Spectra Energy Partners: Quality Assets, Proven Record UBS Natural Gas, Electric Power and MLP Conference Dallas, Texas February 29, 2012
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…
Our Team Julie Dill President & Chief Executive Officer Laura Buss Sayavedra Vice President & Chief Financial Officer Derick Smith Director, Investor & Public Relations February 29, 2012 UBS Natural Gas, Electric Power…
Business Overview Lexington Big Sandy Pipeline Texas Eastern Knoxville Saltville Gas Storage Tulsa Nashville Charlotte East Tennessee Natural Gas Natural Gas Infrastructure Company Ozark Gas Atlanta Transmission Interstate gas…
Business Segment Overview NYSE: SEP Gas Equity Transportation & Investments Storage East Tennessee Natural Gas Ozark Gas Transmission Big Sandy Pipeline Gulfstream Market Hub Natural Gas Saltville Gas Storage Partners…
SEP Assets Revenue Composition Weighted Average Remaining Contract Life: 11 years 93% 5% Capacity Reservation Fees Variable Fees 2% Interruptible Contracts Revenue composition percentages are weighted for SEPs respective…
2011 Key Accomplishments Exceeded 2011 outlook target Cash Available for Distribution 212 million Continued to execute balanced growth strategy Deployed 500 million in growth capital Closed on Big Sandy Pipeline acquisition in July…
Looking Ahead 2012 and Beyond Natural gas-fired electric generation is the next great demand source for natural gas Attached gas-fired plant Adjacent coal-fired plant Adjacent oil-fired plant February 29, 2012 UBS Natural…
Industry Trends Supply and Demand Dynamics Supply Rapid growth in natural gas supplies greatest year-on-year growth ever in 2011 Growing Majority of new supply in Mid- Supply Atlantic and Mid-Continent regions -+8.4 Tcf by 2025*…
Attractive Investment Opportunity for Today & Tomorrow High Quality, Stable Track Record Financial Strength Portfolio of Assets of Growth Strategically located assets Record of Growth: 10 Projects Financial flexibility to fund…
Appendix A Asset Profiles
East Tennessee Natural Gas Pipeline Positioned to benefit from growth in gas for electric generation ETNG connects supplies to its system to redeliver to Northeast, Southeast & Mid- CASCADE CREEK, NC Atlantic markets Scalable…
Gulfstream Natural Gas Pipeline SEP completed acquisition of additional 24.5% interest in Gulfstream in 2010 (doubling interest held to 49%) One of two pipelines serving Florida peninsula Fully subscribed Well positioned to…
Big Sandy Pipeline Big Sandy Pipeline acquired on July 1, 2011 Provides long-term, fee-based revenues to SEPs asset portfolio 100% fee-based with capacity reservation charges Average contract life at acquisition date: 15 years…
Ozark Gas Transmission Acquired May 2009 Well-positioned assets with a good mix of customers Access to Arkoma Basin, Fayetteville Shale & Woodford Shale Interconnects with Spectra Energys Texas Eastern Transmission, Mississippi…
Market Hub Partners (MHP) Natural Gas Storage Recently completed major, multi- year expansion High deliverability storage Significant interconnectivity Access to markets in Northeast, Southeast, Midwest, and Gulf Coast Good…
Appendix B Financial and Other Information
Revenue Profile Year Ended December 31, 2011 Year Ended December 31, 2011 Gulfstream Revenues SEP SEP Share of Natural Gas ( MM, unaudited) 100% Ownership% Revenues SEP Gas Pipeline Transportation (49% Interest) Spectra…
4th Quarter Earnings Summary Three Months Ended Dec 31 Year Ended Dec 31 ( MM) 2011 2010 2011 2010 Operating Revenues 57.9 50.8 205.0 197.7 Operating Expenses 33.3 32.3 116.8 110.0 Operating Income 24.6 18.5 88.2 87.7 Equity Earnings…
