8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 18, 2008 (January 17, 2008)

SPECTRA ENERGY CORP

(Exact name of registrant as specified in its charter)

Delaware	1-33007	20-5413139
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

5400 Westheimer Court, Houston, Texas	77056
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code 713-627-5400

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On January 17, 2008, Spectra Energy Corp presented its 2008 outlook and financial plan to analysts and investors and issued a news release regarding the information presented. Some of the financial information contained in the presentation and the press release relates to the 2007 fiscal year. A copy of the presentation is attached hereto as Exhibit 99.1 and a copy of the news release is attached hereto as Exhibit 99.2. The information in Exhibits 99.1 and 99.2 is being furnished pursuant to this Item 2.02.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

99.1    Spectra Energy Corp 2008 Outlook and Financial Plan, dated January 17, 2008

99.2    Press Release of Spectra Energy Corp, dated January 17, 2008

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SPECTRA ENERGY CORP

/s/ William S. Garner, Jr.

William S. Garner, Jr.

Group Executive, General Counsel

and Secretary

Date: January 18, 2008

EXHIBIT INDEX

Exhibit Number	Exhibit
99.1	Spectra Energy Corp 2008 Outlook and Financial Plan, dated January 17, 2008
99.2	Press Release of Spectra Energy Corp, dated January 17, 2008

EX-99.1

2008 Outlook and Financial Plan

January 17, 2008

Exhibit 99.1

2

Spectra

Energy

2008

Financial

Plan

|

January

17,

2008

Agenda

Q&A

Fred Fowler –

President and CEO, Spectra Energy Corp

Investment Consideration

Tom O’Connor –

Chairman, President and CEO,

DCP Midstream

DCP Midstream Overview

Martha Wyrsch –

President and CEO,

Spectra Energy Transmission

Spectra Energy Transmission

Overview

Greg Ebel –

Chief Financial Officer, Spectra Energy Corp

Financial Overview

Fred Fowler –

President and CEO, Spectra Energy Corp

Opening Remarks

John Arensdorf –

Vice President, Investor Relations,

Spectra Energy Corp

Welcome

3

Spectra Energy 2008 Financial Plan | January 17, 2008

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 at the end of this packet and on our website.

Fred Fowler

President and CEO

Spectra Energy Corp

5

Spectra Energy 2008 Financial Plan | January 17, 2008

1.3 million

Retail Customers

265 Bcf

Storage Capacity

35,000

Miles of Distribution Pipe

58,500

Miles of Gathering & Processing Pipe

17,500

Miles of Transmission Pipe

3.6 Tcf

2007 Natural Gas Throughput

Strategically Located Assets

6

Spectra Energy 2008 Financial Plan | January 17, 2008

2007 Accomplishments

Successfully launched Spectra Energy Corp

Expect to exceed our $1.40 ongoing, fully diluted EPS

employee incentive target

Delivered on our capital expansion plans:

•

capital expenditures totaled over $1 billion for 2007

•

placed 13 new projects costing about $650 million in-service

•

expect 10-12% return on capital employed

Reduced corporate costs by $20-25 million

Maintained strong investment grade balance sheet

•

increased credit commitments by more than $1.2 billion

Successfully

IPO’d

Spectra

Energy

Partners

at

a

record

yield

Successfully launched Spectra Energy and delivered on 2007

financial, operational and investment commitments

7

Spectra Energy 2008 Financial Plan | January 17, 2008

2008 Outlook and Beyond

•

$1.56 ongoing, fully diluted EPS employee incentive target for 2008

representing 11% increase over 2007 target

•

Committed to dividend growth –

2008 dividend increased by $0.04/share

to $0.92/share

•

Continue to execute on our Capital Expansion Plans

•

at least $1 billion per year spending through 2010

•

$1.5 billion in projects expected in-service during 2008

•

2007–2010 projects in-service expected to add annualized EBIT of

more than $500 million by 2011

•

Aggressively pursuing post-2010 opportunities

•

50% of Long Term Incentive based on TSR of SE stock for three years

(2008-2010) relative to a peer group of companies

Targeting 5-7% compounded annual ongoing diluted EPS

growth from 2007 plan through 2010

Financial Overview

Greg Ebel

Chief Financial Officer

Spectra Energy Corp

9

Spectra Energy 2008 Financial Plan | January 17, 2008

Business Segment Overview

Distribution

Distribution

(1)

(1)

NYSE: SE

U.S.

U.S.

Transmission

Transmission

(1)

(1)

Western Canada

Western Canada

Transmission &

Transmission &

Processing

Processing

(1)

(1)

Field Services

Field Services

•

Texas Eastern

Transmission

•

Algonquin Gas

Transmission

•

Maritimes & Northeast

Pipeline (77.53%)

•

Gulfstream Natural Gas

System (25.5%)

•

Market Hub Partners

(50%)

•

Spectra Energy

Partners (83%)

NYSE:  SEP

•

Union Gas

•

BC Pipeline & Field

Services

•

Empress System

•

Spectra Energy

Income Fund (46%)

TSX:  SP.UN

•

DCP Midstream

(50%)

•

DCP Midstream

Partners (17.7%)

NYSE:  DPM

(1)

Represents Spectra Energy Transmission (“SET”)

10

Spectra Energy 2008 Financial Plan | January 17, 2008

Prudent Financial Management

•

Minimum return threshold that balances risk/reward

•

Seek most tax efficient and lowest cost of capital

•

Maintain strong and flexible balance sheet

•

Sustainable and growing dividend

Disciplined financial management and balance sheet flexibility

provides competitive advantage

11

Spectra Energy 2008 Financial Plan | January 17, 2008

2008 Ongoing Earnings Expectations

•

Expect 7-9% CAGR in Spectra Energy Transmission ongoing segment EBIT for 2007 through 2010, using 2007 as

base

•

Other financial metrics:

•

Interest Expense = $670 MM

•

Effective Tax Rate = ~33%

•

No New Equity Issuances

•

Fully Diluted Shares Outstanding = 639 MM

2008

2008

$ 3,075

$ 3,075

(75)

950

505

570

$    1,125   

EBITDA

EBITDA

$ 2,160

$ 2,160

TOTAL Ongoing Segment and Other EBIT

TOTAL Ongoing Segment and Other EBIT

(85)

Other

650

Field Services

(2)

345

Western Canada Transmission & Processing

380

Distribution

$    870

U.S. Transmission

(1)

EBIT

EBIT

($MM)

(1)

EBITDA includes Spectra Energy’s proportional share of DD&A and Interest for Gulfstream and SESH, less Minority Interest DD&A for M&NE and ETNG.

(2)

EBIT represents Spectra Energy’s Equity in Earnings of DCP Midstream.  EBITDA determined by adding half of DCP Midstream’s DD&A and Interest.

