Spectra Energy Q3 Profit Rises, Tops Estimates - Quick Facts

(RTTNews) - Spectra Energy Corp (SE) reported 2013 third quarter net income from controlling interests of $263 million, or $0.39 per share, up from $179 million, or $0.27 per share, in the prior year quarter.

Ongoing net income for the quarter was $283 million or $0.42 per share, versus $179 million, or $0.27 per share during the prior year quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.33 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly operating revenues increased to $1.144 billion from last year's $1.072 billion. Four analysts estimated revenues of $1.24 billion for the quarter.

Spectra Energy said it recently completed the drop-down of the remainder of its U.S. Storage and Transmission assets into Spectra Energy Partners. The transaction transforms Spectra Energy Partners into one of the largest fee-based MLPs in North America with an enterprise value of almost $20 billion. The drop-down also allows for a significant dividend increase at Spectra Energy and significant increases in Spectra Energy Partners' distributions to unitholders. The cash to Spectra Energy from its limited partnership and general partnership distributions will support Spectra Energy's ability to raise its annual dividend by 12 cents per year, effective in the first quarter of 2014, an annual increase of about 10 percent from 2013.

Spectra Energy noted that it expects to continue annual dividend increases at this level through 2015. Spectra Energy Partners will increase its quarterly distribution, to be paid in the first quarter of 2014, by three cents per unit and expects to continue with a one cent per unit quarterly increase thereafter, resulting in an increase of 11 percent from 2013.

The company said it continues to execute on its $25 billion growth plan -- with several notable project updates.