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Spectra Energy Partners Reports Third Quarter 2015 Results Third Quarter Highlights:

The following excerpt is from the company's SEC filing.

Distributable cash flow of $270 million, up $23 million over prior-year quarter

Expansion projects continue to contribute to earnings growth up 16% over prior-year quarter

32nd consecutive quarterly cash distribution increase


Spectra Energy Partners, LP (NYSE: SEP) today reported third quarter 2015 distributable cash flow (DCF) of $270 million, compared with $247 million in the prior-year quarter. Distributions per limited partner unit for third quarter 2015 were $0.62625, compared with $0.57625 per limited partner unit in third quarter 2014.

With virtually no v olume or commodity exposure, Spectra Energy Partners is a low risk midstream MLP, which has allowed us to provide quarterly distribution growth for our investors over the last eight years, said Greg Ebel, chief executive officer, Spectra Energy Partners. The new projects weve placed into service in 2015 will generate EBITDA of $105 million on an annual basis. Going forward, our $5.7 billion portfolio of fee-based projects in execution, coupled with our strong base business, will continue to drive increased EBITDA and provide us with a clear path for continued distribution growth.

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For the quarter, earnings before interest, taxes, depreciation and amortization (EBITDA) were $467 million, compared with $401 million in the prior-year quarter.

Net income from controlling interests was $321 million for third quarter 2015, compared with $264 million in third quarter 2014.


U. S. Transmission

U.S. Transmission reported third quarter 2015 EBITDA of $401 million, compared with $352 million in third quarter 2014. These results reflect increased earnings, virtually all due to expansion projects placed into service in the prior year (TEAM 2014 and TEAM South), and those expansions placed into full or partial service during third quarter 2015, Uniontown to Gas City and OPEN, respectively.


Liquids reported third quarter 2015 EBITDA of $79 million, compared with $60 million in third quarter 2014, reflecting higher transportation revenues due to higher tariff rates and volumes on the Express Pipeline.


Other reported net expenses of $13 million in third quarter 2015, compared with $11 million in third quarter 2014.

Interest Expense

Interest expense was $59 million in third quarter 2015, compared with $54 million in third quarter 2014, driven by higher average long-term debt balances, partially offset by higher capitalized interest.

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Liquidity and Capital Expenditures

Total debt outstanding at Spectra Energy Partners as of September 30, 2015, was $6.2 billion. At the end of the quarter there was available liquidity of $2.3 billion. Spectra Energy Partners has $2.2 billion of expansion capital spending planned in 2015.

Excluding reimbursements from noncontrolling interests, Spectra Energy Partners invested approximately $1.2 billion in expansion and maintenance capital projects in the U.S. Transmission and Liquids segments for the nine months ended September 30, 2015. Expenditures included $1 billion of growth capital and $214 million of maintenance capital. The companys estimated maintenance capital for the year is about $300 million.

Through its At the Market (ATM) equity issuance program, Spectra Energy Partners has received net proceeds of $450 million this year.


project began delivering gas to the Midwest on August 1 and was fully in service September 1, two months ahead of schedule. The brownfield portion of

also achieved an early startup, coming online about six weeks ahead of schedule. The remaining portion of the OPEN project will be placed into service in November, bringing incremental Marcellus and Utica supply to southern markets.

Construction is under way on the

project in New England, which is on track to be in service in the second half of 2016. The

Express Enhancement

crude oil project also began construction this quarter and is on track, with an estimated 2016 in-service date.

The FERC application for


was filed in September, and the applications for four other projects,

Atlantic Bridge

Access South

Adair Southwest

Lebanon Extension

, were filed in October. These projects are all on schedule for their respective in-service dates.

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project, in development with DTE and supported by local distribution companies and Marcellus and Utica producers, will allow customers to move gas through Ohio and Michigan markets to the 150 Bcf Dawn Hub. The Dawn Hub is owned and operated by Spectra Energys subsidiary, Union Gas, and is the second largest physically traded gas hub in North America. The company has also recently signed a number of interconnect agreements with industrial facilities and power generators, demonstrating additional support for the route and the project. Major contractors for the project have been selected and NEXUS will file a formal FERC application this month.

Gulf Markets


Sabal Trail

projects also continue to advance toward their respective in-service dates.

The company continues to advance the

Access Northeast

project, which is focused on the New England electric power market and saving consumers money while improving the reliability of New Englands energy system. Electric reliability is becoming a more critical concern as additional coal, oil, and nuclear generation facilities announce retirements. Access Northeast is an expansion of the Algonquin pipeline and the addition of storage capabilities to provide gas at times of highest demand. The project...