10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2016

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number 1-33556

SPECTRA ENERGY PARTNERS, LP

(Exact Name of Registrant as Specified in its Charter)

Delaware	41-2232463
(State or other jurisdiction of incorporation)	(IRS Employer Identification No.)

5400 Westheimer Court

Houston, Texas 77056

(Address of principal executive offices, including zip code)

713-627-5400

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ý    Accelerated  filer  ¨    Non-accelerated filer  ¨    Smaller reporting company  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

At June 30, 2016, there were 302,578,594 Common Units and 6,175,073 General Partner Units outstanding.

SPECTRA ENERGY PARTNERS, LP

FORM 10-Q FOR THE QUARTER ENDED

June 30, 2016

INDEX

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	4
	Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2016 and 2015	4
	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2016 and 2015	5
	Condensed Consolidated Balance Sheets as of June 30, 2016 and December 31, 2015	6
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2016 and 2015	8
	Condensed Consolidated Statements of Equity for the six months ended June 30, 2016 and 2015	9
	Notes to Condensed Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	29
Item 4.	Controls and Procedures	29
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 6.	Exhibits	30
	Signatures	32

2

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This document 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 management’s intentions, plans, expectations, assumptions and beliefs about future events. These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast, and similar expressions. Forward-looking 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. Factors used to develop these forward-looking statements and that could cause actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to:

• state, provincial, federal and foreign legislative and regulatory initiatives that affect cost and investment recovery, have an effect on rate structure, and affect the speed at and degree to which competition enters the natural gas and oil industries;

• outcomes of litigation and regulatory investigations, proceedings or inquiries;

• weather and other natural phenomena, including the economic, operational and other effects of hurricanes and storms;

• the timing and extent of changes in interest rates and foreign currency exchange rates;

• general economic conditions, including the risk of a prolonged economic slowdown or decline, or the risk of delay in a recovery, which can affect the long-term demand for natural gas and oil and related services;

• potential effects arising from terrorist attacks and any consequential or other hostilities;

• changes in environmental, safety and other laws and regulations;

• the development of alternative energy resources;

• results and costs of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings and general market and economic conditions;

• increases in the cost of goods and services required to complete capital projects;

• growth in opportunities, including the timing and success of efforts to develop U.S. and Canadian pipeline, storage, gathering and other related infrastructure projects and the effects of competition;

• the performance of natural gas transmission, storage and gathering facilities, and crude oil transportation and storage;

• the extent of success in connecting natural gas and oil supplies to transmission and gathering systems and in connecting to expanding gas and oil markets;

• the effects of accounting pronouncements issued periodically by accounting standard-setting bodies;

• conditions of the capital markets during the periods covered by forward-looking statements; and

• the ability to successfully complete merger, acquisition or divestiture plans; regulatory or other limitations imposed as a result of a merger, acquisition or divestiture; and the success of the business following a merger, acquisition or divestiture.

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 Spectra Energy Partners, LP has described. Spectra Energy Partners, LP undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

3

PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements.

SPECTRA ENERGY PARTNERS, LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In millions, except per-unit amounts)

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Operating Revenues
Transportation of natural gas	$	475	$	454	$	959	$	918
Transportation of crude oil	87		90		173		174
Storage of natural gas and other	56		59		110		117
Total operating revenues	618		603		1,242		1,209
Operating Expenses
Operating, maintenance and other	190		178		369		359
Depreciation and amortization	77		73		154		146
Property and other taxes	46		30		90		71
Total operating expenses	313		281		613		576
Operating Income	305		322		629		633
Other Income and Expenses
Earnings from equity investments	30		45		57		85
Other income and expenses, net	31		17		51		26
Total other income and expenses	61		62		108		111
Interest Expense	56		63		112		120
Earnings Before Income Taxes	310		321		625		624
Income Tax Expense	5		5		9		7
Net Income	305		316		616		617
Net Income—Noncontrolling Interests	18		9		31		17
Net Income—Controlling Interests	$	287	$	307	$	585	$	600
Calculation of Limited Partners’ Interest in Net Income:
Net income—Controlling Interests	$	287	$	307	$	585	$	600
Less: General partner’s interest in net income	76		61		145		118
Limited partners’ interest in net income	$	211	$	246	$	440	$	482
Weighted-average limited partner units outstanding—basic and diluted	298		296		292		296
Net income per limited partner unit—basic and diluted	$	0.71	$	0.83	$	1.51	$	1.63
Distributions paid per limited partner unit	$	0.65125	$	0.60125	$	1.29000	$	1.19000

See Notes to Condensed Consolidated Financial Statements.

4

SPECTRA ENERGY PARTNERS, LP

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In millions)

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Net Income	$	305	$	316	$	616	$	617
Other comprehensive income (loss):
Foreign currency translation adjustments	1		2		12		(13		)
Total other comprehensive income (loss)	1		2		12		(13		)
Total Comprehensive Income	306		318		628		604
Less: Comprehensive Income—Noncontrolling Interests	18		9		31		17
Comprehensive Income—Controlling Interests	$	288	$	309	$	597	$	587

See Notes to Condensed Consolidated Financial Statements.

5

SPECTRA ENERGY PARTNERS, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In millions)

	June 30, 2016		December 31, 2015
ASSETS
Current Assets
Cash and cash equivalents	$	171	$	168
Receivables, net	286		272
Inventory	38		37
Fuel tracker	33		41
Other	25		26
Total current assets	553		544
Investments and Other Assets
Investments in and loans to unconsolidated affiliates	978		904
Goodwill	3,236		3,232
Other	98		44
Total investments and other assets	4,312		4,180
Property, Plant and Equipment
Cost	18,597		17,491
Less accumulated depreciation and amortization	3,753		3,654
Net property, plant and equipment	14,844		13,837
Regulatory Assets and Deferred Debits	324		290
Total Assets	$	20,033	$	18,851

See Notes to Condensed Consolidated Financial Statements.

6

SPECTRA ENERGY PARTNERS, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In millions)

	June 30, 2016			December 31, 2015
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	413		$	322
Commercial paper	693			476
Taxes accrued	74			60
Interest accrued	72			72
Current maturities of long-term debt	22			283
Other	127			258
Total current liabilities	1,401			1,471
Long-term Debt	5,861			5,845
Deferred Credits and Other Liabilities
Deferred income taxes	42			38
Regulatory and other	156			151
Total deferred credits and other liabilities	198			189
Commitments and Contingencies
Equity
Partners’ Capital
Common units (302.6 million and 285.1 million units issued and outstanding at June 30, 2016 and December 31, 2015, respectively)	11,390			10,527
General partner units (6.2 million and 5.8 million units issued and outstanding at June 30, 2016 and December 31, 2015, respectively)	390			336
Accumulated other comprehensive loss	(38		)	(50		)
Total partners’ capital	11,742			10,813
Noncontrolling interests	831			533
Total equity	12,573			11,346
Total Liabilities and Equity	$	20,033		$	18,851

See Notes to Condensed Consolidated Financial Statements.

7

SPECTRA ENERGY PARTNERS, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In millions)

	Six Months Ended June 30,
	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	616		$	617
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	158			150
Deferred income tax expense	4			2
Earnings from equity investments	(57		)	(85		)
Distributions from equity investments	52			93
Other	(20		)	(46		)
Net cash provided by operating activities	753			731
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(1,023		)	(604		)
Investments in and loans to unconsolidated affiliates	(112		)	(34		)
Purchase of intangible, net	(40		)	—
Distributions from equity investments	45			35
Distribution to equity investment	(148		)	—
Purchases of held-to-maturity securities	(22		)	(22		)
Proceeds from sales and maturities of held-to-maturity securities	22			22
Purchases of available-for-sale securities	(315		)	—
Proceeds from sales and maturities of available-for-sale securities	316			—
Other changes in restricted funds	4			—
Other	(2		)	—
Net cash used in investing activities	(1,275		)	(603		)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	—			994
Payments for the redemption of long-term debt	(267		)	(16		)
Net increase (decrease) in commercial paper	217			(869		)
Distributions to noncontrolling interests	(15		)	(16		)
Contributions from noncontrolling interests	278			90
Proceeds from the issuances of units	816			184
Distributions to partners	(504		)	(459		)
Other	—			(9		)
Net cash provided by (used in) financing activities	525			(101		)
Net increase in cash and cash equivalents	3			27
Cash and cash equivalents at beginning of period	168			140
Cash and cash equivalents at end of period	$	171		$	167
Supplemental Disclosures
Property, plant and equipment non-cash accruals	$	225		$	135

See Notes to Condensed Consolidated Financial Statements.

8

SPECTRA ENERGY PARTNERS, LP

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(In millions)

	Partners’ Capital									Noncontrolling Interests			Total
	Common			General Partner			Accumulated Other Comprehensive Income (Loss)
December 31, 2015	$	10,527		$	336		$	(50	)	$	533		$	11,346
Net income	440			145			—			31			616
Other comprehensive income	—			—			12			—			12
Attributed deferred tax benefit	—			20			—			4			24
Issuances of units	800			16			—			—			816
Distributions to partners	(377		)	(127		)	—			—			(504		)
Contributions from noncontrolling interests	—			—			—			278			278
Distributions to noncontrolling interests	—			—			—			(15		)	(15		)
June 30, 2016	$	11,390		$	390		$	(38	)	$	831		$	12,573
December 31, 2014	$	10,474		$	284		$	(20	)	$	268		$	11,006
Net income	482			118			—			17			617
Other comprehensive loss	—			—			(13		)	—			(13		)
Attributed deferred tax benefit	—			14			—			2			16
Issuances of units	180			4			—			—			184
Distributions to partners	(351		)	(108		)	—			—			(459		)
Contributions from noncontrolling interests	—			—			—			90			90
Distributions to noncontrolling interests	—			—			—			(16		)	(16		)
June 30, 2015	$	10,785		$	312		$	(33	)	$	361		$	11,425

See Notes to Condensed Consolidated Financial Statements.

9

SPECTRA ENERGY PARTNERS, LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. General

The terms “we,” “our,” “us” and “Spectra Energy Partners” as used in this report refer collectively to Spectra Energy Partners, LP and its subsidiaries unless the context suggests otherwise. These terms are used for convenience only and are not intended as a precise description of any separate legal entity within Spectra Energy Partners.

Nature of Operations. Spectra Energy Partners, through its subsidiaries and equity affiliates, is engaged in the transmission, storage and gathering of natural gas and the transportation and storage of crude oil through interstate pipeline systems. We are a Delaware master limited partnership. As of June 30, 2016, Spectra Energy Corp (Spectra Energy) and its subsidiaries collectively owned 77% of us and the remaining 23% was publicly owned.

Basis of Presentation. The accompanying Condensed Consolidated Financial Statements include our accounts and the accounts of our majority-owned subsidiaries, after eliminating intercompany transactions and balances. These interim financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K, for the year ended December 31, 2015, and reflect all normal recurring adjustments that are, in our opinion, necessary to fairly present our results of operations and financial position. Amounts reported in the Condensed Consolidated Statements of Operations are not necessarily indicative of amounts expected for the respective annual periods.

Spectra Energy and its affiliates are solely responsible for providing the employees and other personnel necessary to conduct our operations. Our costs of doing business have been reflected in our financial accounting records for the periods presented. These costs include direct charges and allocations from Spectra Energy and its affiliates for business services, such as payroll, accounts payable and facilities management; corporate services, such as finance and accounting, legal, human resources, investor relations, public and regulatory policy, and senior executives; and pension and other post-retirement benefit costs.

Use of Estimates. To conform with generally accepted accounting principles (GAAP) in the United States, we make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements. Although these estimates are based on our best available knowledge at the time, actual results could differ.

2. Business Segments

We manage our business in two reportable segments: U.S. Transmission and Liquids. The remainder of our business operations is presented as “Other,” and consists of certain corporate costs.

Our chief operating decision maker regularly reviews financial information about both segments in deciding how to allocate resources and evaluate performance. There is no aggregation of segments within our reportable business segments.

The U.S. Transmission segment provides interstate transmission, storage and gathering of natural gas. Substantially all of our operations are subject to the Federal Energy Regulatory Commission (FERC) and the Department of Transportation’s (DOT’s) rules and regulations. Our investments in Gulfstream Natural Gas System, LLC (Gulfstream), Southeast Supply Header, LLC (SESH) and Steckman Ridge, LP are included in U.S. Transmission.

The Liquids segment provides transportation of crude oil. The Express-Platte pipeline system (Express-Platte) is a crude oil pipeline system that connects Canadian and U.S. producers to refineries in the U.S. Rocky Mountain and Midwest regions. These operations are primarily subject to the rules and regulations of the FERC and the National Energy Board (NEB). We held direct one-third ownership interests in DCP Sand Hills Pipeline, LLC (Sand Hills) and DCP Southern Hills Pipeline, LLC (Southern Hills) until October 30, 2015.

Our reportable segments offer different products and services and are managed separately as business units. Management evaluates segment performance based on earnings before interest, taxes, and depreciation and amortization (EBITDA). Cash, cash equivalents and investments are managed centrally, so the gains and losses on foreign currency remeasurement, and interest and dividend income, are excluded from the segments’ EBITDA. Our segment EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate EBITDA in the same manner.

10

Business Segment Data

Condensed Consolidated Statements of Operations	Total Operating Revenues		Depreciation and Amortization		Segment EBITDA/Consolidated Earnings Before Income Taxes
	(in millions)
Three Months Ended June 30, 2016
U.S. Transmission	$	529	$	69	$	406
Liquids	89		8		58
Total reportable segments	618		77		464
Other	—		—		(22		)
Depreciation and amortization	—		—		77
Interest expense	—		—		56
Interest income and other	—		—		1
Total consolidated	$	618	$	77	$	310
Three Months Ended June 30, 2015
U.S. Transmission	$	509	$	65	$	396
Liquids	94		8		78
Total reportable segments	603		73		474
Other	—		—		(18		)
Depreciation and amortization	—		—		73
Interest expense	—		—		63
Interest income and other	—		—		1
Total consolidated	$	603	$	73	$	321
Six Months Ended June 30, 2016
U.S. Transmission	$	1,067	$	139	$	817
Liquids	175		15		114
Total reportable segments	1,242		154		931
Other	—		—		(42		)
Depreciation and amortization	—		—		154
Interest expense	—		—		112
Interest income and other	—		—		2
Total consolidated	$	1,242	$	154	$	625
Six Months Ended June 30, 2015
U.S. Transmission	$	1,031	$	130	$	785
Liquids	178		16		142
Total reportable segments	1,209		146		927
Other	—		—		(35		)
Depreciation and amortization	—		—		146
Interest expense	—		—		120
Interest income and other	—		—		(2		)
Total consolidated	$	1,209	$	146	$	624

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3. Net Income Per Limited Partner Unit and Cash Distributions

The following table presents our net income per limited partner unit calculations:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
	(in millions, except per unit amounts)
Net income—controlling interests	$	287	$	307	$	585	$	600
Less:
General partner’s interest in net income—2%	6		6		12		12
General partner’s interest in net income attributable to incentive distribution rights	70		55		133		106
Limited partners’ interest in net income	$	211	$	246	$	440	$	482
Weighted average limited partner units outstanding—basic and diluted	298		296		292		296
Net income per limited partner unit—basic and diluted	$	0.71	$	0.83	$	1.51	$	1.63

Our partnership agreement requires that, within 60 days after the end of each quarter, we distribute all of our Available Cash, as defined, to unitholders of record on the applicable record date.

Available Cash. Available Cash, for any quarter, consists of all cash and cash equivalents on hand at the end of that quarter:

• less the amount of cash reserves established by the general partner to:

• provide for the proper conduct of business,

• comply with applicable law, any debt instrument or other agreement, or

• provide funds for minimum quarterly distributions to the unitholders and to the general partner for any one or more of the next four quarters,

• plus, if the general partner so determines, all or a portion of cash and cash equivalents on hand on the date of determination of Available Cash for the quarter.

Incentive Distribution Rights. The general partner holds incentive distribution rights beyond the first target distribution in accordance with the partnership agreement as follows:

	Total Quarterly Distribution	Marginal Percentage Interest in Distributions
	Target Per-Unit Amount	Common Unitholders		General Partner
Minimum Quarterly Distribution	$0.30	98	%	2	%
First Target Distribution	up to $0.345	98	%	2	%
Second Target Distribution	above $0.345 up to $0.375	85	%	15	%
Third Target Distribution	above $0.375 up to $0.45	75	%	25	%
Thereafter	above $0.45	50	%	50	%

To the extent these incentive distributions are made to the general partner, there will be more Available Cash proportionately allocated to our general partner than to holders of common units. A cash distribution of $0.66375 per limited partner unit was declared on August 3, 2016 and is payable on August 26, 2016 to unitholders of record at the close of business on August 15, 2016.

There is a reduction in the aggregate quarterly distributions, if any, to Spectra Energy, (as holder of incentive distribution rights), by $4 million per quarter for a period of 12 consecutive quarters ending on September 30, 2018 as a result of the sale of our interests in Sand Hills and Southern Hills to Spectra Energy.

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4. Transaction with Affiliate

During the third quarter of 2015, Gulfstream issued unsecured debt of $800 million to fund the repayment of its current debt. Gulfstream distributed $396 million, our proportionate share of proceeds, to us of which we contributed $248 million back to Gulfstream in the fourth quarter of 2015 and the remaining $148 million, classified as Cash Flow from Investing Activities — Distribution to Equity Investment, in the second quarter of 2016.

5. Variable Interest Entities

Sabal Trail. On April 1, 2016, NextEra Energy, Inc. (NextEra) purchased a 9.5% interest in Sabal Trail Transmission, LLC (Sabal Trail) from us. Consideration for this transaction consisted of approximately $110 million cash, $102 million of which is classified as Cash Flows from Financing Activities — Contributions from Noncontrolling Interests. See Note 6 for additional information related to this transaction. As of June 30, 2016, we owned a 50% interest in Sabal Trail, a joint venture that is constructing a natural gas pipeline to transport natural gas to Florida. Sabal Trail is a variable interest entity (VIE) due to insufficient equity at risk to finance its activities. We determined that we are the primary beneficiary because we direct the activities of Sabal Trail that most significantly impact its economic performance and we consolidate Sabal Trail in our financial statements. The current estimate of the total remaining construction cost is approximately $1.8 billion.

The following summarizes assets and liabilities for Sabal Trail as of June 30, 2016 and December 31, 2015, respectively:

Condensed Consolidated Balance Sheets	June 30, 2016		December 31, 2015
	(in millions)
Assets
Current assets	$	114	$	118
Net property, plant and equipment	1,184		773
Regulatory assets and deferred debits	41		25
Total Assets	$	1,339	$	916
Liabilities and Equity
Current liabilities	$	90	$	84
Equity	1,249		832
Total Liabilities and Equity	$	1,339	$	916

Nexus. We own a 50% interest in Nexus Gas Transmission, LLC (Nexus), a joint venture that is constructing a natural gas pipeline from Ohio to Michigan and continuing on to Ontario, Canada. Nexus is a VIE due to insufficient equity at risk to finance its activities. We determined that we are not the primary beneficiary because the power to direct the activities of Nexus that most significantly impact its economic performance is shared. We account for Nexus under the equity method. Our maximum exposure to loss is $1.0 billion. We have an investment in Nexus of $205 million and $90 million as of June 30, 2016 and December 31, 2015, respectively, classified as Investments in and Loans to Unconsolidated Affiliates on our Condensed Consolidated Balance Sheets.

6. Intangible Asset

During the first quarter of 2016 we entered into a project coordination agreement (PCA) with NextEra, Duke Energy Corporation and Williams Partners L.P. In accordance with the agreement, payments will be made, based on our proportional ownership interest in the Sabal Trail project, as certain milestones of the project are met. During the first quarter of 2016, the first milestone was achieved and paid, consisting of $48 million. On April 1, 2016, NextEra purchased an additional 9.5% interest in Sabal Trail, reducing our ownership interest in Sabal Trail to 50%. Upon purchase of the additional ownership interest, NextEra reimbursed us $8 million for NextEra’s proportional share of the first milestone payment, which reduced our total milestone payments to $40 million as of June 30, 2016, both of which are classified as Cash Flows from Investing Activities — Purchase of Intangible, Net. This PCA is an intangible asset and is classified as Investments and Other Assets — Other on our Condensed Consolidated Balance Sheet. The intangible asset will be amortized over a period of 25 years beginning at the time of in-service of Sabal Trail, which is expected to occur during the first half of 2017.

7. Goodwill

We perform our goodwill impairment test annually and evaluate goodwill when events or changes in circumstances indicate that its carrying value may not be recoverable. We completed our annual goodwill impairment test as of April 1, 2016 and no impairments were identified.

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We perform our annual review for goodwill impairment at the reporting unit level, which is identified by assessing whether the components of our operating segments constitute businesses for which discrete financial information is available, whether segment management regularly reviews the operating results of those components and whether the economic and regulatory characteristics are similar. We determined that our reporting units are equivalent to our reportable segments.

As permitted under accounting guidance on testing goodwill for impairment, we perform either a qualitative assessment or a quantitative assessment of each of our reporting units based on management’s judgment. With respect to our qualitative assessments, we consider events and circumstances specific to us, such as macroeconomic conditions, industry and market considerations, cost factors and overall financial performance, when evaluating whether it is more likely than not that the fair values of our reporting units are less than their respective carrying amounts.

8. Marketable Securities and Restricted Funds

We routinely invest excess cash and various restricted balances in securities such as commercial paper, corporate debt securities, and money market funds in the United States, as well as equity securities in Canada. We do not purchase marketable securities for speculative purposes, therefore we do not have any securities classified as trading securities. While we do not routinely sell marketable securities prior to their scheduled maturity dates, some of our investments may be held and restricted for the purposes of funding future capital expenditures and NEB regulatory requirements, so these investments are classified as available-for-sale (AFS) marketable securities as they may occasionally be sold prior to their scheduled maturity dates due to the unexpected timing of cash needs. Initial investments in securities are classified as purchases of the respective type of securities (AFS marketable securities or held-to-maturity (HTM) marketable securities). Maturities of securities are classified within proceeds from sales and maturities of securities in the Condensed Consolidated Statements of Cash Flows. 

AFS Securities. We had $10 millionand$11 million of AFS securities classified as Investments and Other Assets — Other on the Condensed Consolidated Balance Sheets as of June 30, 2016 and December 31, 2015, respectively. As of June 30, 2016, these investments include $9 million of restricted funds related to certain construction projects and $1 million are restricted funds held and collected from customers for Canadian pipeline abandonment in accordance with the NEB's regulatory requirements. The balance as of December 31, 2015 is all related to certain construction projects.

At June 30, 2016, the weighted-average contractual maturity of outstanding AFS securities was less than one year.

There were no material gross unrecognized holding gains or losses associated with investments in AFS securities at June 30, 2016 or December 31, 2015.

HTM Securities. All of our HTM securities are restricted funds. We had $3 million of money market securities classified as Current Assets — Other on the Condensed Consolidated Balance Sheets as of June 30, 2016 and December 31, 2015. These securities are restricted pursuant to certain Express-Platte debt agreements.

At June 30, 2016, the weighted-average contractual maturity of outstanding HTM securities was less than one year.

There were no material gross unrecognized holding gains or losses associated with investments in HTM securities at June 30, 2016 or December 31, 2015.

Other Restricted Funds. In addition to the AFS and HTM securities that were restricted funds as described above, we had other restricted funds totaling $10 million and $14 million classified as Investments and Other Assets — Other on the Condensed Consolidated Balance Sheets at June 30, 2016 and December 31, 2015, respectively. These restricted funds are related to certain construction projects.

Changes in restricted balances are presented within Cash Flows from Investing Activities on our Condensed Consolidated Statements of Cash Flows.

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9. Debt and Credit Facility

Available Credit Facility and Restricted Debt Covenants

	Expiration Date	Total Credit Facility Capacity		Commercial Paper Outstanding at June 30, 2016		Available Credit Facility Capacity
		(in millions)
Spectra Energy Partners, LP	2021	$	2,500	$	693	$	1,807

On April 29, 2016, we amended our credit agreement. The total capacity was increased to $2.5 billion and the expiration date was extended to April 2021.

The issuances of commercial paper, letters of credit and revolving borrowings reduce the amount available under the credit facility. As of June 30, 2016, there were no letters of credit issued or revolving borrowings outstanding under the credit facility.

Our credit agreements contain various covenants, including the maintenance of a consolidated leverage ratio, as defined in the agreements. Failure to meet those covenants beyond applicable grace periods could result in accelerated due dates and/or termination of the agreements. As of June 30, 2016, we were in compliance with those covenants. In addition, our credit agreements allow for acceleration of payments or termination of the agreements due to nonpayment, or in some cases, due to the acceleration of our other significant indebtedness or other significant indebtedness of some of our subsidiaries. Our debt and credit agreements do not contain provisions that trigger an acceleration of indebtedness based solely on the occurrence of a material adverse change in our financial condition or results of operations.

As noted above, the terms of our credit agreements require us to maintain a ratio of total Consolidated Indebtedness-to-Consolidated EBITDA, as defined in the agreement, of 5.0 to 1 or less. As of June 30, 2016, this ratio was 3.5 to 1.

10. Fair Value Measurements

The following presents, for each of the fair value hierarchy levels, assets that are measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015:

Description	Condensed Consolidated Balance Sheet Caption	June 30, 2016
		Total		Level 1		Level 2		Level 3
		(in millions)
Corporate debt securities	Cash and cash equivalents	$	115	$	—	$	115	$	—
Corporate debt securities	Investments and other assets — other	9		—		9		—
Canadian equity securities	Investments and other assets — other	1		1		—		—
Interest rate swaps	Investments and other assets — other	35		—		35		—
Total Assets		$	160	$	1	$	159	$	—

Description	Condensed Consolidated Balance Sheet Caption	December 31, 2015
		Total		Level 1		Level 2		Level 3
		(in millions)
Corporate debt securities	Cash and cash equivalents	$	112	$	—	$	112	$	—
Corporate debt securities	Investments and other assets — other	11		—		11		—
Interest rate swaps	Investments and other assets — other	14		—		14		—
Total Assets		$	137	$	—	$	137	$	—

Level 1

Level 1 valuations represent quoted unadjusted prices for identical instruments in active markets.

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Level 2 Valuation Techniques

Fair values of our financial instruments that are actively traded in the secondary market, including our long-term debt, are determined based on market-based prices. These valuations may include inputs such as quoted market prices of the exact or similar instruments, broker or dealer quotations, or alternative pricing sources that may include models or matrix pricing tools, with reasonable levels of price transparency.

For interest rate swaps, we utilize data obtained from a third-party source for the determination of fair value. Both the future cash flows for the fixed-leg and floating-leg of our swaps are discounted to present value.

Level 3 Valuation Techniques

Level 3 valuation techniques include the use of pricing models, discounted cash flow methodologies or similar techniques where at least one significant model assumption or input is unobservable. Level 3 financial instruments also include those for which the determination of fair value requires significant management judgment or estimation.

Financial Instruments

The fair values of financial instruments that are recorded and carried at book value are summarized in the following table. Judgment is required in interpreting market data to develop the estimates of fair value. These estimates are not necessarily indicative of the amounts we could have realized in current markets.

	June 30, 2016				December 31, 2015
	Book Value		Approximate Fair Value		Book Value		Approximate Fair Value
	(in millions)
Note receivable, noncurrent (a)	$	71	$	71	$	71	$	71
Long-term debt, including current maturities (b)	5,885		6,309		6,152		5,906

________ 

(a) Included within Investments in and Loans to Unconsolidated Affiliates.

(b) Excludes commercial paper, unamortized items and fair value hedge carrying value adjustments.

The fair value of our long-term debt is determined based on market-based prices as described in the Level 2 valuation technique described above and is classified as Level 2.

