Spectra Energy Announces 2012 Financial Plan

HOUSTON, Dec. 7, 2011 /PRNewswire/ -- Spectra Energy Corp (NYSE: SE) today announced its board of directors has approved the company's financial plan for 2012, which includes the following:

• Ongoing diluted earnings per share (EPS) target of $1.90, approximately 15 percent above 2011 target of $1.65.
• Annual dividend of $1.12, consistent with previously announced 7.7 percent increase.
• Investment of approximately $1.3 billion in expansion capital.

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"As we close out 2011, we are on track to exceed our EPS goal of $1.65. We have successfully executed on our growth plan again this year, with aggregate returns on capital employed exceeding our targeted 10 to 12 percent range," said Greg Ebel, president and chief executive officer, Spectra Energy Corp.

"We are targeting a 15 percent increase in 2012 EPS compared to our 2011 goal, significantly above our expected growth rate.  We also are pleased to reiterate in our 2012 financial plan a previously announced dividend increase of 8 cents. Given our earnings growth expectations, we anticipate future annual dividend increases of at least 8 cents per share per year," said Ebel.

"We continue to see capital investment opportunities in the $1 billion-plus range per year for the foreseeable future. In addition, we expect earnings and cash distribution growth from DCP Midstream, as it continues to take advantage of its industry-leading position by investing capital in key producing areas like the Eagle Ford, Permian, Midcontinent, Denver-Julesburg and other basins," he said        

Key assumptions underlying Spectra Energy's 2012 financial plan include:

• Composite natural gas liquids (NGL) - $1.25 per gallon
• Natural gas - $4 per million British thermal units
• Oil - $100 per barrel
• Canadian/U.S. dollar exchange rate - $1.00

The company will discuss its 2012 outlook in greater detail, including EBIT by business segment, during an analyst breakfast meeting in New York on Tuesday, January 17, 2012.

Forward-Looking Statements
This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

Forward-looking statements are based on our beliefs and assumptions. These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast, and similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results to be materially different from the results predicted. Factors that could cause actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to: state, federal and foreign legislative and regulatory initiatives that affect cost and investment recovery, have an effect on rate structure, and affect the speed at and degree to which competition enters the natural gas industries; outcomes of litigation and regulatory investigations, proceedings or inquiries; weather and other natural phenomena, including the economic, operational and other effects of hurricanes and storms; the timing and extent of changes in commodity prices, interest rates and foreign currency exchange rates; general economic conditions, including the risk of a prolonged economic slowdown or decline, or the risk of delay in a recovery, which can affect the long-term demand for natural gas and related services; potential effects arising from terrorist attacks and any consequential or other hostilities; changes in environmental, safety and other laws and regulations; results and costs of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings and general market and economic conditions; increases in the cost of goods and services required to complete capital projects; declines in the market prices of equity and debt securities and resulting funding requirements for defined benefit pension plans; growth in opportunities, including the timing and success of efforts to develop U.S. and Canadian pipeline, storage, gathering, processing and other infrastructure projects and the effects of competition; the performance of natural gas transmission and storage, distribution, and gathering and processing facilities; the extent of success in connecting natural gas supplies to gathering, processing and transmission systems and in connecting to expanding gas markets; the effects of accounting pronouncements issued periodically by accounting standard-setting bodies; conditions of the capital markets during the periods covered by the forward-looking statements; and the ability to successfully complete merger, acquisition or divestiture plans; regulatory or other limitations imposed as a result of a merger, acquisition or divestiture; and the success of the business following a merger, acquisition or divestiture. These factors, as well as additional factors that could affect our forward-looking statements, are described under the headings "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Information" in our 2010 Form 10-K, filed on February 24, 2011, and in our other filings made with the Securities and Exchange Commission (SEC), which are available via the SEC's Web site at www.sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. All forward-looking statements in this release are made as of the date hereof and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Spectra Energy Corp (NYSE: SE), a FORTUNE 500 company, is one of North America's premier natural gas infrastructure companies serving three key links in the natural gas value chain: gathering and processing, transmission and storage, and distribution. For more than a century, Spectra Energy and its predecessor companies have developed critically important pipelines and related infrastructure connecting natural gas supply sources to premium markets. Based in Houston, Texas, the company's operations in the United States and Canada include more than 19,000 miles of transmission pipeline, over 305 billion cubic feet of storage, as well as natural gas gathering and processing, natural gas liquids operations and local distribution assets. The company also has a 50 percent ownership in DCP Midstream, one of the largest natural gas gatherers and processors in the United States. Spectra Energy is a member of the Dow Jones Sustainability World and North America Indexes and the U.S. S&P 500 Carbon Disclosure Project's Carbon Disclosure Leadership Index. For more information, visit www.spectraenergy.com.

SOURCE Spectra Energy Corp

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