Spectra Energy Corp SE
Q3 2012 Earnings Call Transcript

Transcript Call Date 11/01/2012

Operator: Good morning. My name is Lindy, and I will be your conference operator today. At this time, I would like to welcome everyone to the Spectra Energy Quarterly Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

Thank you. Mr. Arensdorf, you may begin your conference.

John R. Arensdorf - Chief Communications Officer: Thanks, Wendy, and good morning, everyone. Welcome to Spectra Energy's third quarter 2012 earnings review. I'd just like to start by saying our thoughts are with those of you on the East Coast who may have been affected by Hurricane Sandy and we hope you are safe, warm and dry and we appreciate you joining us today.

Leading today's discussion will be Greg Ebel, our President and Chief Executive Officer and Pat Reddy, our Chief Financial Officer. Both Greg and Pat will discuss our quarterly results and provide more color around our strategic plans to enhance the value Spectra Energy delivers to its shareholders. We'll then open the lines for your questions.

But before we begin, I'll take a moment to remind you that some of the things we will discuss today concern future Company performance and include forward-looking statements within the meanings of the securities laws. Actual results may materially differ from those discussed in these forward-looking statements. You should refer to the additional information contained in Spectra Energy's Form 10-K and in our other SEC filings, concerning factors that could cause these results to be different from those contemplated in today's discussion.

In addition, today's discussion includes certain non-GAAP financial measures as defined by SEC Reg G. A reconciliation of those measures to the most directly comparable GAAP measures is available on our Investor Relations website at

With that, I'll turn it over to Greg.

Gregory L. Ebel - President and CEO: Thanks very much, John, and good morning everybody. I want to echo John's comments and concerns for those of you in the Northeast recovering from the great storm particularly our customers and employees. As you have seen from our earnings release this morning Spectra Energy delivered ongoing third quarter results of $179 million or $0.27 per share. Earnings for the quarter are down year-on-year basically because of weak commodity prices affecting earnings at both DCP Midstream and at Empress.

However, our other businesses continued to perform well in fact on a commodity neutral basis, our year-to-date earnings are very much in line with our expectations. Even with the current weakness in commodity prices, we remain optimistic about longer term NGL fundamentals. For example, we expect to see growth in propane exports starting later this year and significantly increase ethane demand by the petrochemical sector over the next several years along the Gulf Coast and elsewhere in North America.

So, our view tends to be strong fundamentals and expanding market opportunities longer-term. In the near-term, we expect some commodity choppiness, but that's nothing we haven't managed through in the past, unfortunately thanks to the size and strength of the business we're able to maintain our focus on the longer-term and take advantage of the significant growth opportunities (before) both Spectra Energy and our joint venture DCP.

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