The fair values of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, note receivable-noncurrent, accounts payable, commercial paper and short-term money market securities - affiliates are not materially different from their carrying amounts because of the short-term nature of these instruments or because the stated rates approximate market rates.

During the six months ended June 30,2016 and 2015, there were no material adjustments to assets and liabilities measured at fair value on a nonrecurring basis.

11. Risk Management and Hedging Activities

Changes in interest rates expose us to risk as a result of our issuance of variable and fixed-rate debt and commercial paper. We are exposed to foreign currency risk from the Canadian portion of Express-Platte. We employ established policies and procedures to manage our risks associated with these market fluctuations, which may include the use of derivatives, mostly around interest rate exposures. For interest rate derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk is recognized in the Condensed Consolidated Statements of Operations. There were no significant amounts of gains or losses recognized in net income during the six months ended June 30, 2016.

At June 30, 2016, we had “pay floating — receive fixed” interest rate swaps outstanding with a total notional amount of $900 million to hedge against changes in the fair value of our fixed-rate debt that arise as a result of changes in market interest rates. These swaps also allow us to transform a portion of the underlying interest payments related to our long-term fixed-rate debt securities into variable-rate interest payments in order to achieve our desired mix of fixed and variable-rate debt.

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Information about our interest rate swaps that had netting or rights of offset arrangements are as follows:

	June 30, 2016						December 31, 2015
	Gross Amounts Presented in the Condensed Consolidated Balance Sheet		Amounts Not Offset in the Condensed Consolidated Balance Sheet		Net Amount		Gross Amounts Presented in the Condensed Consolidated Balance Sheet		Amounts Not Offset in the Condensed Consolidated Balance Sheet		Net Amount
Description	(in millions)
Assets	$	35	$	—	$	35	$	14	$	—	$	14

12. Commitments and Contingencies

Environmental

We are subject to various federal, state and local laws and regulations regarding air and water quality, hazardous and solid waste disposal and other environmental matters. These laws and regulations can change from time to time, imposing new obligations on us.

Like others in the energy industry, we and our affiliates are responsible for environmental remediation at various contaminated sites. These include some properties that are part of our ongoing operations, sites formerly owned or used by us, and sites owned by third parties. Remediation typically involves management of contaminated soils and may involve groundwater remediation. Managed in conjunction with relevant federal, state/provincial and local agencies, activities vary with site conditions and locations, remedial requirements, complexity and sharing of responsibility. If remediation activities involve statutory joint and several liability provisions, strict liability, or cost recovery or contribution actions, we or our affiliates could potentially be held responsible for contamination caused by other parties. In some instances, we may share liability associated with contamination with other potentially responsible parties, and may also benefit from contractual indemnities that cover some or all cleanup costs. All of these sites generally are managed in the normal course of business or affiliated operations.

Litigation

Litigation and Legal Proceedings. We are involved in legal, tax and regulatory proceedings in various forums arising in the ordinary course of business, including matters regarding contract and payment claims, some of which involve substantial monetary amounts. We have insurance coverage for certain of these losses should they be incurred. We believe that the final disposition of these proceedings will not have a material effect on our consolidated results of operations, financial position or cash flows.

Legal costs related to the defense of loss contingencies are expensed as incurred. We had no material reserves for legal matters recorded as of June 30, 2016 or December 31, 2015 related to litigation.

13. Issuances of Common Units

During the six months ended June 30, 2016, we issued 7.0 million common units to the public under our at-the-market program, and approximately 143,000 general partner units to Spectra Energy. Total net proceeds were $327 million, including approximately $6 million of proceeds from Spectra Energy.

In April 2016, we issued 10.4 million common units and 0.2 million general partner units to Spectra Energy in a private placement transaction. Total net proceeds were $489 million, including $10 million for general partner units in order to maintain Spectra Energy's 2% general partner interest. We intend to use the proceeds from this purchase for general partnership purposes, including the funding of our current expansion capital plan.

14. New Accounting Pronouncements

In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation,” which amends the consolidation guidance around reporting entities that invest in development stage entities. We adopted the consolidation guidance of this amendment on January 1, 2016 and applied it retrospectively with no material effect on our consolidated results of operations, financial position, or cash flows. This ASU did result in certain of our entities being classified as VIE. See Note 5 for discussion of our Variable Interest Entities.

In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which makes changes to both the variable interest model and the voting model. These changes required reevaluation of certain entities for consolidation and required us to revise our documentation regarding the consolidation or deconsolidation of such entities. We adopted this standard on January 1, 2016 with no material effect on our consolidated operations, financial position, or cash flows.

In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments,” to simplify accounting for adjustments made to provisional amounts recognized in a business combination and to eliminate the retrospective accounting for those adjustments. We adopted this standard on January 1, 2016 , and it has not had a material impact on our consolidated operations, financial position, or cash flows.

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In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” to improve the financial reporting around leasing transactions. The new guidance requires companies to begin recording assets and liabilities arising from those leases classified as operating leases under previous guidance. Furthermore, the new guidance will require significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in previous guidance. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model in Topic 842, the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged from previous guidance. This ASU is effective for us January 1, 2019. We are currently evaluating this ASU and its potential impact on us.

In March 2016, the FASB issued ASU No. 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships,” which clarifies the hedge accounting impact when there is a change in one of the counterparties to the derivative contract (i.e. novation). This ASU is effective for us January 1, 2017. This ASU is not expected to have a material impact on our consolidated results of operations, financial position or cash flow.

In March 2016, the FASB issued ASU No. 2016-06, “Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments,” which simplifies the embedded derivative analysis for debt instruments containing contingent call or put options. This ASU is effective for us January 1, 2017. This ASU is not expected to have a material impact on our consolidated results of operations, financial position or cash flow.

In March 2016, the FASB issued ASU No. 2016-07, “Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting,” which eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. This ASU is effective for us January 1, 2017. We are currently evaluating this ASU and its potential impact on us.

In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” to clarify implementation guidance on principal versus agent considerations. This ASU is effective for us on January 1, 2018. We are currently evaluating this ASU and its potential impact on us.

In April 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,” to clarify implementation guidance on performance obligations and licensing. This ASU is effective for us on January 1, 2018. We are currently evaluating this ASU and its potential impact on us.

In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients,” to clarify implementation guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. This ASU is effective for us on January 1, 2018. We are currently evaluating this ASU and its potential impact on us.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” to replace the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires the consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU is effective for us on January 1, 2020. We are currently evaluating this ASU and its potential impact on us.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

INTRODUCTION

Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the accompanying Condensed Consolidated Financial Statements.

EXECUTIVE OVERVIEW

For the three months ended June 30, 2016 and 2015, we reported net income from controlling interests of $287 million and $307 million, respectively. For the six months ended June 30, 2016 and 2015, we reported net income from controlling interests of $585 million and $600 million, respectively.

The highlights for the three months ended June 30, 2016 included increased earnings driven by expansion projects, primarily at Texas Eastern Transmission, LP (Texas Eastern), more than offset by a one-time property tax accrual adjustment in 2015 and the absence of equity earnings from Sand Hills and Southern Hills which we owned until October 2015. The highlights for the six months ended June 30, 2016 included increased earnings driven by expansion projects, more than offset by lower interruptible and short-term firm transportation revenue, a one-time property tax accrual adjustment in 2015, and the absence of equity earnings from Sand Hills and Southern Hills.

For the three months ended June 30, 2016 and 2015, distributable cash flow was $275 million and $321 million, respectively. For the six months ended June 30, 2016 and 2015, distributable cash flow was $646 million and $675 million, respectively.

A cash distribution of $0.66375 per limited partner unit was declared on August 3, 2016 and is payable on August 26, 2016. We intend to increase our quarterly distribution by one and a quarter cents per unit each quarter through 2018. Our Board of Directors evaluates each distribution decision within the confines of the Partnership agreement and based on an assessment of growth in distributable cash flow.

We are conducting an assessment of the Texas Eastern system across Pennsylvania and New Jersey. The assessment is the result of a corrective action order from the Pipeline and Hazardous Materials Safety Administration (PHMSA) as well as our own work plan related to an incident on the system on April 29, 2016 near Delmont, PA. This assessment program and the related system repairs are expected to cost approximately $75 million to $100 million. Approximately 90 percent of this program will be completed in 2016, with the remainder of the work to be performed in 2017. Additional inspections and repairs, if any, will be determined after the completion of this work. Importantly, we expect that by November 1, 2016, we will be in a position to fully meet our customer obligations for the winter season.

For the six months ended June 30, 2016, we had $1,135 million of capital and investment expenditures. We currently project $2.7 billion of capital and investment expenditures for the full year, including expansion capital expenditures of $2.4 billion. These projections exclude contributions from noncontrolling interests.

We are committed to an investment-grade balance sheet and continued prudent financial management of our capital structure. Therefore, financing growth activities will continue to be based on our strong and growing fee-based earnings and cash flows as well as the issuances of debt and equity securities. As of June 30, 2016, we have access to a $2.5 billion revolving credit facility which is used principally as a back-stop for our commercial paper program.

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RESULTS OF OPERATIONS

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
	(in millions)
Operating revenues	$	618	$	603	$	1,242	$	1,209
Operating expenses	313		281		613		576
Operating income	305		322		629		633
Earnings from equity investments	30		45		57		85
Other income and expenses, net	31		17		51		26
Interest expense	56		63		112		120
Earnings before income taxes	310		321		625		624
Income tax expense	5		5		9		7
Net income	305		316		616		617
Net income—noncontrolling interests	18		9		31		17
Net income—controlling interests	$	287	$	307	$	585	$	600

Three Months Ended June 30, 2016 Compared to Same Period in 2015

Operating Revenues. The $15 million increase was driven mainly by:

• revenues from expansion projects, primarily on Texas Eastern, and

• storage revenues due to new contracts at higher rates, partially offset by

• lower recoveries of electric power and other costs passed through to gas transmission customers,

• lower processing revenues due mainly to lower volumes and lower prices,

• lower crude oil transportation revenues, as a result of lower Platte pipeline volumes, net of increased tariff rates primarily on the Express pipeline, and

• lower natural gas transportation revenues primarily from short-term firm transportation on Texas Eastern.

Operating Expenses. The $32 million increase was driven mainly by:

• higher costs related to expansion projects,

• higher property tax accruals due to the absence of a 2015 tax benefit, and

• pipeline inspection and repair costs related to the Texas Eastern incident near Delmont, PA, partially offset by

• lower electric power and other costs passed through to gas transmission customers and

• lower power costs due to lower usage in 2016 on the Express and Platte pipelines.

Earnings from Equity Investments. The $15 million decrease was primarily attributable to the absence of equity earnings from Sand Hills and Southern Hills owned until October 2015.

Other Income and Expenses, Net.The $14 million increase was primarily attributable to higher allowance for funds used

during construction (AFUDC) from higher capital spending on expansion projects.

Interest Expense.The $7 million decrease was mainly due to higher capitalized interest.

Six Months Ended June 30, 2016 Compared to Same Period in 2015

Operating Revenues. The $33 million increase was driven mainly by:

• higher revenues from expansion projects, primarily on Texas Eastern, partially offset by

• lower natural gas transportation revenues mainly from interruptible transportation on Texas Eastern and Maritimes and Northeast Pipeline, L.L.C. (M&N U.S.) and short-term firm transportation on Texas Eastern and Algonquin Gas Transmission, LLC (Algonquin),

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• lower recoveries of electric power and other costs passed through to gas transmission customers,

• lower processing revenues primarily due to lower prices and volumes, and

• lower crude oil transportation revenues, as a result of lower volumes on the Platte and Express pipelines, substantially offset by increased tariff rates mainly on the Express pipeline.

Operating Expenses. The $37 million increase was driven mainly by:

• higher costs related to expansion projects,

• higher property tax accruals due to the absence of a 2015 tax benefit,

• pipeline inspection and repair costs related to the Texas Eastern incident near Delmont, PA and

• higher operating costs, partially offset by

• a prior year non-cash impairment charge on Ozark Gas Gathering, L.L.C. (Ozark Gas Gathering),

• lower electric power and other costs passed through to gas transmission customers and

• lower power costs due to lower usage in 2016 on the Express and Platte pipelines.

Earnings from Equity Investments. The $28 million decrease was primarily attributable to the absence of equity earnings from Sand Hills and Southern Hills owned until October 2015.

Other Income and Expenses, Net.The $25 million increase was primarily attributable to higher AFUDC from higher capital spending on expansion projects.

Interest Expense.The $8 million decrease was mainly due to higher capitalized interest, partially offset by higher average balances of long term debt.

Segment Results

Management evaluates segment performance based on EBITDA transactions. Cash, cash equivalents and investments are managed centrally, so the gains and losses on foreign currency remeasurement, and interest and dividend income, are excluded from the segments’ EBITDA. We consider segment EBITDA to be a good indicator of each segment’s operating performance from its continuing operations, as it represents the results of our operations without regard to financing methods or capital structures. Our segment EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate EBITDA in the same manner.

Segment EBITDA is summarized in the following table. Detailed discussions follow.

EBITDA by Business Segment

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
	(in millions)
U.S. Transmission	$	406		$	396		$	817		$	785
Liquids	58			78			114			142
Total reportable segment EBITDA	464			474			931			927
Other	(22		)	(18		)	(42		)	(35		)
Total reportable segment and other EBITDA	442			456			889			892
Depreciation and amortization	77			73			154			146
Interest expense	56			63			112			120
Other income	1			1			2			(2		)
Earnings before income taxes	$	310		$	321		$	625		$	624

The amounts discussed below are after eliminating intercompany transactions.

