Spectra Energy

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Spectra Energy Corporation
Type Public
Traded as NYSESE
S&P 500 Component
Industry Oil & Gas Pipelines
Headquarters Houston, Texas, USA
Key people Gregory Ebel, President & CEO
Revenue Increase$5.351 billion USD (2011)[1]
Operating income Increase$1.763 billion USD (2011)[1]
Net income Increase$1.184 billion USD (2011)[1]
Employees 5,700 (2011)[2]
Website www.spectraenergy.com

Spectra Energy Corp is a S&P 500 company headquartered in Houston, Texas, that operates in three key areas of the natural gas industry: transmission and storage, distribution, and gathering and processing. Spectra was formed in late 2006 from the spin-off from Duke Energy. Spectra owns the Texas Eastern Pipeline (TETCo), a major natural gas pipeline which brings gas from the Gulf of Mexico coast in Texas to the New York City area. It is one of the largest pipeline systems in the United States.[3]

History[edit]

In 2002, Duke Energy acquired Westcoast Energy, a Canadian corporation, which owned Chatham, Ontario-based Union Gas, regulated under the 1998 Ontario Energy Board Act.

On December 29, 2006 Standard & Poor's added Spectra Energy Corp. to its S&P 500 Index, replacing Parametric Technology Corp. (NASDAQPMTC), a software company, which then moved to the S&P MidCap 400 list instead.[4] Spectra began trading on the New York Stock Exchange under the ticker symbol SE.

On January 3, 2007, Duke Energy completed the spin-off of its natural gas business, including Westcoast Energy and Union Gas, to form Spectra Energy. Duke Energy shareholders received 1 share of Spectra Energy for every 2 shares of Duke Energy.

By early August 2007, the S&P 500 breached its first 10% correction in over four years, and the shares of Spectra Energy Corp. sunk to their lowest point since trading had begun in December 2006, after the company announced that second quarter earnings had dropped 39 percent.[5]

In 2009, the company's financial performance had improved and had a total shareholder return of 38.3 percent.

In 2011, Spectra Energy achieved record net income and surpassed its earnings target by more than 7 percent. And, in 2011, the company increased its annual dividend to $1.12, representing a nearly 8 percent increase.[citation needed]

Operations[edit]

Spectra Energy develops and operates pipelines in addition to natural gas gathering and processing, transporting, storing and distributing for North American markets.

Spectra Energy owns and operates natural gas processing plants and more than 3,500 miles of gathering pipelines in Western Canada. It also has a 50 percent ownership interest in DCP Midstream, one of the largest natural gas liquids producer in North America.

Additionally, Spectra Energy owns and operates one of the largest long-haul natural gas pipeline networks in North America. Spectra Energy's more than 19,000 miles transmission pipeline system receives natural gas from major North American producing regions for delivery to customers primarily in these areas: Mid-Atlantic, New England and Southeastern U.S; Ontario, Alberta, British Columbia & U.S. Pacific Northwest

Spectra Energy also owns or has interests in underground natural gas storage facilities with a working capacity of about 305 Bcf (billion cubic feet) and Spectra Energy provides natural gas sales and distribution service to about 1.3 million residential, commercial and industrial customers in Ontario through our subsidiary, Union Gas Limited.

Projects[edit]

Spectra Energy has numerous projects in North America as it adheres to guidelines established by The Federal Energy Regulatory Commission (FERC), the lead permitting agency for U.S. interstate pipeline projects. FERC is an independent agency that regulates the interstate transmission of electricity, natural gas, and oil.

Spectra Energy's Western Canadian projects are regulated by the National Energy Board (NEB), an independent federal agency established in 1959 by the Parliament of Canada to regulate international and interprovincial aspects of the oil, gas and electric utility industries. The NEB is accountable to Parliament through the Minister of Natural Resources Canada.

