 6, 2009 4th Quarter Earnings Review and 2009 Outlook
Strategically Located Assets Well-Positioned for gas supply/demand trends Access to faster-growing Southeast markets and also able to tap Northeast market East Tennessee Producer-customers continue to develop traditional and coal…
2009 Execution Projects Gulfstream 1/09 7/09 12/09 12/10 12/11 12/12 Phase III In service Aug 2008 / Final 160MM/d contracts commence June 2009 Contracts began Sep 2008 / Facility phased in beginning Oct 2008 Phase IV Contracts /…
Funding Capacity for Capital Projects Total available liquidity as of 12/31/2008: 273 MM Total capital for 2009 execution projects: 230 MM Less: Capital spent through 12/31/2008 (including pre-IPO): (110) MM Total remaining capital…
East Tennessees Greenway Expansion Program Near-term opportunities driven by coal bed methane and emerging shale production Important scalable projects remain and are in demand with producers Next stage Greenway projects Being…
Looking Ahead 38 Continue CAD growth 36 Execute on portfolio of growth 34 projects Distribution per LP Unit 32 Capitalize on strong financial 30 position 28 Secure next stage organic 26 growth 24 Pursue strategic…
Questions and Answers Spectra Energy Partners February 6, 2009 4th Quarter Earnings Review and 2009 Outlook 21
Appendix A Additional Information Spectra Energy Partners February 6, 2009 4th Quarter Earnings Review and 2009 Outlook 22
Change in Cash Available for Distribution Revised calculation of Cash Available for Distribution (CAD) beginning Jan 1, 2009* Revision eliminates the effect of project development cost provisions and reversals to follow operating…
Debt Schedule ( millions) December 31 2008 Debt East Tennessee Natural Gas (5.71%; Due 2012) 150 500 MM Credit Facility* (current rate: Libor +35bps; Due 2012) 209 Term Loan (current rate: Libor +35bps; Due 2012) 31 MHP Demand Note…
Appendix B Projects in Execution Information Spectra Energy Partners February 6, 2009 4th Quarter Earnings Review and 2009 Outlook 25
Gulfstream Natural Gas Phase III and IV Expansions Completed Gulfstream provides solid revenue base from long-term contracts Gulfstream Phase III: Initial in-service Aug 2008 Contract commenced Aug 2008 Full contract phase-in Jun…
Market Hub Partners Egan Cavern 3 on target for 2009 in-service Egan is the premier salt cavern asset in North America Egan Cavern 3: SEPs share of total capex: 80 million Cavern development process continuing Initial gas service…
Market Hub Partners Moss Bluff Moss Bluff is key player in the Texas intrastate market Moss Bluff Cavern 4 SEPs share of total capex: 60 million Permitted by Texas Railroad Commission Cavern development process continuing On…
Appendix C SEC Regulation G Schedules Spectra Energy Partners February 6, 2009 4th Quarter Earnings Review and 2009 Outlook 29
SEC Regulation G Spectra Energy Partners, LP Non-GAAP Reconciliation for SEC Regulation G 4th Quarter 2008 Earnings Review February 6, 2009 Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization (EBITDA) The…
Reg G Reconciliation for Estimated 2009 CAD Spectra Energy Partners, LP Adjusted EBITDA and Cash Available for Distribution (Unaudited) (in millions) Projected 2009 Reconciliation of Non-GAAP Adjusted EBITDA and Cash Available for…
Reconciliation of Net Income to Cash Available for Distribution Spectra Energy Partners, LP (Unaudited) Three Months Ended Year Ended December 31 December 31 (In millions) 2008 2007 2008 2007 Net Income 25.4 21.7 101.3 202.9…
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