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U.S. Transmission

	Three Months Ended June 30,						Six Months Ended June 30,
	2016		2015		Increase (Decrease)		2016		2015		Increase (Decrease)
	(in millions)
Operating revenues	$	529	$	509	$	20	$	1,067	$	1,031	$	36
Operating expenses
Operating, maintenance and other	183		156		27		355		327		28
Other income and expenses	60		43		17		105		81		24
EBITDA	$	406	$	396	$	10	$	817	$	785	$	32

Three Months Ended June 30, 2016 Compared to Same Period in 2015

Operating Revenues. The $20 million increase was driven by:

• a $29 million increase due to expansion projects, primarily on Texas Eastern, and

• a $3 million increase in storage revenues due to new contracts at higher rates, partially offset by

• a $5 million decrease in recoveries of electric power and other costs passed through to gas transmission customers,

• a $4 million decrease in processing revenues primarily due to volumes and lower prices, and

• a $4 million decrease in natural gas transportation revenues mainly from short-term firm transportation on Texas Eastern.

Operating Expenses.The $27 million increase was driven by:

• a $16 million increase in expansion project costs,

• a $9 million increase in property taxes due to the benefit recognized in 2015, and

• a $6 million increase due to pipeline inspection and repair costs related to the Texas Eastern incident near Delmont, PA, partially offset by

• a $5 million decrease in electric power and other costs passed through to gas transmission customers.

Other Income and Expenses.The $17 million increase was mainly due to higher AFUDC resulting from higher capital spending on expansion projects.

Six Months Ended June 30, 2016 Compared to Same Period in 2015

Operating Revenues. The $36 million increase was driven by:

• a $57 million increase due to expansion projects, primarily on Texas Eastern, partially offset by

• a $10 million decrease in natural gas transportation revenues mainly from interruptible transportation on Texas Eastern and M&N U.S. and short-term firm transportation on Texas Eastern and Algonquin,

• a $9 million decrease in recoveries of electric power and other costs passed through to gas transmission customers, and

• a $4 million decrease in processing revenues primarily due to lower prices and volumes.

Operating Expenses.The $28 million increase was driven by:

• a $31 million increase in expansion project costs,

• a $6 million increase due to pipeline inspection and repair costs related to the Texas Eastern incident near Delmont, PA

• a $5 million increase in property taxes due to the benefit recognized in 2015, and

• a $5 million increase due to operating costs, partially offset by

• a $9 million decrease due to a prior year non-cash impairment charge on Ozark Gas Gathering and

• a $9 million decrease in electric power and other costs passed through to gas transmission customers.

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Other Income and Expenses.The $24 million increase was mainly due to higher AFUDC resulting from higher capital spending on expansion projects.

Liquids

	Three Months Ended June 30,							Six Months Ended June 30,
	2016		2015		Increase (Decrease)			2016		2015		Increase (Decrease)
	(in millions)
Operating revenues	$	89	$	94	$	(5	)	$	175	$	178	$	(3	)
Operating expenses
Operating, maintenance and other	31		34		(3		)	62		68		(6		)
Other income and expenses	—		18		(18		)	1		32		(31		)
EBITDA	$	58	$	78	$	(20	)	$	114	$	142	$	(28	)
Express pipeline revenue receipts, MBbl/d (a)	233		235		(2		)	233		242		(9		)
Platte PADD II deliveries, MBbl/d	143		172		(29		)	132		170		(38		)

_______

(a)    Thousand barrels per day.

Three Months Ended June 30, 2016 Compared to Same Period in 2015

Operating Revenues. The $5 million decrease in operating revenues was driven by:

• a $4 million decrease in crude oil transportation revenues, as a result of lower Platte pipeline volumes, partially offset by increased tariff rates mainly on the Express pipeline.

Operating Expenses. The $3 million decrease in operating expenses was primarily driven by a decrease in power costs due to lower usage in 2016 on the Express and Platte pipelines.

Other Income and Expenses. The $18 million decrease was primarily due to the absence of equity earnings from Sand Hills and Southern Hills owned until October 2015.

Six Months Ended June 30, 2016 Compared to Same Period in 2015

Operating Revenues. The $3 million decrease in operating revenues was driven by:

• a $4 million decrease in crude oil transportation revenues, as a result of lower Platte and Express pipeline volumes, substantially offset by increased tariff rates mainly on the Express pipeline.

Operating Expenses. The $6 million decrease in operating expenses was primarily driven by a decrease in power costs due to lower usage in 2016 on the Express and Platte pipelines.

Other Income and Expenses. The $31 million decrease was primarily due to the absence of equity earnings from Sand Hills and Southern Hills owned until October 2015.

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Other

	Three Months Ended June 30,									Six Months Ended June 30,
	2016			2015			Increase (Decrease)			2016			2015			Increase (Decrease)
	(in millions)
Operating expenses	$	22		$	18		$	4		$	42		$	35		$	7
EBITDA	$	(22	)	$	(18	)	$	(4	)	$	(42	)	$	(35	)	$	(7	)

Three Months Ended June 30, 2016 Compared to Same Period in 2015

Operating Expenses. The $4 million increase reflects higher governance costs.

Six Months Ended June 30, 2016 Compared to Same Period in 2015

Operating Expenses. The $7 million increase reflects higher governance costs.

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Distributable Cash Flow

We define Distributable Cash Flow as EBITDA plus

• distributions from equity investments,

• other non-cash items affecting net income, less

• earnings from equity investments,

• interest expense,

• equity AFUDC,

• net cash paid for income taxes,

• distributions to noncontrolling interests, and

• maintenance capital expenditures.

Distributable Cash Flow does not reflect changes in working capital balances. Distributable Cash Flow should not be viewed as indicative of the actual amount of cash that we plan to distribute for a given period.

Distributable Cash Flow is the primary financial measure used by our management and by external users of our financial statements to assess the amount of cash that is available for distribution.

Distributable Cash Flow is a non-GAAP measure and should not be considered an alternative to Net Income, Operating Income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. Distributable Cash Flow excludes some, but not all, items that affect Net Income and Operating Income and these measures may vary among other companies. Therefore, Distributable Cash Flow as presented may not be comparable to similarly titled measures of other companies.

Significant drivers of variances in Distributable Cash Flow between the periods presented are substantially the same as those previously discussed under Results of Operations. Other drivers include the timing of certain cash outflows, such as capital expenditures for maintenance.

25

Reconciliation of Net Income to Non-GAAP “Distributable Cash Flow”

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
	(in millions)
Net income	$	305		$	316		$	616		$	617
Add:
Interest expense	56			63			112			120
Income tax expense	5			5			9			7
Depreciation and amortization	77			73			154			146
Foreign currency (gain) loss	1			—			—			3
Less:
Third Party interest income	2			1			2			1
EBITDA	442			456			889			892
Add:
Earnings from equity investments	(30		)	(45		)	(57		)	(85		)
Distributions from equity investments (a)	32			70			97			124
Non-cash impairment on Ozark Gas Gathering	—			—			—			9
Other	1			3			3			6
Less:
Interest expense	56			63			112			120
Equity AFUDC	29			16			46			27
Net cash paid for income taxes	4			2			5			7
Distributions to noncontrolling interests	8			9			15			16
Maintenance capital expenditures	73			73			108			101
Distributable Cash Flow	$	275		$	321		$	646		$	675

________

(a) Excludes $4 million of distributions from equity investments for the six months ended June 30, 2015.

26

Annual Goodwill Impairment Test

As permitted under accounting guidance on testing goodwill for impairment, we perform either a qualitative assessment or a quantitative assessment of each of our reporting units based on management’s judgment. With respect to our qualitative assessments, we consider events and circumstances specific to us, such as macroeconomic conditions, industry and market considerations, cost factors and overall financial performance, when evaluating whether it is more likely than not that the fair values of our reporting units are less than their respective carrying amounts.

In connection with our quantitative assessments, we primarily use a discounted cash flow analysis to determine fair values of those reporting units. Key assumptions in the determination of fair value include the use of an appropriate discount rate and estimated future cash flows. In estimating cash flows, we incorporate expected long-term growth rates in key markets served by our operations, regulatory stability, the ability to renew contracts, commodity prices (where appropriate) and foreign currency exchange rates, as well as other factors that affect our reporting units’ revenue, expense and capital expenditure projections.

We performed either a quantitative assessment or a qualitative assessment for each of our reporting units to determine whether it is more likely than not that the respective fair values of these reporting units are less than their carrying amounts, including goodwill as of April 1, 2016 (our annual testing date). Based on the results of our annual goodwill impairment testing, no indicators of impairment were noted and the fair values of the reporting units that we assessed at April 1, 2016 were substantially in excess of their respective carrying values.

No triggering events have occurred with our reporting units since the April 1, 2016 test that would warrant re-testing for goodwill impairment.

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2016, we had negative working capital of $848 million. This balance includes commercial paper liabilities totaling $693 million and current maturities of long-term debt of $22 million. We will rely upon cash flows from operations, including cash distributions received from our equity affiliates, and various financing transactions, which may include debt and/or equity issuances, to fund our liquidity and capital requirements for the next 12 months. We have access to a revolving credit facility, with available capacity of $1,807 million at June 30, 2016. This facility is used principally as a back-stop for our commercial paper program, which is used to manage working capital requirements and for temporary funding of capital expenditures. We expect to be self-funding and plan to continue to pursue expansion opportunities over the next several years. Capital resources may continue to include commercial paper, short-term borrowings under our current credit facility and possibly securing additional sources of capital including debt and/or equity. See Note 9 of Notes to Condensed Consolidated Financial Statements for a discussion of the available credit facility and Financing Cash Flows and Liquidity for a discussion of effective shelf registrations.

Cash Flow Analysis

The following table summarizes the changes in cash flows for each of the periods presented:

	Six Months Ended June 30,
	2016			2015
	(in millions)
Net cash provided by (used in):
Operating activities	$	753		$	731
Investing activities	(1,275		)	(603		)
Financing activities	525			(101		)
Net increase in cash and cash equivalents	3			27
Cash and cash equivalents at beginning of the period	168			140
Cash and cash equivalents at end of the period	$	171		$	167

Operating Cash Flows

Net cash provided by operating activities increased $22 million to $753 million in the six months ended June 30, 2016 compared to the same period in 2015, driven mainly by changes in working capital.

27

Investing Cash Flows

Net cash used in investing activities increased $672 million to $1,275 million in the six months ended June 30, 2016 compared to the same period in 2015. The change was mainly driven by:

• a $497 million increase in capital and investment expenditures, and

• a $148 million distribution of debt proceeds back to Gulfstream for payment of its matured debt.

Capital and Investment Expenditures by Business Segment

	Six Months Ended June 30,
	2016		2015
	(in millions)
U.S. Transmission	$	1,098	$	599
Liquids	37		39
Total consolidated	$	1,135	$	638

Capital and investment expenditures for the six months endedJune 30, 2016 consisted of $1,027 million for expansion projects and $108 million for maintenance and other projects.

We project 2016 capital and investment expenditures of approximately $2.7 billion, consisting of $2.4 billion of expansion capital expenditures and $0.3 billion for maintenance and upgrades of existing plants, pipelines and infrastructure to serve growth. These projections exclude contributions from noncontrolling interests.

Financing Cash Flows and Liquidity

Net cash provided by financing activities totaled $525 million in the six months ended June 30, 2016 compared to $101 million used in financing activities in the same period in 2015. The change was mainly driven by:

• $217 million of net issuances of commercial paper in 2016, compared to $869 million of net redemptions in 2015,

• a $632 million increase in proceeds from issuances of units, and

• a $188 million increase in contributions from noncontrolling interests, partially offset by

• $994 million of net issuances of long-term debt in 2015, and

• a $251 million increase in payments for the redemption of long-term debt.

During the six months ended June 30, 2016, we issued 7.0 million common units to the public under our at-the-market program and approximately 143,000 general partner units to Spectra Energy. Total net proceeds were $327 million, including approximately $6 million of proceeds from Spectra Energy. The net proceeds were used for general partnership purposes, which may have included debt repayment, capital expenditures and/or additions to working capital. In 2016, we have issued 7.8 million common units to the public under our at-the-market program and approximately 160,000 general partner units to Spectra Energy, for total net proceeds of approximately $365 million, including $7 million of proceeds from Spectra Energy.

In April 2016, we issued 10.4 million common units and 0.2 million general partner units to Spectra Energy in a private placement transaction. Total net proceeds were approximately $489 million. We intend to use the net proceeds from this purchase for general partnership purposes, including the funding of our current expansion capital plan.

Available Credit Facility and Restrictive Debt Covenants. See Note 9 of Notes to Condensed Consolidated Financial Statements for a discussion of the available credit facility and related financial and other covenants.

Cash Distributions. A cash distribution of $0.66375 per limited partner unit was declared on August 3, 2016, payable on August 26, 2016, representing the thirty-fifth consecutive quarterly increase.

Other Financing Matters. We have an effective shelf registration statement on file with the Securities and Exchange Commission (SEC) to register the issuance of unspecified amounts of limited partner common units and various debt securities and another registration statement on file with the SEC to register the issuance of $1 billion, in the aggregate, of limited partner units over time. This registration has $620 million available as of June 30, 2016.

28

OTHER ISSUES

New Accounting Pronouncements. See Note 14 of Notes to Condensed Consolidated Financial Statements for discussion.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

Our exposure to market risk is described in Item 7A of our Annual Report on Form 10-K, for the year ended December 31, 2015. We believe our exposure to market risk has not changed materially since then.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports we file or submit under the Securities Exchange Act of 1934 (Exchange Act) is recorded, processed, summarized, and reported, within the time periods specified by the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to provide reasonable assurance that information required to be disclosed by us in the reports we file or submit under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of the management of Spectra Energy Partners (DE) GP, LP (our General Partner), including the Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, 2016, and, based upon this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that these controls and procedures are effective at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

Under the supervision and with the participation of the management of our General Partner, including the Chief Executive Officer and Chief Financial Officer, we have evaluated changes in internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the fiscal quarter ended June 30, 2016 and found no change that has materially affected, or is reasonably likely to materially affect, internal control over financial reporting.

29

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

We have no material pending legal proceedings that are required to be disclosed hereunder. For information regarding other legal proceedings and environmental matters, see Note 12 of Notes to Condensed Consolidated Financial Statements, which information is incorporated by reference into this Part II.

Item 1A. Risk Factors.

