Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2014 | |
Document and Entity Information [Abstract] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 30-Sep-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q3 |
Trading Symbol | 'SEP |
Entity Registrant Name | 'SPECTRA ENERGY PARTNERS, LP |
Entity Central Index Key | '0001394074 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 289,551,072 |
Entity General Partner, Units Outstanding | 5,909,206 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Operating Revenues | ' | ' | ' | ' | ||||
Transportation of natural gas | $409 | $357 | $1,237 | $1,081 | ||||
Transportation of crude oil | 77 | 71 | 218 | 151 | ||||
Storage of natural gas and other | 72 | 66 | 215 | 213 | ||||
Total operating revenues | 558 | 494 | 1,670 | 1,445 | ||||
Operating Expenses | ' | ' | ' | ' | ||||
Operating, maintenance and other | 175 | 163 | 497 | 432 | ||||
Depreciation and amortization | 73 | 66 | 216 | 192 | ||||
Property and other taxes | 30 | 31 | 120 | 95 | ||||
Total operating expenses | 278 | 260 | 833 | 719 | ||||
Operating Income | 280 | 234 | 837 | 726 | ||||
Other Income and Expenses | ' | ' | ' | ' | ||||
Equity in earnings of unconsolidated affiliates | 36 | 23 | 93 | 65 | ||||
Other income and expenses, net | 10 | 22 | 19 | 50 | ||||
Total other income and expenses | 46 | 45 | 112 | 115 | ||||
Interest Expense | 54 | 105 | 183 | 299 | ||||
Earnings Before Income Taxes | 272 | 174 | 766 | 542 | ||||
Income Tax Expense (Benefit) | 1 | -2 | 29 | 0 | ||||
Net Income | 271 | 176 | 737 | 542 | ||||
Net Income—Noncontrolling Interests | 7 | 4 | 16 | 12 | ||||
Net Income—Controlling Interests | 264 | 172 | 721 | 530 | ||||
Calculation of Limited Partners’ Interest in Net Income: | ' | ' | ' | ' | ||||
Net Income—Controlling Interests | 264 | 172 | 721 | 530 | ||||
Less: General partner’s interest in net income | 48 | 14 | 135 | 38 | ||||
Limited partners’ interest in net income | $216 | $158 | $586 | $492 | ||||
Weighted-average limited partner units outstanding—basic and diluted | 288 | [1],[2] | 113 | [1],[2] | 286 | [1],[2] | 109 | [1],[2] |
Net income per limited partner unit-basic and diluted (in dollars per share) | $0.75 | [1] | $1.40 | [1] | $2.05 | [1] | $4.51 | [1] |
Distributions paid per limited partner unit | $0.57 | $0.51 | $1.67 | $1.50 | ||||
[1] | Weighted average limited partners units outstanding used in the calculation of net income per limited partner unit for the period prior to the November 1, 2013 U.S. Assets Dropdown have not been recast. See Note 4 for further information. | |||||||
[2] | As discussed in Note 1, the Condensed Consolidated Financial Statements for periods prior to the November 1, 2013 U.S. Assets Dropdown, including Net Income—Controlling Interests as presented on our Condensed Consolidated Statements of Operations, have been recast. Weighted average limited partners units outstanding used in the calculation of net income per limited partner unit for periods prior to the U.S. Assets Dropdown have not been recast. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net Income | $271 | $176 | $737 | $542 |
Other comprehensive loss: | ' | ' | ' | ' |
Foreign currency translation adjustments | -9 | 0 | -8 | -2 |
Total other comprehensive loss | -9 | 0 | -8 | -2 |
Total Comprehensive Income | 262 | 176 | 729 | 540 |
Less: Comprehensive Income—Noncontrolling Interests | 7 | 4 | 16 | 12 |
Comprehensive Income—Controlling Interests | $255 | $172 | $713 | $528 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $136 | $121 |
Receivables, net | 259 | 355 |
Inventory | 41 | 42 |
Fuel tracker | 66 | 28 |
Other | 34 | 19 |
Total current assets | 536 | 565 |
Investments and Other Assets | ' | ' |
Investments in and loans to unconsolidated affiliates | 1,381 | 1,396 |
Goodwill | 3,247 | 3,215 |
Other | 3 | 2 |
Total investments and other assets | 4,631 | 4,613 |
Property, Plant and Equipment | ' | ' |
Cost | 15,295 | 14,592 |
Less accumulated depreciation and amortization | 3,397 | 3,229 |
Net property, plant and equipment | 11,898 | 11,363 |
Regulatory Assets and Deferred Debits | 253 | 253 |
Total Assets | 17,318 | 16,794 |
Current Liabilities | ' | ' |
Accounts payable | 231 | 231 |
Commercial paper | 813 | 338 |
Taxes accrued | 69 | 44 |
Interest accrued | 34 | 61 |
Current maturities of long-term debt | 34 | 445 |
Other | 140 | 216 |
Total current liabilities | 1,321 | 1,335 |
Long-term Debt | 5,161 | 5,178 |
Deferred Credits and Other Liabilities | ' | ' |
Deferred income taxes | 36 | 34 |
Regulatory and other | 112 | 106 |
Total deferred credits and other liabilities | 148 | 140 |
Commitments and Contingencies | ' | ' |
Partners’ Capital | ' | ' |
Common units (289.6 million and 284.1 million units issued and outstanding at September 30, 2014 and December 31, 2013, respectively) | 10,172 | 9,778 |
General partner units (5.9 million and 5.8 million units issued and outstanding at September 30, 2014 and December 31, 2013, respectively) | 268 | 241 |
Accumulated other comprehensive loss | -13 | -5 |
Total partners’ capital | 10,427 | 10,014 |
Noncontrolling interests | 261 | 127 |
Total equity | 10,688 | 10,141 |
Total Liabilities and Equity | $17,318 | $16,794 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Common units, units issued | 289.6 | 284.1 |
Common units, units outstanding | 289.6 | 284.1 |
General partner units, units issued | 5.9 | 5.8 |
General partner units, units outstanding | 5.9 | 5.8 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $737 | $542 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 223 | 199 |
Deferred income tax expense (benefit) | 25 | -2 |
Equity in earnings of unconsolidated affiliates | -93 | -65 |
Distributions received from unconsolidated affiliates | 92 | 76 |
Other | -71 | 230 |
Net cash provided by operating activities | 913 | 980 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -755 | -784 |
Investments in and loans to unconsolidated affiliates | 134 | 208 |
Acquisitions, net of cash acquired | 0 | -343 |
Purchases of held-to-maturity securities | -31 | -39 |
Proceeds from sales and maturities of held-to-maturity securities | 24 | 36 |
Purchases of available-for-sale securities | 0 | -5,663 |
Proceeds from sales and maturities of available-for-sale securities | 0 | 3,801 |
Distributions received from unconsolidated affiliates | 150 | 17 |
Other | 1 | 1 |
Net cash used in investing activities | -745 | -3,182 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from Issuance of Long-term Debt | 0 | 1,887 |
Payments for the redemption of long-term debt | -427 | -23 |
Net increase in commercial paper | 475 | 209 |
Distributions to noncontrolling interests | -22 | -14 |
Contributions from noncontrolling interests | 139 | 0 |
Proceeds from the issuances of units | 283 | 194 |
Proceeds from notes payable—affiliates | 0 | 141 |
Payments on notes payable—affiliates | 0 | -56 |
Distributions to partners | -601 | -194 |
Contribution from parent | 0 | 154 |
Other | 0 | -5 |
Net cash provided by (used in) financing activities | -153 | 2,293 |
Net increase in cash and cash equivalents | 15 | 91 |
Cash and cash equivalents at beginning of period | 121 | 48 |
Cash and cash equivalents at end of period | 136 | 139 |
Supplemental Disclosures | ' | ' |
Property, plant and equipment noncash accruals | $106 | $69 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Equity (USD $) | Total | Limited Partners Common | General Partner | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests |
In Millions, unless otherwise specified | |||||
Beginning balance at Dec. 31, 2012 | $5,734 | $5,483 | $141 | $3 | $107 |
Increase (Decrease) in Equity | ' | ' | ' | ' | ' |
Net income | 542 | 492 | 38 | ' | 12 |
Other comprehensive loss | -2 | ' | ' | -2 | ' |
Net transfer from parent | 962 | 943 | 19 | ' | ' |
Attributed deferred tax benefit | 28 | ' | 28 | ' | ' |
Issuances of units | 512 | 502 | 10 | ' | ' |
Distributions to partners | -194 | -165 | -29 | ' | ' |
Contributions from noncontrolling interests | 0 | ' | ' | ' | ' |
Distributions to noncontrolling interests | -14 | ' | ' | ' | -14 |
Ending balance at Sep. 30, 2013 | 7,568 | 7,255 | 207 | 1 | 105 |
Beginning balance at Dec. 31, 2013 | 10,141 | 9,778 | 241 | -5 | 127 |
Increase (Decrease) in Equity | ' | ' | ' | ' | ' |
Net income | 737 | 586 | 135 | ' | 16 |
Other comprehensive loss | -8 | ' | ' | -8 | ' |
Adjustment to purchase price under net acquired assets from dropdowns | 11 | 11 | ' | ' | ' |
Attributed deferred tax benefit | 10 | ' | 9 | ' | 1 |
