1. Fourth Quarter 2007 Earnings Review
Fred Fowler
President and CEO
Greg Ebel
CFO
February 6, 2008

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.
Fourth Quarter 2007 Earnings Review | February 6, 2008
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3. 2007 Accomplishments
• $1.53 ongoing fully diluted EPS - 9% over our $1.40 employee
incentive target
• Strong earnings at all businesses
• Excellent 4Q07 – $0.47 ongoing fully diluted EPS
• Capital expansion plans delivered:
• $1 billion in expansion capex
• 13 new projects in-service totaling about $650 million
• 10-12% return on capital employed
• $20 million corporate cost reduction
• Strong investment grade balance sheet
• IPO of Spectra Energy Partners at a record yield
Successfully launched Spectra Energy and delivered on 2007
financial, operational and investment commitments
Fourth Quarter 2007 Earnings Review | February 6, 2008
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4. Earnings Summary
($ millions) 4Q07 4Q06 2007 2006
Reported Net Income $ 291 $ 255 $ 957 $ 1,244
Special Items 9 11 25 (17)
Discontinued Operations 1 (13) (13) (308)
Extraordinary Items (4) - - -
Ongoing Net Income $ 297 $ 253 $ 969 $ 919
Reported Diluted EPS $ 0.46 n/a $ 1.51 n/a
Ongoing Diluted EPS $ 0.47 n/a $ 1.53 n/a
• Special items:
• 4Q07 – gas spin-off separation costs
• 4Q06 – gas spin-off separation costs and costs to achieve Duke Energy/Cinergy merger
• Discontinued Operations:
• 4Q06 – operations transferred back to Duke Energy prior to the spin-off of Spectra Energy
• Extraordinary Item:
• 4Q07 – adjustment of deferred tax liability associated with Distribution’s unregulated storage
Fourth Quarter 2007 Earnings Review | February 6, 2008
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5. U.S. Transmission
Reported & Ongoing Segment EBIT ($ millions)
4Q07 4Q06 2007 2006
Reported Segment EBIT $ 221 $ 172 $ 894 $ 816
Special Items --- --- --- (24)
Ongoing Segment EBIT $ 221 $ 172 $ 894 $ 792
• 4Q07 ongoing segment results increased $49 million compared with
4Q06 primarily a result of:
• higher demand for services and expansion projects
• higher processing earnings due to pricing
• lower project development costs in 4Q07
Fourth Quarter 2007 Earnings Review | February 6, 2008
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6. Distribution
Reported & Ongoing Segment EBIT ($ millions)
4Q07 4Q06 2007 2006
Reported Segment EBIT $ 84 $ 84 $ 322 $265
Special Items --- --- --- ---
Ongoing Segment EBIT $ 84 $ 84 $ 322 $ 265
• 4Q07 ongoing segment results unchanged compared with 4Q06 primarily
a result of:
• increased customer usage as a result of colder weather, as well as
additional load from gas fired power generation, higher distribution rates,
• favorable foreign currency exchange,
• offset by higher operating costs primarily due to higher than expected
“unaccounted for gas”
Fourth Quarter 2007 Earnings Review | February 6, 2008
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7. Western Canada Transmission & Processing
Reported & Ongoing Segment EBIT ($ millions)
4Q07 4Q06 2007 2006
Reported Segment EBIT $ 142 $ 76 $ 366 $ 345
Special Items --- --- --- (15)
Ongoing Segment EBIT $ 142 $ 76 $ 366 $ 330
• 4Q07 ongoing segment results were $66 million higher than 4Q06 due
to:
• higher NGL gross margin due to higher frac spread
Empress 2007 annual average frac spread was $7.15
• favorable foreign currency exchange
Fourth Quarter 2007 Earnings Review | February 6, 2008
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8. Field Services
Reported & Ongoing Segment EBIT ($ millions)
4Q07 4Q06 2007 2006
Reported Segment EBIT $ 188 $ 119 $ 533 $ 569
Special Items 6 -- 16 (14)
Ongoing Segment EBIT $ 194 $ 119 $ 549 $ 555
• 4Q07 ongoing EBIT higher by $75 million compared with 4Q06 due to:
• favorable commodity prices
• offset by lower gathering and processing margins due to changed
contract mix and lower plant efficiencies
