Skip to main content 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. Investor Presentation | Shale Experts
Loading...
Database
Slide Database

2015 2017 Financial Plan and Outlook – Spectra Energy Corp.

Spectra Energy Corp. · Feb 5, 2015 · 62 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 1
    2015 FINANCIAL PLAN & OUTLOOK 02.05.15 2015 2017 Financial Plan & Outlook
  2. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 2
    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…
  3. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 3
    Todays Agenda Business Overview Greg Ebel Financial Plan Pat Reddy Field Services Wouter Van Kempen Western Canada Mark Fiedorek Distribution Steve Baker SEP: Liquids Duane Rae SEP: US Transmission Bill Yardley Q&A 2 0 1 5 FIN…
  4. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 4
    2015 FINANCIAL PLAN & OUTLOOK 02.05.15 2015 2017 Business Overview Greg Ebel President & CEO, Spectra Energy & Spectra Energy Partners
  5. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 5
    What You Will Hear Today Outstanding asset footprint provides a strong base business and a well-positioned platform for ongoing expansion We go where the lights are connecting supply to demand 2 0 1 5 FIN AN CIAL P…
  6. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 6
    What You Will Hear Today Outstanding asset 2015-2017 footprint provides DCF forecast a strong base has essentially business and a no incremental well-positioned commodity platform for downside ongoing expansion…
  7. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 7
    SE Portfolio: Limited Commodity Exposure Historical SE EBITDA (MM) 2015-2017 DCF estimates 3500 3.1B are not dependent on any 3000 2.9B 7% DCP 2015-2017 Plan improvement in Empress commodity prices 2500 25% Commodity-based 2000…
  8. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 8
    What You Will Hear Today 9.5B of Outstanding asset 2015-2017 expansion footprint provides DCF forecast projects currently a strong base has essentially in execution will business and a no incremental extend earnings…
  9. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 9
    Expansion Projects In 2014, we committed to secure 35B by the end of the decade Currently, 16.5B is in-service or commercially secured Increasing supplies of domestic resources continue to support North American infrastructure…
  10. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 10
    What You Will Hear Today 9.5B of Outstanding asset 2015-2017 expansion 2015 2017 Plan footprint provides DCF forecast projects currently supports dividend a strong base has essentially in execution will growth of business and…
  11. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 11
    2015 FINANCIAL PLAN & OUTLOOK 02.05.15 2015 2017 Financial Plan Pat Reddy Chief Financial Officer
  12. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 12
    Ongoing Objectives for Long-Term Value Creation Continue to Deliver dividend and Execute growth plan Exercise prudent distribution growth on time & on budget financial management Attractive, sustainable 35 billion in expansion…
  13. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 13
    2015 FX and DCP Commodity Assumptions Natural Gas Liquids (/gal) Natural Gas (/MMBtu) 1.00 5.00 0.89 4.00 4.41 3.60 0.75 0.55 3.00 0.50 2.00 0.25 1.00 0.00 0.00 2014 2015e 2016e 2017e 2014 2015e 2016e 2017e Crude Oil (/Bbl)…
  14. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 14
    Spectra Energy 2015e-17e Ongoing EBITDA 2015-2017 estimates reflect flat commodity prices and FX EBITDA by Segment (MM)(1) 2015e 2016e 2017e Spectra Energy Partners 1,815 1,995 2,255 Distribution 510 540 590 Western Canada…
  15. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 15
    Spectra Energy 2015e-17e Distributable Cash Flow 2015-2017 estimates reflect flat commodity prices and FX SE Distributable Cash Flow (MM) 2015e 2016e 2017e EBITDA 2,840 3,125 3,465 ADD: Equity in earnings of unconsolidated affiliates…
  16. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 16
    DCP Commodity Recovery Scenario Natural Gas Liquids (/gal) Natural Gas (/MMBtu) 1.00 5 4.20 0.80 3.96 3.90 0.90 0.70 4 0.75 3.60 3.60 3 0.50 0.55 0.55 2 0.25 1 0.00 0 2014 2015e 2016e 2017e 2014 2015e 2016e 2017e Crude Oil…