Issuances of units | 283 | 277 | 6 | ' | ' |
Distributions to partners | -601 | -478 | -123 | ' | ' |
Contributions from noncontrolling interests | -139 | ' | ' | ' | -139 |
Distributions to noncontrolling interests | -22 | ' | ' | ' | -22 |
Other, net | -2 | -2 | ' | ' | ' |
Ending balance at Sep. 30, 2014 | $10,688 | $10,172 | $268 | ($13) | $261 |
General
General | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
General | ' |
1. General | |
The terms “we,” “our,” “us” and “Spectra Energy Partners” as used in this report refer collectively to Spectra Energy Partners, LP and its subsidiaries unless the context suggests otherwise. These terms are used for convenience only and are not intended as a precise description of any separate legal entity within Spectra Energy Partners. | |
Nature of Operations. Spectra Energy Partners, through its subsidiaries and equity affiliates, is engaged in the transmission, storage and gathering of natural gas, the transportation and storage of crude oil, and the transportation of natural gas liquids (NGLs) through interstate pipeline systems. We are a Delaware master limited partnership. As of September 30, 2014, Spectra Energy Corp (Spectra Energy) and its subsidiaries collectively own 82% of us and the remaining 18% is publicly owned. | |
Basis of Presentation. The accompanying Condensed Consolidated Financial Statements include our accounts and the accounts of our majority-owned subsidiaries, after eliminating intercompany transactions and balances. These interim financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K, as amended, for the year ended December 31, 2013, and reflect all normal recurring adjustments that are, in our opinion, necessary to fairly present our results of operations and financial position. Amounts reported in the Condensed Consolidated Statements of Operations are not necessarily indicative of amounts expected for the respective annual periods. | |
In the third quarter of 2013, we acquired a 40% ownership interest in the U.S. portion of the Express-Platte crude oil pipeline system (Express US) and a 100% ownership interest in the Canadian portion of the pipeline system (Express Canada)(collectively, Express-Platte) from subsidiaries of Spectra Energy (the Express-Platte acquisition). In the fourth quarter of 2013, we acquired substantially all of Spectra Energy’s remaining U.S. transmission, storage and liquids assets, including Spectra Energy’s remaining 60% interest in Express US (the U.S. Assets Dropdown). | |
As the Express-Platte acquisition and the U.S. Assets Dropdown represented transfers of entities under common control, the Condensed Consolidated Financial Statements for the periods prior to these transactions and related information presented herein have been recast to include the historical results of Express-Platte since March 14, 2013, the date of Spectra Energy’s acquisition of Express-Platte, and the U.S. Assets Dropdown for all periods presented. See Note 2 for further discussion of the transactions. | |
Spectra Energy and its affiliates are solely responsible for providing the employees and other personnel necessary to conduct our operations. Our costs of doing business have been reflected in our financial accounting records for the periods presented. These costs include direct charges and allocations from Spectra Energy and its affiliates for business services, such as payroll, accounts payable and facilities management; corporate services, such as finance and accounting, legal, human resources, investor relations, public and regulatory policy, and senior executives; and pension and other post-retirement benefit costs. | |
Use of Estimates. To conform with generally accepted accounting principles (GAAP) in the United States, we make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements. Although these estimates are based on our best available knowledge at the time, actual results could differ. |
Acquisitions
Acquisitions | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Business Combinations [Abstract] | ' | |||
Acquisitions | ' | |||
2. Acquisitions | ||||
U.S. Assets Dropdown. On November 1, 2013, we completed the closing of the U.S. Assets Dropdown. Consideration to Spectra Energy included $2.3 billion in cash, assumption (indirectly by acquisition of the contributed entities) of approximately $2.4 billion of third-party indebtedness of the contributed entities, 167.6 million newly issued limited partner units and 3.4 million newly issued general partner units. | ||||
Express-Platte. On August 2, 2013, we acquired a 40% ownership interest in Express US and a 100% ownership interest in Express Canada from subsidiaries of Spectra Energy for $410 million in cash and 7.2 million of newly issued common and general partner units (valued at $319 million). The Express-Platte pipeline system, which begins in Hardisty, Alberta, and terminates in Wood River, Illinois, is comprised of both the Express and Platte crude oil pipelines. The Express pipeline carries crude oil to U.S. refining markets in the Rockies area, including Montana, Wyoming, Colorado and Utah. The Platte pipeline, which interconnects with the Express pipeline in Casper, Wyoming, transports crude oil predominantly from the Bakken shale and western Canada to refineries in the Midwest. | ||||
The following table summarizes the fair values of the assets and liabilities as of the acquisition date of Express-Platte from third-parties by Spectra Energy. | ||||
Purchase Price | ||||
Allocation | ||||
(in millions) | ||||
Cash | $ | 67 | ||
Receivables | 25 | |||
Other current assets | 9 | |||
Goodwill | 523 | |||
Property, plant and equipment | 1,251 | |||
Accounts payable | (18 | ) | ||
Other current liabilities | (17 | ) | ||
Deferred credits and other liabilities | (259 | ) | ||
Long-term debt, including current portion | (260 | ) | ||
Total assets acquired/liabilities assumed | $ | 1,321 | ||
The allocation of the fair values of assets and liabilities acquired related to the acquisition of Express-Platte was finalized in the first quarter of 2014, resulting in the following adjustments to amounts reported as of December 31, 2013: a $60 million decrease in Property, Plant and Equipment, a $24 million decrease in Deferred Credits and Other Liabilities, and a $1 million decrease in Other Current Assets, resulting in a $37 million increase in Goodwill. | ||||
In the first quarter of 2014, we recorded $23 million of income tax expense due to the adjustment to deferred income tax liabilities (eliminated and recorded as an income tax benefit in 2013 in connection with the U.S. Assets Dropdown and resulting changes in tax status of certain entities) as a result of the final purchase price allocation adjustments. | ||||
The following table presents pro forma results of operations information that reflect the acquisition of Express-Platte as if the acquisition had occurred as of January 1, 2013, adjusted for items that are directly attributable to the acquisition. This information has been compiled from historical financial statements, and is not necessarily indicative of the results that actually would have been achieved had the transaction occurred at the beginning of 2013 or that may be achieved in the future. | ||||
Nine Months Ended | ||||
30-Sep-13 | ||||
(in millions, except per-unit amount) | ||||
Operating revenues | $ | 1,503 | ||
Earnings before income taxes | 555 | |||
Net income | 555 | |||
Net income—controlling interests | 543 | |||
Net income per limited partner unit—basic and diluted | 4.41 | |||
Business_Segments
Business Segments | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Business Segments | ' | |||||||||||
3. Business Segments | ||||||||||||
As a result of the Express-Platte acquisition and the U.S. Assets Dropdown, which represented transfers of entities under common control, we realigned our reportable segments structure. Amounts presented herein for 2013 segment information have been recast to conform to our current segment reporting presentation. | ||||||||||||
We manage our business in two reportable segments: U.S. Transmission and Liquids. The remainder of our business operations is presented as “Other,” and consists of direct corporate costs as well as those costs charged by Spectra Energy. | ||||||||||||
Our chief operating decision maker regularly reviews financial information about both segments in deciding how to allocate resources and evaluate performance. There is no aggregation of segments within our reportable business segments. | ||||||||||||
