Sea Limited (NYSE:SE) Q4 2014 Earnings Conference Call - Final Transcript

Feb 04, 2015 • 09:00 am ET


Sea Limited (NYSE:SE) Q4 2014 Earnings Conference Call - Final Transcript


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Good morning. My name is Keith, and I will be your conference operator today. At this time, I would like to welcome everyone to the Spectra Energy and Spectra Energy Partner's Quarterly Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

Julie Dill, Chief Communications Officer, you may begin your conference.

Julie Dill

Thank you, Keith, and good morning, everyone. My name is Julie Dill, the Chief Communications Officer for Spectra and we really appreciate you joining us today for our review of Spectra Energy's and Spectra Energy Partners' 2014 fourth quarter results and year end results. With me today are Greg Ebel, CEO of both Spectra Energy and Spectra Energy Partners; and Pat Reddy, CFO of both companies. Pat will go through our results for the quarter and the year and then Greg will wrap things up with some closing thoughts on 2014. And as always, we'll leave plenty of time for your questions related to our 2014 results following Greg's remarks.

(Forward-Looking Cautionary Statements)

So with that, let me turn things over to Pat.

John Patrick Reddy

Okay. Thanks, Julie and good morning, everyone, and thanks for joining us today. As you saw on our earnings release this morning, we had a strong finish to 2014, which puts us on a solid footing as we entered 2015. Our robust finish for the year underscores a couple of key points.

First, it affirms our ability to manage through various business and market cycles including the current lower commodity cycle that began in the fourth quarter. Thanks to a diversified portfolio healthy balance sheet and sound business model. Importantly, the success we had last year in executing on our expansion plans, securing contracts and safeguarding our credit metrics and financial flexibility provides us with a strong platform to build on.

And you'll hear more about that when we review our new 3-year plan with you tomorrow. So I'll speak more to the full year shortly, but let's start with our fourth quarter results, which are shown on slide three. Spectra Energy generated ongoing EBITDA of $180 million compared with $798 million in the prior year's quarter. On a standalone basis SEP delivered ongoing EBITDA $424 million, $72 million higher than in the same period last year.

The key drivers for the positive change and Spectra Energy's EBITDA quarter-over-quarter are increased earnings of $75 million at Spectra Energy Partners compared with last year, mainly driven by expansion projects that generated about $30 million primarily on our Texas Eastern System projects like TEAM 2014 and TEAM South which were put into service during the fourth quarter are helping transform Texas Eastern into a bidirectional system and are underpinned by firm long-term fee-based contracts.

Increased earnings at SEP also reflect higher equity earnings due to the continued ramp up of volumes on the Sand Hills and Southern Hills NGL pipelines and higher crude transportation revenues resulting mainly from higher average