http://www.morningstar.com/earnings/48099499-spectra-energy-partners-lp-sep-q4-2012.aspx

Spectra Energy Partners LP SEP
Q4 2012 Earnings Call Transcript

Transcript Call Date 02/05/2013

Operator: Good morning. My name is Susan and I will be your conference operator today. At this time, I would like to welcome everyone to the Fourth Quarter 2012 Spectra Energy Partners' 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.

I'd now like to turn the call over to Mr. Derick Smith. You may begin.

Derick Smith - Director, Investor & Public Relations: Thank you, Susan. Good morning. I'm Derick Smith, Spectra Energy Partners' Director of Investor Relations, and I'm pleased that you could join us for a review of our fourth quarter and year end 2012 earnings. This morning Laura Buss Sayavedra, our Chief Financial Officer, will cover the 2012 financial results and follow with our 2013 financial outlook. Following Laura's presentation, Julie Dill, our Chief Executive Officer, will conclude with a look ahead at 2013 and beyond before opening the floor to any questions you may have.

Before we begin, let me take a moment to remind you that some of the statements we make today about future company performance will 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 our Form 10-K and other SEC filings concerning factors that could cause these results to be different than contemplated in today's discussion.

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

With that, I will turn the call over to Laura.

Laura Buss Sayavedra - VP and CFO: Thanks, Derick. Good morning, everyone and thank you for joining us today. This morning, I am pleased to report that we delivered another solid quarter results. This rounded out a strong year, which benefited from our well-structured, fee-based portfolio. With addition of an interest in Maritimes Northeast U.S. late last year, SEP's weighted average contract life is now 13 years.

For the year, our cash available for distribution was $229 million, up 8% over 2011 and above our 2012 outlook of $222 million. Net income for the year was $194 million, an increase of $22 million over the previous year.

These strong financial results in 2012 contributed to the announcement last week of our 21st consecutive quarterly distribution increase, bringing us to $1.98 per limited partner unit on an annualized basis.

This next slide lays out the elements of our earnings results for 2012. I'm not going to spend additional time here since the drivers for 2012 net income and cash available for distribution are very similar. I know you are most interested in cash available for distribution, so let me move ahead to that discussion.

As the slide shows our total cash available for distribution grew in 2012 to $229 million, an increase of $17 million compared to 2011. This is also $7 million higher than we forecast in our original 2012 outlook.

Read our Earnings Call Transcript disclaimer.
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