Profile: Spectra Energy Corp (SE.N)

SE.N on New York Stock Exchange

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Spectra Energy Corp (Spectra Energy), incorporated on July 28, 2006, through its subsidiaries and equity affiliates, owns and operates a portfolio of complementary natural gas-related energy assets and is a natural gas infrastructure company. Spectra Energy operates in three areas of the natural gas industry: gathering and processing, transmission and storage, and distribution. The Company operates in four segments: U.S. Transmission, Distribution, Western Canada Transmission & Processing, and Field Services. It provides transportation and storage of natural gas to customers in various regions of the north-eastern and south-eastern United States, the Maritime Provinces in Canada and the Pacific Northwest in the United States and Canada, and in the province of Ontario, Canada. It also provides natural gas sales and distribution services to retail customers in Ontario, and natural gas gathering and processing services to customers in western Canada. On October 31, 2011, it acquired Seaway Products Pipeline Company. Effective March 14, 2013, the Company acquired the interest of Express-Platte Pipeline System.

In addition, Spectra Energy owns a 50% interest in DCP Midstream, LLC (DCP Midstream), one of the natural gas gatherers and processors in the United States, based in Denver, Colorado. The Company’s natural gas pipeline systems consist of over 19,000 miles of transmission pipelines. During the year ended December 31, 2011, its proportional throughput for its pipelines totaled 4,329 trillion British thermal units.

U.S. Transmission

Spectra Energy’s U.S. Transmission business provides transportation and storage of natural gas for customers in various regions of the north-eastern and south-eastern United States and the Maritime Provinces in Canada. The Company’s United States pipeline systems consist of more than 14,600 miles of transmission pipelines with eight primary transmission systems: Texas Eastern Transmission, LP (Texas Eastern), Algonquin Gas Transmission, LLC (Algonquin), East Tennessee Natural Gas, LLC (East Tennessee), Maritimes & Northeast Pipeline, L.L.C. and Maritimes & Northeast Pipeline Limited Partnership (collectively, Maritimes & Northeast Pipeline), Ozark Gas Transmission, L.L.C. (Ozark Gas Transmission), Big Sandy Pipeline, LLC (Big Sandy), Gulfstream Natural Gas System, LLC (Gulfstream) and Southeast Supply Header, LLC (SESH). The pipeline systems in this business receive natural gas from major North American producing regions for delivery to their respective markets. U.S. Transmission provides storage services through Saltville Gas Storage Company L.L.C. (Saltville), Market Hub Partners Holding’s (Market Hub’s) Moss Bluff and Egan storage facilities, Steckman Ridge, LP (Steckman Ridge), Bobcat Gas Storage (Bobcat) and Texas Eastern’s facilities. Gathering services are provided through Ozark Gas Gathering, L.L.C (Ozark Gas Gathering).

The Texas Eastern gas transmission system extends approximately 1,700 miles from producing fields in the Gulf Coast region of Texas and Louisiana to Ohio, Pennsylvania, New Jersey and New York. It consists of two parallel systems, one with three large-diameter parallel pipelines and the other with one to three large-diameter pipelines. Texas Eastern’s onshore system consists of approximately 8,700 miles of pipeline and 73 compressor stations (facilities that increase the pressure of gas to facilitate its pipeline transmission). Texas Eastern also owns and operates two offshore Louisiana pipeline systems, which extend approximately 100 miles into the Gulf of Mexico and include approximately 500 miles, of Texas Eastern’s pipeline system. Texas Eastern has two storage facilities in Pennsylvania held through joint ventures and one 100%-owned and operated storage facility in Maryland. Texas Eastern’s total working capacity in these three facilities is 74 billion cubic feet. In addition, Texas Eastern’s system is connected to Steckman Ridge, a 12 billion cubic feet storage facility in Pennsylvania owned by our joint venture with New Jersey Resources (NJR), and three affiliated storage facilities in Texas and Louisiana, aggregating 65 billion cubic feet, owned by Market Hub and Bobcat.

The Algonquin pipeline connects with Texas Eastern’s facilities in New Jersey, and extends approximately 250 miles through New Jersey, New York, Connecticut, Rhode Island and Massachusetts where it connects to Maritimes & Northeast Pipeline. The system consists of approximately 1,125 miles of pipeline with seven compressor stations. East Tennessee’s transmission system crosses Texas Eastern’s system at two locations in Tennessee and consists of two mainline systems totaling approximately 1,500 miles of pipeline in Tennessee, Georgia, North Carolina and Virginia, with 21 compressor stations. East Tennessee has a liquefied natural gas (LNG, natural gas that has been converted to liquid form) storage facility in Tennessee with a total working capacity of 1 billion cubic feet. East Tennessee also connects to the Saltville storage facilities in Virginia that have a working gas capacity of approximately 5 billion cubic feet.

The Company has a 64% ownership interest in East Tennessee through its ownership of Spectra Energy Partners. Maritimes & Northeast Pipeline’s gas transmission system is operated through Maritimes & Northeast Pipeline Limited Partnership (M&N LP), the Canadian portion of this system, and Maritimes & Northeast Pipeline, L.L.C. (M&N LLC), the United States portion. It has 78% ownership interests in both segments of the system and affiliates of Exxon Mobil Corporation and Emera, Inc. have the remaining interests. The Maritimes & Northeast Pipeline transmission system consists of approximately 890 miles of pipeline originating from landfall of the producing fields in Nova Scotia through New Brunswick, Maine, New Hampshire and Massachusetts, connecting to the Algonquin system in Beverly, Massachusetts. There are seven compressor stations on the Maritimes & Northeast Pipeline system.

