Spectra Energy Partners (NYSE:SEP) Earnings Boosted on Interest Dropdown

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.