USA: Spectra Energy Reports Fourth Quarter and Year-End 2010 Results

Spectra Energy Corp today reported 2010 net income from controlling interests of $1.05 billion, or $1.61 diluted EPS, compared with $849 million, or $1.32 diluted EPS in 2009. Ongoing 2010 net income was $1.02 billion, or $1.57 diluted EPS, compared with $759 million, $1.18 diluted EPS, in the prior year.

The company reported 2010 fourth quarter net income from controlling interests of $320 million, or $0.49 diluted EPS, compared with $220 million, or $0.34 EPS, in the prior year quarter. Ongoing net income was $303 million, or $0.47 EPS, versus $218 million, or $0.33 EPS, during the prior year quarter.

2010 year-end and fourth quarter results reflect strong earnings growth from expansion projects brought into service, improved commodity prices and a stronger Canadian dollar.

2010 Business Highlights

• Met a major milestone on the New Jersey-New York Expansion Project with the filing of the certificate application with the Federal Energy Regulatory Commission (FERC).

• Completed Phase 1 of TEMAX/TIME III Project to transport new Rockies natural gas supplies to major U.S. Northeast markets.

• Completed Algonquin East-to-West Expansion Project to deliver new gas supplies, including LNG-sourced supplies, into U.S. Northeast markets.

• Successfully executed on the Fort Nelson Expansion Project in Western Canada, with 9 of 10 projects completed on time and on budget; final project scheduled for completion in 2011, per plan.

• Enhanced Gulf Coast storage position with Bobcat Gas Storage acquisition.

• Field Services advanced key growth projects in Denver-Julesburg Basin, Permian Basin and Eagle Ford.

“Spectra Energy and its investors experienced a very good year in 2010. We targeted a 20 percent increase in earnings over the previous year and nicely surpassed that goal, delivering a 34 percent increase with each of our businesses registering impressive gains,” said Greg Ebel, president and chief executive officer, Spectra Energy Corp. “We not only benefited from expansion projects placed in service and growth in our fee-based businesses, but with the rebound in commodity prices, our Field Services business generated distributions of nearly $300 million to the company.”

“We remain acutely focused on our plan to profitably invest more than $5 billion in expansion capital over the next five years, which could allow us to realize incremental annual EBIT of $500 to $600 million for returns on capital employed in the 10 to 12 percent range,” Ebel continued.

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Source: Spectra Energy, February 3, 2011;