The U.S. Transmission segment provides interstate transmission and storage of natural gas. Substantially all of our operations are subject to the Federal Energy Regulatory Commission (FERC) and the Department of Transportation’s (DOT’s) rules and regulations. Our investments in Gulfstream Natural Gas System, LLC (Gulfstream), Southeast Supply Header, LLC (SESH) and Steckman Ridge, LP (Steckman Ridge) are included in U.S. Transmission. | ||||||||||||
Liquids provides transportation of crude oil and NGLs. The Express-Platte pipeline system is a crude oil pipeline system that connects Canadian and U.S. producers to refineries in the U.S. Rocky Mountain and Midwest regions. These operations are primarily subject to the rules and regulations of the FERC and the National Energy Board (NEB). DCP Sand Hills Pipeline, LLC (Sand Hills) and DCP Southern Hills Pipeline, LLC (Southern Hills), provide transportation of NGLs from the Permian Basin and Eagle Ford region to the premium NGL markets on the Gulf Coast, and from the Mid-Continent to Mont Belvieu, Texas, respectively. We have direct one-third ownership interests in Sand Hills and Southern Hills. Sand Hills and Southern Hills are subject to the rules and regulations of the FERC. | ||||||||||||
Our reportable segments offer different products and services and are managed separately as business units. Management evaluates segment performance based on earnings from continuing operations before interest, taxes, and depreciation and amortization (EBITDA). Cash, cash equivalents and investments are managed centrally, so the gains and losses on foreign currency transactions, and interest and dividend income are excluded from the segments’ EBITDA. Our segment EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate EBITDA in the same manner. | ||||||||||||
Business Segment Data | ||||||||||||
Condensed Consolidated Statements of Operations | Total Operating Revenues | Depreciation and Amortization | Segment EBITDA/Consolidated Earnings Before Income Taxes | |||||||||
(in millions) | ||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||
U.S. Transmission | $ | 477 | $ | 64 | $ | 352 | ||||||
Liquids | 81 | 9 | 60 | |||||||||
Total reportable segments | 558 | 73 | 412 | |||||||||
Other | — | — | (11 | ) | ||||||||
Depreciation and amortization | — | — | 73 | |||||||||
Interest expense | — | — | 54 | |||||||||
Interest income and other | — | — | (2 | ) | ||||||||
Total consolidated | $ | 558 | $ | 73 | $ | 272 | ||||||
Three Months Ended September 30, 2013 | ||||||||||||
U.S. Transmission | $ | 418 | $ | 59 | $ | 310 | ||||||
Liquids | 76 | 7 | 44 | |||||||||
Total reportable segments | 494 | 66 | 354 | |||||||||
Other | — | — | (10 | ) | ||||||||
Depreciation and amortization | — | — | 66 | |||||||||
Interest expense | — | — | 105 | |||||||||
Interest income and other | — | — | 1 | |||||||||
Total consolidated | $ | 494 | $ | 66 | $ | 174 | ||||||
Nine Months Ended September 30, 2014 | ||||||||||||
U.S. Transmission | $ | 1,431 | $ | 192 | $ | 1,046 | ||||||
Liquids | 239 | 24 | 169 | |||||||||
Total reportable segments | 1,670 | 216 | 1,215 | |||||||||
Other | — | — | (48 | ) | ||||||||
Depreciation and amortization | — | — | 216 | |||||||||
Interest expense | — | — | 183 | |||||||||
Interest income and other | — | — | (2 | ) | ||||||||
Total consolidated | $ | 1,670 | $ | 216 | $ | 766 | ||||||
Nine Months Ended September 30, 2013 | ||||||||||||
U.S. Transmission | $ | 1,283 | $ | 177 | $ | 957 | ||||||
Liquids | 162 | 15 | 91 | |||||||||
Total reportable segments | 1,445 | 192 | 1,048 | |||||||||
Other | — | — | (15 | ) | ||||||||
Depreciation and amortization | — | — | 192 | |||||||||
Interest expense | — | — | 299 | |||||||||
Interest income and other | — | — | — | |||||||||
Total consolidated | $ | 1,445 | $ | 192 | $ | 542 | ||||||
Net_Income_Per_Limited_Partner
Net Income Per Limited Partner Unit and Cash Distributions | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Net Income Per Limited Partner Unit and Cash Distributions | ' | ||||||||||||||||
4. Net Income Per Limited Partner Unit and Cash Distributions | |||||||||||||||||
The following table presents our net income per limited partner unit calculations: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in millions, except per unit amounts) | |||||||||||||||||
Net income—controlling interests | $ | 264 | $ | 172 | $ | 721 | $ | 530 | |||||||||
Less: | |||||||||||||||||
General partner’s interest in net income—2% | 6 | 3 | 15 | 10 | |||||||||||||
General partner’s interest in net income attributable to incentive distribution rights | 42 | 11 | 120 | 28 | |||||||||||||
Limited partners’ interest in net income | $ | 216 | $ | 158 | $ | 586 | $ | 492 | |||||||||
Weighted average limited partner units outstanding—basic and diluted (a) | 288 | 113 | 286 | 109 | |||||||||||||
Net income per limited partner unit—basic and diluted | $ | 0.75 | $ | 1.4 | $ | 2.05 | $ | 4.51 | |||||||||
(a) | As discussed in Note 1, the Condensed Consolidated Financial Statements for periods prior to the November 1, 2013 U.S. Assets Dropdown, including Net Income—Controlling Interests as presented on our Condensed Consolidated Statements of Operations, have been recast. Weighted average limited partners units outstanding used in the calculation of net income per limited partner unit for periods prior to the U.S. Assets Dropdown have not been recast. | ||||||||||||||||
Our partnership agreement requires that, within 60 days after the end of each quarter, we distribute all of our Available Cash, as defined, to unitholders of record on the applicable record date. | |||||||||||||||||
Available Cash. Available Cash, for any quarter, consists of all cash and cash equivalents on hand at the end of that quarter: | |||||||||||||||||
• | less the amount of cash reserves established by the general partner to: | ||||||||||||||||
• | provide for the proper conduct of business, | ||||||||||||||||
• | comply with applicable law, any debt instrument or other agreement, or | ||||||||||||||||
• | provide funds for minimum quarterly distributions to the unitholders and to the general partner for any one or more of the next four quarters, | ||||||||||||||||
• | plus, if the general partner so determines, all or a portion of cash and cash equivalents on hand on the date of determination of Available Cash for the quarter. | ||||||||||||||||
Incentive Distribution Rights. The general partner holds incentive distribution rights beyond the first target distribution in accordance with the partnership agreement as follows: | |||||||||||||||||
Total Quarterly Distribution | Marginal Percentage | ||||||||||||||||
Interest in Distributions | |||||||||||||||||
Target Per-Unit Amount | Common | General | |||||||||||||||
Unitholders | Partner | ||||||||||||||||
Minimum Quarterly Distribution | $0.30 | 98 | % | 2 | % | ||||||||||||
First Target Distribution | up to $0.345 | 98 | % | 2 | % | ||||||||||||
Second Target Distribution | above $0.345 up to $0.375 | 85 | % | 15 | % | ||||||||||||
Third Target Distribution | above $0.375 up to $0.45 | 75 | % | 25 | % | ||||||||||||
Thereafter | above $0.45 | 50 | % | 50 | % | ||||||||||||
To the extent these incentive distributions are made to the general partner, there will be more Available Cash proportionately allocated to our general partner than to holders of common units. A cash distribution of $0.57625 per limited partner unit was declared on November 5, 2014 and is payable on November 26, 2014 to unitholders of record at the close of business on November 17, 2014. |
Goodwill
Goodwill | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Goodwill [Abstract] | ' | |||
Goodwill | ' | |||
5. Goodwill | ||||
We perform our goodwill impairment test annually and evaluate goodwill when events or changes in circumstances indicate that its carrying value may not be recoverable. We completed our annual goodwill impairment test as of April 1, 2014 and no impairments were identified. | ||||
We perform our annual review for goodwill impairment at the reporting unit level, which is identified by assessing whether the components of our operating segments constitute businesses for which discrete financial information is available, whether segment management regularly reviews the operating results of those components and whether the economic and regulatory characteristics are similar. We determined that our reporting units are equivalent to our reportable segments. | ||||