$1.56 ongoing, fully diluted EPS for Target Incentive Payout

12

Spectra Energy 2008 Financial Plan | January 17, 2008

2008 Projected Cash Flow Summary

$ (1,870)

Capital and Investment Expenditures -

Expansion (includes SEP $395)

(550)

-

Maintenance

$ (1,455)

$ (1,455)

Net Sources / (Uses)

Net Sources / (Uses)

$ (3,060)

$ (3,060)

TOTAL Uses:

TOTAL Uses:

(580)

Dividends

(60)

Other sources / (uses), net

Primary Uses:

Primary Sources:

$ 1,605

$ 1,605

TOTAL Sources

TOTAL Sources

605

Depreciation & Amortization

$ 1,000

Ongoing Net Income

Cash Flow

($MM)

13

Spectra Energy 2008 Financial Plan | January 17, 2008

Access to Immediately Available Funds

•

We have four separate liquidity positions

In 2007, added $700 MM to Spectra Energy facilities and entered

into $500 MM facility at SEP.  Liquidity more than adequate for our

operations and capital expansion program.

Revolving Credit Commitments

1,500

$  

200

$       

501

$       

2,201

$ 

500

$   

Less: Letter of Credit Utilization

(16)

-

-

(16)

-

Plus: Cash / ST Investments

10

-

2

12

170

Total Liquidity Sources

1,494

$  

200

$       

503

$       

2,197

$ 

670

$   

Less: Borrowings

(478)

-

(237)

(715)

(250)

Available Liquidity

1,016

$  

200

$       

266

$       

1,482

$ 

420

$   

December 31, 2007*

($MM)

SEP

Spectra Capital

Westcoast

Union Gas

Total SE

* Estimated

14

Spectra Energy 2008 Financial Plan | January 17, 2008

Strong Investment Grade Balance Sheet

$ 11.4

Estimated 12/31/08 Debt Balance (billion)

58.0%

Estimated Debt/Total Capitalization

14.4%

Estimated FFO / Total Debt

3.2x

Estimated FFO / Interest

2008

2008-2010 capital expenditures financed with debt with

substantially no effect on debt/total capitalization or coverage

ratios

BBB/Baa1

Spectra Capital

BBB+

Operating Companies*

Credit Ratings

*  Texas Eastern, Union Gas, Westcoast Energy

15

Spectra Energy 2008 Financial Plan | January 17, 2008

Commodity Exposure Overview

DCP Midstream*

•

DCP Midstream’s primary exposure is to NGL prices (for which we assume a 60% price

relationship to oil); changes in contract mix have resulted in some exposure to natural gas

•

Estimated average price of crude oil for 2008 is $83 / Bbl¹

•

$1.00 / Bbl change in oil = ~ $12 MM change in EBIT

•

Estimated average price of natural gas for 2008 is $8.00 / MMBtu

•

$0.10

/

MMBtu

change

in

natural

gas

=

~

$2

MM

change

in

EBIT

•

Empress

is

exposed

to

changes

in

frac

spread

•

Empress:

estimated

average

frac

spread

for

2008

is

~

$7.25

/

MMBtu²

•

$0.50

/

MMBtu

change

in

frac

=

~

$16

MM

EBIT

•

Canadian earnings are exposed to exchange rate risk

•

Exchange rate at parity for full year

•

$0.01 change in Fx

rate = ~ $3 MM

change in Net Income

Empress

Canadian Dollar

Hedging

•

No hedges in place for above exposures, except cash flow hedges at DCP Midstream’s MLP

*

Represents Spectra Energy’s 50% interest in

DCP Midstream

1

Based upon 2008 forward curve for last half of October

2

Based upon average frac

spread for 2006 and 2007

Spectra Energy Transmission

Overview

Martha Wyrsch

President and CEO

Spectra Energy Transmission

17

Spectra Energy 2008 Financial Plan | January 17, 2008

Natural Gas Flows:

Shifting Sources, Growing Demand

Supply Basins

Major Spectra Energy Markets

Current Supply Flows

Future Supply Push

2.5%

Pacific Northwest

Source: EEA.

2.2%

Lower 48 States

2.5%

British Columbia

2.7%

Ontario

5.4%

Southeast

2.4%

Northeast

3.5%

Combined SET Markets

Demand Volume CAGR 2005 –

2015:

2.5%

Pacific Northwest

Source: EEA.

2.2%

Lower 48 States

2.5%

British Columbia

2.7%

Ontario

5.4%

Southeast

2.4%

Northeast

3.5%

Combined SET Markets

Demand Volume CAGR 2005 –

2015:

18

Spectra Energy 2008 Financial Plan | January 17, 2008

Well-Positioned for Growth

Expansion Opportunities

M&NE Phase IV

(Canaport™)

Dawn Storage

Deliverability

South Peace

Pipeline

Islander East

TIME III

TIME II (Phase II)

Gulfstream III & IV

Copiah Storage

SE Supply Header

M&NE Phase V

Dawn Area

Storage

Moss Bluff

Expansion

Egan Expansion

Pine River

Expansion

Lebanon

Connector

NY City

Extension

AGT East/West

Steckman Ridge

Algonquin J-2

Ramapo

Northern Bridge

Glade Spring

Tribute Storage

Gulfstream

Expansion (G-2)

Dawn-Trafalgar

Phase III

Bronco Pipeline /

West

2008 –

2010

post –

2010

19

Spectra Energy 2008 Financial Plan | January 17, 2008

2007 Projects In-Service

2007 Projects In-Service

•

Major Projects In-Service in 2007:

•

Northeast Gateway -

$215 million

•

TIME II (Phase I) -

$125 million

•

Dawn-Trafalgar –

Phase II -

$130 million

•

Moss Bluff & Egan Storage -

$60 million

•

Western Canadian Gathering & Processing -

$40 million

•

Other -

$80 million

•

Total 2007 EBIT contribution from these projects ~$25 million

•

Additional 2008 EBIT expected to be ~ $50 million

13 projects totaling about $650 million

20

Spectra Energy 2008 Financial Plan | January 17, 2008

1H09

75

Execution

UST (1/2

SEP)

Gulfstream Phase IV

UST

UST

Dist

WC

UST (SEP)

WC

Dist

UST (1/2

SEP)

UST (1/2

SEP)

UST

Dist

UST

UST

Segment

Segment

1H09 / 2H09

35 / 15

Execution

Dawn Area Storage

2H08

60

Execution

Dawn-Trafalgar Pipeline –

Phase III

2H08

20

Execution

Glade Spring Expansion

2H08

45

Execution

Pine River Phase 3

2H08 / 2H09

60 / 140

Execution

Egan Storage (Caverns 4 & 3)

2H09

130

Execution

South Peace Pipeline

2H08

65

Execution

Gulfstream Phase III

2H08

90

Execution

TIME II (Phase II)

2H08

110

Execution

Dawn Storage Deliverability

2H08

320

Execution

M&NE Phase IV (Canaport™) Expansion

2H09

350

Execution

AGT East to West

2H09

35

Execution

Algonquin J-2 Expansion

In-Service

In-Service

Est. CapEx

Est. CapEx

($MM)

($MM)

Status

Status

Expansion Project

Expansion Project

$ 1.8 B

$ 1.8 B

245

Total Organic Projects in Execution

Total Organic Projects in Execution

Execution

2H08

Ramapo

•

“Execution”

–

agreement with shippers completed, currently in permitting process and/or in construction

•

Segments:

•

UST = U.S. Transmission

•

UST (SEP) = Part of U.S. Transmission but is Spectra Energy Partners project

•

Dist = Distribution

•

WC = Western Canada Transmission and Processing

Significant Growth Projects

Organic Growth Projects 2008-2010 (Execution)

21

Spectra Energy 2008 Financial Plan | January 17, 2008

UST

UST

UST

Segment

Segment

2H10

N/A ¹

Development

M&NE Phase V

2H09

N/A ¹

Development

Northern Bridge

In-Service

In-Service

Est. CapEx

Est. CapEx

($MM)

($MM)

Status

Status

Expansion Project

Expansion Project

$  .9 B

$ 2.7 B

N/A ¹

Total Organic Projects in Development

Total Organic Projects (incl

Execution)

Development

2H10

TIME III

•

Segments:

•

UST = U.S. Transmission

•

UST (SEP) = Part of U.S. Transmission but is Spectra Energy Partners project

•

Dist = Distribution

•

WC = Western Canada Transmission and Processing

Significant Growth Projects

Organic Growth Projects 2008-2010 (Development)

•

“Development”

–

in various stages of negotiation

1

Not Available -

Scope of project subject to change

22

Spectra Energy 2008 Financial Plan | January 17, 2008

UST

UST

Dist

Segment

Segment

1H09

125

Execution

Steckman Ridge Storage

1H08

35

Execution

Tribute Storage

In-Service

In-Service

Est. CapEx

Est. CapEx

($MM)

($MM)

Status

Status

Expansion Project

Expansion Project

$ 0.7 B

$ 0.7 B

500

Total Greenfield Projects in Execution

Total Greenfield Projects in Execution

Execution

2H08

Southeast Supply Header

•

Segments:

•

UST = U.S. Transmission

•

UST (SEP) = Part of U.S. Transmission but is Spectra Energy Partners project

•

Dist = Distribution

•

WC = Western Canada Transmission and Processing

Significant Growth Projects

Greenfield Projects 2008-2010

•

“Execution”

–

agreement with shippers completed, currently in permitting process and/or in construction

23

Spectra Energy 2008 Financial Plan | January 17, 2008

N/A ¹

Development

UST

Bronco Pipeline / West

N/A ¹

Development

UST (1/2

SEP)

Moss Bluff Storage Expansion

N/A ¹

Development

UST

NY City Extension (formerly Rockaway Beach)

N/A ¹

Development

UST

Islander East

N/A ¹

Development

UST

Copiah Storage

N/A ¹

Development

UST

Lebanon Connector

UST (1/2

SEP)

Segment

Segment

Est.

Est.

CapEx

CapEx

Status

Status

Expansion Project

Expansion Project

$4 B –

$5 B

N/A ¹

Total Major Opportunities post-2010

Development

Gulfstream Expansion (G-2)

•

Segments:

•

UST = U.S. Transmission

•

UST (SEP) = Part of U.S. Transmission but is Spectra Energy Partners project

•

Dist = Distribution

•

WC = Western Canada Transmission and Processing

Significant Growth Projects

Major Opportunities post-2010

•

“Development”

–

in various stages of negotiation

1

Not Available -

Scope of project subject to change

24

Spectra Energy 2008 Financial Plan | January 17, 2008

2008 Projects In-Service

•

Major Projects expected to be in-service in 2008:

•

Southeast Supply Header -

$500 million

•

Ramapo -

$245 million

•

M&NE Phase IV -

$320 million

•

Dawn Storage Deliverability/Tribute-

$145 million

•

Time II (Phase II) -

$90 million

•

Gulfstream Phase III -

$65 million

•

Dawn Trafalgar Phase III –

$60 million

•

Egan Storage Expansion -

$60 million

•

Pine River Phase 3 -

$45 million

•

Total 2008 EBIT contribution from these projects ~$90 million

•

Additional 2009 EBIT expected to be ~ $110 million

About $1.5 billion of projects expected to be placed in-service

in 2008

25

Spectra Energy 2008 Financial Plan | January 17, 2008

Spectra Energy Partners

•

Primary objective to grow cash distributions per unit

•

2008 provides avenues for distribution growth

•

Organic Projects

•

ETNG Glade Spring project expected in-service 2H08

•

Gulfstream Phase III expected in-service July 2008

•

Egan Storage project expected in-service August 2008

•

Drop-down opportunities

•

Saltville

Gas

Storage

acquisition

-

expected

to

close

during 2

nd

quarter 2008

•

Potential 3

rd

party acquisitions

SEP plays an important role as Spectra Energy

pursues growth opportunities

26

Spectra Energy 2008 Financial Plan | January 17, 2008

2008 SET Business Plan Summary

•

Continued solid EBIT from all business units

•

2008 Focus Areas

•

Successful

execution

on

CapEx

projects

•

Cost management

•

Superior customer service

•

Continued focus on safety

•

Seek MLP opportunities to help accelerate growth

Expect 7-9% CAGR in ongoing EBIT from SET businesses

for 2007 -

2010

DCP Midstream Overview

Tom O’Connor

Chairman, President and CEO

DCP Midstream

28

Spectra Energy 2008 Financial Plan | January 17, 2008

DCP Midstream

Organizational Structure

64.6% Common

LP Interest

33.9% LP Interest

1.5% GP Interest

NYSE: DPM

50%

50%

ConocoPhillips

ConocoPhillips

ConocoPhillips

Public

Public

Unitholders

Unitholders

Spectra Energy

Spectra Energy

Spectra Energy

DCP Midstream enjoys strong sponsor support and is a

significant contributor to Spectra Energy’s earnings

29

Spectra Energy 2008 Financial Plan | January 17, 2008

DENVER

TULSA

MIDLAND

HOUSTON

DCP Midstream

Strategic Assets with Scale and Scope

DCP has the scale to be efficient and geographic diversity

to compete for growth

(1)

Includes DCP Midstream Partners Volumes

2007 Volumes

Total Throughput            

6.8  Bcf/d

Gathered & Processed  

5.5  Bcf/d

Natural Gas Liquids

360 MBpd

(1)

DCP Midstream Stats

DCP Midstream

DCP Midstream Plant

DCP Midstream Partners Plant

53 Plants, 10 Fractionators

DCP Midstream Pipelines

DCP Midstream Partners Pipelines

58,000 Miles of Pipeline

Gas Storage

Major Offices

Oil & Gas Basins

30

Spectra Energy 2008 Financial Plan | January 17, 2008

DCP Midstream

2007 Achievements

•

Expect to achieve EBIT target of $1.2B, EBITDA of $1.5B

•

Dividends to parents, including tax distributions, were $1.4B

•

Completed the $635MM Momentum acquisition in

conjunction with Partners

•

Midstream buys $470MM Barnett Shale assets and Partners

buys $165MM Rockies assets

•

Completed the $270MM Discovery and East Texas

dropdowns to Partners

Robust liquids prices tempered by weather events drove strong

financial performance.  New growth platforms advanced.

