Spectra Energy Unveils Long-Term Capital Spending Plans

   By Tess Stynes 
 

Spectra Energy Corp. (SE) unveiled capital spending plans for expansion projects totaling $1.3 billion for this year, as well as average annual increases to capital spending of roughly $2 billion through 2016.

"Our three year plan is built upon 2013's strong performance in which we placed $6 billion of capital into service, secured $7 billion in new projects and bolstered our [master-limited partnership] to a $20 billion enterprise by dropping substantially all U.S. transmission, storage and liquids assets into Spectra Energy Partners," President and Chief Executive Greg Ebel said in a statement.

Mr. Ebel said the company plans to expand its footprint by continuing its disciplined "build and buy" strategy.

"Our enterprise value has more than doubled in just four years, and we intend to double it again by the end of the decade," he added.

Spectra Energy Partners LP (SEP) will account for about 70% of Spectra's capital spending budget this year, with the MLP's share declining to 60% next year and 45% in 2016.

In addition to this year's budget for expansion plans, Spectra also is earmarking capital expenditures of $755 million for maintenance programs.

Through the end of the decade, Spectra expects to pursue an additional $10 billion of natural gas and liquids opportunities over the $25 billion previously announced.

Spectra Energy also expects its dividends to increase by at least 9% a year through 2016.

The companies plan to provide more details about their business outlook and 2014 financial plans at an analyst/investor meeting Wednesday in New York.

Write to Tess Stynes at [e-mail]

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