Spectra Energy Misses on Sales, Exceeds Earnings

Spectra Energy (NYSE: SE  ) reported earnings today, missing on the top line but beating on the bottom.

Q3 2013 sales clocked in at $1.14 billion, 6.7% above 2012's third quarter but 13.3% behind analyst expectations. But the natural gas company pulled through on earnings, with adjusted EPS clocked in at $0.42, a whopping $0.15 above Q3 2012 and $0.07 ahead of analysts' prediction.

"Spectra Energy's results were very much in line with our expectations for the quarter and the year," said President and CEO Greg Ebel in a statement today. "With the continued successful execution of our capital expansion plans, the strong performance of our newly acquired oil and natural gas liquids pipeline businesses, and the early completion of our drop down of assets into our MLP, Spectra Energy Partners (NYSE: SEP  ) , we are delivering impressive financial results and returns for our shareholders."

On the financial front, Spectra Energy's completion of its drop-down in assets to Spectra Energy Partners frees up both corporations to increase their dividends. Starting in Q1 2014, the company plans to add on $0.10 to its distribution, equivalent to a 10% increase from 2013. Spectra Energy Partners will also up its dividend for an 11% annual increase.

Spectra Energy is moving ahead with its "$25 billion growth plan," including major natural gas expansions across New York, Florida, and the Gulf Market. The company hopes to be part of the LNG export boom in the area, and has secured 650 million cubic feet per day of new long-term contracts on the Texas Eastern pipeline system.

link


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2712077, ~/Articles/ArticleHandler.aspx, 11/24/2014 11:38:31 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement