Quarterly distribution increase of 1.25 cents to $0.68875 per unit
HOUSTON, Feb. 7, 2017 /CNW/ — Spectra Energy Partners, LP (NYSE: SEP) announced today that the board of directors of its general partner declared a quarterly cash distribution to unitholders of $0.68875 per unit, an increase of 1.25 cents over the previous level of $0.67625 per unit. The cash distribution is payable on February 28, 2017, to unitholders of record at the close of business on February 17, 2017. This quarterly cash distribution equates to $2.755 per unit on an annual basis.
“We are pleased to announce the company’s 37th consecutive quarterly cash distribution increase. And due to our ongoing growth and reliable and disciplined approach, we are reaffirming our plan to continue quarterly penny-and-a-quarter distribution increases in 2017 while maintaining distributable cash flow coverage in our targeted range of 1.05 to 1.15 times,” said Greg Ebel, chief executive officer, Spectra Energy Partners. “The General Partner of Spectra Energy Partners will change once the merger with Enbridge is complete, but the stable underpinnings of our business will not – Spectra Energy Partners will continue generating reliable cash flows.”
This information is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Under rules applicable to publicly-traded partnerships, our distributions to non-U.S. unitholders are subject to withholding tax at the highest effective applicable rate to the extent attributable to income that is effectively connected with the conduct of a U.S. trade or business. Given the uncertainty at the time of making distributions regarding the amount of any distribution that is attributable to income that is so effectively connected, we intend to treat all of our distributions as attributable to our U.S. operations, and as a result, the entire distribution will be subject to withholding.
Non-GAAP Financial Measures
Distributable Cash Flow (DCF) is a non-GAAP financial measure, which represents the cash generation capabilities of the partnership to support distribution growth. The most directly comparable GAAP measure for DCF is net income.
DCF coverage is a non-GAAP financial measure, which represents DCF divided by distributions declared on partnership units. The most directly comparable GAAP measure for DCF coverage is Earnings Per Unit (EPU).