• Special item: Spectra Energy’s 50% share of stand-alone costs in 4Q07
• 4Q07 crude oil prices about $91/barrel compared with $61/barrel in
4Q06; settled price for all of 2007 is about $72/barrel
• $260 million in cash distributions to Spectra Energy
Fourth Quarter 2007 Earnings Review | February 6, 2008
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9. Other
Reported & Ongoing EBIT ($ millions)
4Q07 4Q06 2007 2006
Other Reported EBIT (Loss) $ (56) $ (12) $ (112) $ (77)
Special Items 8 17 23 35
Other Ongoing EBIT (Loss) $ (48) $5 $ (89) $ (42)
• 4Q07 ongoing Other was higher than 4Q06 due primarily to:
• 4Q06 includes mark-to-market gains ($4) and management fees billed
back to Duke ($20) - absent these, 4Q06 ongoing EBIT loss would have
been $19 million
• higher corporate costs, including employee incentive and other benefit
costs
• Special items:
• 4Q07 relates to gas spin-off separation costs
• 4Q06 relates to separation costs and costs to achieve the Duke
Energy/Cinergy merger
Fourth Quarter 2007 Earnings Review | February 6, 2008
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10. Additional Items
• Interest expense for 4Q07 was $166 million compared with
$162 million for 4Q06
• Spectra Energy’s effective tax rate for the 4Q07 was 31%
compared with 15% in 4Q06 – full year 2007 tax rate was 32%
• Debt to Total Capitalization at Dec. 31, 2007 is 55%
• Total credit facility capacity at Dec. 31, 2007 of $2.7 billion;
available capacity of $1.9 billion
• Canadian currency net after tax effect on earnings for 4Q07
was favorable by about $14 million compared with 4Q06
Fourth Quarter 2007 Earnings Review | February 6, 2008
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11. 2007 Ongoing EBIT Compared
with 2008 Ongoing EBIT Forecast
2007 Ongoing 2008 Forecast
($ millions)
EBIT EBIT
U.S. Transmission $ 894 $ 870
Distribution 322 380
Western Canada Transmission & Processing 366 345
Field Services (1) 549 650
Other (89) (85)
TOTAL Ongoing Segment and Other EBIT $ 2,042 $ 2,160
(1) EBIT represents Spectra Energy’s Equity in Earnings of DCP Midstream.
Fourth Quarter 2007 Earnings Review | February 6, 2008
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12. Spectra Energy Ongoing Net Income Rollforward:
2007 Actual to 2008 Employee Incentive Target
1,250
50 45
1,200
30
55
1,150 20
10
19
140
60
1,100
$MM
1,050
30
1,000
1,000
969
950
900
2007 NI Exp Commodity Foreign Proj Dev '07 Prop US Transm SEP Full Misc Interest & Income Tax 2008 NI
Projects Price/Vol Exchange Cost / Tax Benefit Processing Year Other
Reversal
$1.56
$1.53
Fourth Quarter 2007 Earnings Review | February 6, 2008
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13. Spectra Energy Ongoing EBIT Rollforward:
2007 Actual to 2008 Employee Incentive Target
2,250
4 24
58
2,200 21
2,160
101
2,150
2,100
2,042
2,050
$MM
2,000
1,950
1,900
1,850
1,800
2007 EBIT Field Services Distribution Other US Transmission Western Canada 2008 EBIT
Trans & Proc
Fourth Quarter 2007 Earnings Review | February 6, 2008
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14. 2008 Outlook and Beyond
• $1.56 ongoing, fully diluted EPS employee incentive target for 2008 - 11%
increase over 2007 target
• Committed to dividend growth
• 2008 dividend increased by $0.04/share to $0.92/share
• Continue to execute on Capex plans
• $1 billion+ per year spending through 2010
• $1.5 billion in projects expected in-service during 2008
• $500 million annualized EBIT expected by 2011
• Aggressively pursuing post-2010 opportunities
• 2008 Long Term Incentive
• 50% based on TSR relative to a peer group of companies for three years
Targeting 5-7% compounded annual ongoing diluted EPS
growth from 2007 through 2010
Fourth Quarter 2007 Earnings Review | February 6, 2008
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15. Fourth Quarter 2007 Earnings Review | February 6, 2008
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