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Page 3 - Liquids

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





Ongoing EBITDA from Liquids was $60 million in fourth quarter 2017, compared with $63 million in fourth quarter 2016. The decrease is mainly due to higher integrity and maintenance expenses.


For the year 2017, ongoing EBITDA for Liquids was $260 million, compared with $237 million in 2016. The increase is primarily a result of increased revenues due to the Express Enhancement project placed into service in October 2016.




Other” net expenses were $35 million in fourth quarter 2017, compared with $19 million in fourth quarter 2016.


For the year 2017, ongoing net expenses were $89 million, compared with net expenses of $82 million in 2016. The 2017 ongoing net expense excludes special items of $38 million, primarily from merger-related costs. 


Interest Expense


Interest expense was $74 million in fourth quarter 2017, compared with $59 million in fourth quarter 2016, reflecting lower capitalized interest and higher average debt balances in 2017.


For the year 2017, interest expense was $265 million, compared with $224 million in 2016, reflecting higher average debt balances in 2017 and lower capitalized interest.


Liquidity and Capital Expenditures


Total debt outstanding at Spectra Energy Partners as of December 31, 2017, was $8.5 billion. Available liquidity at the end of the quarter was $353 million. 


Including contributions from noncontrolling interests of $418 million, total capital and investment spending for the year was approximately $1.8 billion, and consisted of about $1.6 billion of growth capital expenditures and about $243 million of maintenance capital expenditures. Maintenance capital expenditures include a $44 million special item related to the 2016 Texas Eastern pipeline incident.


In 2017, Spectra Energy Partners received net proceeds of $171 million through its "At the Market" (ATM) equity issuance program, with $58 million raised in the fourth quarter.


Including contributions from noncontrolling interests, Spectra Energy Partners has $1.6 billion of capital expansion planned in 2018, which is expected to be funded through a combination of debt, equity, including the use of its ATM program, and return of capital from joint venture asset-level financings.


In early January, Texas Eastern issued $800 million of long-term debt split evenly between 10 and 30-year tranches at attractive coupons of 3.50% and 4.15%. The net proceeds from the offering were used to repay an affiliate loan of $400 million from SEP and remaining proceeds were distributed to SEP, which the Partnership used to pay down commercial paper and revolver borrowings.