Duke's Gas Spin-Off To Be Named 'Spectra Energy'
Duke Energy's existing natural gas business will be called Spectra Energy Corp. when the operations become a stand-alone, publicly traded company, targeted for Jan. 1, 2007.
Once the separation is complete, Spectra Energy will consist of the business unit now known as Duke Energy Gas Transmission and Duke Energy's 50 percent ownership interest in Duke Energy Field Services, which recently announced its new name - DCP Midstream.
The Spectra Energy name replaces Gas SpinCo, Inc. (GasCo), the temporary name given to the natural gas business.
Spectra Energy will operate primarily in three sectors of the natural gas industry: transmission and storage, distribution, and gathering and processing. The stock is expected to be traded on the New York Stock Exchange under the listing symbol SE.
"Spectra Energy will be well-positioned to pursue significant growth opportunities and respond to the evolving needs of our customers, while providing value for our shareholders," said Fred Fowler, who currently serves as president of Duke Energy Gas and will become chief executive officer of Spectra Energy Corp. "Our reputation for providing safe, reliable, cost- effective and environmentally responsible natural gas services will serve us well in a market that is primed for infrastructure expansion."
"Spectra - plural of the word spectrum - reflects the broad range of our businesses, assets and strategic market presence," Fowler said.
"We are excited about the new company and our new name," said Fowler. "We have a strong and experienced leadership team in place, and strategic assets that will help us become one of the premier North American natural gas companies dedicated to continuing to deliver solid, sustainable results."
Duke Capital will be renamed Spectra Energy Capital and the Duke Energy Income Fund will be renamed Spectra Energy Income Fund.
Duke Energy proposed separating its natural gas business from the company's electric business when the merger with Cinergy was announced in May 2005. In June, Duke Energy's board of directors unanimously authorized management to pursue a plan to spin off Duke Energy's natural gas businesses to Duke Energy shareholders. Once the transaction is completed, Duke Energy's shareholders will own 100 percent of the equity in both Duke Energy and Spectra Energy.
Duke Energy Gas Transmission (DEGT) is a North American leader in the long-haul transportation and storage of natural gas. For more than three quarters of a century DEGT and its predecessor companies have developed the critically important pipelines and related energy infrastructure that connects natural gas supply sources to premium markets. Based in Houston, Texas, the company's assets include about 17,500 miles of transmission pipeline and 250 billion cubic feet of storage capacity in the U.S. and Canada. DEGT also has natural gas gathering, processing and distribution assets and natural gas liquids operations that are among the largest in Canada.
Headquartered in Denver, Duke Energy Field Services (DEFS) is a midstream energy company that gathers, treats, compresses, processes, transports, markets, and stores natural gas and produces, fractionates, transports, trades, and markets natural gas liquids (NGLs). The company is one of the nation's largest natural gas gatherers, the largest NGL producer, and one of the largest NGL marketers. DEFS was formed through the combination of Duke Energy and ConocoPhillips' natural gas gathering and processing businesses.
Duke Energy is a diversified energy company with a portfolio of natural gas and electric businesses, both regulated and unregulated, and an affiliated real estate company. Duke Energy supplies, delivers and processes energy for customers in the Americas. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK.
- Duke Energy to Buy Piedmont to Boost Natgas Operations (Oct 26)
- Duke Energy Elects Lynn Good as President, CEO (Jun 18)
- Duke Increases Quarterly Dividend (Jun 22)
Company: Spectra Energy Corp. more info
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