(All amounts are at 100%)

31

Spectra Energy 2008 Financial Plan | January 17, 2008

DCP Midstream

Business Trends

DCP Midstream (100%)

ROCE Trend

0%

5%

10%

15%

20%

25%

30%

2004

2005 (1)

2006

2007B

2008 (2)

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

ROCE

WTI - Crude

Positives

•

Robust Drilling

•

Favorable Pricing

•

Improving Efficiency

DCP’s exceptional asset position and contract regime have

delivered accelerating returns and financial strength

Challenges

•

Focused Competition

•

Shifting Contract Mix

•

Industry Cost Inflation

(1)

Excludes $1.137 billion gain from the sale of the TEPPCO GP

(2)

Based on late October forward market curve for crude oil of $83 and

60% NGL to crude relationship

32

Spectra Energy 2008 Financial Plan | January 17, 2008

DCP Midstream

2008 Initiatives

•

Customer Focused Operations

•

Plant reliability

•

Fuel and loss efficiency

•

Cost Control

•

Targeted cost reductions

•

Continued efficiency investment

•

Selective Growth

•

Aggressive volume attachment

•

$220MM Midstream expansion

capex

(100%)

•

Leverage DCP Partners

Advantage

•

Funding source for growth

•

Opportunity to grow GP

distribution

Execution on these initiatives will position DCP Midstream to

achieve record earnings and sustainable performance

33

Spectra Energy 2008 Financial Plan | January 17, 2008

DCP Midstream

2008 Financial Plan Summary

DCP Midstream

Earnings (100% level)

($MM)

(1)

EBIT

$1,500

EBITDA

$1,900

Net Income

$1,300

(2)

Dividends / Tax Distributions

$1,200

(2)

DCP Midstream CapEx

$460

(3)

12/31/08 Credit Ratios:

EBITDA / Interest

10.4x

Debt / Capitalization

55%

(1) Based on late October forward market curve for crude oil of

$83 and 60% NGL to crude relationship

(2) Spectra Energy receives 50% of net income, dividends and tax distributions

(3) Excludes DCP Midstream Partners CapEx

Long gas position arises due to change in contract mix versus

2007. Crude oil sensitivity reduced.

=+/-$4MM

+/-$0.10MMBtu

$8

Natural

Gas

=+/-$24MM

+/-$1.00 bbl

$83

Crude (1)

12 month

EBIT Impact

Sensitivity

Forecast

2008 Commodity Forecast

and Sensitivity (100% level)

34

Spectra Energy 2008 Financial Plan | January 17, 2008

DCP Midstream

2008 Margin / Volume By Contract Forecast

POP, 70%

Other (2), 12%

Fee Gas, 8%

KW, 10%

Contract Restructuring has increased Percent of Proceeds and

reduced Keepwhole volumes

Margin $ by Contract Type –

2008 Forecast (1)

Total 2008 Margin -

$2.7 Billion

(1)

Includes DCP Midstream Partners

(2)

"Other" includes condensate sales, NGL trading and marketing, gas marketing and other activity.

(3)

Certain volumes earn duplicate revenue streams (i.e. both fee plus processing economics)

DCP Midstream 2008 Projected Margins

and Volumes (1)

Volume -

Bcf/d (3)

Margin / MMBtu

.8

$0.91

KW

4.4

$0.13

Fee Gas

4.8

$1.05

POP

Volume Gathered and Processed 6.0 Bcf/d

Total Throughput 7.4 Bcf/d

35

Spectra Energy 2008 Financial Plan | January 17, 2008

DCP Midstream

2008 Business Plan Summary

•

Record Earnings and Dividends from Operations

•

EBIT of $1.5B (100%)

•

EBITDA of $1.9B (100%)

•

Equity earnings of $650MM to Spectra Energy

•

2008 Focus Areas

•

Reliable and efficient service

•

Cost discipline

•

Volume growth and asset expansion

•

Partners expansion

Investment Considerations

Fred Fowler

President and CEO

Spectra Energy Corp

37

Spectra Energy 2008 Financial Plan | January 17, 2008

Key Investment Highlights

Premier Natural Gas Infrastructure Company

Attractive industry dynamics

Positioned in fastest growing markets

Diverse supply base

Management depth and experience

Strong investment grade balance sheet and stable cash flows

Financial flexibility

Solid, steady growth and attractive dividend yield

Targeted EPS growth plus dividend yield provides estimated

total shareholder return in the 10% range

Questions & Answers

Appendix 1:  Asset Maps

40

Spectra Energy 2008 Financial Plan | January 17, 2008

U.S. Transmission

2007 Natural Gas Throughput

2.2 Tcf

Transmission Pipe

12,800 mi

Total System Compression

1.9MM HP

Total Storage Capacity

~ 115 Bcf

41

Spectra Energy 2008 Financial Plan | January 17, 2008

Distribution

Total Retail Customers

1.3 million

Annual Net Increase in Customers

25,000 –

30,000

Distribution Pipeline

35,000 miles

Storage Capacity

150 Bcf

Transmission Capacity

5.0 Bcf/d

Transmission Pipe

3,000 miles

42

Spectra Energy 2008 Financial Plan | January 17, 2008

Western Canada Gas Transmission & Processing

BC Field Services

Miles of Raw Gas Gathering:  1,600

Processing Capability:  2.1 Bcf/d

Major Markets:  BC, PNW, Alberta,

US Midwest

Midstream –

Spectra Energy

Income Fund

Miles of Raw Gas Gathering: 

1,000

Processing Capacity:  0.9 Bcf/d

Natural Gas Liquids –

Empress

System

NGL Extraction Capacity:  2.4 Bcf/d

NGL Fractionation Capacity:  50,000

bbl/d

NGL Storage Capacity:  4 MMbbl

Miles of Pipe:  600

Major Markets: Western Canada,

Northern US

BC Pipeline

Miles of Pipeline:  1,800

Peak Day Capacity:  2.2 Bcf/d

Major Markets:  British Columbia,

Pacific Northwest

43

Spectra Energy 2008 Financial Plan | January 17, 2008

DENVER

TULSA

MIDLAND

HOUSTON

Field Services

(1)