As permitted under accounting guidance on testing goodwill for impairment, we perform either a qualitative assessment or a quantitative assessment of each of our reporting units based on management’s judgment. With respect to our qualitative assessments, we consider events and circumstances specific to us, such as macroeconomic conditions, industry and market considerations, cost factors and overall financial performance, when evaluating whether it is more likely than not that the fair values of our reporting units are less than their respective carrying amounts. | ||||
The following presents changes in goodwill in 2014: | ||||
Goodwill | ||||
(in millions) | ||||
31-Dec-13 | $ | 3,215 | ||
Acquisition of Express-Platte | 37 | |||
Foreign currency translation | (5 | ) | ||
September 30, 2014 | $ | 3,247 | ||
See Note 2 for discussion of the Express-Platte acquisition and an adjustment to Goodwill recorded in the first quarter of 2014 related to the acquisition. |
Marketable_Securities_and_Rest
Marketable Securities and Restricted Funds | 9 Months Ended |
Sep. 30, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ' |
Marketable Securities and Restricted Funds | ' |
6. Marketable Securities and Restricted Funds | |
We routinely invest excess cash and various restricted balances in securities such as commercial paper, bankers acceptances, corporate debt securities, treasury bills and money market funds in the United States. We do not purchase marketable securities for speculative purposes, therefore we do not have any securities classified as trading securities. Initial investments in securities are classified as purchases of the respective types of securities (available-for-sale (AFS) marketable securities or held-to-maturity (HTM) marketable securities). Maturities of securities are classified within proceeds from sales and maturities of securities in the Condensed Consolidated Statements of Cash Flows. | |
HTM Securities. All of our HTM securities are restricted funds. We had $10 million and $3 million of money market securities classified as Current Assets - Other on the Condensed Consolidated Balance Sheets as of September 30, 2014 and December 31, 2013, respectively. These securities are restricted pursuant to certain Express-Platte debt agreements. | |
At September 30, 2014, the weighted-average contractual maturity of outstanding HTM securities was less than one year. | |
There were no material gross unrealized holding gains or losses associated with investments in HTM securities at September 30, 2014 or December 31, 2013. |
Debt_and_Credit_Facility
Debt and Credit Facility | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||
Debt and Credit Facility | ' | ||||||||||||||
7. Debt and Credit Facility | |||||||||||||||
Available Credit Facility and Restricted Debt Covenants | |||||||||||||||
Expiration Date | Total Credit Facility Capacity | Commercial | Available | ||||||||||||
Paper Outstanding at | Credit Facility | ||||||||||||||
September 30, | Capacity | ||||||||||||||
2014 | |||||||||||||||
(in millions) | |||||||||||||||
Spectra Energy Partners, LP | 2018 | $ | 2,000 | $ | 813 | $ | 1,187 | ||||||||
The issuances of commercial paper, letters of credit and revolving borrowings reduce the amount available under the credit facility. As of September 30, 2014, there were no letters of credit issued or revolving borrowings outstanding under the credit facility. | |||||||||||||||
The credit agreement contains various financial and other covenants, including the maintenance of a consolidated leverage ratio, as defined in the agreement. Failure to meet those covenants beyond applicable grace periods could result in accelerated due dates and/or termination of the agreement. As of September 30, 2014, we were in compliance with those covenants. In addition, the credit agreement allows for the acceleration of payments or termination of the agreement due to nonpayment, or in some cases, due to the acceleration of our other significant indebtedness or other significant indebtedness of some of our subsidiaries. The credit agreement does not contain provisions that trigger an acceleration of indebtedness based solely on the occurrence of an adverse change in our financial condition or results of operations. | |||||||||||||||
As noted above, the terms of the credit agreement require us to maintain a ratio of total Consolidated Indebtedness-to-Consolidated EBITDA, as defined in the agreement, of 5.0 to 1.0 or less. As of September 30, 2014, this ratio was 3.9 to 1.0. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||
8. Fair Value Measurements | ||||||||||||||||||
The following presents, for each of the fair value hierarchy levels, assets that are measured at fair value on a recurring basis as of September 30, 2014. There were no assets or liabilities measured at fair value on a recurring basis at December 31, 2013. | ||||||||||||||||||
Description | Condensed Consolidated Balance Sheet Caption | 30-Sep-14 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
(in millions) | ||||||||||||||||||
Corporate debt securities | Cash and cash equivalents | $ | 40 | $ | — | $ | 40 | $ | — | |||||||||
Interest rate swaps | Investments and other assets — other | 2 | — | 2 | — | |||||||||||||
Total Assets | $ | 42 | $ | — | $ | 42 | $ | — | ||||||||||
Level 1 | ||||||||||||||||||
Level 1 valuations represent quoted unadjusted prices for identical instruments in active markets. | ||||||||||||||||||
Level 2 Valuation Techniques | ||||||||||||||||||
Fair values of our financial instruments that are actively traded in the secondary market, including our long-term debt, are determined based on market-based prices. These valuations may include inputs such as quoted market prices of the exact or similar instruments, broker or dealer quotations, or alternative pricing sources that may include models or matrix pricing tools, with reasonable levels of price transparency. | ||||||||||||||||||
Level 3 Valuation Techniques | ||||||||||||||||||
Level 3 valuation techniques include the use of pricing models, discounted cash flow methodologies or similar techniques where at least one significant model assumption or input is unobservable. Level 3 financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. | ||||||||||||||||||
Financial Instruments | ||||||||||||||||||
The fair values of financial instruments that are recorded and carried at book value are summarized in the following table. Judgment is required in interpreting market data to develop the estimates of fair value. These estimates are not necessarily indicative of the amounts we could have realized in current markets. | ||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||
Book | Approximate | Book | Approximate | |||||||||||||||
Value | Fair Value | Value | Fair Value | |||||||||||||||
(in millions) | ||||||||||||||||||
Note receivable, noncurrent (a) | $ | 71 | $ | 71 | $ | 71 | $ | 71 | ||||||||||
Long-term debt, including current maturities (b) | 5,199 | 5,625 | 5,625 | 5,813 | ||||||||||||||
(a) | Included within Investments in and Loans to Unconsolidated Affiliates. | |||||||||||||||||
(b) | Excludes unamortized items and fair value hedge carrying value adjustments. | |||||||||||||||||
The fair value of our long-term debt is determined based on market-based prices as described in the Level 2 valuation technique above and is classified as Level 2. | ||||||||||||||||||
The fair values of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, note receivable-noncurrent, accounts payable, commercial paper and short-term money market securities - affiliates are not materially different from their carrying amounts because of the short-term nature of these instruments or because the stated rates approximate market rates. | ||||||||||||||||||
During the 2014 and 2013 periods, there were no material adjustments to assets and liabilities measured at fair value on a nonrecurring basis. |
Risk_Management_and_Hedging_Ac
Risk Management and Hedging Activities | 9 Months Ended |
Sep. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Risk Management and Hedging Activities | ' |
9. Risk Management and Hedging Activities | |
We are exposed to the impact of changes in interest rates as a result of our issuance of variable and fixed-rate debt and commercial paper. We are exposed to minimal foreign currency risk from our Express Canada operations. We employ established policies and procedures to manage our risks associated with these market fluctuations, which may include the use of derivatives, mostly around interest rate exposures. | |
