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$SE 1Q15 10-Q: Spectra’s income tax expense was $101MM for 1Q15 vs. $164MM for 1Q14. The lower tax expense was primarily due to lower earnings and the effect of a weaker Canadian dollar. The effective income tax rate was 24% and 26% for 1Q15 and 1Q14, respectively.
$ENB and $SE said their merger has received all regulatory clearances under the merger agreement. Trading in shares of $SE on the NYSE will be suspended effective on Feb. 27, 2017. $SE's common shares will be delisted from the NYSE and will be de-registered under the U.S. Securities Exchange Act of 1934.
$ENB and $SE said their merger has received all regulatory clearances under the merger agreement, including from the Canadian Competition Bureau, and is expected to close on Feb. 27, 2017. $SE will make its final common share dividend payment on March 1, 2017 to its shareholders of record on Feb. 15, 2017.
$SE's CEO Greg Ebel said, "Our achievements and accomplishments in 2016, coupled with those of the past decade, have positioned us well for 2017 and beyond, as we move closer to completing our combination with Enbridge, which we expect to occur in the first quarter of this year.
Natural gas company $SE, which is pursuing a merger with Canadian pipeline operator Enbridge, reported a higher quarterly profit, helped in part by lower income tax expense. The company reported 3Q16 EPS of $0.28, up from $0.26 a year ago. Operating revenue fell to $1.08Bil from $1.10Bil.
$SE declared a quarterly cash dividend on its common stock of $0.405 per share, or $1.62 per share on an annualized basis. The dividend is payable on December 6, 2016, to shareholders of record at the close of business on November 11, 2016.
$ENB and $SE agreed to merge. $ENB expects the Transaction to be neutral to its 12-14% secured adjusted cash flow from operations per share CAGR guidance through the 2014-2019 time period, and strongly additive to its growth beyond that timeframe. $ENB expects to divest of about $2Bil of non-core assets over next 12 months.
$ENB and $SE agreed to merge. Al Monaco will continue to serve as President and CEO of the combined company. Greg Ebel will serve as non-executive Chairman of $ENB's BoD. $ENB's BoD is expected to have a total of 13 directors consisting of 8 members designated by $ENB, including Monaco, and 5 members designated by $SE, including Ebel.
$ENB and $SE agreed to merge. $SE shareholders will receive 0.984 shares of combined company, which will be called Enbridge Inc., for each $SE common share they own. The consideration to be received by $SE shareholders is valued at $40.33 per share. $ENB shareholders are expected to own about 57% of combined company and $SE will own about 43%.
$ENB and $SE agreed to combine in stock-for-stock merger transaction, which values $SE common stock at about $28Bil, based on closing price of $ENB's common shares on Sept. 2, 2016. The combination will create largest energy infrastructure company in North America. The deal, which was unanimously approved by both BoDs, is expected to close in 1Q17.
Simmons analyst Brian Gamble questions $SE what other opportunities or avenues it is looking at in response to the change in power gen mix. President US Transmission William Yardley says the company would like to get penetration into the Southeast. There is a ton of coal conversion & new gas is going to be going off, so $SE will be a player there.
Goldman Sachs analyst Ted Durbin questions $SE whether Valley Crossing's returns of $1.5Bil will be in line with what it's looking for. CEO Gregory Ebel says that it is right in line with 6-8 times EBITDA build. $SE's cost of capital advantage kept some competitors away from this process. So, there are better returns from this project vs. others.
Raymond James analyst Darren Horowitz questions $SE which of the 4 states undergoing PUC approvals is going to be most challenging to clear. CEO Gregory Ebel says that the Massachusetts approval is probably the most critical. $SE says that it has not put this project into execution yet, but is confident will be able to deliver service as expected.
$SE said that the Valley Crossing project is expected to begin service during 4Q18 and is underpinned by a 23-year fee-based US dollar denominated contract. This project will add to earnings and cash flow, and will also help the company to pursue other incremental upstream regional business. CFE is the customer for Valley Crossing & STEP projects.
$SE said that with the addition of new projects, 80% of its execution portfolio is now supported by demand-pull customers. This was up from 75% at the start of the year. The Ozark Conversion went into service on time and began flowing product in July, while all other projects, including AIM, are on track for their expected 2016 in-service dates.