This Pipeline Company Is Prepping for Growth

With EPA regulations on the flaring of natural gas slated for 2015, infrastructure to accommodate the rapid rise in production will be in high demand. That's why I am not necessarily worried when a company like Spectra Energy (NYSE: SE  ) has a quarterly release that missed estimates. What I looked for in Spectra's report is management's vision for the future.

Spectra Energy already has a dynamic portfolio of transmission and storage assets ready to serve the natural gas market, but it is not resting on its laurels. Projects are currently in the works for large capacity upgrades in 2013 and 2015 through partnerships with other big industry names.

Spectra isn't concentrating only on overall capacity, but geographical location as well. In 2015, they will be adding an additional 1 billion cubic feet per day of transport capacity, connecting the United States and Canada from Ohio to Ontario. But what really excites me are the two pipelines they are engaging in with Phillips 66 (NYSE: PSX  ) and DCP Midstream (NYSE: DPM  ) . These will connect lucrative fields in both the Eagle Ford and Permian basins to the natural gas liquids hotspot, Mont Belvieu. Access to this area is critical because of its existing infrastructure and proximity to petrochemical feedstock companies along the Gulf of Mexico.

With these prospects, shareholders should be confident in the ways that Spectra Energy management is employing its capital and should look forward to a bright future for years to come.

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Joel South has no positions in the stocks mentioned above. Taylor Muckerman has no positions in the stocks mentioned above. The Motley Fool owns shares of Spectra Energy. Motley Fool newsletter services recommend DCP Midstream Partners and Spectra Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Taylor Muckerman

Taylor is an Associate GM in our Fool International operations. Prior to that he covered all things Energy + Materials as an analyst. Over the years, he has built an investing skill set to rely on when evaluating companies inside and out. While at the Fool, he has made appearances on CNBC and Fox Business. In addition, he completed his MBA at the University of Maryland and will sit for the Level II CFA Exam.

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