During the second quarter of 2014, we entered into “pay floating — receive fixed” interest rate swaps with a total notional principal amount of $300 million to hedge against changes in the fair value of our fixed-rate debt that arise as a result of changes in market interest rates. The interest rate swaps we currently have expire in 2020 and thereafter. These swaps also allow us to transform a portion of the underlying interest payments related to our long-term fixed-rate debt securities into variable-rate interest payments in order to achieve our desired mix of fixed and variable-rate debt. | |
The interest rate derivative instruments are designated and qualify as fair value hedges. The gain or loss on the | |
derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk is recognized in the | |
Condensed Consolidated Statements of Operations. There was no material swap ineffectiveness during the nine months ended September 30, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
10. Commitments and Contingencies | |
Environmental. We are subject to various U.S. federal, state and local laws and regulations, as well as Canadian federal and provincial laws, regarding air and water quality, hazardous and solid waste disposal and other environmental matters. These laws and regulations can change from time to time, imposing new obligations on us. | |
Like others in the energy industry, we and our affiliates are responsible for environmental remediation at various contaminated sites. These include some properties that are part of our ongoing operations, sites formerly owned or used by us, and sites owned by third parties. Remediation typically involves management of contaminated soils and may involve groundwater remediation. Managed in conjunction with relevant federal, state/provincial and local agencies, activities vary with site conditions and locations, remedial requirements, complexity and sharing of responsibility. If remediation activities involve statutory joint and several liability provisions, strict liability, or cost recovery or contribution actions, we or our affiliates could potentially be held responsible for contamination caused by other parties. In some instances, we may share liability associated with contamination with other potentially responsible parties, and may also benefit from insurance policies or contractual indemnities that cover some or all cleanup costs. All of these sites generally are managed in the normal course of business or affiliated operations. We believe there are no matters outstanding that upon resolution will have an adverse effect on our consolidated results of operations, financial position or cash flows. | |
Litigation. We are involved in legal, tax and regulatory proceedings in various forums arising in the ordinary course of business, including matters regarding contracts and payment claims, some of which may involve substantial monetary amounts. We have insurance coverage for certain of these losses should they be incurred. We believe that the final disposition of these proceedings will not have a material effect on our consolidated results of operations, financial position or cash flows. | |
Legal costs related to the defense of loss contingencies are expensed as incurred. We had no material reserves recorded as of September 30, 2014 or December 31, 2013 related to litigation. |
Issuances_of_Common_Units
Issuances of Common Units | 9 Months Ended |
Sep. 30, 2014 | |
Issuances of Common Units [Abstract] | ' |
Issuances of Common Units | ' |
11. Issuances of Common Units | |
During the nine months ended September 30, 2014, we issued 5.5 million common units to the public under our at-the-market program, representing limited partner interests, and 113,000 general partner units to Spectra Energy. Total net proceeds were $283 million, including $6 million of proceeds from Spectra Energy. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
New Accounting Pronouncements | ' |
12. New Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements of “Revenue Recognition (Topic 605),” and clarifies the principles of recognizing revenue. This ASU is effective for us January 1, 2017 and is to be applied retrospectively. We are currently evaluating this ASU and its potential impact on us. | |
In April 2014, the FASB issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant,and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This ASU revises the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have or will have a major effect on an entity’s operations and financial results, removing the lack of continuing involvement criteria and requiring discontinued operations reporting for the disposal of an equity method investment that meets the definition of discontinued operations. The update also requires expanded disclosures for discontinued operations, and disclosure of pretax profit or loss of certain individually significant components of an entity that do not qualify for discontinued operations reporting. This ASU is effective for us on January 1, 2015 and is to be applied prospectively. We do not expect the adoption of the provisions of this ASU to have any impact on our consolidated results of operations, financial position or cash flows. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
13. Subsequent Events | |
On November 3, 2014, we acquired an additional 24.95% ownership interest in SESH and an additional 1% interest in Steckman Ridge from Spectra Energy. Total consideration was approximately 4.3 million newly issued common units. This is the second of three planned transactions related to the U.S. Assets Dropdown. The remaining transaction, expected to occur in November 2015, will consist of Spectra Energy’s remaining 0.1% interest in SESH. Also, in connection with this transaction, we issued approximately 86,000 of general partner units to Spectra Energy in exchange for the same amount of common units in order to maintain Spectra Energy's 2% general partner interest. |
Summary_of_Operations_and_Sign
Summary of Operations and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Use of Estimates, Policy | ' |
Use of Estimates. To conform with generally accepted accounting principles (GAAP) in the United States, we make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements. Although these estimates are based on our best available knowledge at the time, actual results could differ. | |
Goodwill and Intangible Assets, Goodwill, Policy | ' |
We perform our goodwill impairment test annually and evaluate goodwill when events or changes in circumstances indicate that its carrying value may not be recoverable. We completed our annual goodwill impairment test as of April 1, 2014 and no impairments were identified. | |
We perform our annual review for goodwill impairment at the reporting unit level, which is identified by assessing whether the components of our operating segments constitute businesses for which discrete financial information is available, whether segment management regularly reviews the operating results of those components and whether the economic and regulatory characteristics are similar. We determined that our reporting units are equivalent to our reportable segments. | |
As permitted under accounting guidance on testing goodwill for impairment, we perform either a qualitative assessment or a quantitative assessment of each of our reporting units based on management’s judgment. With respect to our qualitative assessments, we consider events and circumstances specific to us, such as macroeconomic conditions, industry and market considerations, cost factors and overall financial performance, when evaluating whether it is more likely than not that the fair values of our reporting units are less than their respective carrying amounts. | |
Fair Value Measurement, Policy | ' |
Level 1 | |
Level 1 valuations represent quoted unadjusted prices for identical instruments in active markets. | |
Level 2 Valuation Techniques | |
Fair values of our financial instruments that are actively traded in the secondary market, including our long-term debt, are determined based on market-based prices. These valuations may include inputs such as quoted market prices of the exact or similar instruments, broker or dealer quotations, or alternative pricing sources that may include models or matrix pricing tools, with reasonable levels of price transparency. | |
Level 3 Valuation Techniques | |