Cash Available for Distribution Three Months Ended Dec 31 Year Ended Dec 31 ( MM) 2011 2010 2011 2010 Adjusted EBITDA 32.9 25.7 121.4 117.1 ADD: Cash available from equity investments Gulfstream (49%)(1) 11.4 8.7 81.0 43.0 Market Hub…
2012 Outlook 2012 Estimated Cash Available for Distribution of 222 million 2012e Cash Available for Distribution (LP & GP) (MM) Growth driven by a full year of Northeastern Tennessee Project Adjusted EBITDA 151 and the Big Sandy…
Debt and Available Liquidity Spectra Energy Partners ( MM, unaudited) December 31, 2011 December 31, 2010 Credit Facility (700MM; LIBOR+117 bps; matures 2016) 299 Commercial Paper (LIBOR; matures 2016) 27 MLP Term Bank Loan (LIBOR…
Credit Metrics Debt(1)/ EBITDA(2) Interest Coverage(1)(2) 3.0x 20.0x 2.5x 15.0x 2.0x 1.5x 10.0x 2.7x 1.0x 2.0x 14.6x 5.0x 10.3x 0.5x 0.0x 0.0x December 2010 December 2011 December 2010 December 2011 (1) The term bank loan and…
FFO Metrics For the years ended December 31 FFO(1) + Interest(2)(3)/ Interest(2)(3) FFO(1) / Debt(2) 15.0x 50.0% 40.0% 12.3x 41.0% 10.0x 11.2x 37.8% 30.0% 9.7x 30.8% 20.0% 5.0x 10.0% 0.0x 0.0% 2009 2010 2011 2009 2010…
Gulfstream Debt ( MM, unaudited) December 31, 2011 Gulfstream Natural Gas System, LLC Debt (1) 100% 49% Unsecured 15 year note (5.56%; due 2015) 500 245 Unsecured 25 year note (6.19%; due 2025) 350 172 Unsecured 7 year note…
Change in CAD Definition Refined calculation of Cash Available for Distribution (CAD) effective January 1, 2012 Going forward, Interest Expense on an accrual basis will now be deducted from Adjusted EBITDA instead of Cash Paid for…
Change in CAD Definition The 2011 quarterly effects of these future changes would be as follows: Three Months Ended Year Ended (MM) Mar 31, June 30, Sept 30, Dec 31, Dec 31, 2011 2011 2011 2011 2011 Spectra Energy Partners (1) Cash…
Spectra Energy Partners Eligible Holders SCHEDULE I An Eligible Holder is (a) an individual or entity subject to United States federal income taxation on the income generated by the Partnership or (b) an entity not subject to United…
Appendix C Regulation G Schedules
SEC Regulation G Non-GAAP Reconciliation for SEC Regulation G UBS Natural Gas, Electric Power and MLP Conference in Dallas, Texas February 29, 2012 Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization (EBITDA)…
Reconciliation of Net Income to Cash Available for Distribution Spectra Energy Partners, LP Adjusted EBITDA and Cash Available for Distribution (Unaudited) Three Months Ended Years Ended (In millions) December 31, December 31, 2011…
Reconciliation of Net Income to Cash Available for Distribution (Gulfstream) Gulfstream Natural Gas System L.L.C. Adjusted EBITDA and Cash Available for Distribution (Unaudited) (In millions) Three Months Ended Years Ended December 31,…
Reconciliation of Net Income to Cash Available for Distribution (Market Hub) Market Hub Partners Holding Adjusted EBITDA and Cash Available for Distribution (Unaudited) (In millions) Three Months Ended Years Ended December 31,…
Reg. G Reconciliation for Funds From Operations (FFO) Metrics Spectra Energy Partners Reconciliation of Non-GAAP Funds From Operations (FFO) Metrics (Unaudited) (in millions) As of December 31, 2009 2010 2011 Funds From Operations to…
Reg. G Reconciliation for Estimated 2012 CAD Spectra Energy Partners, LP Reconciliation of Non-GAAP Adjusted EBITDA and Cash Available for Distribution (Unaudited) (In millions) Projected 2012 Net income 181 Add: Interest expense…
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