SEP: Quality Assets, Proven Record Laura Buss Sayavedra Vice President & Chief Financial Officer Morningstar Management Behind the Moat Conference Chicago, Illinois November 10, 2011
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…
Introducing Spectra Energy Partners (NYSE: SEP) Publicly traded Master Limited Partnership (MLP) affiliated with Spectra Energy Corp (NYSE: SE) MLPs pay no federal income tax Quarterly distributions paid to unitholders are mostly tax…
An Attractive Investment Opportunity High Quality, Track Record of Stable Portfolio of Financial Strength Growth Assets Strategically located assets Record of Growth: 10 Projects Financial flexibility to fund placed in-service since…
Business Segment Overview NYSE: SEP Gas Equity Transportation & Investments Storage East Tennessee Natural Gas Ozark Gas Transmission Big Sandy Pipeline Gulfstream Saltville Gas Storage Market Hub Natural Gas Partners…
Spectra Energy Partners At A Glance SEPs Current Assets Over 3,200 Pipeline Miles 3.6 Bcf/Day Pipeline Capacity 57 Bcf Storage Capacity Since 2007, SEP has increased its asset portfolio by: 1,100 Pipeline Miles 1.2 Bcf/day…
Big Sandy Pipeline Acquisition Acquisition of the Big Sandy Pipeline on July 1, 2011 provides long-term, fee-based revenues to SEPs asset portfolio Access to Huron Shale and Appalachian Basin natural gas supplies Provides platforms…
East Tennessee Natural Gas Pipeline ETNG is well positioned to connect emerging supplies to its system and to redeliver to Northeast, Southeast & Mid-Atlantic markets. Scalable growth Good customer mix: local distribution…
East Tennessee Natural Gas Northeastern Tennessee (NET) Project NET Project Organic Growth East Tennessees NET Project provides service to a new TVA gas-fired generation plant 150,000 Dth/day 25 yr firm contract East Tennessee…
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 with average 18 year…
Ozark Gas Transmission Acquired May 2009 Well-positioned assets with a good mix of customers Access to Fayetteville Shale & Arkoma Basin Interconnects with Spectra Energys Texas Eastern Transmission, Mississippi River…
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…
Four Years of Success Since company launch in 2007 Successfully deployed 1.4 billion in growth capital Doubled market capitalization Significantly grew the asset portfolio Investment Grade Rating achieved Sixteen consecutive…
Connect with us: www.spectraenergypartners.com
Appendix A Financial and Other Information
What is an MLP An MLP (Master Limited Partnership) is a publicly traded partnership. About 100 trade on the major exchanges. Like other limited partnerships, MLPs have general partners that manage the business and limited partners…
Key Features of MLPs As partnerships, MLPs pay no tax more money to pass on to investors. MLPs pay their unitholders quarterly cash distributions, which are tax-deferred. Distributions lower the basis in the units and are taxed only…
SEPs 3rd Quarter 2011 Highlights Net Income of 43.5 million 13% increase over 3rd Qtr 2010 Cash Available for Distribution of 69.3 million up 18.9 million over 3rd Qtr 2010 Big Sandy acquisition closed on July 1st NET Project…
3rd Quarter Earnings Summary Three Months Ended Nine Months Ended September 30 September 30 ( millions) 2011 2010 2011 2010 Operating Revenues 52.9 49.0 147.1 146.9 Operating Expenses 29.7 24.7 83.5 77.7 Operating Income 23.2 24.3…
Cash Available for Distribution (CAD) Three Months Ended Nine Months Ended September 30 September 30 ( millions) 2011 2010 2011 2010 Adjusted EBITDA 32.9 31.7 88.5 91.4 Add: Cash available from equity investments Gulfstream (49%)(1)…
Debt and Available Liquidity Spectra Energy Partners September 30, 2011 December 31, 2010 ( millions, unaudited) Credit Facility (LIBOR+35bps; matures 2012) 10 299 MLP Term Bank Loan (LIBOR based) 207 1) MHP Demand Note is reported as…
Credit Metrics (2) Debt(1)/EBITDA (2) Interest Coverage 5.0x 20.0x 4.0x 15.0x 14.6x 3.0x 2.6x 11.7x 2.0x 10.0x 2.0x 1.0x 5.0x 0.0x 0.0x December 2010 September 2011 December 2010 September 2011 (1) Debtincludes…
New Credit Facility 700 million facility put in place October 18, 2011 5 Year Term Replaces prior 500 million facility Morningstar Management Behind the Moat Conference 24
Gulfstream Debt ( millions, unaudited) September 30, 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…
Revenue Profile Nine Months Ended September 30, 2011 Nine Months Ended September 30, 2011 Nine Months Ended September 30, 2011 Gulfstream SEP Gas Natural Gas Revenues SEP SEP Share of Transportation Pipeline ( millions,…
Asset and Revenue Portfolio GAS TRANSPORTATION & STORAGE EQUITY INVESTMENTS East Tennessee Saltville Gas Ozark Gas Gulfstream Market Hub Natural Gas Storage Transmission(1) Natural Gas Partners (100%) (100%) (100%) (49%) (50%)…
Spectra Energy Partners Eligible Holders As a result of certain FERC rate-making policies, we require an owner of our common units to be an Eligible Holder. Eligible Holders are individuals or entities subject to United States federal…
Appendix B Regulation G Schedules
SEC Regulation G Non-GAAP Reconciliation for SEC Regulation G November 10, 2011 Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization (EBITDA) and Projected EBITDA The materials included for Spectra Energy…
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 Nine Months Ended…
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 Nine Months Ended…
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 Nine Months Ended…
Reg. G Reconciliation for Funds From Operations (FFO) Metrics Spectra Energy Partners Reconciliation of Non-GAAP Funds From Operations (FFO) Metrics (Unaudited) As of December 31, (in millions) 2008 2009 2010 Funds From Operations…
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