Level 3 valuation techniques include the use of pricing models, discounted cash flow methodologies or similar techniques where at least one significant model assumption or input is unobservable. Level 3 financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. | |
Financial Instruments | |
The fair values of financial instruments that are recorded and carried at book value are summarized in the following table. Judgment is required in interpreting market data to develop the estimates of fair value. These estimates are not necessarily indicative of the amounts we could have realized in current markets. | |
Derivatives, Offsetting Fair Value Amounts, Policy | ' |
The interest rate derivative instruments are designated and qualify as fair value hedges. The gain or loss on the | |
derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk is recognized in the | |
Condensed Consolidated Statements of Operations. |
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Business Combinations [Abstract] | ' | |||
Schedule of Business Acquisitions, by Acquisition | ' | |||
The following table summarizes the fair values of the assets and liabilities as of the acquisition date of Express-Platte from third-parties by Spectra Energy. | ||||
Purchase Price | ||||
Allocation | ||||
(in millions) | ||||
Cash | $ | 67 | ||
Receivables | 25 | |||
Other current assets | 9 | |||
Goodwill | 523 | |||
Property, plant and equipment | 1,251 | |||
Accounts payable | (18 | ) | ||
Other current liabilities | (17 | ) | ||
Deferred credits and other liabilities | (259 | ) | ||
Long-term debt, including current portion | (260 | ) | ||
Total assets acquired/liabilities assumed | $ | 1,321 | ||
Business Acquisitions, Pro Forma Information | ' | |||
The following table presents pro forma results of operations information that reflect the acquisition of Express-Platte as if the acquisition had occurred as of January 1, 2013, adjusted for items that are directly attributable to the acquisition. This information has been compiled from historical financial statements, and is not necessarily indicative of the results that actually would have been achieved had the transaction occurred at the beginning of 2013 or that may be achieved in the future. | ||||
Nine Months Ended | ||||
30-Sep-13 | ||||
(in millions, except per-unit amount) | ||||
Operating revenues | $ | 1,503 | ||
Earnings before income taxes | 555 | |||
Net income | 555 | |||
Net income—controlling interests | 543 | |||
Net income per limited partner unit—basic and diluted | 4.41 | |||
Business_Segments_Tables
Business Segments (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Business Segment Data | ' | |||||||||||
Business Segment Data | ||||||||||||
Condensed Consolidated Statements of Operations | Total Operating Revenues | Depreciation and Amortization | Segment EBITDA/Consolidated Earnings Before Income Taxes | |||||||||
(in millions) | ||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||
U.S. Transmission | $ | 477 | $ | 64 | $ | 352 | ||||||
Liquids | 81 | 9 | 60 | |||||||||
Total reportable segments | 558 | 73 | 412 | |||||||||
Other | — | — | (11 | ) | ||||||||
Depreciation and amortization | — | — | 73 | |||||||||
Interest expense | — | — | 54 | |||||||||
Interest income and other | — | — | (2 | ) | ||||||||
Total consolidated | $ | 558 | $ | 73 | $ | 272 | ||||||
Three Months Ended September 30, 2013 | ||||||||||||
U.S. Transmission | $ | 418 | $ | 59 | $ | 310 | ||||||
Liquids | 76 | 7 | 44 | |||||||||
Total reportable segments | 494 | 66 | 354 | |||||||||
Other | — | — | (10 | ) | ||||||||
Depreciation and amortization | — | — | 66 | |||||||||
Interest expense | — | — | 105 | |||||||||
Interest income and other | — | — | 1 | |||||||||
Total consolidated | $ | 494 | $ | 66 | $ | 174 | ||||||
Nine Months Ended September 30, 2014 | ||||||||||||
U.S. Transmission | $ | 1,431 | $ | 192 | $ | 1,046 | ||||||
Liquids | 239 | 24 | 169 | |||||||||
Total reportable segments | 1,670 | 216 | 1,215 | |||||||||
Other | — | — | (48 | ) | ||||||||
Depreciation and amortization | — | — | 216 | |||||||||
Interest expense | — | — | 183 | |||||||||
Interest income and other | — | — | (2 | ) | ||||||||
Total consolidated | $ | 1,670 | $ | 216 | $ | 766 | ||||||
Nine Months Ended September 30, 2013 | ||||||||||||
U.S. Transmission | $ | 1,283 | $ | 177 | $ | 957 | ||||||
Liquids | 162 | 15 | 91 | |||||||||
Total reportable segments | 1,445 | 192 | 1,048 | |||||||||
Other | — | — | (15 | ) | ||||||||
Depreciation and amortization | — | — | 192 | |||||||||
Interest expense | — | — | 299 | |||||||||
Interest income and other | — | — | — | |||||||||
Total consolidated | $ | 1,445 | $ | 192 | $ | 542 | ||||||
Net_Income_Per_Limited_Partner1
Net Income Per Limited Partner Unit and Cash Distributions (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Net Income Per Limited Partner Unit Calculations | ' | ||||||||||||||||
The following table presents our net income per limited partner unit calculations: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in millions, except per unit amounts) | |||||||||||||||||
Net income—controlling interests | $ | 264 | $ | 172 | $ | 721 | $ | 530 | |||||||||
Less: | |||||||||||||||||
General partner’s interest in net income—2% | 6 | 3 | 15 | 10 | |||||||||||||
General partner’s interest in net income attributable to incentive distribution rights | 42 | 11 | 120 | 28 | |||||||||||||
Limited partners’ interest in net income | $ | 216 | $ | 158 | $ | 586 | $ | 492 | |||||||||
Weighted average limited partner units outstanding—basic and diluted (a) | 288 | 113 | 286 | 109 | |||||||||||||
Net income per limited partner unit—basic and diluted | $ | 0.75 | $ | 1.4 | $ | 2.05 | $ | 4.51 | |||||||||
(a) | As discussed in Note 1, the Condensed Consolidated Financial Statements for periods prior to the November 1, 2013 U.S. Assets Dropdown, including Net Income—Controlling Interests as presented on our Condensed Consolidated Statements of Operations, have been recast. Weighted average limited partners units outstanding used in the calculation of net income per limited partner unit for periods prior to the U.S. Assets Dropdown have not been recast. | ||||||||||||||||
Incentive Distribution Rights in Accordance with Partnership Agreement | ' | ||||||||||||||||
Incentive Distribution Rights. The general partner holds incentive distribution rights beyond the first target distribution in accordance with the partnership agreement as follows: | |||||||||||||||||
Total Quarterly Distribution | Marginal Percentage | ||||||||||||||||
Interest in Distributions | |||||||||||||||||
Target Per-Unit Amount | Common | General | |||||||||||||||
Unitholders | Partner | ||||||||||||||||
Minimum Quarterly Distribution | $0.30 | 98 | % | 2 | % | ||||||||||||
First Target Distribution | up to $0.345 | 98 | % | 2 | % | ||||||||||||
Second Target Distribution | above $0.345 up to $0.375 | 85 | % | 15 | % | ||||||||||||
Third Target Distribution | above $0.375 up to $0.45 | 75 | % | 25 | % | ||||||||||||
Thereafter | above $0.45 | 50 | % | 50 | % |
Goodwill_Tables
Goodwill (Tables) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Goodwill [Abstract] | ' | |||
Schedule of Goodwill | ' | |||
The following presents changes in goodwill in 2014: | ||||
Goodwill | ||||
(in millions) | ||||
31-Dec-13 | $ | 3,215 | ||
Acquisition of Express-Platte | 37 | |||
Foreign currency translation | (5 | ) | ||
September 30, 2014 | $ | 3,247 | ||
Debt_and_Credit_Facility_Table
Debt and Credit Facility (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||
Debt and Credit Facility Summary | ' | ||||||||||||||
Available Credit Facility and Restricted Debt Covenants | |||||||||||||||
Expiration Date | Total Credit Facility Capacity | Commercial | Available | ||||||||||||
Paper Outstanding at | Credit Facility | ||||||||||||||
September 30, | Capacity | ||||||||||||||
2014 | |||||||||||||||
(in millions) | |||||||||||||||
Spectra Energy Partners, LP | 2018 | $ | 2,000 | $ | 813 | $ | 1,187 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | |||||||||||||||||
The following presents, for each of the fair value hierarchy levels, assets that are measured at fair value on a recurring basis as of September 30, 2014. There were no assets or liabilities measured at fair value on a recurring basis at December 31, 2013. | ||||||||||||||||||
Description | Condensed Consolidated Balance Sheet Caption | 30-Sep-14 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
(in millions) | ||||||||||||||||||
Corporate debt securities | Cash and cash equivalents | $ | 40 | $ | — | $ | 40 | $ | — | |||||||||
