Citing the recent dropdown in the 24.5 percent interest in the Gulfstream Natural Gas System from Spectra Energy Corp. (NYSE:SEP), Barclays (NYSE:BCS) increased their EPS estimates for 2011 and 2012.
Barclays said, "We have updated our earnings estimates to reflect the recent dropdown of the 24.5% interest in the Gulfstream Natural Gas System from Spectra Energy Corp and the associated equity issuance of $200 million. In addition, we have updated our model to include the following assumptions: 1) annual organic capital spending of $200 million in 2012-2014, 2) annual acquisitions of $250 million in 2011-2014, and 3) lowered expectations for Market Hub given narrower storage spreads."
EPS estimates for full year 2011 and FY12 were boosted by $0.02 to $1.69 and $1.76.
Barclays maintains an "Overweight" on Spectra Energy Partners, which last closed at $32.81, down $0.11, or 0.33 percent. Barclays has a price target on Spectra of $34.
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