Spectra Energy Corporation
) has planned its finances for 2013. The company projected its
diluted earnings per share (EPS) at $1.50 for 2013 and the annual
dividend to increase by 10 cents to reach $1.22. These are
consistent with its earlier forecasts.
The company intends to allocate about $1.4 billion in 2013 for
expansion. This is in sync with Spectra Energy's long-term growth
plan of $1.5 billion average annual growth capital expenditure
(capex). The company has assumed the expansion capex and
maintenance capex to be $1.4 billion and $790 million
respectively, in 2013.
The company's proposed EPS growth in the range of 6% as well as
dividend growth of around 8 cents annually will facilitate the
company to enhance value for shareholders for the coming years.
Spectra Energy holds a positive outlook in both the near and
longer term with major growth prospects expected in all the
business units. The company plans to allocate an amount of $25
billion in growth projects through the end of the decade.
Further, momentum will be driven by the advancing of master
limited partnership (MLP) dropdown strategy through the recent
The company has set aside approximately $10 billion for its U.S.
Transmission segment; around $7 billion in Western Canada; at
least $6 billion at DCP Midstream; over $1 billion at their Union
Gas distribution business in Canada; and in excess of $2 billion
in crude oil and liquids pipelines, including the Express-Platte
acquisition, for prospective growth opportunities along with the
Recently, Spectra acquired the Express-Platte pipeline from
Kinder Morgan Energy Partners LP
). The acquisition is expected to close during the first half of
2013 and be value accretive immediately, providing immense upside
in the growing crude oil transportation and storage space.
The other companies in the oil and gas sector like -
Stone Energy Corporation
) - have allocated $1.5 billion and $650 million, respectively,
as capex for 2013.
Spectra Energy holds a Zacks Rank #3, which is equivalent to a
Hold rating for a period of one to three months.
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