Wednesday, gas pipeline company Spectra Energy Partners, LP (SEP) said second quarter earnings rose from a year ago, reflecting higher revenues and increased contribution from equity in earnings.
The Houston, Texas-based company's second-quarter net income rose to $33.6 million or $0.44 per limited partner unit from $27.5 million or $0.38 per unit in the prior year period. On average, 8 analysts polled by Thomson Reuters expected the company to report profit of $0.41 per unit for the quarter.
The company said the 22% increase in net income and 16% 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 businesses.
Operating revenues jumped to $41.3 million from $29.7 million in the prior year period, coming in ahead of analysts consensus revenue estimate of $39.92 million.
The company recognized $6.8 million of equity earnings from its 24.5% interest in Gulfstream in the quarter, compared to $7 million in the year ago quarter. Also, the company recorded $10.8 million in equity earnings from its 50% interest in Market Hub Partners for the quarter, compared to $8.0 million last year.
For the first half, the company posted net income of $62.1 million or $0.83 per share, up from $51.6 million or $0.67 per share in the corresponding period last year. Operating revenues advanced to $76.9 million from $62.2 million a year ago. Equity in earnings of unconsolidated affiliates increased to $34.4 million from $27.6 million in the previous year period.
SEP is trading at $22.60, up $0.40 or 1.79%, on a volume of about six thousand shares.
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