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

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 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.

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.

Source: Spectra Q2 2013 Earnings