1. Second Quarter 2008 Earnings Review
Fred Fowler
President and CEO
Greg Ebel
CFO
August 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.
Second Quarter 2008 Earnings Review | August 6, 2008
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3. Excellent Second Quarter 2008
• Exceptional earnings in 2Q08
• $0.44 ongoing fully diluted EPS
• 47% increase over 2Q07
• Solid financial performance from all segments - robust commodity
prices fueled Field Services earnings
• Share repurchase progress through June 30th:
• $284 million
• 10.5 million shares
• 2008 expansion projects on track
• CEO succession plan in place
Expect dividend yield and increased compound annual growth
rate to deliver double-digit total shareholder return
Second Quarter 2008 Earnings Review | August 6, 2008
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4. Second Quarter 2008 Summary
($ millions) 2Q08 2Q07
Reported Net Income $ 295 $ 196
Special Items (21) 7
Discontinued Operations - (11)
Ongoing Net Income $ 274 $ 192
Reported Diluted EPS $ 0.47 $ 0.31
Ongoing Diluted EPS $ 0.44 $ 0.30
• Over 47% increase in ongoing EPS
• Special Item:
• 2Q08 – gain on the bankruptcy settlement with Calpine at U.S. Transmission
• 2Q07 – separation costs
• Discontinued Operations:
• 2Q07 – Sonatrach settlement proceeds
Expect to significantly exceed employee incentive EPS target of $1.56
Second Quarter 2008 Earnings Review | August 6, 2008
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5. U.S. Transmission
Reported & Ongoing Segment EBIT ($ millions)
2Q08 2Q07
Reported Segment EBIT $ 244 $ 223
Special Items (31) ---
Ongoing Segment EBIT $ 213 $ 223
• 2Q08 ongoing segment results decreased $10 million compared with
2Q07 primarily a result of:
• Northeast Gateway, Time II and Egan projects in-service
• capitalized interest on expansion projects
• offset by:
• higher project development costs due to capitalization of costs in 2Q07
• higher transmission and storage costs in 2Q08
Second Quarter 2008 Earnings Review | August 6, 2008
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6. Distribution
Reported & Ongoing Segment EBIT ($ millions)
2Q08 2Q07
Reported Segment EBIT $ 54 $ 54
Special Items --- ---
Ongoing Segment EBIT $ 54 $ 54
• 2Q08 ongoing segment results unchanged compared with 2Q07 primarily
a result of :
• increased storage and transportation revenues
• favorable foreign currency exchange
• offset by a provision related to the OEB’s decision on unregulated
storage revenues collected 11/06 – 6/08
Second Quarter 2008 Earnings Review | August 6, 2008
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7. Western Canada Transmission & Processing
Reported & Ongoing Segment EBIT ($ millions)
2Q08 2Q07
Reported Segment EBIT $ 87 $ 48
Special Items --- ---
Ongoing Segment EBIT $ 87 $ 48
• 2Q08 ongoing segment results were $39 million higher than 2Q07 due
to:
• higher Empress earnings due to frac spread and higher volumes
2Q08 average frac spread was $8.39 compared with $5.85 in 2Q07
• favorable foreign currency exchange
• higher processing revenues
Second Quarter 2008 Earnings Review | August 6, 2008
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8. Field Services
Reported & Ongoing Segment EBIT ($ millions)
2Q08 2Q07
EBIT before MTM at DPM $ 241 $ 124
DPM Non-cash MTM (25) (1)
Reported Segment EBIT $ 216 $ 123
Special Items - 3
Ongoing Segment EBIT $ 216 $126
• 2Q08 ongoing EBIT higher by $90 million compared with 2Q07 due to:
• favorable commodity prices
• increased volumes and improved plant operating efficiencies
• partially offset by DCP Midstream Partners (DPM) hedge Mark-to-Market (MTM)
• Commodity prices:
• crude oil averaged $124/barrel in 2Q08; $65/barrel in 2Q07
• correlation for 2Q08 was 50%; 68% for 2Q07
• natural gas averaged $11/MMbtu for 2Q08; $8/MMbtu for 2Q07
• $444 million in cash distributions to Spectra Energy, including special dividend paid
in April of $250 million
Second Quarter 2008 Earnings Review | August 6, 2008
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9. Other
Reported & Ongoing EBIT ($ millions)
2Q08 2Q07
Other Reported EBIT (Loss) $ (28) $ (26)
Special Items - 7
Other Ongoing EBIT (Loss) $ (28) $ (19)
• 2Q08 higher than 2Q07 due primarily to:
• higher insurance claims and benefits costs
Second Quarter 2008 Earnings Review | August 6, 2008
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10. Additional Items
• Interest expense for 2Q08 was $149 million compared with $156
million for 2Q07
• Effective tax rate was 31% for both 2Q08 and 2Q07
• Debt to Total Capitalization at June 30, 2008 is 57%
• Total credit facility capacity at June 30, 2008 of $2.7 billion; available
liquidity of $1.9 billion
• Canadian currency net after tax effect on earnings for 2Q08 was
favorable by about $5 million compared with 2Q07
Second Quarter 2008 Earnings Review | August 6, 2008
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11. Ongoing Segment and Other EBITDA
Ongoing Segment and Other EBITDA ($ millions)
2Q08 2Q07 YTD ‘08 YTD ‘07
U.S. Transmission $ 280 $ 285 $ 574 $ 568
Distribution 100 94 312 275
Western Canada Transmission &
Processing 129 82 297 189
Field Services 280 182 537 321
Other (24) (18) (41) (29)
$ 765 $ 625 $ 1,679 $ 1,324
Total
• U.S. Transmission Ongoing EBITDA also includes Spectra Energy’s 50% share of
Gulfstream’s Interest and DD&A
• Field Services Ongoing EBITDA represents Spectra Energy’s Ongoing Equity
Earnings of DCP Midstream plus half of DCP Midstream’s Interest, Taxes and DD&A
Second Quarter 2008 Earnings Review | August 6, 2008
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12. Hypothetical Example: Commodity Price Change
Effect on Field Services EBIT
• Hypothetical average commodity prices for calendar year 2008:
• $100/bbl crude oil
• 55% NGL/crude price relationship (correlation)
• $10/MMBtu natural gas
Change for Crude Oil Price Assumption $ 204 ($100 - $83) x $12
Change in Correlation Assumption (75) (55% - 60% ) x $15
Change for Natural Gas Assumption 40 (($10 - $8)/$0.10)) x $2
Total potential EBIT Increase $ 169
Field Services Sensitivities: (SE's 50% share)
MM $ per each $1.00/barrel move in Crude Oil $ 12
MM $ per each percentage move in Correlation $ 15
MM $ per each $0.10/MMBTU change in Natural Gas $ 2
Second Quarter 2008 Earnings Review | August 6, 2008
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13. 2008 Crude Oil Price
2008 Crude Oil Pricing
$134 08/04/2008 Fwds
$125
2008 Annual Avg of
Settled and Forward
$116 Prices as of
$/bbl
08/04/08 ($117)
$107 2008 Settled Prices
$98
SE 2008 Annual Avg
Forecast
$89 Assumption as of
Late Oct 2007 ($83)
$80
Jun-08
Jul-08
Nov-08
Jan-08
May-08
Aug-08
Feb-08
Mar-08
Apr-08
Sep-08
Oct-08
Dec-08
Pric ing information compiled from NYMEX WTI Futures.
Second Quarter 2008 Earnings Review | August 6, 2008
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14. Second Quarter 2008 Earnings Review | August 6, 2008
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