Nov. 6, 2009 (PR Newswire) --

HOUSTON, Nov. 6 /PRNewswire-FirstCall/ -- Spectra Energy Partners, LP (NYSE: SEP) today reported third quarter 2009 net income of $40.4 million, or $0.48 per limited partner unit, compared with $24.3 million, or $0.34 per limited partner unit, for the third quarter 2008.

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The 66 percent increase in net income and 41 percent increase in earnings per limited partner unit resulted primarily from the addition of Ozark Gas Transmission and Ozark Gas Gathering earnings during the quarter and earnings growth from expansion projects across the other businesses.

Cash available for distribution was $55.2 million for the quarter, compared with $37.5 million in the third quarter 2008.

"Spectra Energy Partners delivered strong third quarter results," said Gregory J. Rizzo, president and chief executive officer. "Our assets continued to perform well, and we benefited from a full quarter's earnings from the Ozark assets as well as earnings from our organic growth projects."

"Net income and cash available for distribution continue to grow, and we are pleased to have recently announced our eighth consecutive increase in quarterly distributions," continued Rizzo. "Spectra Energy Partners is financially well positioned to continue pursuing accretive growth opportunities that will enhance unitholder value."

Results from Operations

Spectra Energy Partners reported operating income of $26.1 million for the third quarter 2009, compared with $10.3 million in the third quarter 2008. The increase was primarily due to the addition of the Ozark assets in May 2009 and the contribution from the East Tennessee Natural Gas expansion projects placed into service in the fourth quarter of 2008.

Equity Investment in Gulfstream Natural Gas System, L.L.C. (Gulfstream)

Spectra Energy Partners recognized $8.3 million of equity earnings from its 24.5 percent interest in Gulfstream in the third quarter 2009, compared with $8.6 million in the third quarter 2008.

The 2009 period benefited from Phase III and Phase IV expansion projects placed into service during the second half of 2008. Earnings from expansion projects were offset by higher interest expense in 2009 attributable to a $300 million debt issuance by Gulfstream during the second quarter.

For the quarter, Spectra Energy Partners' share of Gulfstream's cash available for distribution was $14.4 million, compared to $12.8 million in the third quarter 2008.

Equity Investment in Market Hub Partners (MHP)

Spectra Energy Partners recognized $10.3 million of equity earnings from its 50 percent interest in MHP during the third quarter 2009, compared with $9.0 million in the third quarter 2008. The increased equity earnings for the quarter primarily reflect higher revenues from the phase-in of the Egan storage facilities expansion.

For the quarter, Spectra Energy Partners' share of MHP's cash available for distribution was $11.3 million, compared to $9.9 million in the third quarter 2008.

Interest Income and Expense

Interest income decreased $0.6 million in the third quarter 2009 due to the sale of all remaining marketable securities originally purchased with a portion of the Initial Public Offering proceeds.

Lower rates on credit facility borrowings resulted in decreased interest expense of $0.5 million for the third quarter 2009 compared to the same period in 2008.

Income Tax Expense

As a master limited partnership, Spectra Energy Partners is not subject to federal income taxes, but is subject to state income taxes. Income tax expense of $0.4 million was reported for the third quarter 2009, compared to $0.2 million tax expense in the third quarter 2008.

Capital Expenditures and Equity Investments

During the quarter, Spectra Energy Partners spent $3.6 million for expansion and maintenance capital in the Gas Transportation and Storage segment and invested an additional $1.0 million in Gulfstream and $7.4 million in MHP for expansion projects.

Additional Information

An analyst conference call is scheduled for 9:00 a.m. CT today, November 6, 2009, to discuss Spectra Energy Partners' third quarter results. The webcast and conference call can be accessed via the investor relations section of Spectra Energy Partners, LP's web site or by dialing (888) 252-3715 in the United States or (706) 634-8942 outside the United States. The Conference ID is 33814460.

Please call in 5 to 10 minutes prior to the scheduled start time. A replay of the conference call will be available after 11:00 a.m. CT, November 6, 2009, until 5:00 p.m. CT, February 5, 2010, by dialing (800) 642-1687 with Conference ID 33814460. The international replay number is (706) 645-9291 with Conference ID 33814460. A replay and transcript also will be available by accessing the investor relations section of Spectra Energy Partners' web site at http://www.spectraenergypartners.com.

Forward Looking Statements

This release includes "forward-looking statements" which represent our intentions, plans, expectations, assumptions and beliefs about future events.