Enbridge, the Canadian energy transportation and distribution company, agreed to acquire Spectra Energy in an all stock deal valued at approximately $28 billion. Spectra Energy shareholders will receive shares of Enbridge valued at roughly $41 per share, an 11.5% premium over Spectra’s previous closing price on September 2, 2016. If the transaction closes, Enbridge shareholders will own approximately … Read more
The continued selloff in energy midstream pipeline companies, represented below by the Alerian MLP Index, primarily reflects concerns about rising interest rates and future growth prospects in a world where U.S. oil and gas output does not continue to grow at such a robust rate (less volume shipped in pipelines). Spectra Energy, an energy midstream … Read more
We recently attended Spectra Energy’s Analyst Day in New York, where company management reviewed the financial and operational highlights of their four divisions and provided their 2014-2016 forecast. The company is currently divided into four reporting groups as outlined below. Source: Spectra Energy Spectra Energy Partners is a new reporting group, and has quickly become … Read more
Spectra Energy recently announced their intention to drop-down all of their U.S. transmission and storage assets to Spectra Energy Partners (SEP). Spectra Energy intends to complete this transaction by the end of the year. We estimate the value of this transaction at some $12 billion. The U.S. transmission segment contains all of Spectra’s natural gas … Read more
We recently attended the annual shareholder meeting for Spectra Energy in Houston and thought that this would be an opportune time to briefly update recent developments with the company. By way of background, Spectra Energy owns and operates a large portfolio of natural gas-related infrastructure assets. Accounting for almost half of their earnings is their … Read more
In 2007, Duke Energy split its electricity and gas businesses by spinning off Spectra Energy, which retains all of Duke’s former natural gas gathering, processing, transmission, storage, and distribution assets. Spectra Energy is one of the largest midstream companies in North America, with a well-positioned asset footprint that should continue to generate growth opportunities going … Read more