Spectra Energy Corp (SE, Financial) filed Quarterly Report for the period ended 2009-09-30.
SPECTRA ENERGY CORP is one of North America's premier natural gas infrastructure companies serving three key links in the natural gas value chain: gathering and processing transmission and storage and distribution. For close to a century Spectra Energy and its predecessor companies have developed critically important pipelines and related infrastructure connecting natural gas supply sources to premium markets. Spectra Energy Corp has a market cap of $12.49 billion; its shares were traded at around $19.34 with a P/E ratio of 14.2 and P/S ratio of 2.4. The dividend yield of Spectra Energy Corp stocks is 5.2%.
In the first nine months of 2009, we reported $768 million of capital and investment expenditures, excluding the $295 million acquisition of NOARK. As of November 1, 2009, we have successfully completed substantially all of our 2009 capital projects. We project approximately $1.1 billion of capital and investment expenditures for the full year, including approximately $600 million of expansion capital expenditures and excluding the acquisition of NOARK. Our 2010 capital budget is expected to be reviewed by our Board of Directors in December 2009. Subject to their approval, we expect to increase our expansion capital spending to approximately $1 billion in 2010 as we continue to pursue opportunities around new natural gas supply volumes.
Through September 30, 2009, Spectra Energy has issued approximately $1.0 billion of new long-term debt, completing the new issuances expected for 2009. We have approximately $2.4 billion available under our credit facilities and expect to continue to utilize commercial paper and revolving lines of credit, as needed, to fund our liquidity needs through 2010. We currently have no debt issuances planned for 2010 other than refinancings of debt maturities, but may access the markets if conditions are favorable.
In May 2009, Spectra Energy Partners acquired all of the ownership interests of NOARK from Atlas for approximately $295 million in cash. In the second quarter of 2009, Spectra Energy Partners issued 9.8 million common units to the public, representing limited partner interests, and 0.2 million general partner units to Spectra Energy, resulting in net proceeds of $212 million and a reduction of our ownership interest in Spectra Energy Partners from 84% to 74%. The proceeds were used to partially repay the funds borrowed in connection with the acquisition. See Note 2 of Notes to Condensed Consolidated Financial Statements for further discussion.
Operating Expenses. Operating expenses for the three and nine months ended September 30, 2009 decreased by $159 million, or 21%, and $499 million, or 19%, respectively, compared to the same periods in 2008. The decreases were driven primarily by:
Gains on Sales of Other Assets and Other, net. Gains on sales of other assets and other, net for the three and nine months ended September 30, 2009 increased $1 million and decreased by $21 million, respectively, compared to the same periods in 2008. The decrease for the nine-month period was primarily due to a 2008 second quarter customer bankruptcy settlement, partially offset by a favorable customer settlement in 2009 resulting from the cancellation of a capital project.
Read the The complete ReportSE is in the portfolios of Brian Rogers of T Rowe Price Equity Income Fund, Dodge & Cox.
SPECTRA ENERGY CORP is one of North America's premier natural gas infrastructure companies serving three key links in the natural gas value chain: gathering and processing transmission and storage and distribution. For close to a century Spectra Energy and its predecessor companies have developed critically important pipelines and related infrastructure connecting natural gas supply sources to premium markets. Spectra Energy Corp has a market cap of $12.49 billion; its shares were traded at around $19.34 with a P/E ratio of 14.2 and P/S ratio of 2.4. The dividend yield of Spectra Energy Corp stocks is 5.2%.
Highlight of Business Operations:
For the three months ended September 30, 2009 and 2008, we reported net income from controlling interests of $191 million and $296 million, respectively. For the nine months ended September 30, 2009 and 2008, we reported net income from controlling interests of $629 million and $958 million, respectively. The decreases for the three and nine-month periods primarily reflect lower earnings from Field Services and Western Canada Transmission & Processing, as a result of lower NGL prices associated with lower crude oil prices in 2009. Crude oil averaged $57 per barrel for the nine months ended September 30, 2009 versus $113 per barrel during the same period in 2008. The decrease in earnings for the nine-month period in 2009 was partially offset by the recognition of a $135 million deferred gain ($85 million after-tax) in the first quarter of 2009 associated with partnership units previously issued by DCP Partners, as well as third-quarter and year-to-date earnings from growth projects.In the first nine months of 2009, we reported $768 million of capital and investment expenditures, excluding the $295 million acquisition of NOARK. As of November 1, 2009, we have successfully completed substantially all of our 2009 capital projects. We project approximately $1.1 billion of capital and investment expenditures for the full year, including approximately $600 million of expansion capital expenditures and excluding the acquisition of NOARK. Our 2010 capital budget is expected to be reviewed by our Board of Directors in December 2009. Subject to their approval, we expect to increase our expansion capital spending to approximately $1 billion in 2010 as we continue to pursue opportunities around new natural gas supply volumes.
Through September 30, 2009, Spectra Energy has issued approximately $1.0 billion of new long-term debt, completing the new issuances expected for 2009. We have approximately $2.4 billion available under our credit facilities and expect to continue to utilize commercial paper and revolving lines of credit, as needed, to fund our liquidity needs through 2010. We currently have no debt issuances planned for 2010 other than refinancings of debt maturities, but may access the markets if conditions are favorable.
In May 2009, Spectra Energy Partners acquired all of the ownership interests of NOARK from Atlas for approximately $295 million in cash. In the second quarter of 2009, Spectra Energy Partners issued 9.8 million common units to the public, representing limited partner interests, and 0.2 million general partner units to Spectra Energy, resulting in net proceeds of $212 million and a reduction of our ownership interest in Spectra Energy Partners from 84% to 74%. The proceeds were used to partially repay the funds borrowed in connection with the acquisition. See Note 2 of Notes to Condensed Consolidated Financial Statements for further discussion.
Operating Expenses. Operating expenses for the three and nine months ended September 30, 2009 decreased by $159 million, or 21%, and $499 million, or 19%, respectively, compared to the same periods in 2008. The decreases were driven primarily by:
Gains on Sales of Other Assets and Other, net. Gains on sales of other assets and other, net for the three and nine months ended September 30, 2009 increased $1 million and decreased by $21 million, respectively, compared to the same periods in 2008. The decrease for the nine-month period was primarily due to a 2008 second quarter customer bankruptcy settlement, partially offset by a favorable customer settlement in 2009 resulting from the cancellation of a capital project.
Read the The complete ReportSE is in the portfolios of Brian Rogers of T Rowe Price Equity Income Fund, Dodge & Cox.