Includes DCP Midstream Partners Volumes

2007 Volumes

Total Throughput            

6.8  Bcf/d

Gathered & Processed  

5.5  Bcf/d

Natural Gas Liquids

360 MBpd

(1)

DCP Midstream Stats

DCP Midstream

DCP Midstream Plant

DCP Midstream Partners Plant

53 Plants, 10 Fractionators

DCP Midstream Pipelines

DCP Midstream Partners Pipelines

58,000 Miles of Pipeline

Gas Storage

Major Offices

Oil & Gas Basins

Appendix 2:  2008 Supplemental

Financial Data

45

Spectra Energy 2008 Financial Plan | January 17, 2008

2008 Key Assumptions

•

Commodity strips based on late October forward prices:

•

Crude Oil:  $83 / Bbl (WTI)

•

NGL/Crude price relationship:  60%

•

Natural Gas:  $8.00 / MMBtu

(NYMEX)

•

Empress Frac

Spread:  ~ $7.25 / MMBtu

•

Canadian Dollar/US Dollar:  Parity

•

2008 Expensed Project Development costs of about $25 million

•

Interest Expense:  $670 million 

•

Long Term Debt Costs

•

Embedded average cost of existing debt at 12/31/07 is 7.0%

•

US -

New Debt –

Market rate when issued (Forecast assumes 6.5%)

•

Canada -

New Debt -

Market rate when issued (Forecast assumes 5.5%)

•

No Equity Issuances in forecast period

•

2008 Dividend increase to $0.92/share; subject to Board approval, grows at                   

$0.04/share per year through 2010

•

Effective Tax Rate: ~33%

•

Fully Diluted Shares Outstanding:  639 million

46

Spectra Energy 2008 Financial Plan | January 17, 2008

Current Debt Maturity Profile

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

TETLP

Algonquin

East Tenn

Westcoast

Union Gas

M&N - US

M&N - Can

SE Capital

As of 12/31/07

* Excludes bank debt at SEP

Total maturities for any one

year are less than 10% of

outstanding debt

47

Spectra Energy 2008 Financial Plan | January 17, 2008

2007 Crude Oil

$50

$55

$60

$65

$70

$75

$80

$85

$90

$95

$100

Settled Prices 2007

SE 2007 Annual Avg

Forecast Assumption

as of 9/15/06 ($68.5)

2007 Annual Avg of

Settled Prices as of

12/31/07 ($72.3)

Pricing information compiled from NYMEX WTI

48

Spectra Energy 2008 Financial Plan | January 17, 2008

2007 Canadian Dollar 

0.94

0.98

1.02

1.06

1.10

1.14

1.18

Settled Prices 2007

SE 2007 Annual Avg

Forecast Assumption

as of 9/15/06 (1.11)

2007 Annual Avg

of

Settled Prices as of

12/31/07 (1.07)

Pricing information compiled from Bloomberg.

Appendix 3:  Major Projects

50

Spectra Energy 2008 Financial Plan | January 17, 2008

Well-Positioned for Growth

M&N Phase IV Expansion

Well-Positioned for Growth

M&N Phase IV Expansion

MNP Phase IV Expansion

-

5 New Compressor Stations

-

2 Station Upgrades

-

2 Miles 30-inch Loop

Maritimes & Northeast Pipeline

Existing Compressor Stations

New Compressor Stations

Brunswick Pipeline (Emera)

Corridor Resources

Supply Lateral (Corridor)

Portland

Portland

Moncton

Moncton

Quebec

Quebec

City

City

Nova

Nova

Scotia

ScotiaScotia

New

New New

Brunswick

Brunswick

Quebec

Quebec

Maine

Maine

VT

VT

NH

NH

Prince

Prince

Edward

Edward

Island

IslandIsland

Halifax

Halifax

Boston

Boston

Fredericton

FrederictonFredericton

Goldboro

Goldboro

Bangor

Bangor

Saint

Saint

John

John

Point Tupper

Point Tupper

PNGTS

PNGTS

Algonquin

Algonquin

MA

MA

Westbrook

WestbrookWestbrook

Repsol-

Irving

Canaport™

LNG

MNP Phase IV Expansion

-

5 New Compressor Stations

-

2 Station Upgrades

-

2 Miles 30-inch Loop

MNP Phase IV Expansion

-

5 New Compressor Stations

-

2 Station Upgrades

-

2 Miles 30-inch Loop

Maritimes & Northeast Pipeline

Existing Compressor Stations

New Compressor Stations

Brunswick Pipeline (Emera)

Corridor Resources

Supply Lateral (Corridor)

Maritimes & Northeast Pipeline

Existing Compressor Stations

New Compressor Stations

Brunswick Pipeline (Emera)

Corridor Resources

Supply Lateral (Corridor)

Portland

Portland

Moncton

Moncton

Quebec

Quebec

City

City

Nova

Nova

Scotia

New

Brunswick

Brunswick

Quebec

Quebec

Maine

Maine

VT

VT

NH

NH

Prince

Prince

Edward

Edward

Island

Halifax

Halifax

Boston

Boston

Fredericton

Goldboro

Goldboro

Bangor

Bangor

Saint

Saint

John

John

Point Tupper

Point Tupper

PNGTS

PNGTS

Algonquin

Algonquin

MA

MA

Westbrook

Repsol-

Irving

Canaport™

LNG

•

Compression and pipe

expansion to connect Maritimes

& Northeast to Canaport™

LNG

Terminal via Brunswick Pipeline

•

Canaport™

is a LNG receiving

and regas

terminal developed by

Repsol YPF & Irving Oil located

in Saint John, New Brunswick

•

25 year firm contract with Repsol

for 730,000 Mmcf/day on

Maritimes’

US system

•

Construction commenced

Summer 2007

•

In-service 2H08

•

Est. capital expenditures: $320

million (100%)

•

M&NE pipeline is joint venture

with Exxon and Emera

51

Spectra Energy 2008 Financial Plan | January 17, 2008

•

Almost 5 miles of 42”

pipeline

replacement downstream of Ramapo,

NY

•

New compressor station at Oxford, CT

(37,700 HP)

•

HP upgrades/additions at Southeast,

Stony Point, and Hanover compressor

stations (43,510 HP)

•

New meter installations connecting

Algonquin to Millennium (Ramapo, NY)

and Iroquois (Brookfield, CT)

•

Pipeline capacity of  312 Mmcf/d

•

Customers are Con Edison and

National Grid

•

Est. capital expenditures: $245 million

•

In-service 2H08

Well-Positioned for Growth

Ramapo

Well-Positioned for Growth

Ramapo

52

Spectra Energy 2008 Financial Plan | January 17, 2008

Well-Positioned for Growth

Major Dawn Storage Projects

Well-Positioned for Growth

Major Dawn Storage Projects

Dawn Storage Deliverability:

