Spectra dividend growth to be at least 8%
HOUSTON – Spectra Energy Corp (SE) announced its financial plan for 2013, which includes the following:
Ongoing 2013 diluted earnings per share (EPS) target of $1.50. Annual dividend of $1.22, consistent with previously announced 10-cent increase. Investment of approximately $1.4 billion in expansion capital in 2013, consistent with Spectra Energy’s long-term growth plan of $1.5 billion average annual growth capital expenditures (CapEx).
“Our plans for 2013 will enable us to continue to deliver solid shareholder value for the next several years, with expected EPS growth in the 6 per cent range and dividend growth of at least 8 cents per year,” said Greg Ebel, president and chief executive officer, Spectra Energy Corp. “Consistent with that expectation, we’ve set our 2013 earnings per share outlook at $1.50.
“In both the near and longer term, we see significant opportunities in all our business units,” he said. “Our business momentum is driven by $25 billion in growth projects through the end of the decade and advancing our MLP drop-down strategy by leveraging recent asset additions. The growth we have underway and on the horizon is substantial: about $10 billion within our U.S. Transmission segment; at least $7 billion in Western Canada; approximately $6 billion at DCP Midstream; more than $1 billion at our Union Gas distribution business in Canada; and over $2 billion in crude oil and liquids pipelines, including our Express-Platte acquisition, which provides us with immediate scale and scope in the expanding crude oil transportation and storage space. We expect to close on this acquisition during the first half of 2013.”
Key assumptions underlying Spectra Energy’s 2013 financial plan include:
An average natural gas liquids price of 80 cents per gallon; natural gas price of $3.75 per thousand cubic feet (Mcf); and crude averaging $90 per barrel. Break-even earnings before interest and taxes (EBIT) at the Empress gas processing plant in Western Canada. Expansion CapEx of $1.4 billion. Maintenance CapEx of $790 million. A Canadian/U.S. dollar exchange rate at parity. Excludes Express-Platte Pipeline System earnings, pending acquisition closing. No SE equity issuance.
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