In addition to the other information set forth in this report, careful consideration should be given to the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015, which could materially affect our financial condition or future results. There have been no material changes to those risk factors.

Item 6. Exhibits.

Any agreements included as exhibits to this Form 10-Q may contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and:

• were not intended to be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;

• may have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement;

• may apply contract standards of “materiality” that are different from “materiality” under the applicable securities laws; and

• were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement.

We acknowledge that, notwithstanding the inclusion of the foregoing cautionary statements, we are responsible for considering whether additional specific disclosures of material information regarding material contractual provisions are required to make the statements in this Form 10-Q not misleading.

30

(a) Exhibits
Exhibit Number
*31.1	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
*31.2	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
*32.1	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
*32.2	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
*101.INS	XBRL Instance Document.
*101.SCH	XBRL Taxonomy Extension Schema.
*101.CAL	XBRL Taxonomy Extension Calculation Linkbase.
*101.DEF	XBRL Taxonomy Extension Definition Linkbase.
*101.LAB	XBRL Taxonomy Extension Label Linkbase.
*101.PRE	XBRL Taxonomy Extension Presentation Linkbase.

* Filed herewith

The total amount of securities of the registrant or its subsidiaries authorized under any instrument with respect to long-term debt not filed as an exhibit does not exceed 10% of the total assets of the registrant and its subsidiaries on a consolidated basis. The registrant agrees, upon request of the Securities and Exchange Commission, to furnish copies of any or all of such instruments to it.

31

SIGNATURES

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 thereunto duly authorized.

	SPECTRA ENERGY PARTNERS, LP
	By:	Spectra Energy Partners (DE) GP, LP, its general partner
	By:	Spectra Energy Partners GP, LLC, its general partner
Date: August 3, 2016		/S/    GREGORY L. EBEL
		Gregory L. Ebel President and Chief Executive Officer
Date: August 3, 2016		/S/    J. PATRICK REDDY
		J. Patrick Reddy Chief Financial Officer

32

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Gregory L. Ebel, certify that:

1) I have reviewed this quarterly report on Form 10-Q of Spectra Energy Partners, LP;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 3, 2016	/s/ Gregory L. Ebel
	Gregory L. Ebel President and Chief Executive Officer Spectra Energy Partners GP, LLC General Partner of Spectra Energy Partners (DE) GP, LP General Partner of Spectra Energy Partners, LP

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, J. Patrick Reddy, certify that:

1) I have reviewed this quarterly report on Form 10-Q of Spectra Energy Partners, LP;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 3, 2016	/s/ J. Patrick Reddy
	J. Patrick Reddy Chief Financial Officer Spectra Energy Partners GP, LLC General Partner of Spectra Energy Partners (DE) GP, LP General Partner of Spectra Energy Partners, LP

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Spectra Energy Partners, LP on Form 10-Q for the period ending June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gregory L. Ebel, President and Chief Executive Officer of Spectra Energy Partners GP, LLC, general partner of Spectra Energy Partners (DE) GP, LP, general partner of Spectra Energy Partners, LP, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Spectra Energy Partners, LP.

Date: August 3, 2016	/s/ Gregory L. Ebel
	Gregory L. Ebel President and Chief Executive Officer Spectra Energy Partners GP, LLC General Partner of Spectra Energy Partners (DE) GP, LP General Partner of Spectra Energy Partners, LP

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Spectra Energy Partners, LP on Form 10-Q for the period ending June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, J. Patrick Reddy, Chief Financial Officer of Spectra Energy Partners GP, LLC, general partner of Spectra Energy Partners (DE) GP, LP, general partner of Spectra Energy Partners, LP, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Spectra Energy Partners, LP.

Date: August 3, 2016	/s/ J. Patrick Reddy
	J. Patrick Reddy Chief Financial Officer Spectra Energy Partners GP, LLC General Partner of Spectra Energy Partners (DE) GP, LP General Partner of Spectra Energy Partners, LP

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2016 shares
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Trading Symbol	SEP
Entity Registrant Name	SPECTRA ENERGY PARTNERS, LP
Entity Central Index Key	0001394074
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	302,578,594
Entity General Partner, Units Outstanding	6,175,073

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Operating Revenues
Transportation of natural gas	$ 475	$ 454	$ 959	$ 918
Transportation of crude oil	87	90	173	174
Storage of natural gas and other	56	59	110	117
Total operating revenues	618	603	1,242	1,209
Operating Expenses
Operating, maintenance and other	190	178	369	359
Depreciation and amortization	77	73	154	146
Property and other taxes	46	30	90	71
Total operating expenses	313	281	613	576
Operating Income	305	322	629	633
Other Income and Expenses
Earnings from equity investments	30	45	57	85
Other income and expenses, net	31	17	51	26
Total other income and expenses	61	62	108	111
Interest Expense	56	63	112	120
Earnings Before Income Taxes	310	321	625	624
Income Tax Expense	5	5	9	7
Net Income	305	316	616	617
Net Income—Noncontrolling Interests	18	9	31	17
Net Income—Controlling Interests	287	307	585	600
Calculation of Limited Partners’ Interest in Net Income:
Net Income—Controlling Interests	287	307	585	600
Less: General partner’s interest in net income	76	61	145	118
Limited partners’ interest in net income	$ 211	$ 246	$ 440	$ 482
Weighted-average limited partner units outstanding—basic and diluted	298	296	292	296
Net income per limited partner unit—basic and diluted	$ 0.71	$ 0.83	$ 1.51	$ 1.63
Distributions paid per limited partner unit	$ 0.65125	$ 0.60125	$ 1.29	$ 1.19

XML

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net Income	$ 305	$ 316	$ 616	$ 617
Other comprehensive income (loss):
Foreign currency translation adjustments	1	2	12	(13)
Total other comprehensive income (loss)	1	2	12	(13)
Total Comprehensive Income	306	318	628	604
Less: Comprehensive Income—Noncontrolling Interests	18	9	31	17
Comprehensive Income—Controlling Interests	$ 288	$ 309	$ 597	$ 587

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Current Assets
Cash and cash equivalents	$ 171	$ 168
Receivables, net	286	272
Inventory	38	37
Fuel tracker	33	41
Other	25	26
Total current assets	553	544
Investments and Other Assets
Investments in and loans to unconsolidated affiliates	978	904
Goodwill	3,236	3,232
Other	98	44
Total investments and other assets	4,312	4,180
Property, Plant and Equipment
Cost	18,597	17,491
Less accumulated depreciation and amortization	3,753	3,654
Net property, plant and equipment	14,844	13,837
Regulatory Assets and Deferred Debits	324	290
Total Assets	20,033	18,851
Current Liabilities
Accounts payable	413	322
Commercial paper	693	476
Taxes accrued	74	60
Interest accrued	72	72
Current maturities of long-term debt	22	283
Other	127	258
Total current liabilities	1,401	1,471
Long-term Debt	5,861	5,845
Deferred Credits and Other Liabilities
Deferred income taxes	42	38
Regulatory and other	156	151
Total deferred credits and other liabilities	198	189
Commitments and Contingencies
Partners’ Capital
Common units (302.6 million and 285.1 million units issued and outstanding at June 30, 2016 and December 31, 2015, respectively)	11,390	10,527
General partner units (6.2 million and 5.8 million units issued and outstanding at June 30, 2016 and December 31, 2015, respectively)	390	336
Accumulated other comprehensive loss	(38)	(50)
Total partners’ capital	11,742	10,813
Noncontrolling interests	831	533
Total equity	12,573	11,346
Total Liabilities and Equity	$ 20,033	$ 18,851

XML

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - shares shares in Millions	Jun. 30, 2016	Dec. 31, 2015
Common units, units issued	302.6	285.1
Common units, units outstanding	302.6	285.1
General partner units, units issued	6.2	5.8
General partner units, units outstanding	6.2	5.8

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 616	$ 617
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	158	150
Deferred income tax expense	4	2
Earnings from equity investments	(57)	(85)
Distributions from equity investments	52	93
Other	(20)	(46)
Net cash provided by operating activities	753	731
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(1,023)	(604)
Investments in and loans to unconsolidated affiliates	(112)	(34)
Purchase of intangible, net	(40)	0
Distributions from equity investments	45	35
Distribution to equity investment	(148)	0
Purchases of held-to-maturity securities	(22)	(22)
Proceeds from sales and maturities of held-to-maturity securities	22	22
Purchases of available-for-sale securities	(315)	0
Proceeds from sales and maturities of available-for-sale securities	316	0
Other changes in restricted funds	4	0
Other	(2)	0
Net cash used in investing activities	(1,275)	(603)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	0	994
Payments for the redemption of long-term debt	(267)	(16)
Net increase (decrease) in commercial paper	217	(869)
Distributions to noncontrolling interests	(15)	(16)
Contributions from noncontrolling interests	278	90
Proceeds from the issuances of units	816	184
Distributions to partners	(504)	(459)
Other	0	(9)
Net cash provided by (used in) financing activities	525	(101)
Net increase in cash and cash equivalents	3	27
Cash and cash equivalents at beginning of period	168	140
Cash and cash equivalents at end of period	171	167
Supplemental Disclosures
Property, plant and equipment non-cash accruals	$ 225	$ 135

XML

Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions	Total	Limited Partners Common	General Partner	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests
Beginning balance at Dec. 31, 2014	$ 11,006	$ 10,474	$ 284	$ (20)	$ 268
Increase (Decrease) in Equity
Net income	617	482	118		17
Other comprehensive income (loss)	(13)			(13)
Attributed deferred tax benefit	16		14		2
Issuances of units	184	180	4
Distributions to partners	(459)	(351)	(108)
Contributions from noncontrolling interests	90				90
Distributions to noncontrolling interests	(16)				(16)
Ending balance at Jun. 30, 2015	11,425	10,785	312	(33)	361
Beginning balance at Dec. 31, 2015	11,346	10,527	336	(50)	533
Increase (Decrease) in Equity
Net income	616	440	145		31
Other comprehensive income (loss)	12			12
Attributed deferred tax benefit	24		20		4
Issuances of units	816	800	16
Distributions to partners	(504)	(377)	(127)
Contributions from noncontrolling interests	278				278
Distributions to noncontrolling interests	(15)				(15)
Ending balance at Jun. 30, 2016	$ 12,573	$ 11,390	$ 390	$ (38)	$ 831

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General

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

General

General

The terms “we,” “our,” “us” and “Spectra Energy Partners” as used in this report refer collectively to Spectra Energy Partners, LP and its subsidiaries unless the context suggests otherwise. These terms are used for convenience only and are not intended as a precise description of any separate legal entity within Spectra Energy Partners.

Nature of Operations. Spectra Energy Partners, through its subsidiaries and equity affiliates, is engaged in the transmission, storage and gathering of natural gas and the transportation and storage of crude oil through interstate pipeline systems. We are a Delaware master limited partnership. As of June 30, 2016, Spectra Energy Corp (Spectra Energy) and its subsidiaries collectively owned 77% of us and the remaining 23% was publicly owned.

Basis of Presentation. The accompanying Condensed Consolidated Financial Statements include our accounts and the accounts of our majority-owned subsidiaries, after eliminating intercompany transactions and balances. These interim financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K, for the year ended December 31, 2015, and reflect all normal recurring adjustments that are, in our opinion, necessary to fairly present our results of operations and financial position. Amounts reported in the Condensed Consolidated Statements of Operations are not necessarily indicative of amounts expected for the respective annual periods.

Spectra Energy and its affiliates are solely responsible for providing the employees and other personnel necessary to conduct our operations. Our costs of doing business have been reflected in our financial accounting records for the periods presented. These costs include direct charges and allocations from Spectra Energy and its affiliates for business services, such as payroll, accounts payable and facilities management; corporate services, such as finance and accounting, legal, human resources, investor relations, public and regulatory policy, and senior executives; and pension and other post-retirement benefit costs.

Use of Estimates. To conform with generally accepted accounting principles (GAAP) in the United States, we make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements. Although these estimates are based on our best available knowledge at the time, actual results could differ

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Business Segments

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Business Segments

Business Segments

We manage our business in two reportable segments: U.S. Transmission and Liquids. The remainder of our business operations is presented as “Other,” and consists of certain corporate costs.

Our chief operating decision maker regularly reviews financial information about both segments in deciding how to allocate resources and evaluate performance. There is no aggregation of segments within our reportable business segments.

The U.S. Transmission segment provides interstate transmission, storage and gathering of natural gas. Substantially all of our operations are subject to the Federal Energy Regulatory Commission (FERC) and the Department of Transportation’s (DOT’s) rules and regulations. Our investments in Gulfstream Natural Gas System, LLC (Gulfstream), Southeast Supply Header, LLC (SESH) and Steckman Ridge, LP are included in U.S. Transmission.

The Liquids segment provides transportation of crude oil. The Express-Platte pipeline system (Express-Platte) is a crude oil pipeline system that connects Canadian and U.S. producers to refineries in the U.S. Rocky Mountain and Midwest regions. These operations are primarily subject to the rules and regulations of the FERC and the National Energy Board (NEB). We held direct one-third ownership interests in DCP Sand Hills Pipeline, LLC (Sand Hills) and DCP Southern Hills Pipeline, LLC (Southern Hills) until October 30, 2015.

Our reportable segments offer different products and services and are managed separately as business units. Management evaluates segment performance based on earnings before interest, taxes, and depreciation and amortization (EBITDA). Cash, cash equivalents and investments are managed centrally, so the gains and losses on foreign currency remeasurement, and interest and dividend income, are excluded from the segments’ EBITDA. Our segment EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate EBITDA in the same manner.