•

New compressor at Dawn Plant, 11 new

wells, about 1 mile of pipeline

•

Est. capital expenditures: 

$110 million

•

In-service 2H08

Dawn Area Storage:

•

Sarnia Airport

•

50/50 JV with AltaGas

–

over 5 Bcf of

capacity

•

3 new wells, compressor plant,

construct 11 miles of pipeline

•

Est. capital expenditures:

$25 million (Spectra Energy’s share)

•

In-service 1H09

•

Sombra

•

Acquired about 1 Bcf of capacity

•

Est. capital expenditures:       

$15 million

•

In-service 2H09

Tribute Storage:

•

Acquired 75% interest in storage

development company, developing 3 Bcf

of new storage capacity

•

Will develop 2 new wells, compressor

plant, over 5 miles of pipeline

•

Est. capital expenditures: 

$35 million (Spectra Energy’s share)

•

In-service 1H08

53

Spectra Energy 2008 Financial Plan | January 17, 2008

Well-Positioned for Growth

Dawn-Trafalgar Phase III

Well-Positioned for Growth

Dawn-Trafalgar Phase III

•

All commercial contracts have

been executed

•

All major materials on order for

Phase III

•

In-service dates:  Phase II –

completed in 2H07; Phase III -

2H08

•

Est. capital expenditures: Phase III

$60 million

54

Spectra Energy 2008 Financial Plan | January 17, 2008

Well-Positioned for Growth

Time II

Well-Positioned for Growth

Time II

•

Phase II of project to provide 150

Mmcf/d

of new transportation

service from Lebanon, OH to New

Jersey commencing 2008.

•

Total project facilities include 4

miles of new pipeline looping, 28

miles of replacement pipeline

installation, construction of a new

compressor station, additional

compression at an existing station

•

Construction began June, 2007

•

15 year and 10 year firm contracts

underpin this expansion

•

Customers: Phase I –

NJR Energy

Services; Phase II –

New Jersey

Natural Gas; PSEG Power, LLC

•

Est. capital expenditures: Phase II

$90 million

•

In-service:  Phase I –

completed

12/1/07; Phase II -

2H08

55

Spectra Energy 2008 Financial Plan | January 17, 2008

Well-Positioned for Growth

Gulfstream Phase III & IV

Well-Positioned for Growth

Gulfstream Phase III & IV

•

Gulfstream Phase III:

•

34.5 miles of 30”

pipeline in

Martin & Palm Beach counties, FL

•

345 Mmcf/day firm capacity

•

Construction to begin 1Q, 2008

•

Customer:  Florida Power & Light

•

Est. capital expenditures $65

million (Spectra Energy’s share)

•

In-service 2H08

•

Gulfstream Phase IV:

•

18 miles of 20”

pipeline in Tampa

Bay, FL ; two 15,000 HP

compression units onshore

Florida, one 15,000 HP unit at

Coden, AL

•

155 Mmcf/day firm capacity

•

Construction starts January, 2008

•

Customer:  Progress Energy

•

Est. capital expenditures $75

million (Spectra Energy’s share)

•

In-service 1H09

•

Gulfstream is jointly owned by Spectra

Energy (SE 25.5% and SEP 24.5%)

and Williams

56

Spectra Energy 2008 Financial Plan | January 17, 2008

Well-Positioned for Growth

Egan Storage Expansion

•

Egan Hub is strategically located

along the Gulf Coast and

interconnects with 7 major pipelines

including Texas Eastern

•

Cavern #4 Project:

•

Currently under construction

•

Total est. capital expenditures

$60 million

•

Full 8 Bcf

of capacity in-service

2H08

•

Cavern #3 Project:

•

Add 8 Bcf

of capacity and 16

miles of 24”

pipe

•

Est. capital expenditures $140

million

•

Capacity phased-in service

beginning in 2H09

57

Spectra Energy 2008 Financial Plan | January 17, 2008

Well-Positioned for Growth

South Peace Pipeline

Well-Positioned for Growth

South Peace Pipeline

•

Proposed pipeline in northeast B.C.

to connect Fort St. John resource

area to McMahon processing plant

•

Over 50 miles of 20”

pipeline with

approximately 220 Mmcf/day

capacity

•

Est. capital expenditures about $130

million

•

In-service 2H09

58

Spectra Energy 2008 Financial Plan | January 17, 2008

Well-Positioned for Growth

AGT East to West

Well-Positioned for Growth

AGT East to West

•

.75 Bcf/day capacity expansion on

AGT to facilitate east to west flows of

new LNG supplies into NE market

•

14 miles of pipeline looping, 17 miles

of replacement pipeline, 1 new

compressor station, reverse flow at 4

compressor stations, upgrade

metering equipment at 29 stations

•

Customers:  Excelerate Energy;

Suez LNG; Narragansett Electric;

Yankee Gas; City of Norwich, CT

•

Est. capital expenditures about $350

million

•

In-service 2H09

59

Spectra Energy 2008 Financial Plan | January 17, 2008

Well-Positioned for Growth

Southeast Supply Header

Well-Positioned for Growth

Southeast Supply Header

•

270 miles of pipe from Perryville Hub

in NE La. to Mobile, Al.

•

1.0 Bcf/d capacity

•

50/50 partnership with CenterPoint

Energy

•

Provides access to growing onshore

shale gas basins as an alternative to

offshore supply

•

95% of capacity is subscribed under

firm, long-term agreements –

Customers are:  FPL, Progress

Energy, Southern, Tampa Electric,

EOG Resources

•

Construction commenced October,

2007

•

Capital expenditures: Approx. $500

million (Spectra Energy’s share)

•

In-service 2H08

60

Spectra Energy 2008 Financial Plan | January 17, 2008

Well-Positioned for Growth

Steckman Ridge Storage

Well-Positioned for Growth

Steckman Ridge Storage

•

Strategically located storage

capacity along Texas Eastern

system in Bedford County, PA

•

Proposed 12 Bcf

of storage, 1

compressor station, 7 miles of

16”

pipe and 4 miles of lateral

pipe

•

50/50 partnership with New

Jersey Resources

•

FERC filing made on 11/1/07

•

Est. capital expenditures:  $125

million (Spectra Energy’s share)

