Profile: Spectra Energy Partners LP (SEP.N)

SEP.N on New York Stock Exchange

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Spectra Energy Partners, LP (Spectra Energy Partners), through its subsidiaries, is engaged in the transportation and gathering of natural gas through interstate pipeline systems with over 3,200 miles of pipelines that serve the southeastern quadrant of the United States and the storage of natural gas in underground facilities with aggregate working gas storage capacity of approximately 57 billion cubic feet that are located in southeast Texas, south central Louisiana and southwest Virginia. The Company transports, gathers and stores natural gas for a range of customers, including local gas distribution companies (LDC), municipal utilities, interstate and intrastate pipelines, direct industrial users, electric power generators, marketers and producers, and exploration and production companies. On July 1, 2011, the Company acquired Big Sandy Pipeline, LLC (Big Sandy) from EQT Corporation (EQT).

The Company’s wholly owned operations and activities are managed by its general partner, Spectra Energy Partners (DE) GP, LP, which in turn is managed by its general partner, Spectra Energy Partners GP, LLC, (the General Partner). The General Partner is wholly owned by a subsidiary of Spectra Energy Corp (Spectra Energy). As of December 31, 2011, Spectra Energy and its subsidiaries collectively owned 64% of the Company. In addition to serving the directly connected southeastern quadrant of the United States, the Company’s pipeline, storage and gathering systems have access to customers in the mid-Atlantic, northeastern and midwestern regions of the United States through a range of interconnections with pipelines.

Gas Transportation and Storage

The Company’s Gas Transportation and Storage provides interstate transportation, storage, fee-based gathering of natural gas, and storage and regasification of liquefied natural gas (LNG) for customers in the southeastern quadrant of the United States. The Company owns and operates 100% of the 1,517-mile East Tennessee interstate natural gas transportation system, which extends from central Tennessee eastward into southwest Virginia and northern North Carolina, and southward into northern Georgia. East Tennessee supports the energy demands of the southeast and mid-Atlantic regions of the United States through connections to 33 receipt points and 179 delivery points and has market delivery capability of approximately 1.7 billion cubic feet per day of natural gas. East Tennessee also owns and operates a liquefied natural gas (LNG) storage facility in Kingsport, Tennessee with a working gas storage capacity of 1.1 billion cubic feet and regasification capability of 150 million cubic feet per day. On September 1, 2011, the Company placed into service the Northeastern Tennessee (NET) project. This project provides 150,000 dekatherms per day of gas service to an electric generation plant in Hawkins County, Tennessee.

The Company owns and operates 100% of the Saltville natural gas storage facilities, which consist of 5.4 billion cubic feet of total storage capacity. The storage facilities interconnect with the East Tennessee system in southwest Virginia. The Company owns and operates 100% of the 565-mile Ozark Gas Transmission interstate natural gas transportation system, which extends from southeastern Oklahoma through Arkansas to southeastern Missouri. This system has connections to 53 receipt points and 28 delivery points and market delivery capability of approximately 0.5 billion cubic feet per day of natural gas. It also owns and operates 100% of the 365-mile Ozark Gas Gathering system that accesses the Fayetteville Shale and Arkoma natural gas production that feeds into Ozark Gas Transmission.

Spectra Energy Partners owns and operates 100% of the 68 mile Big Sandy pipeline system located in Carter, Floyd, Johnson, and Lawrence counties, of Kentucky. This system serves local producers and transports East Kentucky supply from its main receipt point to its main interconnecting delivery point for transportation to downstream markets. EQT is the shipper on the pipeline, with over 80% of the pipeline’s capacity. The system has capacity of approximately 0.2 billion cubic feet per day of natural gas. Gas Transportation and Storage’s customers include LDCs, utilities, municipalities, interstate and intrastate pipelines, industrial companies, natural gas marketers and producers, electric power generators, and exploration and production companies. During the year ended December 31, 2011, Gas Transportation and Storage’s largest customer was EQT, a natural gas production and midstream company, which accounted for 12% of its revenues.

Gulfstream

The Company owns a 49% interest in the 745-mile Gulfstream interstate natural gas transportation system, which extends from Pascagoula, Mississippi and Mobile, Alabama across the Gulf of Mexico and into Florida. The Gulfstream pipeline includes approximately 279 miles of onshore pipeline in Florida, 12 miles of onshore pipeline in Alabama and Mississippi, and 454 miles of offshore pipeline in the Gulf of Mexico. Facilities also include gas treatment facilities and a compressor station in Coden, Alabama. Gulfstream supports the south and central Florida markets through its connection to nine receipt points and 23 delivery points and has market delivery capability of 1.29 billion cubic feet per day of natural gas. As of December 31, 2011, Spectra Energy and affiliates of The Williams Companies, Inc. (Williams) owned the remaining 1% and 50% interests in Gulfstream, respectively, and jointly operated the system. In 2011, Florida Power & Light Company and Florida Power Corporation (doing business as Progress Energy Florida, Inc.) accounted for approximately 53% and 28%, respectively, of Gulfstream’s revenues.

Market Hub

The Company owns a 50% interest in Market Hub, which owns and operates two salt cavern natural gas storage facilities - the Egan and Moss Bluff facilities. Market Hub’s storage facilities offer service for Gulf of Mexico natural gas supplies, onshore Texas and Louisiana supplies, mid-continent production, non-conventional (shale and tight-sands) onshore production, and imports of LNG to the Gulf Coast. As of December 31, 2011, Spectra Energy owned the remaining 50% interest in Market Hub and operates the system. The Egan storage facility, located in Acadia Parish, Louisiana, has four storage caverns with a working gas capacity of approximately 29 billion cubic feet, and includes a 58-mile pipeline system that interconnects with eight interstate pipeline systems, including Texas Eastern.

The Moss Bluff storage facility, located in Liberty County, Texas, has four storage caverns with a working gas capacity of approximately 22 billion cubic feet, and includes a 22-mile pipeline system that interconnects with two interstate pipeline systems, including Texas Eastern, and three intrastate pipeline systems. Moss Bluff offers access to Texas, northeast and midwest markets. Market Hub provides storage services to a range of customers, including marketers, electric power generators, gas producers, pipelines and LDCs. Market Hub provides firm storage, park and loan, and wheeling services.

The Company competes with CenterPoint Energy Gas Transmission Company, Texas Gas Transmission, LLC, Fayetteville Express Pipeline LLC, Huron Shale, Florida Gas Transmission Company, LLC and NiSource.

Company Address

Spectra Energy Partners LP

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

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