The Ontario Energy Board (OEB) regulates Spectra Energy's Union Gas projects as well as Ontario's natural gas and electricity industries. The OEB also provides advice on energy matters referred to it by the Minister of Energy and the Minister of Natural Resources.[citation needed]

Leadership[edit]

Gregory L. Ebel (born 1964 in Ottawa, Canada) is president and chief executive officer of Spectra Energy Corp and a member of the company’s board of directors. He also serves on the board of directors for DCP Midstream, a joint venture between Spectra Energy and ConocoPhillips, and a leader in natural gas gathering and processing and the production and marketing of natural gas liquids.

Career

Ebel has broad experience in the energy and finance fields, in both the public and private sectors. Prior to assuming his current role in 2009, Ebel was Spectra Energy’s chief financial officer. He also has served as president of Union Gas, Spectra Energy’s large natural gas utility company in Ontario, Canada. Ebel served as vice president of investor and shareholder relations and as managing director of mergers and acquisitions for Duke Energy. Prior to his Duke Energy roles, Ebel served as vice president of strategic development for Westcoast Energy, headquartered at the time in Vancouver, B.C., which is currently an indirect subsidiary of Spectra Energy.[citation needed]

Environmental Record[edit]

For 2010, Spectra Energy was listed in the Newsweek green rankings, with a ranking of 280 out of the 500 largest publicly traded corporations in America. The listing was based on environmental impacts, green policies, and a reputation survey.

Spectra Energy may be considered the single largest private-sector source of greenhouse gases in British Columbia.[6] Since it co-owned DCP Midstream Partner with ConocoPhillips, Spectra Energy was reported in 2005 to emit 19,746 tons of nitrogen oxides and 9,286 tons of volatile organic compounds per year.[7] In 2009 Health and Safety was at risk with a blow off at Clearville,Pa station.

Aboriginal Relations[edit]

Spectra Energy’s Canadian businesses have established several bursaries, or scholarships, and supported programs to encourage educational opportunities for Aboriginal peoples. Spectra Energy provided:

  • Bursaries to eight Aboriginal students at the University of Northern British Columbia in Prince George, British Columbia, to help in their university education;
  • Support for professional development programming at the Banff Centre, Banff, Alberta;
  • A Fourth Class Power Engineering Program through Northern Opportunities to provide education and training to 16 students, with a view to future employment in our industry upon graduation;
  • A bursary for Aboriginal students enrolled in the Northern School of Medicine;
  • Sponsorship of a pre-medical entry program for students at the Six Nations Polytechnic post- secondary school;
  • Bursary funds for students of Aamjiwnaang First Nations enrolled in a post-secondary program; and
  • Post-secondary and graduate scholarships and high school awards for Mi’kmaq and Maliseet students in Nova Scotia and New Brunswick.[citation needed]

Spectra Energy’s Western Canada Transmission and Processing (Western Canada) business supports a variety of programs to promote marketable skills in Aboriginal communities. Spectra Energy co-sponsored, in 2010, the Skill Builder Group Coldwater Utilities Boot Camp at the Nicola Valley Institute of Technology (NVIT), in which 12 Aboriginal students learned specific training – such as fall protection, first aid and heavy equipment operator skills– that prepares them for job opportunities in the utility industry

Spectra Energy’s Western Canada business has also invested in Aboriginal leadership, sponsoring the Banff Centre's Aboriginal Leadership and Management program since 2007. The program educates business, government and community leaders in areas such as strategic planning, economic development, principles and practices of good governance and leadership development skills.[citation needed]


References[edit]

  1. ^ a b c http://finance.yahoo.com/q/is?s=SE&annual
  2. ^ http://finance.yahoo.com/q/pr?s=SE
  3. ^ FERC pipeline codes
  4. ^ S&P changes makeup of indexes, Spectra set to become index component, By Ana Campoy, MarketWatch, Dec 20, 2006
  5. ^ Midday Leaders & Laggards: S&P 500, forbes.com, Associated Press, 08.06.07
  6. ^ "From carbon steam to cash flow". Globe and Mail. 2007-03-29. Retrieved 2008-05-18. 
  7. ^ "Industry and Clean Air". The Oklahoman. Retrieved 2008-05-18. [dead link]

External links[edit]