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Page 1 - Exhibit 99.1

SPECTRA ENERGY PARTNERS, LP filed this Form 8-K on 2/15/2018


 

Exhibit 99.1

 

 

 

Spectra Energy Partners Reports Fourth Quarter and Year-End 2017 Results

 

HOUSTON, Feb. 15, 2018 – Spectra Energy Partners, LP (NYSE: SEP) today reported fourth quarter 2017 financial results and provided a quarterly business update.

 

HIGHLIGHTS AND PRESIDENT’S COMMENT

 

·Successfully brought 6 projects online, totaling more than $2.0 billion
·Announced 41st consecutive quarterly distribution increase, representing a 7.3% increase over the distribution declared in February 2017
·Completed SEP’s Incentive Distribution Rights (IDR) restructuring

 

“Driven primarily by contributions from our successful expansion program, Spectra Energy Partners achieved yet another year of strong performance, delivering increased earnings, cash flows and distributions for our investors,” said Bill Yardley, Chairman and President of Spectra Energy Partners.

 

“Our 2017 results reinforce the strength and stability of our fee-based business model and exceptional asset footprint which delivered strong operational performance and achieved top delivery days across our major U.S. pipelines over the recent winter period. We continue to create value for our investors now and into the future, as demonstrated by the recent announcement of our 41st consecutive quarterly distribution increase.

 

“We also are pleased to have successfully completed the elimination of SEP’s incentive distribution rights, which enhances SEP’s long-term value proposition and better positions SEP for extended growth,” Mr. Yardley concluded.

 

U.S. TAX REFORM

 

On December 22, 2017, the United States implemented U.S. Tax Reform. The “Tax Cuts and Jobs Act” (TCJA) was signed into law and became enacted for tax purposes. Substantially all of the provisions of the TCJA are effective for taxation years beginning after December 31, 2017. The most significant change included in the TCJA, with respect to SEP’s 2017 financial statements, was a reduction in the corporate federal income tax rate from 35% to 21%.

 

This tax rate change resulted in a non-cash $860 million charge in the fourth quarter 2017 to reflect the establishment of an estimated regulatory liability for the cost of service assets of SEP. This charge has no immediate net impact to the rate base of the affected entities. In the event of a future rate case, and subject to further regulatory guidance, we anticipate that the charge may be required to be amortized over the remaining useful life of the affected assets and would be one of many factors to be considered in establishing go-forward rates. SEP expects no material impact to cash flows over the 2018-2020 plan timeframe as a result of the TCJA.