•

In-service 1H09

61

Spectra Energy 2008 Financial Plan | January 17, 2008

110

100

Cost Increase

Dawn Storage Deliverability

350

500

Changed Scope

AGT East to West

--

--

New Development Project

M&NE Phase V

75

65

Refine Scope

Gulfstream Phase IV

500

400

Cost Increase

Southeast Supply Header

In-Service

10

Complete

Moss Bluff Storage

In-Service

40

Complete

Accident Storage

In-Service

40

Complete

Western Canadian Gathering & Processing

In-Service

10

Complete

St. Clair Power

In-service / 60 & 140

50 / 200

2007 Phase Complete /

Update In-Svc

Egan Storage

In-service / 90

120 / 90

Phase I (2007) Complete

TIME II

In-service / 60

115 / 50

Phase II Complete / Phase

III Refine Scope

Dawn-Trafalgar Pipeline

In-Service

20

Complete

Cape Cod

In-Service

240

Complete

Northeast Gateway

35 / 15

--

Move to Execution/Update

In-Svc

Dawn Area Storage

45

--

Move to Execution

Pine River Phase 3

130

--

Move to Execution

South Peace Pipeline

Updated CapEx

Updated CapEx

($MM)

($MM)

Prior CapEx

Prior CapEx

($MM)

($MM)

Reason for Change

Reason for Change

Expansion Project

Expansion Project

200

Cost Increase

245

Ramapo

Significant Growth Projects

Significant Growth Projects

Changes between EOY 2007 and 2008 forecast

Changes between EOY 2007 and 2008 forecast

62

Spectra Energy 2008 Financial Plan | January 17, 2008

--

--

New Development Project

Bronco Pipeline/West

--

--

Move In-Svc Date to Post-2010

Moss Bluff Storage Expansion

--

--

Move In-Svc Date to Post-2010

Lebanon Connector

--

--

Move In-Svc Date to Post-2010

Copiah Storage

--

--

New Development Project

Gulfstream Expansion (G-2)

--

--

Name Chg from Rockaway

Beach / Move In-Svc Date to

Post-2010

NY City Extension

Prior CapEx

Prior CapEx

($MM)

($MM)

Updated CapEx

Updated CapEx

($MM)

($MM)

Reason for Change

Reason for Change

Expansion Project

Expansion Project

Significant Growth Projects

Significant Growth Projects

Changes between EOY 2007 and 2008 forecast

Changes between EOY 2007 and 2008 forecast

63

Spectra Energy 2008 Financial Plan | January 17, 2008

Spectra Energy Corp

Non-GAAP Reconciliation for SEC Regulation G

2008 Outlook and Financial Plan

January 17, 2008

Employee Incentive Targets

The materials for Spectra Energy’s 2008 Outlook and Financial Plan January 17, 2008 presentation include a discussion of the 2007 and 2008 ongoing fully diluted earnings per share (“EPS”) employee incentive targets and targeted annual ongoing diluted EPS growth from 2007-2009 for Spectra Energy. The EPS measure used for employee incentive bonuses is based on ongoing fully diluted EPS. Ongoing fully diluted EPS is a non-GAAP financial measure as it represents fully diluted EPS from continuing operations adjusted for the per-share impact of special items. Special items represent certain charges and credits which management believes will not be recurring on a regular basis. The most directly comparable GAAP measure for ongoing fully diluted EPS is fully diluted EPS from continuing operations, which includes the impact of special items. Due to the forward-looking nature of this non-GAAP financial measure, information to reconcile it to the most directly comparable GAAP financial measure is not available at this time, as management is unable to forecast any special items for future periods.

2008 Forecasted Ongoing Net Income

The materials for Spectra Energy’s 2008 Outlook and Financial Plan January 17, 2008 presentation include a discussion of the 2008 forecasted ongoing net income. Ongoing net income is a non-GAAP financial measure as it represents net income adjusted for the impact of special items. Special items represent certain charges and credits which management believes will not be recurring on a regular basis. The most directly comparable GAAP measure for ongoing net income is net income, which includes the impact of special items. Due to the forward-looking nature of this non-GAAP financial measure, information to reconcile it to the most directly comparable GAAP financial measure is not available at this time, as management is unable to forecast any special items for future periods.

Forecasted 2008 Total Ongoing Segment and Other EBIT and EBITDA

The materials for Spectra Energy’s 2008 Outlook and Financial Plan January 17, 2007 presentation include a discussion of forecasted 2008 ongoing EBIT and EBITDA (earnings before interest, taxes and depreciation and amortization) for Spectra Energy’s reportable segments and for Other, which represents the remainder of Spectra Energy’s operations. Forecasted 2008 ongoing segment and Other EBIT and EBITDA amounts are non-GAAP financial measures as they reflect segment and Other EBIT and EBITDA adjusted for the impact of special

items. Special items represent certain charges and credits which management believes will not be recurring on a regular basis. The most directly comparable GAAP measures for forecasted ongoing segment and Other EBIT and EBITDA are reported segment and Other EBIT and depreciation and amortization from continuing operations, which includes the impact of special items. The most directly comparable GAAP measure for total ongoing segment and Other EBIT and EBITDA is reported earnings from continuing operations before income taxes, which includes the impact of special items. Due to the forward-looking nature of these non-GAAP financial measures for future periods, information to reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measure is not available at this time, as management is unable to forecast any special items for any future periods.

Credit Metrics

The materials for Spectra Energy’s 2008 Outlook and Financial Plan January 17, 2008 presentation include a discussion of credit metrics including Funds From Operations (FFO) to Total Debt and an FFO Interest Coverage ratio. These metrics reflect non-GAAP financial measures. FFO is calculated as cash provided by operating activities on a GAAP basis less changes in working capital. The numerator of the FFO Interest Coverage ratio is FFO plus cash paid for interest, inclusive of capitalized interest. The denominator of the FFO Interest Coverage ratio is calculated as total interest expense, inclusive of capitalized interest.

Spectra Energy Corp

Cash Flow Reconciliation Required by SEC Regulation G

2008 Outlook and Financial Plan

January 17, 2008

($ in Millions)

		Forecast 2008
Primary Sources:
Ongoing net income (Based on $1.56 per ongoing diluted share target) (1)	a	$	1,000
Depreciation & amortization	a		605
Total Sources			1,605
Primary Uses:
Capital and investment expenditures	b		(2,420	)
Dividends			(580	)
Other sources/(uses), net			(60	)
Total Uses			(3,060	)
Net Sources / (Uses)		$	(1,455	)
Reconciliations to amounts per U.S. GAAP reporting:
Operating cash flow components from above [summation of (a)]		$	1,605
Reconciling items to GAAP operating cash flow
Changes in operating working capital	c		(245	)
Deferred income taxes	c		105
Minority interest	c		70
Undistributed equity earnings in unconsolidated affiliates	c		(50	)
Net change in other assets and liabilities	c		(90	)
Net cash provided by operating activities per GAAP Consolidated Statement of Cash Flows		$	1,395
Investing cash flow components from above [item (b)]		$	(2,420	)
Other, net	c		20
Net cash used in investing activities per GAAP Consolidated Statement of Cash Flows		$	(2,400	)
Other sources/(uses), net
Summation of (c)		$	(190	)
Change in preferred stock of subsidiaries			(25	)
Net contributions from minority interests			75
Decrease in short-term investments			80
Total other sources/(uses), net		$	(60	)

Notes:

(1) Forecasted net income of $1,000 million for 2008 is based on Spectra Energy’s 2008 employee incentive earnings target of $1.56 per share. The measure used for employee incentive bonuses is based on ongoing diluted earnings per share (EPS). Ongoing diluted EPS is a non-GAAP financial measure as it represents diluted EPS from continuing operations adjusted for the per-share impact of special items. Special items represent certain charges and credits which management believes will not be recurring on a regular basis. The most directly comparable GAAP measure for ongoing diluted EPS is reported diluted EPS from continuing operations, which includes the impact of special items. Due to the forward-looking nature of this non-GAAP financial measure, information to reconcile it to the most directly comparable GAAP financial measure is not available at this time, as management is unable to forecast all special items for future periods.

