Spectra Energy Q4 Results Beat Estimates - Update

(RTTNews) - Spectra Energy Corp. (SE), which owns and operates natural gas-related energy assets, Tuesday reported a higher fourth-quarter profit, on increased revenues. Earnings per share and revenues topped analysts' expectations.

For the fourth quarter, net income attributable to controlling Interests increased to $236 million from $213 million in the prior year. Earnings per share for the quarter was $0.35, up from $0.32 in the year ago quarter.

Ongoing earnings per share grew to $0.41 from last year's $0.32. Analysts polled by Thomson Reuters expected the company to report earnings of $0.38 per share for the quarter. Analysts' estimates typically exclude special items.

The company noted that as a result of Spectra Energy's 2013 dropdown of U.S. assets into Spectra Energy Partners, the firm will utilize earnings before interest, taxes, depreciation and amortization, or EBITDA and distributable cash flow as its primary reporting measures. Directly related to this, Spectra Energy has a new reporting segment, Spectra Energy Partners.

For the quarter, Spectra Energy's reported EBITDA was $787 million, up from $663 million in the prior-year quarter. Excluding special items of $11 million related to dropdown transaction costs, ongoing EBITDA was $798 million, compared to $663 million last year.

Distributable cash flow for fourth quarter increased to $296 million from $161 million a year ago.

Operating revenues for the quarter grew to $1.57 billion from $1.35 billion in the same quarter last year. Three analysts estimated revenues of $1.48 billion for the quarter.

Spectra Energy Partners, LP (SEP) reported fourth-quarter net Income - controlling interests of $546 million, up from $146 million in the prior year.

Excluding two special items related to the dropdowns, a $354 million tax benefit for the quarter related to the elimination of deferred income tax liabilities and $1 million related to transaction costs, ongoing net income from controlling interests was $193 million for the fourth quarter 2013.

Operating revenues increased to $520 million from $441 million in the prior year. Distributable cash flow was $120 million, compared to $54 million in the prior-year quarter.

Greg Ebel, CEO, said, ''Spectra Energy Partners performed well in the fourth quarter, closing out a great year of transformative acquisitions, major asset dropdowns from its general partner, Spectra Energy, continued solid performance from its fee-based assets, and consistent distribution growth for its unitholders." SE closed Monday's regular trading at $35.34 on the NYSE, while SEP ended at $43.03.