Natural gas pipeline operator Spectra Energy Partners, LP (SEP) reported Friday an increase in fourth-quarter profit, reflecting its acquisition of Ozark Gas Transmission and Ozark Gas Gathering in May, and robust performance across all other operations. However, quarterly earnings per share came in below the Street view, while revenues surpassed expectations.
For the fourth quarter, net income rose to $33.4 million or $0.39 per Limited Partner Unit from $ 25.4 million or $0.35 per Limited Partner Unit in the previous year. On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.45 per Unit in the fourth quarter. Analysts' estimate typically excludes special items.
Operating revenues for the quarter surged to $52.2 million from $33.2 million. Six analysts were expecting revenue of $49.41 million in the fourth quarter.
The company recorded operating income of $20 million, up from $12.9 million reported in the prior-year period.
For the full year, net income advanced to $135.9 million or $1.71 per unit from $101.3 million or $1.40 per unit in 2008. Revenues grew to $178.9 million from $124.9 million in the same period last year.
Looking ahead to fiscal 2010, Spectra Energy forecast expansion capital expenditures of $60 million.
SEP is currently trading at $28.0701, down $1.22 or 4.16%, on a volume of 235,418 shares on the NYSE.
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