Premier natural gas company,
Spectra Energy Corp.
) has declared a quarterly cash dividend on its common stock of
33.5 cents per share, or $1.34 per share on an annualized basis.
The dividend is payable on Mar 10, 2014 to shareholders of record
at the close of business on Feb 14, 2014.
Spectra Energy is one of North America's premier natural gas
infrastructure plays and has strong business positions in growth
markets. Based in Houston, Texas, the company's operations in the
United States and Canada include more than 22,000 miles of
natural gas, natural gas liquids, and crude oil pipelines,
approximately 305 billion cubic feet (Bcf) of natural gas
storage, as well as natural gas gathering and processing, and
local distribution operations. The company also has a 50%
DCP Midstream Partners, LP
), the largest producer of natural gas liquids and the largest
natural gas processor in the United States.
On Nov 1, 2013, the company completed the drop-down of its U.S.
Storage and Transmission assets to its Master Limited Partnership
Spectra Energy Partners LP
). The transaction transforms Spectra Energy Partners into one of
the largest fee-based MLPs in North America with an enterprise
value of almost $20 billion.
Spectra plans to invest about $25 billion over the next decade on
fee-based gas infrastructure growth projects. The company also
plans to allocate $25 billion in growth projects through the end
of the decade.
Like most of its peers, the company faced several challenges from
volatile commodity prices, which impacted its bottom line in the
recent quarters. But with an improving price scenario, Spectra is
enjoying growth momentum. The company has an upbeat 2014 outlook
both on organic as well as inorganic growth.
Our outlook is based on the steady revenue stream provided by its
predominately natural gas pipeline business. Additionally, our
view also incorporates the benefits of SEP's recently expanded
and diversified asset portfolio as a result of SE's drop-down of
its remaining U.S. pipeline and storage assets not already in the
Spectra Energy carries a Zacks Rank #3 (Hold), implying that it
is expected to perform in line with the broader U.S. equity
market over the next 1 to 3 months.
However, there are better-ranked stocks in the oil and gas sector
LRR Energy L.P.
), which hold a Zacks Rank #1 (Strong Buy) and are expected to
outperform the market.
DCP MIDSTREAM (DPM): Free Stock Analysis
LRR ENERGY LP (LRE): Free Stock Analysis
SPECTRA ENERGY (SE): Free Stock Analysis
SPECTRA EGY PTR (SEP): Free Stock Analysis
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