  17. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 17
    Commodity Recovery Scenario Plan(1) vs Coverage: in Plan(1) in Commodity Recovery Scenario Commodity Recovery Scenario (MM) 4,000 2016e 1.0x 1.05x 125 215 2017e 1.0x 1.12x 3,000 2,000 3,465 3,125 135 55 1,000 1,120…
  18. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 18
    Spectra Energy Partners 2015e-17e Distributable Cash Flow SEP Distributable Cash Flow (MM) 2015e 2016e 2017e EBITDA by segment: U.S. Transmission 1,520 1,650 1,810 Liquids 275 320 415 Other (70) (65) (65) TOTAL EBITDA 1,725 1,905…
  19. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 19
    7+ Billion Projects in Execution - Largely Demand Pull (1)(2) 100% 50/50 100% SUPPLY DEMAND PUSH PULL Est. CapEx Segment In-Service Counter- parties (MM) UST 2015 Red Lake 3Q15 60 Liquids 2015 Dawn Parkway 4Q15 390 Distribution…
  20. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 20
    Robust Expansion Capex Leads to Significant EBITDA Growth 2015 & Beyond Incremental EBITDA from Projects Expansion CapEx by Segment (B) Currently in Execution (B) 4.0 Western Canada 800 Distribution 3.5 Liquids UST 700 +800MM by…
  21. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 21
    2015 2017 Financing Strategy U.S. growth capital Will access Will maximize use of projects financed with capital markets SEP At-the-Market 50/50 debt and opportunistically equity program SEP equity over the using our multiple…
  22. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 22
    Key Balance Sheets Metrics Projected Projected 12/31/14 12/31/2015 12/31/14 12/31/2015 Total Debt 14.7B 16.0B 6.1B 6.9B Financial Covenant 58% 58% 3.7x 3.8x Metrics Debt/Cap(1) Debt/Cap(1) Debt/EBITDA(1) Debt/EBITDA(1) Credit…
  23. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 23
    Delivering Long-term Value for Shareholders SE Annual Dividends Paid (/share)(1) SEP Annual Distributions Paid (/LP unit)(1) +26% +28% 2.83 2.63 1.76 2.43 1.62 2.25 1.48 1.38 2014 2015e 2016e 2017e 2014 2015e 2016e 2017e…
  24. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 24
    2015 FINANCIAL PLAN & OUTLOOK 02.05.15 Field Services Wouter van Kempen Chairman, President & CEO, DCP Midstream Chairman & CEO, DCP Midstream Partners
  25. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 25
    Field Services: Long-term Fundamentals Improve Over Time DCP Midstream is a leader in a must-run industry 2015: Managing through the downturn Historic U.S. Rig Count Weak global demand fundamentals 2,500 Supply outpacing demand E&P…
  26. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 26
    Field Services: Prudent Management Through Cycles Historical Commodity Price Cycles 2008-2010: Adjust to market collapse 160 2.00 Cost reductions & efficiencies Capital flexibility NGLs Managed headcount (/gal) Maintained strength…
  27. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 27
    Field Services: Footprint in Core Areas of Key Basins DJ Basin/North 64 Plants(1) Strategic assets backed by strong producers 68,000 miles of Pipeline(1) Top 10 customers make up 40% of margin / gas volume Midcontinent Prudent…
  28. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 28
    Field Services: Capital Efficiency Asset ramp-up highlights capital efficiency & improves return on capital Processing Capacity Additions NGL Pipeline Throughput (MBPD, 100% view) 900 250 800 1Q14 OConnor Exp. 700 1Q14 Goliad…
  29. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 29
    Field Services: 2015 Forecast DCP Midstream Consolidated(1) (MM) DCP Midstream Commodity Sensitivities(1) DCP EBITDA 730 Price Annual EBITDA Assumption Change Sensitivity Growth Capex 550 NGLs (/gal) 0.55 +/- 0.01 11MM Maintenance…
  30. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 30
    Field Services: Summary Must run business with competitive footprint and geographic diversity Proven track record through commodity cycles Controlling costs, transforming company for the long-term History of strong cash generation…
  31. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 31
    2015 FINANCIAL PLAN & OUTLOOK 02.05.15 Western Canada: Continued Solid Performance & Growth Mark Fiedorek President, SET West
