Spectra Energy Misses on Sales, Exceeds Earnings
Spectra Energy reported earnings today, missing on the top line but beating on the bottom.
Q3 2013 sales clocked in at $1.14 billion, 6.7% above 2012's third quarter but 13.3% behind analyst expectations. But the natural gas company pulled through on earnings, with adjusted EPS clocked in at $0.42, a whopping $0.15 above Q3 2012 and $0.07 ahead of analysts' prediction.
"Spectra Energy's results were very much in line with our expectations for the quarter and the year," said President and CEO Greg Ebel in a statement today. "With the continued successful execution of our capital expansion plans, the strong performance of our newly acquired oil and natural gas liquids pipeline businesses, and the early completion of our drop down of assets into our MLP, Spectra Energy Partners , we are delivering impressive financial results and returns for our shareholders."
On the financial front, Spectra Energy's completion of its drop-down in assets to Spectra Energy Partners frees up both corporations to increase their dividends. Starting in Q1 2014, the company plans to add on $0.10 to its distribution, equivalent to a 10% increase from 2013. Spectra Energy Partners will also up its dividend for an 11% annual increase.
Spectra Energy is moving ahead with its "$25 billion growth plan," including major natural gas expansions across New York, Florida, and the Gulf Market. The company hopes to be part of the LNG export boom in the area, and has secured 650 million cubic feet per day of new long-term contracts on the Texas Eastern pipeline system.
The article Spectra Energy Misses on Sales, Exceeds Earnings originally appeared on Fool.com.Fool contributor Justin Loiseau has no position in any stocks mentioned. You can follow him on Twitter, @TMFJLo, and Motley Fool CAPS, @TMFJLo.The Motley Fool recommends Spectra Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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