1. Second Quarter 2007 Earnings Review
Fred Fowler
August 6, 2007
President and CEO
Greg Ebel
CFO

2. Safe Harbor Statement
Some of the statements in this document concerning future company
performance will be forward-looking within the meanings of the securities
laws. Actual results may materially differ from those discussed in these
forward-looking statements, and you should refer to the additional
information contained in Spectra Energy’s Form 10-K and other filings
made with the SEC concerning factors that could cause those results to be
different than contemplated in today's discussion.
Reg G Disclosure
In addition, today’s discussion includes certain non-GAAP financial
measures as defined under SEC Regulation G. A reconciliation of those
measures to the most directly comparable GAAP measures is available on
Spectra Energy’s Investor Relations website at www.spectraenergy.com.
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3. Spectra Energy’s Second Quarter
• Ongoing EPS consistent with expectations
• Solid results at Distribution and US Transmission; plant
turnarounds at Western Canada and weather challenges at
Field Services affected earnings
• $650 million of expansion projects in-service by end of 2007
• Closed Spectra Energy Partners IPO on July 2nd – SE
received $345 million
• Optimistic we will achieve 2007 financial goals
Committed to delivering results to shareholders with solid,
steady growth and an attractive dividend to provide a total
return of 8-10% in a relatively low risk environment
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4. Earnings Summary
2Q07 2Q06
Reported Net Income $ 196 $ 320
Special Items 7 7
Discontinued Operations (11) (63)
Ongoing Net Income $ 192 $ 264
Reported Diluted EPS $ 0.31 n/a
Ongoing Diluted EPS $ 0.30 n/a
• Special items:
• 2Q07 – separation costs
• 2Q06 – separation costs and costs to achieve Duke Energy/Cinergy
merger
• Discontinued operations:
• 2Q07 - Sonatrach settlement proceeds, net of tax
• 2Q06 - businesses retained by Duke Energy but reported as a part of
Spectra Energy Capital for 2006
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5. U.S. Transmission
Reported & Ongoing Segment EBIT ($ millions)
2Q07 2Q06
Reported Segment EBIT $ 223 $ 230
Special Items --- ---
Ongoing Segment EBIT $ 223 $ 230
• 2Q07 ongoing segment results were lower by $7 million compared
with 2Q06 primarily a result of:
• lower gas processing volumes from pipeline operations
• increased earnings from M&NE and expansion projects
• higher direct operating costs
• Significant advancements made on growth projects
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6. Distribution
Reported & Ongoing Segment EBIT ($ millions)
2Q07 2Q06
Reported Segment EBIT $ 54 $ 39
Special Items --- ---
Ongoing Segment EBIT $ 54 $ 39
• 2Q07 ongoing segment results were up 38% compared with 2Q06
primarily driven by:
• increased usage in core markets
• higher distribution rates in 2007
• increased storage revenues reflecting strong storage values
• Phase I of Dawn-Trafalgar commissioned at end of 2006 and is
contributing to earnings
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7. Western Canada Transmission & Processing
Reported & Ongoing Segment EBIT ($ millions)
2Q07 2Q06
Reported Segment EBIT $ 48 $ 89
Special Items --- ---
Ongoing Segment EBIT $ 48 $ 89
• 2Q07 ongoing segment results were lower by $41 million compared with
2006 due to:
• lower processing revenues and higher O&M primarily a result of planned
turnarounds at Empress and Pine River processing plants
• reduced producer activity in the Fort Nelson area
• Empress average frac spread for 2Q07 was approximately $5.85 compared
to $6.05 in 2Q06
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8. Field Services
Reported & Ongoing Segment EBIT ($ millions)
2Q07 2Q06
Reported Segment EBIT $ 123 $ 148
Special Items 3 --
Ongoing Segment EBIT $ 126 $ 148
• 2Q07 ongoing EBIT was lower by $22 million compared with 2Q06 due primarily to:
• severe weather related issues
• higher O&M and G&A
• partially offset by favorable commodity prices
• Special items relate to Spectra Energy’s 50% share of stand-alone costs in 2Q07
• 2Q07 crude oil prices averaged about $65/barrel -- the strip price for the remainder
of 2007 is in the mid $70’s
• 2Q07 dividend and tax distributions from DCP Midstream were $111 million
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9. Other
Reported & Ongoing EBIT ($ millions)
2Q07 2Q06
Other Reported EBIT (Loss) $ (26) $ (35)
Special Items 7 11
Other Ongoing EBIT (Loss) $ (19) $ (24)
• “Other” primarily includes corporate governance costs and captive
insurance
• Special items:
• 2Q07 relates to separation costs
• 2Q06 relates to separation costs and costs to achieve the Duke
Energy/Cinergy merger