Interest rate swaps | Investments and other assets — other | 2 | — | 2 | — | |||||||||||||
Total Assets | $ | 42 | $ | — | $ | 42 | $ | — | ||||||||||
Fair Values of Financial Instruments That are Recorded and Carried at Book Value | ' | |||||||||||||||||
The fair values of financial instruments that are recorded and carried at book value are summarized in the following table. Judgment is required in interpreting market data to develop the estimates of fair value. These estimates are not necessarily indicative of the amounts we could have realized in current markets. | ||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||
Book | Approximate | Book | Approximate | |||||||||||||||
Value | Fair Value | Value | Fair Value | |||||||||||||||
(in millions) | ||||||||||||||||||
Note receivable, noncurrent (a) | $ | 71 | $ | 71 | $ | 71 | $ | 71 | ||||||||||
Long-term debt, including current maturities (b) | 5,199 | 5,625 | 5,625 | 5,813 | ||||||||||||||
(a) | Included within Investments in and Loans to Unconsolidated Affiliates. | |||||||||||||||||
(b) | Excludes unamortized items and fair value hedge carrying value adjustments. |
General_Details
General (Details) | Aug. 02, 2013 | Aug. 02, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 |
Express Platte Pipeline System | Express Platte Pipeline System | Spectra Energy Corp | Spectra Energy Corp | Spectra Energy Corp | Spectra Energy Corp | Spectra Energy Corp | Publicly Owned | |
U.S. | Canada | Express Platte Pipeline System | Express Platte Pipeline System | Express Platte Pipeline System | US Assets Acquisition | |||
U.S. | U.S. | Canada | U.S. | |||||
Business Acquisition | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage by parent | ' | ' | 82.00% | ' | ' | ' | ' | ' |
Ownership percentage by public | ' | ' | ' | ' | ' | ' | ' | 18.00% |
Percentage of ownership interests acquired | 40.00% | 100.00% | ' | 60.00% | 40.00% | 100.00% | 100.00% | ' |
Acquisitions_Additional_Inform
Acquisitions (Additional Information) (Details) (USD $) | 9 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||||
Sep. 30, 2014 | Sep. 30, 2014 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Aug. 02, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Aug. 02, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Aug. 02, 2013 | Sep. 30, 2013 | |
Limited Partner | General Partner | US Assets Acquisition | US Assets Acquisition | US Assets Acquisition | Express Platte Pipeline System | Express Platte Pipeline System | U.S. | U.S. | U.S. | U.S. | Canada | Canada | |
Limited Partner | General Partner | Spectra Energy Corp | Estimate of Fair Value Measurement | US Assets Acquisition | Express Platte Pipeline System | Express Platte Pipeline System | Express Platte Pipeline System | Express Platte Pipeline System | Express Platte Pipeline System | ||||
Spectra Energy Corp | Spectra Energy Corp | Spectra Energy Corp | Spectra Energy Corp | ||||||||||
Business Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price | ' | ' | ' | ' | $2,300,000,000 | $410,000,000 | ' | ' | ' | ' | ' | ' | ' |
Assumed third-party indebtedness of contributed entities | ' | ' | ' | ' | 2,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Partners units issued (in shares) | 5,500,000 | 113,000 | 167,600,000 | 3,400,000 | ' | 7,200,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership interests acquired | ' | ' | ' | ' | ' | ' | ' | 100.00% | 40.00% | 60.00% | 40.00% | 100.00% | 100.00% |
Adjustment to purchase price allocation - other current assets | ' | ' | ' | ' | ' | ' | -1,000,000 | ' | ' | ' | ' | ' | ' |
Adjustment to purchase price allocation - property, plant and equipment | ' | ' | ' | ' | ' | ' | -60,000,000 | ' | ' | ' | ' | ' | ' |
Adjustment to purchase price allocation - deferred credits and other liabilities | ' | ' | ' | ' | ' | ' | -24,000,000 | ' | ' | ' | ' | ' | ' |
Adjustment to purchase price allocation - goodwill | ' | ' | ' | ' | ' | ' | 37,000,000 | ' | ' | ' | ' | ' | ' |
Adjustment of deferred tax liability to income tax benefit | ' | ' | ' | ' | ' | ' | 23,000,000 | ' | ' | ' | ' | ' | ' |
Business combination, consideration transferred, equity interests issued and issuable | ' | ' | ' | ' | ' | $319,000,000 | ' | ' | ' | ' | ' | ' | ' |
Acquisitions_ExpressPlatte_Det
Acquisitions - Express-Platte (Details) (Express Platte Pipeline System, USD $) | Mar. 14, 2013 |
In Millions, unless otherwise specified | |
Express Platte Pipeline System | ' |
Business Acquisition | ' |
Cash | $67 |
Receivables | 25 |
Other current assets | 9 |
Goodwill | 523 |
Property, plant and equipment | 1,251 |
Accounts payable | -18 |
Other current liabilities | -17 |
Deferred credits and other liabilities | -259 |
Long-term debt, including current portion | -260 |
Total assets acquired/liabilities assumed | $1,321 |
Acquisitions_Pro_Forma_Results
Acquisitions - Pro Forma Results of Operations (Details) (Express Platte Pipeline System, USD $) | 9 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Express Platte Pipeline System | ' |
Business Acquisition | ' |
Operating revenues | $1,503 |
Earnings before income taxes | 555 |
Net income | 555 |
Net income—controlling interests | $543 |
Net income per limited partner unit—basic and diluted | $4.41 |
Business_Segments_Additional_I
Business Segments (Additional Information) (Details) | 9 Months Ended |
Sep. 30, 2014 | |
reportable_segements | |
Segment Reporting Information | ' |
Number of reportable segments | 2 |
Sand Hills Pipeline LLC | ' |
Segment Reporting Information | ' |
Equity method investment, ownership percentage | 33.30% |
Southern Hills Pipeline LLC | ' |
Segment Reporting Information | ' |
Equity method investment, ownership percentage | 33.30% |
Business_Segment_Data_Details
Business Segment Data (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information | ' | ' | ' | ' |
Total operating revenues | $558 | $494 | $1,670 | $1,445 |
Depreciation and amortization | 73 | 66 | 216 | 192 |
Interest expense | 54 | 105 | 183 | 299 |
Interest income and other | -2 | 1 | -2 | 0 |
Earnings from continuing operations before income taxes | 272 | 174 | 766 | 542 |
Total Operating Segments | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Earnings before interest taxes depreciation and amortization | 412 | 354 | 1,215 | 1,048 |
US Transmission | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Total operating revenues | 477 | 418 | 1,431 | 1,283 |
Earnings before interest taxes depreciation and amortization | 352 | 310 | 1,046 | 957 |
Depreciation and amortization | 64 | 59 | 192 | 177 |
Liquids | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Total operating revenues | 81 | 76 | 239 | 162 |
Earnings before interest taxes depreciation and amortization | 60 | 44 | 169 | 91 |
Depreciation and amortization | 9 | 7 | 24 | 15 |
Other | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Earnings before interest taxes depreciation and amortization | ($11) | ($10) | ($48) | ($15) |
Net_Income_Per_Limited_Partner2
Net Income Per Limited Partner Unit and Cash Distributions (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||||
Net income | $264 | $172 | $721 | $530 | ||||
Less: General partner’s interest in net income | 48 | 14 | 135 | 38 | ||||
Limited partners' interest in net income | 216 | 158 | 586 | 492 | ||||
Weighted-average limited partner units outstanding—basic and diluted | 288 | [1],[2] | 113 | [1],[2] | 286 | [1],[2] | 109 | [1],[2] |
Net income per limited partner unit-basic and diluted (in dollars per share) | $0.75 | [1] | $1.40 | [1] | $2.05 | [1] | $4.51 | [1] |
Partnership Interest | ' | ' | ' | ' | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||||
Less: General partner’s interest in net income | 6 | 3 | 15 | 10 | ||||
General partner's interest in net income, ownership interest percentage | 2.00% | 2.00% | 2.00% | 2.00% | ||||
Incentive Distribution Rights | ' | ' | ' | ' | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||||
Less: General partner’s interest in net income | $42 | $11 | $120 | $28 | ||||
[1] | Weighted average limited partners units outstanding used in the calculation of net income per limited partner unit for the period prior to the November 1, 2013 U.S. Assets Dropdown have not been recast. See Note 4 for further information. | |||||||
[2] | As discussed in Note 1, the Condensed Consolidated Financial Statements for periods prior to the November 1, 2013 U.S. Assets Dropdown, including Net Income—Controlling Interests as presented on our Condensed Consolidated Statements of Operations, have been recast. Weighted average limited partners units outstanding used in the calculation of net income per limited partner unit for periods prior to the U.S. Assets Dropdown have not been recast. |