  32. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 32
    Western Canada: 2014 Highlights Placed North Montney project into service in 2Q14 Fully contracted T-South year- round service and secured 500MM of pipeline expansion projects Substantially de-risked Empress commodity…
  33. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 33
    Western Canada: Attractive Footprint Western Canadian Gathering & BC Processing AB QC SK MB BC Pipeline Empress Maritimes & Northeast, Canada ON NB NS BC Pipeline: Natural Gas Transmission Empress System: Natural Gas…
  34. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 34
    Western Canada: Stable Base Portfolio 2015e EBTIDA Distribution Western Canada 630 MM 54% SEP: Liquids 95% Fee-Based Nat Gas G&P Fee-based contracts Transmission Regulated fee-for-service SEP: UST 27% M&N Canada Regulated…
  35. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 35
    Western Canada: Business Development Transmission Horn River Cordova Liard Traditional markets are growing T-North Resurgent industrial and power generation activity Montney Small scale LNG projects PRINCE Jackfish Lake RUPERT…
  36. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 36
    Western Canada: Business Development Gathering & Processing Resource development driving Montney Tight Gas Production (MMCf/d) producer services 4,000 BCs world class gas supply is growing North Montney BC 3,500 Development…
  37. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 37
    Western Canada: Business Development LNG Horn River Large scale LNG export driving growth Liard Cordova in the next decade Westcoast Montney Westcoast Connector project obtained Connector Environmental Assessment Certificate in…
  38. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 38
    Western Canada: 2015-2017 Priorities Sustain base portfolio: - Contract renewals Place 500MM Transmission - NGL risk management projects into service in 2016 and 2017 - Cost management Originate additional Secure LNG…
  39. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 39
    2015 FINANCIAL PLAN & OUTLOOK 02.05.15 Union Gas: Stability & Growth Steve Baker President, Union Gas Limited
  40. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 40
    Union Gas: Foundation for Growth National Energy Board approval of eastern Canadian LDC tolls settlement Toll certainty for eastern customers Catalyst supporting 2015-2018 Dawn- Parkway expansions Ontario Energy Board approval of…
  41. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 41
    Union Gas: Regulatory Framework Supporting Growth Ontario Energy Board approved Incentive Regulation Mechanism 5-year term: 2014 2018 9% base ROE Attractive features: Earnings sharing provides 150 bps upside opportunity over…
  42. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 42
    Union Gas: Asset Strength and Flexibility QC Dawn Hub is 2ndlargest physical gas trading hub in North America ON Continued customer interest for U.S. Dawn Hub supplies and short haul Northeast transportation from Dawn to TORONTO…
  43. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 43
    Union Gas: Major Growth Projects QC Largest expansions in Union Gas history ON Est CapEx U.S. Execution Projects (MM) In Service Northeast 2015 Dawn-Parkway 390 2H15 TORONTO NY 2016 Dawn-Parkway 360 2H16 Burlington-Oakville 100 2H16…
  44. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 44
    Union Gas: 2015 to 2017 Priorities Build off strength and stability of base assets Execute 2015 and 2016 Advance 2017 and 2018 Dawn-Parkway expansions Dawn-Parkway expansions Union Gas delivering stability and growth 2 0…
  45. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 45
    2015 FINANCIAL PLAN & OUTLOOK 02.05.15 Liquids: Growth from a Solid Base Duane Rae President, Spectra Energy Liquids
  46. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 46
    Liquids: Fee for Service Business with Secure Revenue Hardisty Fee for service and no direct commodity exposure Express Access to growing supply Pipeline Express-Platte Delivery to premium markets Pipeline System Express and…
  47. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 47