Business Segment Data

Condensed Consolidated Statements of Operations	Total Operating Revenues		Depreciation and Amortization		Segment EBITDA/Consolidated Earnings Before Income Taxes
	(in millions)
Three Months Ended June 30, 2016
U.S. Transmission	$	529	$	69	$	406
Liquids	89		8		58
Total reportable segments	618		77		464
Other	—		—		(22		)
Depreciation and amortization	—		—		77
Interest expense	—		—		56
Interest income and other	—		—		1
Total consolidated	$	618	$	77	$	310
Three Months Ended June 30, 2015
U.S. Transmission	$	509	$	65	$	396
Liquids	94		8		78
Total reportable segments	603		73		474
Other	—		—		(18		)
Depreciation and amortization	—		—		73
Interest expense	—		—		63
Interest income and other	—		—		1
Total consolidated	$	603	$	73	$	321
Six Months Ended June 30, 2016
U.S. Transmission	$	1,067	$	139	$	817
Liquids	175		15		114
Total reportable segments	1,242		154		931
Other	—		—		(42		)
Depreciation and amortization	—		—		154
Interest expense	—		—		112
Interest income and other	—		—		2
Total consolidated	$	1,242	$	154	$	625
Six Months Ended June 30, 2015
U.S. Transmission	$	1,031	$	130	$	785
Liquids	178		16		142
Total reportable segments	1,209		146		927
Other	—		—		(35		)
Depreciation and amortization	—		—		146
Interest expense	—		—		120
Interest income and other	—		—		(2		)
Total consolidated	$	1,209	$	146	$	624

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Net Income Per Limited Partner Unit and Cash Distributions

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Net Income Per Limited Partner Unit and Cash Distributions

Net Income Per Limited Partner Unit and Cash Distributions

The following table presents our net income per limited partner unit calculations:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
	(in millions, except per unit amounts)
Net income—controlling interests	$	287	$	307	$	585	$	600
Less:
General partner’s interest in net income—2%	6		6		12		12
General partner’s interest in net income attributable to incentive distribution rights	70		55		133		106
Limited partners’ interest in net income	$	211	$	246	$	440	$	482
Weighted average limited partner units outstanding—basic and diluted	298		296		292		296
Net income per limited partner unit—basic and diluted	$	0.71	$	0.83	$	1.51	$	1.63

Our partnership agreement requires that, within 60 days after the end of each quarter, we distribute all of our Available Cash, as defined, to unitholders of record on the applicable record date.

Available Cash. Available Cash, for any quarter, consists of all cash and cash equivalents on hand at the end of that quarter:

• less the amount of cash reserves established by the general partner to:

• provide for the proper conduct of business,

• comply with applicable law, any debt instrument or other agreement, or

• provide funds for minimum quarterly distributions to the unitholders and to the general partner for any one or more of the next four quarters,

• plus, if the general partner so determines, all or a portion of cash and cash equivalents on hand on the date of determination of Available Cash for the quarter.

Incentive Distribution Rights. The general partner holds incentive distribution rights beyond the first target distribution in accordance with the partnership agreement as follows:

	Total Quarterly Distribution	Marginal Percentage Interest in Distributions
	Target Per-Unit Amount	Common Unitholders		General Partner
Minimum Quarterly Distribution	$0.30	98	%	2	%
First Target Distribution	up to $0.345	98	%	2	%
Second Target Distribution	above $0.345 up to $0.375	85	%	15	%
Third Target Distribution	above $0.375 up to $0.45	75	%	25	%
Thereafter	above $0.45	50	%	50	%

To the extent these incentive distributions are made to the general partner, there will be more Available Cash proportionately allocated to our general partner than to holders of common units. A cash distribution of $0.66375 per limited partner unit was declared on August 3, 2016 and is payable on August 26, 2016 to unitholders of record at the close of business on August 15, 2016.

There is a reduction in the aggregate quarterly distributions, if any, to Spectra Energy, (as holder of incentive distribution rights), by $4 million per quarter for a period of 12 consecutive quarters ending on September 30, 2018 as a result of the sale of our interests in Sand Hills and Southern Hills to Spectra Energy.

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Transaction with Affiliate

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Transaction with Affiliate

Transaction with Affiliate

During the third quarter of 2015, Gulfstream issued unsecured debt of $800 million to fund the repayment of its current debt. Gulfstream distributed $396 million, our proportionate share of proceeds, to us of which we contributed $248 million back to Gulfstream in the fourth quarter of 2015 and the remaining $148 million, classified as Cash Flow from Investing Activities — Distribution to Equity Investment, in the second quarter of 2016.

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Variable Interest Entities

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entity Disclosure

Variable Interest Entities

Sabal Trail. On April 1, 2016, NextEra Energy, Inc. (NextEra) purchased a 9.5% interest in Sabal Trail Transmission, LLC (Sabal Trail) from us. Consideration for this transaction consisted of approximately $110 million cash, $102 million of which is classified as Cash Flows from Financing Activities — Contributions from Noncontrolling Interests. See Note 6 for additional information related to this transaction. As of June 30, 2016, we owned a 50% interest in Sabal Trail, a joint venture that is constructing a natural gas pipeline to transport natural gas to Florida. Sabal Trail is a variable interest entity (VIE) due to insufficient equity at risk to finance its activities. We determined that we are the primary beneficiary because we direct the activities of Sabal Trail that most significantly impact its economic performance and we consolidate Sabal Trail in our financial statements. The current estimate of the total remaining construction cost is approximately $1.8 billion.

The following summarizes assets and liabilities for Sabal Trail as of June 30, 2016 and December 31, 2015, respectively:

Condensed Consolidated Balance Sheets	June 30, 2016		December 31, 2015
	(in millions)
Assets
Current assets	$	114	$	118
Net property, plant and equipment	1,184		773
Regulatory assets and deferred debits	41		25
Total Assets	$	1,339	$	916
Liabilities and Equity
Current liabilities	$	90	$	84
Equity	1,249		832
Total Liabilities and Equity	$	1,339	$	916

Nexus. We own a 50% interest in Nexus Gas Transmission, LLC (Nexus), a joint venture that is constructing a natural gas pipeline from Ohio to Michigan and continuing on to Ontario, Canada. Nexus is a VIE due to insufficient equity at risk to finance its activities. We determined that we are not the primary beneficiary because the power to direct the activities of Nexus that most significantly impact its economic performance is shared. We account for Nexus under the equity method. Our maximum exposure to loss is $1.0 billion. We have an investment in Nexus of $205 million and $90 million as of June 30, 2016 and December 31, 2015, respectively, classified as Investments in and Loans to Unconsolidated Affiliates on our Condensed Consolidated Balance Sheets.

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Intangible Asset

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure

Intangible Asset

During the first quarter of 2016 we entered into a project coordination agreement (PCA) with NextEra, Duke Energy Corporation and Williams Partners L.P. In accordance with the agreement, payments will be made, based on our proportional ownership interest in the Sabal Trail project, as certain milestones of the project are met. During the first quarter of 2016, the first milestone was achieved and paid, consisting of $48 million. On April 1, 2016, NextEra purchased an additional 9.5% interest in Sabal Trail, reducing our ownership interest in Sabal Trail to 50%. Upon purchase of the additional ownership interest, NextEra reimbursed us $8 million for NextEra’s proportional share of the first milestone payment, which reduced our total milestone payments to $40 million as of June 30, 2016, both of which are classified as Cash Flows from Investing Activities — Purchase of Intangible, Net. This PCA is an intangible asset and is classified as Investments and Other Assets — Other on our Condensed Consolidated Balance Sheet. The intangible asset will be amortized over a period of 25 years beginning at the time of in-service of Sabal Trail, which is expected to occur during the first half of 2017.

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Goodwill

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill Disclosure

Goodwill

We perform our goodwill impairment test annually and evaluate goodwill when events or changes in circumstances indicate that its carrying value may not be recoverable. We completed our annual goodwill impairment test as of April 1, 2016 and no impairments were identified.

We perform our annual review for goodwill impairment at the reporting unit level, which is identified by assessing whether the components of our operating segments constitute businesses for which discrete financial information is available, whether segment management regularly reviews the operating results of those components and whether the economic and regulatory characteristics are similar. We determined that our reporting units are equivalent to our reportable segments.

As permitted under accounting guidance on testing goodwill for impairment, we perform either a qualitative assessment or a quantitative assessment of each of our reporting units based on management’s judgment. With respect to our qualitative assessments, we consider events and circumstances specific to us, such as macroeconomic conditions, industry and market considerations, cost factors and overall financial performance, when evaluating whether it is more likely than not that the fair values of our reporting units are less than their respective carrying amounts.

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Marketable Securities and Restricted Funds

6 Months Ended

Jun. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Marketable Securities and Restricted Funds

Marketable Securities and Restricted Funds

We routinely invest excess cash and various restricted balances in securities such as commercial paper, corporate debt securities, and money market funds in the United States, as well as equity securities in Canada. We do not purchase marketable securities for speculative purposes, therefore we do not have any securities classified as trading securities. While we do not routinely sell marketable securities prior to their scheduled maturity dates, some of our investments may be held and restricted for the purposes of funding future capital expenditures and NEB regulatory requirements, so these investments are classified as available-for-sale (AFS) marketable securities as they may occasionally be sold prior to their scheduled maturity dates due to the unexpected timing of cash needs. Initial investments in securities are classified as purchases of the respective type of securities (AFS marketable securities or held-to-maturity (HTM) marketable securities). Maturities of securities are classified within proceeds from sales and maturities of securities in the Condensed Consolidated Statements of Cash Flows. 

AFS Securities. We had $10 millionand$11 million of AFS securities classified as Investments and Other Assets — Other on the Condensed Consolidated Balance Sheets as of June 30, 2016 and December 31, 2015, respectively. As of June 30, 2016, these investments include $9 million of restricted funds related to certain construction projects and $1 million are restricted funds held and collected from customers for Canadian pipeline abandonment in accordance with the NEB's regulatory requirements. The balance as of December 31, 2015 is all related to certain construction projects.

At June 30, 2016, the weighted-average contractual maturity of outstanding AFS securities was less than one year.

There were no material gross unrecognized holding gains or losses associated with investments in AFS securities at June 30, 2016 or December 31, 2015.

HTM Securities. All of our HTM securities are restricted funds. We had $3 million of money market securities classified as Current Assets — Other on the Condensed Consolidated Balance Sheets as of June 30, 2016 and December 31, 2015. These securities are restricted pursuant to certain Express-Platte debt agreements.

At June 30, 2016, the weighted-average contractual maturity of outstanding HTM securities was less than one year.

There were no material gross unrecognized holding gains or losses associated with investments in HTM securities at June 30, 2016 or December 31, 2015.

Other Restricted Funds. In addition to the AFS and HTM securities that were restricted funds as described above, we had other restricted funds totaling $10 million and $14 million classified as Investments and Other Assets — Other on the Condensed Consolidated Balance Sheets at June 30, 2016 and December 31, 2015, respectively. These restricted funds are related to certain construction projects.

Changes in restricted balances are presented within Cash Flows from Investing Activities on our Condensed Consolidated Statements of Cash Flows.

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Debt and Credit Facility

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Debt and Credit Facility

Debt and Credit Facility

Available Credit Facility and Restricted Debt Covenants

	Expiration Date	Total Credit Facility Capacity		Commercial Paper Outstanding at June 30, 2016		Available Credit Facility Capacity
		(in millions)
Spectra Energy Partners, LP	2021	$	2,500	$	693	$	1,807

On April 29, 2016, we amended our credit agreement. The total capacity was increased to $2.5 billion and the expiration date was extended to April 2021.

The issuances of commercial paper, letters of credit and revolving borrowings reduce the amount available under the credit facility. As of June 30, 2016, there were no letters of credit issued or revolving borrowings outstanding under the credit facility.

Our credit agreements contain various covenants, including the maintenance of a consolidated leverage ratio, as defined in the agreements. Failure to meet those covenants beyond applicable grace periods could result in accelerated due dates and/or termination of the agreements. As of June 30, 2016, we were in compliance with those covenants. In addition, our credit agreements allow for acceleration of payments or termination of the agreements due to nonpayment, or in some cases, due to the acceleration of our other significant indebtedness or other significant indebtedness of some of our subsidiaries. Our debt and credit agreements do not contain provisions that trigger an acceleration of indebtedness based solely on the occurrence of a material adverse change in our financial condition or results of operations.

As noted above, the terms of our credit agreements require us to maintain a ratio of total Consolidated Indebtedness-to-Consolidated EBITDA, as defined in the agreement, of 5.0 to 1 or less. As of June 30, 2016, this ratio was 3.5 to 1.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The following presents, for each of the fair value hierarchy levels, assets that are measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015:

Description	Condensed Consolidated Balance Sheet Caption	June 30, 2016
		Total		Level 1		Level 2		Level 3
		(in millions)
Corporate debt securities	Cash and cash equivalents	$	115	$	—	$	115	$	—
Corporate debt securities	Investments and other assets — other	9		—		9		—
Canadian equity securities	Investments and other assets — other	1		1		—		—
Interest rate swaps	Investments and other assets — other	35		—		35		—
Total Assets		$	160	$	1	$	159	$	—

Description	Condensed Consolidated Balance Sheet Caption	December 31, 2015
		Total		Level 1		Level 2		Level 3
		(in millions)
Corporate debt securities	Cash and cash equivalents	$	112	$	—	$	112	$	—
Corporate debt securities	Investments and other assets — other	11		—		11		—
Interest rate swaps	Investments and other assets — other	14		—		14		—
Total Assets		$	137	$	—	$	137	$	—

Level 1

Level 1 valuations represent quoted unadjusted prices for identical instruments in active markets.

Level 2 Valuation Techniques

Fair values of our financial instruments that are actively traded in the secondary market, including our long-term debt, are determined based on market-based prices. These valuations may include inputs such as quoted market prices of the exact or similar instruments, broker or dealer quotations, or alternative pricing sources that may include models or matrix pricing tools, with reasonable levels of price transparency.

For interest rate swaps, we utilize data obtained from a third-party source for the determination of fair value. Both the future cash flows for the fixed-leg and floating-leg of our swaps are discounted to present value.

Level 3 Valuation Techniques

Level 3 valuation techniques include the use of pricing models, discounted cash flow methodologies or similar techniques where at least one significant model assumption or input is unobservable. Level 3 financial instruments also include those for which the determination of fair value requires significant management judgment or estimation.