Net_Income_Per_Limited_Partner3
Net Income Per Limited Partner Unit and Cash Distributions - Incentive Distribution Rights in Accordance with Partnership Agreement (Details) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Minimum Quarterly Distribution | ' |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ' |
Marginal Percentage Interest in Distributions Common Unitholders | 98.00% |
Marginal Percentage Interest in Distributions General Partner | 2.00% |
First Target Distribution | ' |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ' |
Marginal Percentage Interest in Distributions Common Unitholders | 98.00% |
Marginal Percentage Interest in Distributions General Partner | 2.00% |
Second Target Distribution | ' |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ' |
Marginal Percentage Interest in Distributions Common Unitholders | 85.00% |
Marginal Percentage Interest in Distributions General Partner | 15.00% |
Third Target Distribution | ' |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ' |
Marginal Percentage Interest in Distributions Common Unitholders | 75.00% |
Marginal Percentage Interest in Distributions General Partner | 25.00% |
Target Distribution Thereafter | ' |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ' |
Marginal Percentage Interest in Distributions Common Unitholders | 50.00% |
Marginal Percentage Interest in Distributions General Partner | 50.00% |
Minimum | Minimum Quarterly Distribution | ' |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ' |
Total Quarterly Distribution Target Per-Unit Amount (in dollars per share) | 0.3 |
Minimum | Second Target Distribution | ' |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ' |
Total Quarterly Distribution Target Per-Unit Amount (in dollars per share) | 0.345 |
Minimum | Third Target Distribution | ' |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ' |
Total Quarterly Distribution Target Per-Unit Amount (in dollars per share) | 0.375 |
Minimum | Target Distribution Thereafter | ' |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ' |
Total Quarterly Distribution Target Per-Unit Amount (in dollars per share) | 0.45 |
Maximum | First Target Distribution | ' |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ' |
Total Quarterly Distribution Target Per-Unit Amount (in dollars per share) | 0.345 |
Maximum | Second Target Distribution | ' |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ' |
Total Quarterly Distribution Target Per-Unit Amount (in dollars per share) | 0.375 |
Maximum | Third Target Distribution | ' |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ' |
Total Quarterly Distribution Target Per-Unit Amount (in dollars per share) | 0.45 |
Net_Income_Per_Limited_Partner4
Net Income Per Limited Partner Unit and Cash Distributions (Additional Information) (Details) (USD $) | 3 Months Ended | 0 Months Ended |
Sep. 30, 2014 | Nov. 05, 2014 | |
Subsequent Event | ||
Equity [Abstract] | ' | ' |
Distribution Made To Member Or Limited Partner Distribution Period | '60 days | ' |
Subsequent Event [Line Items] | ' | ' |
Distributions to be paid to unit holders | ' | $0.58 |
Distribution to limited partner, declaration date | ' | 5-Nov-14 |
Distribution made to limited partner, distribution date | ' | 26-Nov-14 |
Distribution made to limited partner, date of record | ' | 17-Nov-14 |
Goodwill_Data_Details
Goodwill Data (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Goodwill [Abstract] | ' |
Beginning Balance | $3,215 |
Acquisition of Express-Platte | 37 |
Foreign currency translation | -5 |
Ending Balance | $3,247 |
Marketable_Securities_and_Rest1
Marketable Securities and Restricted Funds - Schedule of Held-to-Maturity Securities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
In Millions, unless otherwise specified | Current Assets - Other | Current Assets - Other | Maximum |
Money Market Funds | Money Market Funds | ||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | ' |
Held-to-maturity, fair value | $10 | $3 | ' |
Held-to-maturity securities, contractual maturity | ' | ' | '1 year |
Debt_and_Credit_Facility_Detai
Debt and Credit Facility (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Line of Credit Facility [Line Items] | ' | ' |
Expiration Date | '2018 | ' |
Total Credit Facility Capacity | $2,000 | ' |
Commercial Paper Outstanding at September 30, 2014 | 813 | 338 |
Available Credit Facility Capacity | $1,187 | ' |
Debt_and_Credit_Facility_Addit
Debt and Credit Facility (Additional Information) (Details) | Sep. 30, 2014 |
Credit Agreement Requirements [Line Items] | ' |
Debt To Earnings Before Interest Tax Depreciation And Amortization Ratio | 3.9 |
Maximum | ' |
Credit Agreement Requirements [Line Items] | ' |
Debt To Earnings Before Interest Tax Depreciation And Amortization Ratio | 5 |
Minimum | ' |
Credit Agreement Requirements [Line Items] | ' |
Debt To Earnings Before Interest Tax Depreciation And Amortization Ratio | 1 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value Hierarchy Levels, Assets that are Measured at Fair Value on a Recurring Basis (Details) (Fair Value, Measurements, Recurring, USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Financial Instruments [Line Items] | ' |
Assets, Fair Value Disclosure | $42 |
Fair Value, Inputs, Level 2 | ' |
Financial Instruments [Line Items] | ' |
Assets, Fair Value Disclosure | 42 |
Corporate Debt Securities | Cash and Cash Equivalents | ' |
Financial Instruments [Line Items] | ' |
Assets, Fair Value Disclosure | 40 |
Corporate Debt Securities | Cash and Cash Equivalents | Fair Value, Inputs, Level 2 | ' |
Financial Instruments [Line Items] | ' |
Assets, Fair Value Disclosure | 40 |
Interest Rate Swap | Other Assets | ' |
Financial Instruments [Line Items] | ' |
Assets, Fair Value Disclosure | 2 |
Interest Rate Swap | Other Assets | Fair Value, Inputs, Level 2 | ' |
Financial Instruments [Line Items] | ' |
Assets, Fair Value Disclosure | $2 |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements - Fair Values of Financial Instruments Recorded and Carried at Book Value (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Book Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' | ' | ||
Note receivable, noncurrent | $71 | [1] | $71 | [1] |
Long-term debt, including current maturities | 5,199 | [2] | 5,625 | [2] |
Approximate Fair Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' | ' | ||
Note receivable, noncurrent | 71 | [1] | 71 | [1] |
Long-term debt, including current maturities | $5,625 | [2] | $5,813 | [2] |
[1] | Included within Investments in and Loans to Unconsolidated Affiliates. | |||
[2] | Excludes unamortized items and fair value hedge carrying value adjustments. |
Risk_Management_and_Hedging_Ac1
Risk Management and Hedging Activities (Details) (Interest Rate Swap, USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Interest Rate Swap | ' |
Derivative [Line Items] | ' |
Derivative, Notional Amount | $300 |
Derivative Instrument Maturity Period | '2020 |
Issuances_of_Common_Units_Addi
Issuances of Common Units (Additional Information) (Detail) (USD $) | 9 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Issuances of Common Units [Line Items] | ' | ' |
Net proceeds from issuance of common units | $283 | $194 |
Limited Partners Common | ' | ' |
Issuances of Common Units [Line Items] | ' | ' |
Partners units issued (in shares) | 5,500,000 | ' |
General Partner | ' | ' |
Issuances of Common Units [Line Items] | ' | ' |
Partners units issued (in shares) | 113,000 | ' |
Net proceeds from issuance of common units | $6 | ' |
Subsequent_Events_Details
Subsequent Events (Details) | Nov. 03, 2014 | Nov. 03, 2014 | Sep. 30, 2014 | Oct. 31, 2013 | Nov. 03, 2014 | Sep. 30, 2014 | Oct. 31, 2013 | Nov. 03, 2014 |
Southeast Supply Header LLC | Steckman Ridge LP | Limited Partner | Limited Partner | Limited Partner | General Partner | General Partner | General Partner | |
Spectra Energy Corp | Spectra Energy Corp | US Assets Acquisition | US Assets Acquisition | US Assets Acquisition | US Assets Acquisition | |||
Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership interests acquired | 24.95% | 1.00% | ' | ' | ' | ' | ' | ' |
Partners units issued (in shares) | ' | ' | 5,500,000 | 167,600,000 | 4,300,000 | 113,000 | 3,400,000 | 86,000 |
Business Acquisition, Percentage Of Voting Interests Not Acquired | 0.10% | ' | ' | ' | ' | ' | ' | ' |