Spectra Energy and Spectra Energy Partners Secure Long-Term Contracts for Express Crude Oil Pipeline Increases Committed Contract Flow by Almost 90 Percent and Average Contract Length by About 10 Years
HOUSTON, Sept. 10, 2013 /PRNewswire/ -- Spectra Energy Corp (NY SE: SE) and Spectra Energy Partners (NYSE: SEP) today announced new long-term agreements for shipments on the Express crude oil pipeline. As a result of a recent open season, firm contracted commitments on the pipeline have increased from 119 thousand barrels per day (mbpd) to 225 mbpd, with the average contract length going from 1.5 years to more than 11 years. Contracts stemming from this open season are effective as early as October 2013 and phase in over two years.
"The success of this open season demonstrates the Express pipeline's strong positioning to meet growing oil transportation needs. We received shipping requests well in excess of the pipeline's capacity," said Duane Rae, president of Spectra Energy Liquids. "Our team has moved quickly to leverage the pipeline's growth potential, increasing the firm contract flow on Express by almost 90 percent and increasing the average contract length by about 10 years."
The company now expects 2014 EBITDA of $160 million for the Express-Platte pipeline system.
The 785-mile Express pipeline, which has a design capacity of 280 mbpd, begins in Hardisty, Alberta, and terminates in Casper, Wyoming, where it connects to the Platte pipeline system.
Non-GAAP Financial Measures
This press release includes a discussion of projected EBITDA (earnings before interest, taxes and depreciation and amortization), which is a non-GAAP measure, for the Express-Platte system. The most directly comparable GAAP measure for projected 2014 EBITDA of $160 million is earnings before interest expense and income taxes of approximately $131 million plus depreciation and amortization expense of approximately $29 million.
This press release contains forward-looking statements as defined under the federal securities laws, including projections, plans and objectives. Although Spectra Energy Corp and Spectra Energy Partners believe that expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. In addition, these statements are subject to certain risks, uncertainties and other assumptions that are difficult to predict and may be beyond the companies' control. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results may vary materially from what the companies anticipated, estimated, projected or expected. The key risk factors that may have a direct bearing on the forward-looking statements are described in the filings that each company makes with the Securities and Exchange Commission. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than as described. All forward-looking statements in this release are made as of the date hereof and the companies undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Spectra Energy Corp (NY SE: SE), a FORTUNE 500 company, is one of North America's premier pipeline and midstream companies. Based in Houston, Texas, the company's operations in the United States and Canada include more than 22,000 miles of natural gas, natural gas liquids, and crude oil pipelines, approximately 305 billion cubic feet (Bcf) of natural gas storage, as well as natural gas gathering and processing, and local distribution operations. The company also has a 50 percent ownership in DCP Midstream, the largest producer of natural gas liquids and one of the largest natural gas gatherers and processors in the United States. Spectra Energy has served North American customers and communities for more than a century. The company's longstanding values are recognized through its inclusion in the Dow Jones Sustainability World and North America Indexes and the Carbon Disclosure Project's Global 500 and S&P 500 Carbon Disclosure Leadership Indexes. For more information, visit www.spectraenergy.com.
Spectra Energy Partners, LP (NYSE: SEP) is a Houston-based master limited partnership, formed by Spectra Energy Corp (NY SE: SE), which owns interests in natural gas and crude oil pipeline and storage assets in North America, including more than 5,300 miles of transmission and gathering pipeline, approximately 57 billion cubic feet of natural gas storage, and approximately 4.8 million barrels of crude oil storage. These assets connect growing supply areas to high-demand markets for natural gas and crude oil.
SOURCE Spectra Energy Corp; Spectra Energy Partners