Spectra Energy Corp

Credit Metrics Reconciliations Required by SEC Regulation G

2008 Outlook and Financial Plan

January 17, 2008

($ in Millions)

		Estimated 2008
Funds From Operations to Total Debt
Net cash provided by operating activities		$	1,395
Remove changes in working capital			245
Funds from operations (FFO)	a	$	1,640
Estimated total debt	b	$	11,395
FFO / Total Debt			14.4	%	a/b
Funds From Operations Interest Coverage
Interest expense		$	695
Less amortization of debt discount and expense			(10	)
Add capitalized interest			30
Cash paid for interest	c	$	715
Funds from operations plus cash paid for interest	d	$	2,355		a+c
Interest expense		$	695
Add capitalized interest			30
Adjusted interest expense	e	$	725
FFO / Interest			3.2x		d/e

DCP Midstream

Non-GAAP Reconciliation for SEC Regulation G

2008 Outlook and Financial Plan

January 17, 2008

Reconciliation of non-GAAP EBITDA

and EBIT to Net Income

($MM)	2008 Est			2007B
EBITDA	$	1,900		$	1,562
Depreciation and Amortization		(400	)		(310	)
EBIT		1,500			1,252
Interest Expense, net		(200	)		(145	)
Net Income	$	1,300		$	1,107

EX-99.2

Exhibit 99.2

Media:	Molly Boyd
	(713) 627-5923
	(713) 627-4747 (24-hour media line)
Analysts:	John Arensdorf
	(713) 627-4600
Date:	January 17, 2008

Spectra Energy Rolls Out 2008 Financial Plan

Momentum from Strong 2007 Expected to Continue Into 2008 and Beyond

• Approximately $1.5 billion in new projects to be completed and placed into service in 2008

• Planned investments of more than $1 billion per year through 2010, bringing total expansion capital investment to more than $4 billion for 2007-2010; investment expected to deliver more than $500 million in additional annual earnings before interest and taxes (EBIT) by 2011

• Reiterated previously announced 2008 ongoing diluted EPS employee incentive target of $1.56 per share, an 11 percent increase over the 2007 target.

HOUSTON – Spectra Energy (NYSE:SE) rolled out its financial plan for 2008 and beyond for analysts and investors today at a meeting in New York.

As part of its 2008 strategy, the Company expects to bring into service approximately $1.5 billion in new pipeline, gas processing, storage and distribution projects. This will involve continuing to invest more than $1 billion in projects a year over the 2008 to 2010 period which the Company expects will generate more than $500 million annually in incremental annual earnings before interest and taxes (EBIT) by 2011. The Company also announced in January a 4 cent increase in its annual dividend, bringing it to 92 cents per share, in line with its targeted 60 percent payout ratio.

“In 2007 we demonstrated our ability to execute on our growth plan and at the same time reduced costs, maintained a strong balance sheet and met our financial targets. We also made significant strides in our three year capital expansion plan, investing more than $1 billion in capital expenditures in 2007, and placing into service 13 strategic new projects with a total capital invested of about $650 million,” said Fred Fowler, president and chief executive officer, Spectra Energy. “We expect to exceed our previously stated 2007 ongoing diluted earnings per share (EPS) employee incentive target of $1.40 and are well positioned to build on this momentum in 2008 by implementing our key strategies to deliver profitable growth.”

The company reiterated it’s previously announced 2008 ongoing diluted EPS employee incentive target of $1.56 per share, an 11 percent increase over the 2007 target.

“We had a stand-out first year in 2007, and we look forward to delivering a stronger year two,” said Fowler.

The webcast and full presentation from today’s meeting is available on the investors’ section of company’s web site at www.spectraenergy.com.

Spectra Energy Corp (NYSE: SE) 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 close to a century, Spectra Energy and its predecessor companies have developed critically important pipelines and related energy infrastructure connecting natural gas supply sources to premium markets. Based in Houston, Texas, the company operates in the United States and Canada approximately 17,500 miles of transmission pipeline, 265 billion cubic feet of storage, natural gas gathering and processing, natural gas liquids operations and local distribution assets. Spectra Energy Corp also has a 50 percent ownership in DCP Midstream, one of the largest natural gas gatherers and processors in the United States. Visit www.spectraenergy.com for more information.

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Forward Looking Statements

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. This release includes forward-looking statements concerning future developments at our facilities, including the anticipated timing and amount of planned capital expansions and anticipated future natural gas pipeline capacity as well as the demand for such capacity. 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 efforts to develop infrastructure projects; the timing and receipt of required regulatory approvals; the timing and receipt of sufficient capacity commitments for the described project; and fluctuations in the demand for natural gas in the markets serviced by the described project. These factors, as well as additional factors that could affect our forward-looking statements, are described in our Form 10-K, filed with the Securities and Exchange Commission on April 2, 2007, 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.

Non-GAAP Reconciliation for SEC Regulation G

This release includes a discussion of the 2007 and 2008 ongoing fully diluted earnings per share (“EPS”) employee incentive targets for Spectra Energy. The EPS measure used for employee incentive bonuses is based on ongoing fully diluted EPS. Ongoing fully diluted EPS is a non-GAAP financial measure as it represents fully diluted EPS from continuing operations adjusted for the per-share impact of special items. Special items represent certain charges and credits which management believes will not be recurring on a regular basis. The most directly comparable GAAP measure for ongoing

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fully diluted EPS is fully diluted EPS from continuing operations, which includes the impact of special items. Due to the forward-looking nature of this non-GAAP financial measure, information to reconcile it to the most directly comparable GAAP financial measure is not available at this time, as management is unable to forecast any special items for future periods.

This release also includes a discussion of estimated annual EBIT (earnings before interest and taxes) to be generated from planned expansion capital investments. EBIT is a non-GAAP financial measure. The most directly comparable GAAP measure for EBIT is earnings from continuing operations before income taxes excluding interest income and expense. Due to the forward-looking nature of this financial measure for future periods, information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as management is unable to forecast interest and taxes applicable to earnings generated from the planned expansions for any future periods.

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