Spectra Energy Corp. has a market cap of $19.39 billion; its shares were traded at around $29.01 with a P/E ratio of 17.9 and P/S ratio of 3.6. The dividend yield of Spectra Energy Corp. stocks is 3.8%. Spectra Energy Corp. had an annual average earning growth of 6.3% over the past 5 years.
Highlight of Business Operations:Operating Revenues. Operating revenues for the three and six months ended June 30, 2012 decreased by $76 million, or 6%, and $144 million, or 5%, respectively, compared to the same periods in 2011. The decreases were driven by:
Operating Income. Operating income for the three and six months ended June 30, 2012 decreased by $35 million, or 9%, and $73 million, or 8%, respectively, compared to the same periods in 2011. The decreases were attributable to lower customer usage of natural gas due to warmer weather at Distribution and lower NGL earnings mainly due to higher NGL extraction premiums and lower NGL sales prices at Western Canada Transmission & Processing, partially offset by expansion projects at Western Canada Transmission & Processing and U.S. Transmission.
Other Income and Expenses. Other income and expenses for the three and six months ended June 30, 2012 decreased by $71 million, or 39%, and $49 million, or 17%, respectively, compared to the same periods in 2011. The decreases were attributable to lower equity earnings from Field Services mostly due to lower commodity prices, partially offset by an increase in gathering and processing margins as a result of higher volumes due to expansions in 2012 and the impact of severe weather in the first quarter of 2011, and a reduction in depreciation expense attributable to an increase of the remaining useful lives of DCP Midstreams gathering, transmission, processing, storage and other assets during the second quarter of 2012. In addition, the lower equity earnings from Field Services were slightly offset by higher allowance for funds used during construction (AFUDC) due to increased capital spending on expansion projects at Western Canada Transmission & Processing.
Net cash provided by operating activities decreased $179 million to $1,159 million for the six months ended June 30, 2012 compared to the same period in 2011, driven mostly by working capital changes, including lower accounts payable and higher tax payments in 2012, and lower earnings in 2012.
Net cash used in investing activities increased $221 million to $792 million in the first six months of 2012 compared to the same period in 2011. This change was driven by net sales of Spectra Energy Partners AFS marketable securities in 2011, increased capital expenditures and payment in 2012 of $30 million previously withheld from the purchase price consideration of the acquisition of Bobcat in 2010.
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