Financial Instruments

The fair values of financial instruments that are recorded and carried at book value are summarized in the following table. Judgment is required in interpreting market data to develop the estimates of fair value. These estimates are not necessarily indicative of the amounts we could have realized in current markets.

	June 30, 2016				December 31, 2015
	Book Value		Approximate Fair Value		Book Value		Approximate Fair Value
	(in millions)
Note receivable, noncurrent (a)	$	71	$	71	$	71	$	71
Long-term debt, including current maturities (b)	5,885		6,309		6,152		5,906

________ 

(a) Included within Investments in and Loans to Unconsolidated Affiliates.

(b) Excludes commercial paper, unamortized items and fair value hedge carrying value adjustments.

The fair value of our long-term debt is determined based on market-based prices as described in the Level 2 valuation technique described above and is classified as Level 2.

The fair values of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, note receivable-noncurrent, accounts payable, commercial paper and short-term money market securities - affiliates are not materially different from their carrying amounts because of the short-term nature of these instruments or because the stated rates approximate market rates.

During the six months ended June 30,2016 and 2015, there were no material adjustments to assets and liabilities measured at fair value on a nonrecurring basis.

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Risk Management and Hedging Activities

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Risk Management and Hedging Activities

Risk Management and Hedging Activities

Changes in interest rates expose us to risk as a result of our issuance of variable and fixed-rate debt and commercial paper. We are exposed to foreign currency risk from the Canadian portion of Express-Platte. We employ established policies and procedures to manage our risks associated with these market fluctuations, which may include the use of derivatives, mostly around interest rate exposures. For interest rate derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk is recognized in the Condensed Consolidated Statements of Operations. There were no significant amounts of gains or losses recognized in net income during the six months ended June 30, 2016.

At June 30, 2016, we had “pay floating — receive fixed” interest rate swaps outstanding with a total notional amount of $900 million to hedge against changes in the fair value of our fixed-rate debt that arise as a result of changes in market interest rates. These swaps also allow us to transform a portion of the underlying interest payments related to our long-term fixed-rate debt securities into variable-rate interest payments in order to achieve our desired mix of fixed and variable-rate debt.

Information about our interest rate swaps that had netting or rights of offset arrangements are as follows:

	June 30, 2016						December 31, 2015
	Gross Amounts Presented in the Condensed Consolidated Balance Sheet		Amounts Not Offset in the Condensed Consolidated Balance Sheet		Net Amount		Gross Amounts Presented in the Condensed Consolidated Balance Sheet		Amounts Not Offset in the Condensed Consolidated Balance Sheet		Net Amount
Description	(in millions)
Assets	$	35	$	—	$	35	$	14	$	—	$	14

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Environmental

We are subject to various federal, state and local laws and regulations regarding air and water quality, hazardous and solid waste disposal and other environmental matters. These laws and regulations can change from time to time, imposing new obligations on us.

Like others in the energy industry, we and our affiliates are responsible for environmental remediation at various contaminated sites. These include some properties that are part of our ongoing operations, sites formerly owned or used by us, and sites owned by third parties. Remediation typically involves management of contaminated soils and may involve groundwater remediation. Managed in conjunction with relevant federal, state/provincial and local agencies, activities vary with site conditions and locations, remedial requirements, complexity and sharing of responsibility. If remediation activities involve statutory joint and several liability provisions, strict liability, or cost recovery or contribution actions, we or our affiliates could potentially be held responsible for contamination caused by other parties. In some instances, we may share liability associated with contamination with other potentially responsible parties, and may also benefit from contractual indemnities that cover some or all cleanup costs. All of these sites generally are managed in the normal course of business or affiliated operations.

Litigation

Litigation and Legal Proceedings. We are involved in legal, tax and regulatory proceedings in various forums arising in the ordinary course of business, including matters regarding contract and payment claims, some of which involve substantial monetary amounts. We have insurance coverage for certain of these losses should they be incurred. We believe that the final disposition of these proceedings will not have a material effect on our consolidated results of operations, financial position or cash flows.

Legal costs related to the defense of loss contingencies are expensed as incurred. We had no material reserves for legal matters recorded as of June 30, 2016 or December 31, 2015 related to litigation.

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Issuances of Common Units

6 Months Ended

Jun. 30, 2016

Issuances of Common Units [Abstract]

Issuances of Common Units

Issuances of Common Units

During the six months ended June 30, 2016, we issued 7.0 million common units to the public under our at-the-market program, and approximately 143,000 general partner units to Spectra Energy. Total net proceeds were $327 million, including approximately $6 million of proceeds from Spectra Energy.

In April 2016, we issued 10.4 million common units and 0.2 million general partner units to Spectra Energy in a private placement transaction. Total net proceeds were $489 million, including $10 million for general partner units in order to maintain Spectra Energy's 2% general partner interest. We intend to use the proceeds from this purchase for general partnership purposes, including the funding of our current expansion capital plan.

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New Accounting Pronouncements

6 Months Ended

Jun. 30, 2016

Accounting Changes and Error Corrections [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation,” which amends the consolidation guidance around reporting entities that invest in development stage entities. We adopted the consolidation guidance of this amendment on January 1, 2016 and applied it retrospectively with no material effect on our consolidated results of operations, financial position, or cash flows. This ASU did result in certain of our entities being classified as VIE. See Note 5 for discussion of our Variable Interest Entities.

In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which makes changes to both the variable interest model and the voting model. These changes required reevaluation of certain entities for consolidation and required us to revise our documentation regarding the consolidation or deconsolidation of such entities. We adopted this standard on January 1, 2016 with no material effect on our consolidated operations, financial position, or cash flows.

In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments,” to simplify accounting for adjustments made to provisional amounts recognized in a business combination and to eliminate the retrospective accounting for those adjustments. We adopted this standard on January 1, 2016 , and it has not had a material impact on our consolidated operations, financial position, or cash flows.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” to improve the financial reporting around leasing transactions. The new guidance requires companies to begin recording assets and liabilities arising from those leases classified as operating leases under previous guidance. Furthermore, the new guidance will require significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in previous guidance. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model in Topic 842, the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged from previous guidance. This ASU is effective for us January 1, 2019. We are currently evaluating this ASU and its potential impact on us.

In March 2016, the FASB issued ASU No. 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships,” which clarifies the hedge accounting impact when there is a change in one of the counterparties to the derivative contract (i.e. novation). This ASU is effective for us January 1, 2017. This ASU is not expected to have a material impact on our consolidated results of operations, financial position or cash flow.

In March 2016, the FASB issued ASU No. 2016-06, “Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments,” which simplifies the embedded derivative analysis for debt instruments containing contingent call or put options. This ASU is effective for us January 1, 2017. This ASU is not expected to have a material impact on our consolidated results of operations, financial position or cash flow.

In March 2016, the FASB issued ASU No. 2016-07, “Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting,” which eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. This ASU is effective for us January 1, 2017. We are currently evaluating this ASU and its potential impact on us.

In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” to clarify implementation guidance on principal versus agent considerations. This ASU is effective for us on January 1, 2018. We are currently evaluating this ASU and its potential impact on us.

In April 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,” to clarify implementation guidance on performance obligations and licensing. This ASU is effective for us on January 1, 2018. We are currently evaluating this ASU and its potential impact on us.

In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients,” to clarify implementation guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. This ASU is effective for us on January 1, 2018. We are currently evaluating this ASU and its potential impact on us.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” to replace the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires the consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU is effective for us on January 1, 2020. We are currently evaluating this ASU and its potential impact on us.

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Summary of Operations and Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Goodwill, Policy

We perform our goodwill impairment test annually and evaluate goodwill when events or changes in circumstances indicate that its carrying value may not be recoverable. We completed our annual goodwill impairment test as of April 1, 2016 and no impairments were identified.

We perform our annual review for goodwill impairment at the reporting unit level, which is identified by assessing whether the components of our operating segments constitute businesses for which discrete financial information is available, whether segment management regularly reviews the operating results of those components and whether the economic and regulatory characteristics are similar. We determined that our reporting units are equivalent to our reportable segments.

As permitted under accounting guidance on testing goodwill for impairment, we perform either a qualitative assessment or a quantitative assessment of each of our reporting units based on management’s judgment. With respect to our qualitative assessments, we consider events and circumstances specific to us, such as macroeconomic conditions, industry and market considerations, cost factors and overall financial performance, when evaluating whether it is more likely than not that the fair values of our reporting units are less than their respective carrying amounts

Derivatives, Offsetting Fair Value Amounts, Policy

For interest rate derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk is recognized in the Condensed Consolidated Statements of Operations.

Fair Value Measurement, Policy

Level 1

Level 1 valuations represent quoted unadjusted prices for identical instruments in active markets.

Level 2 Valuation Techniques

Fair values of our financial instruments that are actively traded in the secondary market, including our long-term debt, are determined based on market-based prices. These valuations may include inputs such as quoted market prices of the exact or similar instruments, broker or dealer quotations, or alternative pricing sources that may include models or matrix pricing tools, with reasonable levels of price transparency.

For interest rate swaps, we utilize data obtained from a third-party source for the determination of fair value. Both the future cash flows for the fixed-leg and floating-leg of our swaps are discounted to present value.

Level 3 Valuation Techniques

Level 3 valuation techniques include the use of pricing models, discounted cash flow methodologies or similar techniques where at least one significant model assumption or input is unobservable. Level 3 financial instruments also include those for which the determination of fair value requires significant management judgment or estimation.

Financial Instruments

The fair values of financial instruments that are recorded and carried at book value are summarized in the following table. Judgment is required in interpreting market data to develop the estimates of fair value. These estimates are not necessarily indicative of the amounts we could have realized in current markets.

Use of Estimates, Policy

Use of Estimates. To conform with generally accepted accounting principles (GAAP) in the United States, we make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements. Although these estimates are based on our best available knowledge at the time, actual results could differ.

Sabal Trail

Variable Interest Entity [Line Items]

Consolidation, Variable Interest Entity, Policy

Sabal Trail is a variable interest entity (VIE) due to insufficient equity at risk to finance its activities. We determined that we are the primary beneficiary because we direct the activities of Sabal Trail that most significantly impact its economic performance and we consolidate Sabal Trail in our financial statements.

Nexus

Variable Interest Entity [Line Items]

Consolidation, Variable Interest Entity, Policy

Nexus is a VIE due to insufficient equity at risk to finance its activities. We determined that we are not the primary beneficiary because the power to direct the activities of Nexus that most significantly impact its economic performance is shared. We account for Nexus under the equity method.

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Business Segments (Tables)

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Business Segment Data

Business Segment Data

Condensed Consolidated Statements of Operations	Total Operating Revenues		Depreciation and Amortization		Segment EBITDA/Consolidated Earnings Before Income Taxes
	(in millions)
Three Months Ended June 30, 2016
U.S. Transmission	$	529	$	69	$	406
Liquids	89		8		58
Total reportable segments	618		77		464
Other	—		—		(22		)
Depreciation and amortization	—		—		77
Interest expense	—		—		56
Interest income and other	—		—		1
Total consolidated	$	618	$	77	$	310
Three Months Ended June 30, 2015
U.S. Transmission	$	509	$	65	$	396
Liquids	94		8		78
Total reportable segments	603		73		474
Other	—		—		(18		)
Depreciation and amortization	—		—		73
Interest expense	—		—		63
Interest income and other	—		—		1
Total consolidated	$	603	$	73	$	321
Six Months Ended June 30, 2016
U.S. Transmission	$	1,067	$	139	$	817
Liquids	175		15		114
Total reportable segments	1,242		154		931
Other	—		—		(42		)
Depreciation and amortization	—		—		154
Interest expense	—		—		112
Interest income and other	—		—		2
Total consolidated	$	1,242	$	154	$	625
Six Months Ended June 30, 2015
U.S. Transmission	$	1,031	$	130	$	785
Liquids	178		16		142
Total reportable segments	1,209		146		927
Other	—		—		(35		)
Depreciation and amortization	—		—		146
Interest expense	—		—		120
Interest income and other	—		—		(2		)
Total consolidated	$	1,209	$	146	$	624

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Net Income Per Limited Partner Unit and Cash Distributions (Tables)

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Net Income Per Limited Partner Unit Calculations

The following table presents our net income per limited partner unit calculations:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
	(in millions, except per unit amounts)
Net income—controlling interests	$	287	$	307	$	585	$	600
Less:
General partner’s interest in net income—2%	6		6		12		12
General partner’s interest in net income attributable to incentive distribution rights	70		55		133		106
Limited partners’ interest in net income	$	211	$	246	$	440	$	482
Weighted average limited partner units outstanding—basic and diluted	298		296		292		296
Net income per limited partner unit—basic and diluted	$	0.71	$	0.83	$	1.51	$	1.63

Incentive Distribution Rights in Accordance with Partnership Agreement

Incentive Distribution Rights. The general partner holds incentive distribution rights beyond the first target distribution in accordance with the partnership agreement as follows:

	Total Quarterly Distribution	Marginal Percentage Interest in Distributions
	Target Per-Unit Amount	Common Unitholders		General Partner
Minimum Quarterly Distribution	$0.30	98	%	2	%
First Target Distribution	up to $0.345	98	%	2	%
Second Target Distribution	above $0.345 up to $0.375	85	%	15	%
Third Target Distribution	above $0.375 up to $0.45	75	%	25	%
Thereafter	above $0.45	50	%	50	%

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Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2016

Variable Interest Entity [Line Items]

Schedule of Variable Interest Entities

The following summarizes assets and liabilities for Sabal Trail as of June 30, 2016 and December 31, 2015, respectively:

Condensed Consolidated Balance Sheets	June 30, 2016		December 31, 2015
	(in millions)
Assets
Current assets	$	114	$	118
Net property, plant and equipment	1,184		773
Regulatory assets and deferred debits	41		25
Total Assets	$	1,339	$	916
Liabilities and Equity
Current liabilities	$	90	$	84
Equity	1,249		832
Total Liabilities and Equity	$	1,339	$	916

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Debt and Credit Facility (Tables)

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Debt and Credit Facility Summary

Available Credit Facility and Restricted Debt Covenants

	Expiration Date	Total Credit Facility Capacity		Commercial Paper Outstanding at June 30, 2016		Available Credit Facility Capacity
		(in millions)
Spectra Energy Partners, LP	2021	$	2,500	$	693	$	1,807

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following presents, for each of the fair value hierarchy levels, assets that are measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015:

Description	Condensed Consolidated Balance Sheet Caption	June 30, 2016
		Total		Level 1		Level 2		Level 3
		(in millions)
Corporate debt securities	Cash and cash equivalents	$	115	$	—	$	115	$	—
Corporate debt securities	Investments and other assets — other	9		—		9		—
Canadian equity securities	Investments and other assets — other	1		1		—		—
Interest rate swaps	Investments and other assets — other	35		—		35		—
Total Assets		$	160	$	1	$	159	$	—

Description	Condensed Consolidated Balance Sheet Caption	December 31, 2015
		Total		Level 1		Level 2		Level 3
		(in millions)
Corporate debt securities	Cash and cash equivalents	$	112	$	—	$	112	$	—
Corporate debt securities	Investments and other assets — other	11		—		11		—
Interest rate swaps	Investments and other assets — other	14		—		14		—
Total Assets		$	137	$	—	$	137	$	—

Fair Values of Financial Instruments That are Recorded and Carried at Book Value

The fair values of financial instruments that are recorded and carried at book value are summarized in the following table. Judgment is required in interpreting market data to develop the estimates of fair value. These estimates are not necessarily indicative of the amounts we could have realized in current markets.

