uploads/2014/12/SEP.jpg

An overview of Spectra Energy’s assets

By

Updated

Spectra Energy Partners’ assets

The previous article provided a business overview of Spectra Energy Corporation (SE). In this article, we’ll discuss the key assets of its various operating segments.

Spectra Energy has 84% ownership of Spectra Energy Partners (SEP), which is a master limited partnership (or MLP). Spectra Energy Partners’ assets consist of all of Spectra Energy’s US transmission, storage, and liquids assets through a drop down in November 2013. Spectra Energy Partners trades separately in the stock exchange. The chart below offers an account of Spectra Energy Partners’ assets.

Spectra Energy Partners stores, transports, and gathers natural gas, crude oil, and natural gas liquids (or NGLs). It provides its services in various regions of the midwestern, northeastern, and southeastern United States and Canada. Through a 17,000-mile pipeline system, Spectra Energy Partners delivers crude oil and natural gas from major resource plays in the US to the market hubs.

A majority of the company’s transportation volumes are under long-term contracts. However, Spectra Energy also provides short-term contracts to accommodate seasonality in supply. The Federal Energy Regulatory Commission (or FERC) regulates most of the company’s operations.

Express-Platte adds crude oil to Spectra Energy’s portfolio

Acquired in March 2013, this pipeline system is a combination of the Express and Platte crude oil pipelines. The Platte pipeline carries crude oil from the Bakken shale and western Canada to the Midwest refineries. The Express pipeline transports crude oil to the refining markets in Montana, Wyoming, Colorado, and Utah.

Kinder Morgan Inc. (KMI) and Williams Companies Inc. (WMB) are some of the large midstream companies that operate through midstream MLPs. Kinder Morgan Energy Partners (KMP) and Williams Partners (WPZ) are MLPs that operate under KMI and WMB, respectively. These are also components of the Alerian MLP ETF (AMLP).

Read Market Realist’s article on Everything you need to know about the Kinder Morgan consolidation for more information.

Recent asset drop down

Spectra Energy (SE) continues to drop down midstream assets to Spectra Energy Partners (SEP). In November, the company contributed ~25% ownership interest in Southeast Supply Header, LLC (SESH) to SEP.

In the following section of this series, we’ll discuss the company’s distribution segment.

More From Market Realist