An overview of Spectra Energy



A snapshot of Spectra Energy

Spectra Energy Corporation (SE) is a Texas-based midstream energy company. It primarily deals in natural gas gathering and processing, transmission and storage, and distribution.

The company provides natural gas services in the northeastern and southeastern United States, the Maritime Provinces in Canada, the Pacific Northwest in the United States and Canada, and in the province of Ontario, Canada. Spectra Energy also owns and operates a crude oil pipeline system in Canada and the US.

As of December 31, 2013, Spectra Energy operated 21,000 miles of natural gas transmission pipeline and provided storage facility aggregating 305 billion cubic feet (or Bcf). It also had 1,700 miles of crude oil transportation pipeline.

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Spectra Energy’s operating segments

Spectra Energy has four reportable segments:

  1. Spectra Energy Partners
  2. Distribution
  3. Western Canada Transmission & Processing
  4. Field Services

Spectra Energy owns a 50% interest in DCP Midstream, LLC (DPM). Spectra Energy’s Field Services segment conducts natural gas gathering business and produces and markets natural gas liquids (or NGLs) in the US. This segment is operated by DCP Midstream.

One-year share price is steady

In the past year, Spectra Energy’s share price has gone up marginally by ~7%. It went up ~26% by the first week of September, before falling down to its current level. Spectra Energy’s share has relatively underperformed some of the other midstream energy operators like William Companies Inc. (WMB), Kinder Morgan Inc. (KMI), and AGL Resources (GAS).

In the past year, Williams Companies’ share is up 21.4%, Kinder Morgan’s share is up 16.7%, and AGL Resources’ share is up 13.2%. In comparison, the SPDR S&P 500 ETF (SPY) is up nearly 15% during the same period. SPY tracks the broad market indicator S&P 500 Index.

Read the following article to find out about the company’s assets and business in depth.


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