The Company has an effective 64% ownership interest in Ozark Gas Transmission and Ozark Gas Gathering. Ozark Gas Transmission consists of a 565-mile interstate natural gas pipeline system extending from south-eastern Oklahoma through Arkansas to south-eastern Missouri. Ozark Gas Gathering consists of a 365-mile gathering system that primarily serves Arkoma basin producers in eastern Oklahoma. The Company has a 64% ownership interest in Big Sandy. Big Sandy is a 68-mile, FERC-regulated natural gas transmission pipeline located in eastern Kentucky. Big Sandy’s interconnect with the Tennessee Gas Pipeline system links the Huron Shale and Appalachian Basin natural gas supplies to the mid-Atlantic and northeast markets. The Company has a 32% investment in Gulfstream, a 745-mile interstate natural gas pipeline system operated jointly by the Company and The Williams Companies, Inc. Gulfstream transports natural gas from Mississippi, Alabama, Louisiana and Texas, crossing the Gulf of Mexico to markets in central and southern Florida. Gulfstream has three compressor stations. Gulfstream is directly owned 1% by Spectra Energy, 49% by Spectra Energy Partners and 50% by affiliates of The Williams Companies, Inc.

The Company has a 50% investment in SESH, a 286-mile interstate natural gas pipeline system with three mainline compressor stations owned and operated jointly by the Company and CenterPoint Energy, Inc. The Company has an 82% ownership interest in Market Hub, which owns and operates two natural gas storage facilities, Moss Bluff and Egan, with a total storage capacity of approximately 51 billion cubic feet. The Moss Bluff facility consists of four salt dome storage caverns located in southeast Texas and has access to five pipeline systems including the Texas Eastern system. The Egan facility consists of four salt dome storage caverns located in south central Louisiana and has access to eight pipeline systems, including the Texas Eastern system. The Company has a 64% ownership interest in Saltville through its ownership of Spectra Energy Partners. Saltville owns and operates natural gas storage facilities in Virginia with a total storage capacity of approximately 5 billion cubic feet. The Company has a 100% ownership interest in Bobcat, a 14 billion cubic feet salt dome facility. It has a 50% investment in Steckman Ridge, a 12 billion cubic feet.

Distribution

The Company provides distribution services in Canada through its subsidiary, Union Gas Limited (Union Gas). Union Gas is a Canadian natural gas storage, transmission and distribution company based in Ontario. The distribution business serves approximately 1.4 million residential, commercial and industrial customers in more than 400 communities across northern, south-western and eastern Ontario. Union Gas’ growing storage and transmission business offers services to customers at the Dawn Hub. Union Gas’ distribution system consists of approximately 39,000 miles of main and service pipelines. Union Gas’ underground natural gas storage facilities have a working capacity of approximately 155 billion cubic feet in 23 underground facilities located in depleted gas fields. Its transmission system consists of approximately 2,900 miles of high-pressure pipeline and six mainline compressor stations.

Western Canada Transmission & Processing

The Company’s Western Canada Transmission & Processing business consists of the BC Pipeline and BC Field Services operations, and the Natural Gas Liquids (NGL) Marketing and Canadian Midstream operations. BC Pipeline and BC Field Services provide fee-based natural gas transportation and gas gathering and processing services. BC Pipeline is regulated by the National Energy Board (NEB). BC Pipeline has approximately 1,725 miles of transmission pipeline in BC and Alberta, as well as 18 mainline compressor stations. Throughput for the BC Pipeline totaled 713 trillion British thermal units during 2011.

Field Services

Field Services consists of the Company’s 50% investment in DCP Midstream, which is accounted for as an equity investment. DCP Midstream gathers, processes, treats, compresses, transports and stores natural gas. In addition, DCP also fractionates, transports, gathers, treats, processes, stores, markets and trades NGLs. ConocoPhillips owns the remaining 50% interest in DCP Midstream. DCP Midstream owns a 27% interest in DCP Midstream Partners, LP (DCP Partners). As its general partner, DCP Midstream accounts for its investment in DCP Partners as a consolidated subsidiary. DCP Midstream operates in 26 states in the United States. DCP Midstream’s gathering systems include connections to several interstate and intrastate natural gas and NGL pipeline systems, one natural gas storage facility and one NGL storage facility. DCP Midstream gathers raw natural gas through gathering systems located in nine major natural gas producing regions: Mid-Continent, Rocky Mountain, East Texas-North Louisiana, Barnett Shale, Gulf Coast, South Texas, Central Texas, Antrim Shale and Permian Basin. DCP Midstream owns or operates approximately 62,000 miles of gathering and transmission pipeline. As of December 31, 2011, DCP Midstream owned or operated 61 natural gas processing plants, which separate raw natural gas that has been gathered on its own systems and third-party systems into condensate, NGLs and residue gas.

Company Address

Spectra Energy Corp

5400 Westheimer Court
HOUSTON   TX   77056-5310
P: +1713.6275400
F: +1302.6555049

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