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10. Ongoing Segment and Other EBITDA
Ongoing Segment and Other EBITDA ($ millions)
2Q07 2Q06
U.S. Transmission $ 285 $ 291
Distribution 94 76
Western Canada Transmission &
Processing 82 122
Field Services 182 209
Other (18) (21)
$ 625 $ 677
Total Ongoing Segment and Other EBITDA
• U.S. Transmission Ongoing EBITDA also includes Spectra Energy’s 50% share of
Gulfstream’s Interest and DD&A
• 2Q07 - $10
• 2Q06 - $11
• Field Services Ongoing EBITDA represents Spectra Energy’s Ongoing Equity
Earnings of DCP Midstream plus half of DCP Midstream’s Interest, Taxes and DD&A
• 2Q07 - $56
• 2Q06 - $61
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11. Additional Items
• Interest expense for 2Q07 was $156 million compared with
$148 million for 2Q06
• Spectra Energy’s effective tax rate for the 2Q07 was 32%
compared with 22% last year
• Debt to Total Capital at June 30, 2007 is 58%; net Debt to
Total Capital is approximately 56.5%
• In May, closed on U.S. credit facility of $1.5 billion to replace
$950 million facility
• Total credit facility capacity at June 30, 2007 of $2.1 billion;
available capacity of $1.3 billion
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12. Well-Positioned
Well-Positioned for Growth
2007-2009
~$3 Billion of Expansion Opportunities 2007-2009
Gas Gathering
Pipelines
Processing Plant
Expansion
M&NE Phase IV
Dawn Storage
St. Clair Power
(CanaportTM)
Deliverability
Dawn Area
Cape Cod
Storage Dawn-Trafalgar
Phase II, III
NE Gateway
AGT East/West
Time II Islander East
Lebanon
Ramapo
Connector
TEMAX/Lebanon Rockaway Beach
East
Steckman Ridge
Accident
Glade Spring
Egan Expansion
Moss Bluff
Copiah Storage
Expansion
SE Supply Header
Gulfstream Phase III & IV
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13. Well-Positioned for Growth
Northeast Gateway
• 16 mile, 24” offshore pipeline in
Massachusetts Bay to connect
Excelerate’s Deepwater LNG port to
Algonquin’s Hubline Pipeline
• 25 year firm contract with Excelerate
Energy for entire 800 mmcf/day
• Construction began in May
• Pipe lay is complete; plowing/jetting in
progress
• Estimated capital expenditures: $240
million
• In-service December ‘07
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14. Well-Positioned for Growth
M&N Phase IV Expansion
• Compression and pipe
expansion to connect Maritimes
& Northeast to Canaport™ LNG
Terminal
Quebec MNP Phase IV Expansion
• Canaport™ is a LNG receiving
- 5 New Compressor Stations
Prince
and regas terminal developed by
New - 2 Station Upgrades
Edward
Brunswick
- 2 Miles 30-inch Loop
Repsol YPF & Irving Oil located
Quebec
Island
City
Fredericton
in Saint John, New Brunswick
Maine
Moncton
• 25 year firm contract with Repsol
Point Tupper
for 730,000 mmcf/day on
Bangor
PNGTS
VT Saint Goldboro
Maritimes’ US system
John
Halifax
• FERC and key government
Nova
Maritimes & Northeast Pipeline
Scotia
Westbrook
Repsol-
approvals complete
Existing Compressor Stations
Portland
Irving
New Compressor Stations
Canaport™
NH
• 80% of project materials &
Brunswick Pipeline (Emera)
LNG
equipment procured or
Corridor Resources
Boston
Supply Lateral (Corridor)
committed
Algonquin
MA
• Expected in-service date
Tennessee
November 2008
• Est. capital expenditures: $320
million (100%)
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15. Well-Positioned for Growth
Time II
• 4 miles of new pipeline looping,
28 miles of replacement pipeline
installation, construction of a new
compressor station, additional
compression at an existing station
• 150 mmcf/d of new transportation
service from Lebanon, OH to New
Jersey
• FERC certificate authorization
issued on June 8, 2007;
construction began June 15, 2007
• 15 year and 10 year firm
contracts underpin this expansion
• In-service dates: Phase I 2H07;
Phase II 2H08
• Est. capital expenditures: Phase I
$120 million / Phase II $90 million
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16. Well-Positioned for Growth
Southeast Supply Header
• 270 miles of pipe from Perryville Hub
in NE La. to Mobile, Al
• Provides alternative to offshore
supply
• 95% of capacity is subscribed under
firm, long-term agreements
• Pipe is currently being delivered
• Prime contractors retained
• Expect FERC certification later this
year
• Est. capital expenditures: $400 million
• In-service in summer ‘08
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17. Value Proposition
• A premier pure-play midstream natural gas company
in North America
• Attractive industry dynamics
• Positioned in fastest growing markets
• Diverse supply base
• Seasoned management team
• Strong balance sheet and stable cash flows
• Financial flexibility
• Solid steady growth and attractive dividend yield
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