Spectra Energy Corporation plans to deploy $1.4 billion in investment capital in 2011, saying Wednesday its board also approved a capital expenditure rate of $1 billion/year "for the foreseeable future."
The Houston-based gas transportation, storage, gathering and processing company last month said it acquired from Spectra Energy Partners an additional 24.5% stake in the Gulfstream Natural Gas System for $330 million. In July, it said it would pay $540 million to buy the Bobcat Gas Storage saltdome facility and development project in Louisiana from Haddington Energy Partners III LP and GE Financial.
At the time of the Bobcat acquisition, Spectra President and CEO Greg Ebel said the company planned to invest $1 billion/year in "growth" capital through 2014, and earn return on capital employed in the 10-12% range.
"As we close out 2010, we are on track to meet the financial goals we set for the year, including exceeding our stated 2010 ongoing EPS target of $1.42. We have successfully executed on our growth plan this year, placing into service, on time and on budget, five projects totaling $900 million in expansion capital, with returns on capital employed well in excess of our targeted 10 to 12 percent range," Ebel said in a statement Wednesday.
"We continue to see capital investment opportunities of at least $1 billion per year for the foreseeable future," he said.
The company's "ongoing" EPS target is $1.65, its statement added.
Spectra, which operates 19,100 miles of pipeline, is a 50% owner in DCP Midstream, a gas gathering and processor that Ebel said is well-positioned.
"In addition, given its leading position in key producing areas such as the Eagle Ford, Permian and Wattenberg basins, we expect continued earnings growth, on a commodity-neutral basis, at DCP Midstream. A portion of that growth will be funded by DCP Midstream Partners, which will allow DCP Midstream to continue paying attractive dividends to its parent sponsors, Spectra Energy and ConocoPhillips," he said.
The Houston-based gas transportation, storage, gathering and processing company last month said it acquired from Spectra Energy Partners an additional 24.5% stake in the Gulfstream Natural Gas System for $330 million. In July, it said it would pay $540 million to buy the Bobcat Gas Storage saltdome facility and development project in Louisiana from Haddington Energy Partners III LP and GE Financial.
At the time of the Bobcat acquisition, Spectra President and CEO Greg Ebel said the company planned to invest $1 billion/year in "growth" capital through 2014, and earn return on capital employed in the 10-12% range.
"As we close out 2010, we are on track to meet the financial goals we set for the year, including exceeding our stated 2010 ongoing EPS target of $1.42. We have successfully executed on our growth plan this year, placing into service, on time and on budget, five projects totaling $900 million in expansion capital, with returns on capital employed well in excess of our targeted 10 to 12 percent range," Ebel said in a statement Wednesday.
"We continue to see capital investment opportunities of at least $1 billion per year for the foreseeable future," he said.
The company's "ongoing" EPS target is $1.65, its statement added.
Spectra, which operates 19,100 miles of pipeline, is a 50% owner in DCP Midstream, a gas gathering and processor that Ebel said is well-positioned.
"In addition, given its leading position in key producing areas such as the Eagle Ford, Permian and Wattenberg basins, we expect continued earnings growth, on a commodity-neutral basis, at DCP Midstream. A portion of that growth will be funded by DCP Midstream Partners, which will allow DCP Midstream to continue paying attractive dividends to its parent sponsors, Spectra Energy and ConocoPhillips," he said.
