Spectra Energy to Acquire Express-Platte Pipeline System

           Spectra Energy to Acquire Express-Platte Pipeline System

$1.49 Billion Acquisition of North American Pipeline System Expands Spectra
Energy's Midstream Energy Business Platform

PR Newswire

HOUSTON, Dec. 11, 2012

HOUSTON, Dec. 11, 2012 /PRNewswire/ --Spectra Energy Corp (NYSE: SE) today
announced it has entered into a definitive agreement to purchase 100 percent
of the ownership interests in the Express-Platte Pipeline System from Borealis
Infrastructure, the Ontario Teachers' Pension Plan and Kinder Morgan Energy
Partners for $1.49 billion, consisting of $1.25 billion cash and $240 million
of acquired debt.

(Logo: http://photos.prnewswire.com/prnh/20061030/CLM051LOGO )

The 1,717-mile Express-Platte Pipeline System, which begins in Hardisty,
Alberta, and terminates in Wood River, Illinois, is comprised of both the
Express and Platte crude oil pipelines. The Express pipeline carries crude oil
to U.S. refining markets in the Rockies area, specifically Billings and
Laurel, Montana, and Casper, Wyoming. The pipeline's capacity is 280,000
barrels a day. The Platte pipeline, which interconnects with Express pipeline
in Casper, Wyoming, transports crude oil predominantly from the Bakken and
Western Canada to refiners in the Midwest. Platte's capacity ranges from
164,000 barrels a day in Wyoming to 145,000 barrels a day to Wood River,
Illinois.

"The Express-Platte Pipeline System acquisition is an immediately accretive
investment in a fee-based business that expands Spectra Energy's footprint
into a rapidly growing area," said Greg Ebel, president and chief executive
officer, Spectra Energy Corp. "This system is strategically located to supply
crude oil to U.S. refining markets. It also represents an incremental growth
platform for Spectra Energy that enables further investment in related crude
and refined product assets. Given Spectra Energy's leading position in the
natural gas midstream sector, investing in crude oil midstream assets is a
logical extension of our business model."

Spectra Energy expects the acquisition will be immediately accretive to
earnings, with expected full-year 2013 EBITDA of approximately $130 million
and full-year annual EPS accretion in the 3 to 5 cents per share range.

The Express-Platte System is one of just three major pipelines moving crude
oil from Western Canada to Rockies and Midwest refineries and markets,
representing a significant opportunity for Spectra Energy to participate in
the rapidly expanding North American crude oil pipeline market.

Completion of the transaction is subject to customary consents, regulatory
approvals and closing conditions. The transaction is expected to close during
the first half of 2013.

Spectra Energy will hold an investor conference call to discuss this
acquisition at 9 a.m. CST on Tuesday, December 11.

The conference call can be accessed by dialing (888) 252-3715 in the United
States or Canada, or (706) 634-8942 for International. The conference code is
"78775227" or "Spectra Energy Investor Conference Call." The slides will be
available during the conference call at www.netroadshow.com; pass code:
SEMA1211.

This release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements represent our intentions,
plans, expectations, assumptions and beliefs about future events. Such
statements are subject to risks, uncertainties and other factors, many of
which are outside our control and could cause actual results to differ
materially from the results expressed or implied by those forward-looking
statements. Those factors include: the timing and success of the completion of
the acquisition and the timing and receipt of required regulatory approvals,
as well as other factors described in our Form 10-K, filed with the Securities
and Exchange Commission, and other filings that we make with the SEC, which
are available at the SEC's website at www.sec.gov. In light of these risks,
uncertainties and assumptions, the events described in the forward-looking
statements might not occur or might occur to a different extent or at a
different time than we have described. We undertake no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

In addition, this release includes certain non-GAAP financial measures as
defined by SEC Reg. G. EBITDA (earnings before interest, taxes and
depreciation and amortization) is a non-GAAP financial measure. The most
directly comparable GAAP measure for EBITDA is earnings before interest and
taxes, plus depreciation and amortization.

Spectra Energy Corp (NYSE: SE), a FORTUNE 500 company, is one of North
America's premier natural gas infrastructure companies serving three key links
in the natural gas value chain: gathering and processing, transmission and
storage, and distribution. For more than a century, Spectra Energy and its
predecessor companies have developed critically important pipelines and
related infrastructure connecting natural gas supply sources to premium
markets. Based in Houston, Texas, the company's operations in the United
States and Canada include more than 19,000 miles of transmission pipeline,
approximately 305 billion cubic feet of storage, as well as natural gas
gathering and processing, natural gas liquids and local distribution
operations. The company also has a 50 percent ownership in DCP Midstream, one
of the largest natural gas gatherers and processors in the United States.
Spectra Energy is a member of the Dow Jones Sustainability World and North
America Indexes and the Carbon Disclosure Project's Global 500 and S&P 500
Carbon Disclosure Leadership Indexes. For more information, visit
www.spectraenergy.com.

SOURCE Spectra Energy Corp

Website: http://www.spectraenergy.com
Contact: Media: Caitlin Currie, +1-713-627-5353 or +1-713-627-4747 (24-hour
media line); or Analysts: John Arensdorf, +1-713-627-4600
 
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