    Liquids: Expansion on Top of Solid Growing Base Liquids EBITDA (MM) 450 Annual toll escalation on all four pipelines 400 Capital Plan New Express contracts with higher 350 Base tolls displacing legacy contracts 300 Volume…
  48. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 48
    Liquids: Well-positioned in Challenging Environment Commodity prices have no impact on EBITDA growth in plan horizon Support for large crude oil and NGL infrastructure projects is challenging Incremental expansions of our…
  49. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 49
    Liquids: Attractive Growth Opportunities Cost-effective optimization/ Est. CapEx (1) expansion of Express-Platte Project Type Examples (MM) In-Service pipeline and terminals Express enhancement, Near-Term Crude Express-Platte…
  50. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 50
    Liquids: 2015-2017 Priorities Ramp existing contracts On-system expansion of and access new supply on pipe and terminals Sand Hills & Southern Hills Continuing optimization to meet market demand Add new connections, construct…
  51. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 51
    2015 FINANCIAL PLAN & OUTLOOK 02.05.15 U.S. Transmission: Capitalizing on our Momentum Bill Yardley President, U.S. Transmission & Storage
  52. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 52
    U.S. Transmission: Growth Now and in the Future Northeast & New England Power Record throughput the last 3 Generation winters Supply to Strong market opportunities from Markets LDCs, power generators and industrial customers…
  53. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 53
    U.S. Transmission: Strong and Growing Portfolio 2015e EBITDA EBITDA with Growth Projects (MM) 2,500 Western Canada 2,000 Execution Projects SEP: U.S. 1,500 Transmission 1,520MM 1,000 Distribution Base 500 0 SEP: Liquids…
  54. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 54
    Execution Projects: Delivering Incremental EBITDA UST executing on 6B of projects Atlantic that deliver 700MM EBITDA by 2020 Bridge Salem Lateral Dawn Hub PennEast AIM Project Est. CapEx (MM) In-Service NEXUS OPEN 500 2H15 OPEN…
  55. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 55
    U.S. Transmission: Northeast Expansion 5B of investment in Access execution and development Northeast Salem Northeast and New England demand Atlantic Lateral continues to increase Bridge Our infrastructure footprint with UTICA AIM…
  56. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 56
    U.S. Transmission: Access Northeast Gas-fired power plant connected to Access Northeast Project PORTLAND Gas-fired power plant not connected Maritimes Direct connection with & Northeast Northeast generators BOSTON Takes…
  57. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 57
    U.S. Transmission: Marcellus/Utica Expansion 4B of investment in Dawn Hub execution and development Appalachian gas flowing into Texas Eastern NEXUS continues to grow NEXUS will connect Texas Eastern to Union Gas, OPEN creating a…
  58. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 58
    U.S. Transmission: Southeast & Gulf Coast Expansion 4B of investment in execution and development Ozark Sabal Trail will serve Florida power Conversion Industrial generation market Consistent growth in revenues from contracted…
  59. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 59
    U.S. Transmission: 2015-2017 Priorities Sign an average of 2B/year in expansion projects through 2017 Sign deals for projects in New England, the Northeast and the Gulf Safely and successfully advance execution projects Ensure…
  60. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 60
    2015 FINANCIAL PLAN & OUTLOOK 02.05.15 Key Takeaways Greg Ebel President & CEO, Spectra Energy & Spectra Energy Partners
  61. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 61
    What You Heard Today 9.5B of Outstanding asset 2015-2017 expansion 2015 2017 Plan footprint provides DCF forecast projects currently supports dividend a strong base has essentially in execution will growth of business and a no…
  62. 2015 2017 Financial Plan and Outlook – Spectra Energy Corp. – slide 62

From the store

Browse maps, data & reports in the Shale Experts store