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Spectra Energy Corp. Message Board

  • wee.mayer wee.mayer Oct 21, 2011 9:48 AM Flag


    Earning report nov 4th
    this will tell which way the price goes.

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    • will probably be OK given the dividend increase

      • 1 Reply to lizahuang54321
      • SE has beaten the consensus the last 3 quarters. It was last years 3rd quarter that they missed by a penny.

        The most interesting thing is that this is not the quarter you would expect a raise, if they were going to raise once a year. However, when I look back at their short history after the DUK spinoff, I see that after the first year they raised after 2 quarters, then held 10 quarters due to the severe down turn. But they were also spending a lot of money on a long term CAPX program. I think they felt that it may have been tougher to get money and did not want to get caught in the middle of those projects

        It is the CAPx that they started right after the spin off that has really propelled this stock and all the gas shales, especially those rich in NGLs.

    • Q & A re: questions about supply and demand from Encana's 3rd Q conf. call 10/20/2011 - must read

      George Toriola - UBS Investment Bank, Research Division

      So I'll just follow up on Greg's question and just maybe you can provide a little bit of a further insight into -- in your outlook for natural gas, is this going to be supply-driven or demand-driven? That's the change in sort of your longer term here, which side would drive the recovery more? That's the first part of my question.

      Renee E. Zemljak

      Okay, this is Renee again. We believe that what's going to drive it more is really the demand side, and we're really optimistic about the demand initiatives that have been ongoing. I mean, Encana has been quite involved in trying to help create additional demand growth in North America, which explains why we are actually in the Kitimat project. If you look at the number of LNG export projects that have been announced over the last year, it really is quite telling. I think there are somewhere between 10 to 15 projects actually that have been announced with 3 of them out of the Gulf Coast that really have a lot of momentum and regulatory support behind them. The Kitimat project itself is also well on track to be a great facility to go into service early 2016. So we do think that the longer-term prices are going to be more demand-driven than supply-driven.

      George Toriola - UBS Investment Bank, Research Division

      Okay. And essentially, you will be export-driven off of North America is what you're saying?

      Renee E. Zemljak

      Export-driven, as well as driven off of the KOGAS displacement. We're very optimistic about the regulatory things that are happening that will increase the natural gas demand as a result of power generation as well. And we have Eric Marsh here. He could probably provide a little bit more detail on that.

      Eric D. Marsh

      George, we, at Encana, we've worked really hard on transportation initiatives. We've actually opened 5 natural gas refueling stations, and we see about $1.5 billion has been spent this year across North America, working on those kind of initiatives. And I think, in general, you're going to see those begin to pick up a little bit of that demand.

      George Toriola - UBS Investment Bank, Research Division

      Okay. And so, I guess, the one question along those lines is do you expect that some sort of government bargain would have to -- would this be completely commercially driven or there'll be some fiscal incentive to back this demand up here?

      Eric D. Marsh

      George, I don't think you're going to need the government incentives. If you really look what's really going on, it's really going on just by private business and public companies getting out and moving it forward. We estimate that there's probably around 75 natural gas stations have been built in North America this year. Lot of LNG opportunities to use LNG for both transportation and for the big equipment such as Caterpillars and especially even in drilling. So we have rigs running now on LNG. We have rigs running on compressed natural gas as well. A lot of the large manufacturing-type equipment can go ahead and use natural gas as well.

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