Spectra Energy Partners Team Greg Ebel Chief Executive Officer Pat Reddy Chief Financial Officer Julie Dill Chief Communications Officer Roni Cappadonna General Manager, Investor Relations Growth from a position of…
Spectra Energy Partners Asset Structure Assets in Segment Spectra Energy Partners (NYSE: SEP) U.S. Transmission Liquids Algonquin Gas Transmission Saltville Gas Storage Express-Platte Pipeline System Big Sandy Pipeline Texas…
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 Market-based gas storage…
U.S. Transmission: Asset Strength & Flexibility Value of capacity increases with changing supply and demand dynamics Growing supply along the system Increasing demand in all areas Future where our pipelines reach Flows…
U.S. Transmission: Texas Eastern Supply & Delivery Evolution By 2017, Texas Eastern will be delivering 2 Bcf/d to Gulf Coast & Midwest markets via bi-directional flows while retaining full capacity to Northeast markets Project In…
U.S. Transmission: 2014 Priorities Pursue 7B dollars of opportunities; sign 3B in 2014 at 10% ROCE Safely and successfully advance execution projects Ensure re-contracting of base Place Team 2014, TEAM South, and revenue…
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% Long Haul 42% Marketers…
Liquids: Maximizing Revenue from Existing Assets Express Pipeline (Bbl/d) Optimization Strategy: 300,000 250,000 Capacity Express Receipts Maximize capacity utilization 200,000 Connect to rail and barge to expand New Committed market…
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 14 108 Shale Oil 12 10 Bakken 8 Oil Sands 93 6…
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: 2014 Priorities Continue to ramp up Express-Platte contracted Ramp existing contracts on volumes and EBITDA Sand Hills & Southern Hills Price-advantaged crude oil Connecting growing NGL supply transportation to Rockies to…
SEP Financial Information: 2014e 2016e Plan
Ongoing EBITDA by Segment* (MM) U.S. Transmission Liquids Other 1,840 1,665 1,485 1,391 2013 2014e 2015e 2016e * Spectra Energy Partners, LP stand-alone EBITDA includes allocated corporate costs from Spectra Energy and, as…
2014e-16e 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 1,840 ADD: Net cash…
SEP Consolidated Debt Maturity Profile as of 3/31/14 450 400 350 USD Millions 300 Express-Platte 1,800 250 SE Partners 200 M&N - US 1,600 150 East Tenn 100 Algonquin 1,400 50 TETLP 0 Dec-14 Oct-14 Aug-14 Apr-14…
Growth from a Position of Strength Strategically located asset base SEP Annual Distributions Paid (/LP unit) supports ongoing distribution growth and attractive shareholder 27% since returns 2.41 2.57 2013 Quality fee-based,…
Major SEP Projects
SEP Current Projects in Execution Expansion Project Segment Status (1) Est. CapEx (MM) In-Service Kingsport U.S. Trans Execution 120 4Q13-1Q15 TEAM 2014 U.S. Trans Execution 500 4Q14 TEAM South U.S. Trans…
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…
Texas Eastern Appalachian Market TEAM 2014 Purpose: Provides Producer Customers with diverse firm path options from Marcellus region to Northeast, Midwest and Henry Hub market areas TEAM 2014 Project Scope: TEAM 2014 600 MMcf/d…
TEAM-South Expansion Project MARCELLUS Purpose: Expansion of Texas Eastern from Appalachian area receipts to high growth markets in the South Project Scope: M2 UTICA Capacity: 300 MMcf/d…
Ohio Pipeline Energy Network (OPEN) 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): Chesapeake…
Uniontown to Gas City (U2GC) 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 Energy East…
Salem Lateral Purpose: Provide natural gas service to a new power plant development on the site of an existing coal-fired plant Project Scope: 115 MMcf/d expansion connecting AGT Hubline and MNE to the new power plant CapEx: 60…
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 production…
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 Expansion 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…
