Spectra Energy Partners Maintains Steady Growth in First-Quarter 2010

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Researched by Industrial Info Resources (Sugar Land, Texas)--Natural gas storage and transportation company Spectra Energy Partners, LP (NYSE:SEP) (Houston, Texas) reported a boost in earnings and net income for the first quarter of 2010 as equity investments continued to pay off. Net income for the quarter totaled $39.1 million, a 37.19% increase when compared with the same period last year.

Total operating revenues stood at $50.5 million, a 41.85% increase year-over-year. Spectra attributed the improvements to company-wide growth via expansion projects, and earnings related to the May 2009 acquisition of Ozark Gas Transmission and Ozark Gas Gathering.

"Spectra Energy Partners' track record continues to show that our three-pronged, balanced-growth strategy is working," said Gregory J. Rizzo, the company's chief executive officer, in a conference call. "Through the optimization of our assets, organic growth for our feed-based businesses, and strategic acquisitions, we produced another good quarter."

Spectra benefited from a 24.5% equity investment in Gulfstream Natural Gas System, LLC and a 50% equity investment in Market Hub Partners (MHP):

• Gulfstream net income attributed to Spectra totaled $8.09 million for the quarter, a 17.93% increase year-over-year. Spectra's expenditures on the investment totaled $1.3 million for the quarter, compared to costs of $5 million in the same period last year.
• MHP net income attributed to Spectra totaled $10.25 million for the quarter, a 3.02% increase year-over-year. Spectra's expenditures on the investment totaled $5.2 million for the quarter, compared to costs of $9.6 million in the same period last year.

"We continue to maintain our strong financial position," said Laura Sayavadera, chief financial officer, in the conference call. "Our credit metrics remain healthy, and we have more than sufficient liquidity to fund the more than $200 million in organic growth CAPEX throughout the end of 2011."

Industrial Info is tracking more than 35 active Spectra projects in North America that are worth more than $1 billion, including the $120 million construction of a grassroot natural gas pipeline at a compressor station in Waynesburg, Pennsylvania. The project involves about 85 miles of 24-inch-diameter transmission pipe to meet customer needs in the growing Appalachian Production Region. For more information, visit Industrial Info's North American Project Database.

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