Spectra Energy reported ongoing earnings per share of $0.38 for the third quarter of 2007, up 32% from the third quarter of 2006. Key drivers of earnings growth included excellent results from U.S. Transmission, Distribution, and Western Canada Transmission and Processing segments. The company is confident it will achieve its 2007 financial goals and remains committed to delivering 8-10% total shareholder return through steady growth and an attractive dividend.

1. Third Quarter 2007 Earnings Review
Fred Fowler
November 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 Third Quarter
• Ongoing EPS of $0.38 -- ongoing earnings up 32% compared
with 3Q06
• Excellent results at U.S. Transmission, Distribution and
Western Canada Transmission and Processing
• $625-650 million of expansion projects in-service by end of
2007
• Confident 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 in the 8-10% range in a relatively low risk environment
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4. Earnings Summary
3Q07 3Q06
Reported Net Income $ 234 $ 447
Special Items 5 (11)
Discontinued Operations (3) (254)
Extraordinary Items 4 -
Ongoing Net Income $ 240 $ 182
Reported Diluted EPS $ 0.37 n/a
Ongoing Diluted EPS $ 0.38 n/a
• Special items:
• 3Q07 – gas spin-off separation costs
• 3Q06 – gas spin-off separation costs and costs to achieve Duke Energy/Cinergy merger and
gain on Spectra Energy Income Fund’s issuance of units for asset purchase
• Discontinued operations:
• 3Q07 – true-up on the 2005 sale of Fort Frances facility
• 3Q06 – operations transferred back to Duke Energy prior to the spin-off of Spectra Energy
• Extraordinary Item:
• 3Q07 – regulatory asset adjustment for deregulation of storage assets at Union Gas
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5. U.S. Transmission
Reported & Ongoing Segment EBIT ($ millions)
3Q07 3Q06
Reported Segment EBIT $ 230 $ 179
Special Items --- ---
Ongoing Segment EBIT $ 230 $ 179
• 3Q07 ongoing segment results increased by $51 million compared with
3Q06 primarily a result of:
• higher demand for services and expansion projects
• higher earnings related to capitalization of development costs,
primarily SESH and Gulfstream Phase IV
5

6. Distribution
Reported & Ongoing Segment EBIT ($ millions)
3Q07 3Q06
Reported Segment EBIT $ 40 $ 24
Special Items --- ---
Ongoing Segment EBIT $ 40 $ 24
• 3Q07 ongoing segment results were up by $16 million compared with
3Q06 primarily driven by:
• increased storage and transmission revenues, higher distribution
margins,
• partially offset by higher O&M costs, including higher costs for
conservation efforts in 3Q07 which are recovered in rates
6

7. Western Canada Transmission & Processing
Reported & Ongoing Segment EBIT ($ millions)
3Q07 3Q06
Reported Segment EBIT $ 102 $ 98
Special Items --- (15)
Ongoing Segment EBIT $ 102 $ 83
• 3Q07 ongoing segment results were higher by $19 million compared with
2006 due to:
• lower O&M due to turnaround in 3Q06 at Fort Nelson and timing of pipeline
integrity work
• favorable foreign currency exchange
• Empress average frac spread for 3Q07 was $8.37, compared to $6.92 in
3Q06
• Special item relates to gain in 3Q06 due to Spectra Energy Income Fund’s
issuance of units for purchase of Westcoast Gas Services, Inc.
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8. Field Services
Reported & Ongoing Segment EBIT ($ millions)
3Q07 3Q06
Reported Segment EBIT $ 140 $ 158
Special Items 3 --
Ongoing Segment EBIT $ 143 $ 158
• 3Q07 ongoing EBIT was lower by $15 million compared with 3Q06 due primarily to:
• favorable commodity prices
• offset by lower gathering and processing margins
• higher operating costs
• and gas marketing results in 3Q06
• Special items relate to Spectra Energy’s 50% share of stand-alone costs in 3Q07
• 3Q07 crude oil prices averaged about $76/barrel -- the settled and forward price for
all of 2007 is about $72/barrel
• 3Q07 distributions from DCP Midstream were $247 million
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9. 2007 Crude Oil Price
$95
10/31/2007 Fw ds
$90
$85
Settled Prices
$80
2007
$75
$/bbl
$70
SE 2007 Annual
Avg Forecast
$65 Assumption as of
9/15/06 ($68.50)
$60
2007 Annual Avg
$55 of Settled and
Forw ards as of
$50 10/31/07 ($72.37)
Jan-07
Feb-07
Mar-07
May-07
Jun-07
Jul-07
Oct-07
Nov-07
Dec-07
Sep-07
Apr-07
Aug-07
P ricing info rmatio n co mpiled fro m NYM EX WTI
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10. Other
Reported & Ongoing EBIT ($ millions)
3Q07 3Q06
Other Reported EBIT (Loss) $ (15) $ 19
Special Items 5 7
Other Ongoing EBIT (Loss) $ (10) $ 26
• 3Q07 ongoing Other was lower than 3Q06 due primarily to:
• lower ongoing corporate governance and insurance costs
• 3Q06 includes mark-to-market gains ($21) and management fees ($26) - Absent
these, 3Q06 EBIT loss was $21 million
• Special items:
• 3Q07 relates to gas spin-off separation costs
• 3Q06 relates to separation costs and costs to achieve the Duke
Energy/Cinergy merger
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11. Additional Items
• Interest expense for 3Q07 was $156 million compared with $152 million for
3Q06
• Spectra Energy’s effective tax rate for the 3Q07 was 32% compared with
41% last year – full year 2007 tax rate estimated to be 32-33%
• Debt to Total Capital at Sept 30, 2007 is approximately 56%
• Third quarter financing activity:
• At Union, redeemed about C$130 million of debt and closed on a credit
facility of C$500 million to replace C$400 million facility
• Texas Eastern issued $400 million 10 year notes at a 6% coupon -
refinanced $300 million that matured in July, 2007
• Received $345 million from IPO of Spectra Energy Partners, LP
• Total credit facility capacity at Sept 30, 2007 of $2.2 billion; available capacity
of $1.8 billion
• Canadian currency net after tax effect on earnings for 3Q07 was favorable by
about $3.7 million compared with 3Q06
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