Spectra Energy Corp. (SE), Spectra Energy Partners, LP (SEP): Can Natural Gas and Special Tax Status Keep These Dividend Stocks Soaring?

Page 1 of 2

Spectra Energy Corp. (NYSE:SE)Spectra Energy Corp. (NYSE:SE) and Spectra Energy Partners, LP (NYSE:SEP) reported earnings this week, tag-teaming an asset rearrangement that Mr. Market expects to bring plenty of profits for both companies. With earnings data in and details announced, here’s the latest on your dividend stocks.

Number crunching
On the top line, Spectra Energy Corp. (NYSE:SE)’s operating revenue clocked in $1.220 billion, 9.7% above Q2 2012, but slightly less than analysts’ $1.264 billion projections.

The same story held true on the bottom line. Spectra reported adjusted EPS of $0.30, $0.03 below last year’s second quarter and $0.02 below analysts’ estimates.

For a peck of perspective, here’s how Spectra Energy Corp. (NYSE:SE)’s done over the last five years. While sales have ended up more or less where they were in August 2008, adjusted EPS has dropped off 30%, mostly over the last couple years:

SE Revenue TTM Chart

SE Revenue TTM data by YCharts

Putting numbers in place
Although analysts were watching the numbers to see how much earnings Spectra Energy Corp. (NYSE:SE) pocketed this past quarter, the real news came from Spectra Energy Corp. (NYSE:SE)’s continued asset “drop-down” to Spectra Energy Partners, LP (NYSE:SEP). The former will hand off all remaining U.S. transmission and storage assets, as well as all remaining liquid assets, to the latter, paving the way for Partners to take advantage of a lucrative master limited partnership (MLP) tax status.

While that’s good news for Spectra Energy Partners, LP (NYSE:SEP), it also paves the way for Spectra Energy Corp. (NYSE:SE) to focus on lucrative transmission projects. Just two weeks ago, the company announced that it would be teaming up with NextEra Energy, Inc. (NYSE:NEE) to build Florida’s third major natural gas pipeline. The project is priced at $3 billion, but will vastly improve the state’s gas infrastructure as regional demand continues to head higher.

anImage

Source: Spectra Q2 2013 Earnings

Spectra’s also got its eye on new transmission in the Marcellus Shale region. Chesapeake Energy Corporation (NYSE:CHK) marketing is working through the contracting for Spectra on a $500 million, 73-mile pipeline that will link the reserves to the Gulf Coast.

anImage

Source: Spectra Q2 2013 Earnings

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!