Spectra Energy
We go where the lights are First and last mile advantage Growth from a position of strength 2014 NAPTA MLP Annual Investor Conference 46
Our Strong Portfolio of Assets Natural Gas Transmission Pipe: 19,000 mi Natural Gas Storage Capacity: 300 Bcf Natural Gas Gathering Pipe: 70,000 mi Crude Transmission Pipe: 1,700 mi NGL Transmission Pipe: 1,500 mi Gas storage…
Spectra Energy Asset Structure Reporting Segment Assets in Segment U.S. Transmission Saltville Gas Storage Algonquin Gas Transmission Texas Eastern Transmission Big Sandy Pipeline Maritimes & Northeast, US Bobcat Gas Storage…
Executing & Pursuing Growth Opportunities On track to place 35 billion of growth projects 35 35B SEP projects in blue into service 2013-2020+ Express-Platte twinning 30 Power conversions Gulf Coast LNG 13+B Union Gas 8B Western…
Distribution Overview
Spectra Energy: Distribution Retail Customers 1.4 million Distribution Pipe 39,000 mi Union Gas 2nd largest Natural Gas Storage Capacity 160 Bcf natural gas distributor in Pipeline Capacity Natural Gas Transmission Pipe 6.4 Bcf/d…
Distribution: New 5-Year Regulatory Framework Comprehensive 5-year 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 move…
Distribution: Union Gas Growth Projects Transmission Capacity Growth ON Dawn to Parkway Expansions 4Q14 / 4Q15 Dawn- 4Q14 / 4Q15 - 430MM, in execution Parkway Expansion 2016-17 - 500MM, in development TORONTO 2016-17…
Distribution: 2014 Priorities Build off strength and stability of base assets Execute 2015 Advance 2016-17 Dawn Parkway expansion Dawn-Parkway 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 Processing…
Western Canada: Strong Base Portfolio Horn River Consistent growth in earnings from core assets Liard Cordova Gathering & Processing British 1 gas processor in British Columbia Columbia Processing capacity: 3.7 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 de-risk 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% 22.8% LP & GP Interest Public Unitholders 77.2% LP Interest Growth from a position of strength 2014 NAPTA MLP Annual Investor Conference 63
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: 2013-16e EBITDA and Net Income DCP EBITDA(1) (100%, MM) DCP Net Income(1) (100%, MM) 11% 4% CAGR 555 CAGR 1,595 2013-2016 545 2013-2016 1,535 491 510 1,330 1,157 2013e 2014e 2015e 2016e 2013 2014e 2015e…
Field Services: Growth-for-Growth Strategy 4-6B 3-5B 33% 2014-2016 self-funded 2014-2016 potential CAGR 2013-2016 capital program dropdowns to DPM DCP GP/LP from DPM DPM Dropdowns (B, consolidated, includes DPM) DPMs Distributions…
Field Services: Delivering Value to Owners 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 (1) 170 85 116 70…
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…
Field Services: 2014 NGL Barrel Update & Pricing Assumptions 2014 Price DCP NGL Crude Gas 2014 DCP NGL Barrel Update Assumptions /gal /Bbl /MMBtu 1. 2014 NGL Barrel includes ethane rejection DCP 0.94 95 3.75 resulting in heavier…
2014 Plan- DCP Midstream: Margin / Volume By Contract 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) Proceeds Percent of 25%…
SE Financial Information: 2014e 2016e Plan
Spectra Energy 2014e-16e 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 2014e-16e 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 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…
Liquidity Positions (Millions) Total SE Union SEC-WEI- Total As of 3/31/14 Capital Westcoast Gas UGL SEP Enterprise Revolving Credit Commitments 1,000 271 362 1,633 2,000 3,633 Less: Commercial Paper (289) - (344) (633) (284)…
Customer Credit Exposure as of 3/31/14 Spectra Energys customer mix is made up of primarily high quality credits 34% 33% A or Higher BBB 7% 16% Non-Investment Investment Grade- Grade - Unsecured 10% Equivalent Collateral…
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 complementary…
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 CDP…
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