Morningstar Rating

Stock Research and Analysis

by Peggy Connerty

Bulls Say

Spectra Energy Corp's size, market knowledge, and customer relationships give it an edge when developing new projects.
The drop-down of UST to Spectra Energy Partners accelerated value recognition and will allow Spectra to fund future growth more efficiently.
Access to developing shale plays--particularly the Marcellus --provides Spectra with compelling, visible growth opportunities. Read more 

Bears Say

Higher interest rates could hurt Spectra Energy’s ability to raise capital and fund its long-term growth projects.
The weak commodity price environment could impair cash flows from DCP Midstream to Spectra Energy and lead to a slower distribution growth rate and reduced coverage ratios.
Because of its size, Spectra has to spend a lot in order to move the needle. Spectra’s 2015-2017 plan calls for $8 billion in capital spending at attractive returns, although at some point it may become more difficult to put capital to work at attractive returns. Read more 

Management

Spectra Energy’s management team is solid with Greg Ebel at the helm as chairman, president, and CEO. He has held a number of leadership roles in the company, including Chief Financial Officer, and was formerly the president of Union Gas. Prior to leading   Read more 

Profile

Spectra Energy Corp owns and operates a large diversified portfolio of natural gas-related infrastructure assets in North America and a crude oil pipeline system that connects   Read more 

New Energy Outlook Brings Fair Values Down 
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