Lower commodity prices put a crimp on Spectra Energy Corp.’s 2012 results, and the impact of lower natural gas liquids (NGL) prices was felt across multiple business units during the fourth quarter.

Spectra reported 2012 net income of $940 million ($1.43/share), compared with $1.18 billion ($1.81/share) in 2011. Helping to offset low commodity prices were earnings from the company’s fee-based infrastructure, said CEO Greg Ebel.

During the fourth quarter, the impact of low NGL prices was felt in Spectra’s Western Canada transmission and processing business and its field services business.

Western Canada transmission and processing reported fourth quarter earnings before interest and taxes (EBIT) of $72 million, compared with $137 million in the fourth quarter of 2011. The segment experienced lower earnings at the Empress NGL business, attributable primarily to lower propane prices. An increase in gathering and processing revenue from expansions in the Horn River and Montney areas of British Columbia was more than offset by an anticipated revenue decrease from the segment’s conventional areas, Spectra said. Year-end reported EBIT for the segment was $387 million, compared with $510 million in 2011.

Spectra’s field services business reported fourth quarter EBIT of $58 million, compared with $96 million a year ago, mainly driven by lower NGL prices and partially offset by a reduction in depreciation expense.

During the fourth quarters of 2012 and 2011, respectively, NGL prices averaged $0.77 per gallon versus $1.20 per gallon and New York Mercantile Exchange natural gas averaged $3.40/MMBtu versus $3.55/MMBtu. Crude oil averaged $88/bbl versus $94/bbl, Spectra said.

Spectra’s distribution business was dinged by an unfavorable decision from the Ontario Energy Board last November that required some revenues to be refunded to customers. Distribution reported fourth quarter EBIT of $93 million, compared with $120 million in fourth quarter 2011. Year-end EBIT for the distribution business was $374 million, compared with $425 million in 2011.

The U.S. transmission segment turned in fourth quarter results higher than those in the year-ago quarter. The business had fourth quarter EBIT of $249 million, compared with $226 million a year ago, reflecting increased earnings from system expansions and lower operating costs, partially offset by lower revenues from processing and storage, Spectra said. Year-end reported EBIT for the transmission segment was $995 million, compared with $983 million in 2011.

During an earnings conference call with financial analysts Tuesday, Ebel touted the company’s slate of growth projects, which add up to more than $25 billion. Western Canada will see more than $7 billion in spending in the coming years; the distribution segment will see more than $1 billion. Crude and liquids operations will get more than $2 billion in spending, while field services will see about $6 billion and U.S. transmission will get $10 billion.

Last month at Spectra’s annual analyst day, management said it saw multiple opportunities in the Southeast based on demand for gas from power generators in particular (see Daily GPI, Jan. 17).

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