NAPTP MLP INVESTOR CONFERENCE 2012 Spectra Energy Partners: Quality Assets, Proven Record May 23-24, 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 President & Julie Dill Chief Executive Officer Vice President & Laura Buss Sayavedra Chief Financial Officer Director, Derick Smith Investor & Public Relations NAPTP MLP Investor Conference May 23-24, 2012 3
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…
Asset and Revenue Portfolio Revenues are supported by stable cash flows from long-term contracts with weighted average remaining life of 11 years Gas Transportation & Storage Equity Investments East Saltville Gas Ozark Gas Big…
Looking Ahead 2012 and Beyond Focused on strategic acquisitions and organic growth opportunities driven by the demand for natural gas Attached gas-fired plant Adjacent coal-fired plant Adjacent oil-fired plant NAPTP MLP…
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: 14 years FERC-regulated pipeline…
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 Quarter Ended March 31, 2012 Three Months Ended March 31, 2012 Revenues SEP SEP Share of Gulfstream ( MM, unaudited) 100% Ownership% Revenues SEP Gas Transportation Natural Gas Spectra Energy Partners(1) 61.9…
Cash Available for Distribution Three Months Ended March 31 ( MM) 2012 2011 Adjusted EBITDA 42.4 32.9 ADD: Cash available from equity investments: Gulfstream (49%) 19.6 20.5 Market Hub Partners (50%) 13.5 12.2 LESS: Interest…
Debt and Available Liquidity Spectra Energy Partners ( MM, unaudited) March 31, 2012 December 31, 2011 Credit Facility (700MM; LIBOR+117 bps; matures 2016) Commercial Paper (LIBOR; matures 2016) 40 27 (1) MHP Demand Note (LIBOR;…
Credit Metrics Debt(1)/ EBITDA(2) Interest Coverage(1)(2) 3.0x 15.0x 2.5x 2.0x 10.0x 1.5x 2.7x 2.7x 1.0x 5.0x 10.3x 9.1x 0.5x 0.0x 0.0x December 2011 March 2012 December 2011 March 2012 (1) The term bank loan and related…
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) March 31, 2012 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 (6.95%; due…
Customer Credit Exposure as of 12/31/11 Based on Revenue Spectra Energy Partners customer mix is made up of primarily high quality credits 36% 46% BBB- to BBB+ A or Higher 2% Non-Investment 5% Grade 11% Investment…
Change in CAD Definition Refined calculation of Cash Available for Distribution (CAD) effective January 1, 2012 Interest Expense on an accrual basis is now deducted from Adjusted EBITDA instead of Cash Paid for Interest Expense This…
Our Sponsor: Spectra Energy Corp Spectra Energy (NYSE: SE) currently owns 64% of SEP outstanding units (GP/LP) 2011 Pipeline Throughput: 4.2 Tcf Transmission Pipe: 19,300 mi Storage Capacity: 300+ Bcf SE Gas Processing…
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 NAPTP MLP Investor Conference 2012 May 23-24, 2012 Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization (EBITDA) and Projected EBITDA The materials…
Reconciliation of Net Income to Cash Available for Distribution Spectra Energy Partners Reconciliation of Non-GAAP Adjusted EBITDA and Cash Available for Distribution (Unaudited) (In millions) Three Months Ended March 31, 2012…
Reconciliation of Net Income to Cash Available for Distribution (Gulfstream) Gulfstream Reconciliation of Non-GAAP Adjusted EBITDA and Cash Available for Distribution (Unaudited) (In millions) Three Months Ended March 31, 2012…
Reconciliation of Net Income to Cash Available for Distribution (Market Hub) Market Hub Reconciliation of Non-GAAP Adjusted EBITDA and Cash Available for Distribution (Unaudited) (In millions) Three Months Ended March 31, 2012…
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…
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