	June 30, 2016				December 31, 2015
	Book Value		Approximate Fair Value		Book Value		Approximate Fair Value
	(in millions)
Note receivable, noncurrent (a)	$	71	$	71	$	71	$	71
Long-term debt, including current maturities (b)	5,885		6,309		6,152		5,906

________ 

(a) Included within Investments in and Loans to Unconsolidated Affiliates.

(b) Excludes commercial paper, unamortized items and fair value hedge carrying value adjustments.

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Risk Management and Hedging Activities Derivative Assets Offsetting (Tables)

6 Months Ended

Jun. 30, 2016

Offsetting Derivative Assets [Abstract]

Derivative Assets Offsetting Table

Information about our interest rate swaps that had netting or rights of offset arrangements are as follows:

	June 30, 2016						December 31, 2015
	Gross Amounts Presented in the Condensed Consolidated Balance Sheet		Amounts Not Offset in the Condensed Consolidated Balance Sheet		Net Amount		Gross Amounts Presented in the Condensed Consolidated Balance Sheet		Amounts Not Offset in the Condensed Consolidated Balance Sheet		Net Amount
Description	(in millions)
Assets	$	35	$	—	$	35	$	14	$	—	$	14

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General (Details)	Jun. 30, 2016
Spectra Energy Corp
Business Acquisition
Ownership percentage by parent	77.00%
Publicly Owned
Business Acquisition
Ownership percentage by public	23.00%

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Business Segments (Additional Information) (Details)	6 Months Ended
	Jun. 30, 2016 reportable_segments
Segment Reporting Information
Number of reportable segments	2

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Business Segment Data (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information
Total operating revenues	$ 618	$ 603	$ 1,242	$ 1,209
Depreciation and amortization	77	73	154	146
Interest expense	56	63	112	120
Interest income and other	1	1	2	(2)
Earnings from continuing operations before income taxes	310	321	625	624
US Transmission
Segment Reporting Information
Total operating revenues	529	509	1,067	1,031
Earnings before interest taxes depreciation and amortization	406	396	817	785
Depreciation and amortization	69	65	139	130
Liquids
Segment Reporting Information
Total operating revenues	89	94	175	178
Earnings before interest taxes depreciation and amortization	58	78	114	142
Depreciation and amortization	8	8	15	16
Other
Segment Reporting Information
Earnings before interest taxes depreciation and amortization	(22)	(18)	(42)	(35)
Total Operating Segments
Segment Reporting Information
Total operating revenues	618	603	1,242	1,209
Earnings before interest taxes depreciation and amortization	464	474	931	927
Depreciation and amortization	$ 77	$ 73	$ 154	$ 146

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Net Income Per Limited Partner Unit and Cash Distributions (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Related Party Transaction [Line Items]
Net income—controlling interests		$ 287	$ 307	$ 585	$ 600
Less: General partner’s interest in net income		76	61	145	118
Limited partners’ interest in net income		$ 211	$ 246	$ 440	$ 482
Weighted-average limited partner units outstanding—basic and diluted		298	296	292	296
Net income per limited partner unit—basic and diluted		$ 0.71	$ 0.83	$ 1.51	$ 1.63
Partnership Interest
Related Party Transaction [Line Items]
Less: General partner’s interest in net income		$ 6	$ 6	$ 12	$ 12
General partner's interest in net income, ownership interest percentage	2.00%	2.00%	2.00%	2.00%	2.00%
Incentive Distribution Rights
Related Party Transaction [Line Items]
Less: General partner’s interest in net income		$ 70	$ 55	$ 133	$ 106

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Net Income Per Limited Partner Unit and Cash Distributions - Incentive Distribution Rights in Accordance with Partnership Agreement (Details)	6 Months Ended
	Jun. 30, 2016 $ / shares
Minimum Quarterly Distribution
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Marginal Percentage Interest in Distributions Common Unitholders	98.00%
Marginal Percentage Interest in Distributions General Partner	2.00%
First Target Distribution
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Marginal Percentage Interest in Distributions Common Unitholders	98.00%
Marginal Percentage Interest in Distributions General Partner	2.00%
Second Target Distribution
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Marginal Percentage Interest in Distributions Common Unitholders	85.00%
Marginal Percentage Interest in Distributions General Partner	15.00%
Third Target Distribution
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Marginal Percentage Interest in Distributions Common Unitholders	75.00%
Marginal Percentage Interest in Distributions General Partner	25.00%
Thereafter
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Marginal Percentage Interest in Distributions Common Unitholders	50.00%
Marginal Percentage Interest in Distributions General Partner	50.00%
Minimum | Minimum Quarterly Distribution
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Total Quarterly Distribution Target Per-Unit Amount (in dollars per share)	$ 0.30
Minimum | Second Target Distribution
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Total Quarterly Distribution Target Per-Unit Amount (in dollars per share)	0.345
Minimum | Third Target Distribution
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Total Quarterly Distribution Target Per-Unit Amount (in dollars per share)	0.375
Minimum | Thereafter
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Total Quarterly Distribution Target Per-Unit Amount (in dollars per share)	0.45
Maximum | First Target Distribution
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Total Quarterly Distribution Target Per-Unit Amount (in dollars per share)	0.345
Maximum | Second Target Distribution
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Total Quarterly Distribution Target Per-Unit Amount (in dollars per share)	0.375
Maximum | Third Target Distribution
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Total Quarterly Distribution Target Per-Unit Amount (in dollars per share)	$ 0.45

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Net Income Per Limited Partner Unit and Cash Distributions (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
	Aug. 03, 2016	Jun. 30, 2016
Equity [Abstract]
Distribution Made To Member Or Limited Partner Distribution Period		60 days
Subsequent Event
Subsequent Event [Line Items]
Distributions to be paid to unit holders	$ 0.66375
Distribution to limited partner, declaration date	Aug. 03, 2016
Distribution made to limited partner, distribution date	Aug. 26, 2016
Distribution made to limited partner, date of record	Aug. 15, 2016
Incentive Distribution Rights | Subsequent Event
Subsequent Event [Line Items]
Contribution from Parent	$ 4

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Transaction with Affiliate (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Related Party Transaction [Line Items]
Distributions from equity investments				$ 45	$ 35
Distributions to equity investment				$ 148	$ 0
Gulfstream | Unconsolidated Affiliates
Related Party Transaction [Line Items]
Unsecured Debt			$ 800
Distributions from equity investments			$ 396
Distributions to equity investment	$ 148	$ 248

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Variable Interest Entities (Details) - USD ($) $ in Millions			3 Months Ended	6 Months Ended
	Jul. 01, 2016	Apr. 01, 2016	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Variable Interest Entity [Line Items]
Contributions from noncontrolling interests				$ 278	$ 90
Sabal Trail
Variable Interest Entity [Line Items]
Contributions from noncontrolling interests			$ 102
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage				50.00%
Variable Interest Entity, Consolidated, Carrying Amount, Assets			1,339	$ 1,339		$ 916
Variable Interest Entity Consolidated Carrying Amount Liabilities and Equity			1,339	1,339		916
Sabal Trail | Current Assets
Variable Interest Entity [Line Items]
Variable Interest Entity, Consolidated, Carrying Amount, Assets			114	114		118
Sabal Trail | Property, Plant and Equipment
Variable Interest Entity [Line Items]
Variable Interest Entity, Consolidated, Carrying Amount, Assets			1,184	1,184		773
Sabal Trail | Regulatory Assets and Deferred Debits
Variable Interest Entity [Line Items]
Variable Interest Entity, Consolidated, Carrying Amount, Assets			41	41		25
Sabal Trail | Current Liabilities
Variable Interest Entity [Line Items]
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities			90	90		84
Sabal Trail | Equity
Variable Interest Entity [Line Items]
Variable Interest Entity Consolidated Carrying Amount Equity			1,249	$ 1,249		832
Nexus
Variable Interest Entity [Line Items]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	$ 1,000
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage				50.00%
Investments			$ 205	$ 205		$ 90
Scenario, Forecast | Sabal Trail
Variable Interest Entity [Line Items]
Construction and Development Costs	$ 1,800
Sabal Trail
Variable Interest Entity [Line Items]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Sale of Interest by Parent		9.50%
Proceeds from Noncontrolling Interests		$ 110

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Intangible Asset (Details) - USD ($) $ in Millions		3 Months Ended	6 Months Ended
	Apr. 01, 2016	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Purchase of intangible, net			$ 40	$ 0
Sabal Trail
Finite-Lived Intangible Assets [Line Items]
Purchase of intangible, net		$ 48	$ 40
Intangible Assets, Reimbursement of Intangible	$ 8
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Sale of Interest by Parent	9.50%
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions	50.00%
Finite-Lived Intangible Asset, Useful Life			25 years

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Marketable Securities and Restricted Funds - Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Corporate Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax	$ 0	$ 0
Commercial Paper | Investments and Other Assets - Other
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities	10	$ 11
Canadian Pipeline Abandonment Requirement | Investments and Other Assets - Other
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities	1
Project Costs | Investments and Other Assets - Other
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities	$ 9
Available-for-sale Securities | Maximum
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, contractual maturity	1 year

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Marketable Securities and Restricted Funds - Schedule of Held-to-Maturity Securities (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Current Assets - Other | Money Market Funds
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities, Fair Value	$ 3	$ 3
Corporate Debt Securities
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain	$ 0	$ 0
Held-to-maturity Securities | Maximum
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, contractual maturity	1 year

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Marketable Securities and Restricted Funds Schedule of Gain (Loss) on Investments (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Project Costs | Investments and Other Assets - Other
Gain (Loss) on Investments [Line Items]
Restricted Cash and Cash Equivalents, Noncurrent	$ 10	$ 14

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Debt and Credit Facility (Additional Information) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2016 USD ($)	Apr. 29, 2016 USD ($)	Dec. 31, 2015 USD ($)
Line of Credit Facility [Line Items]
Commercial Paper Outstanding at June 30, 2016	$ 693		$ 476
Debt To EBITDA Ratio	3.5
Maximum
Line of Credit Facility [Line Items]
Debt To EBITDA Ratio	5.0
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration Date	2021
Total Credit Facility Capacity	$ 2,500	$ 2,500
Available Credit Facility Capacity	$ 1,807

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Fair Value Measurements - Fair Value Hierarchy Levels, Assets that are Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Financial Instruments [Line Items]
Assets, Fair Value Disclosure	$ 160	$ 137
Fair Value, Inputs, Level 2
Financial Instruments [Line Items]
Assets, Fair Value Disclosure	159	137
Fair Value, Inputs, Level 1
Financial Instruments [Line Items]
Assets, Fair Value Disclosure	1
Corporate Debt Securities | Cash and Cash Equivalents
Financial Instruments [Line Items]
Assets, Fair Value Disclosure	115	112
Corporate Debt Securities | Cash and Cash Equivalents | Fair Value, Inputs, Level 2
Financial Instruments [Line Items]
Assets, Fair Value Disclosure	115	112
Corporate Debt Securities | Investments and Other Assets - Other
Financial Instruments [Line Items]
Assets, Fair Value Disclosure	9	11
Corporate Debt Securities | Investments and Other Assets - Other | Fair Value, Inputs, Level 2
Financial Instruments [Line Items]
Assets, Fair Value Disclosure	9	11
Interest Rate Swap | Investments and Other Assets - Other
Financial Instruments [Line Items]
Assets, Fair Value Disclosure	35	14
Interest Rate Swap | Investments and Other Assets - Other | Fair Value, Inputs, Level 2
Financial Instruments [Line Items]
Assets, Fair Value Disclosure	35	$ 14
CANADA | Canadian Equity Securities | Investments and Other Assets - Other
Financial Instruments [Line Items]
Assets, Fair Value Disclosure	1
CANADA | Canadian Equity Securities | Investments and Other Assets - Other | Fair Value, Inputs, Level 1
Financial Instruments [Line Items]
Assets, Fair Value Disclosure	$ 1

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Fair Value Measurements - Fair Values of Financial Instruments Recorded and Carried at Book Value (Details) - USD ($) $ in Millions		Jun. 30, 2016	Dec. 31, 2015
Book Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Note receivable, noncurrent	[1]	$ 71	$ 71
Long-term debt, including current maturities	[2]	5,885	6,152
Approximate Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Note receivable, noncurrent	[1]	71	71
Long-term debt, including current maturities	[2]	$ 6,309	$ 5,906

[1] Included within Investments in and Loans to Unconsolidated Affiliates.

[2] Excludes commercial paper, unamortized items and fair value hedge carrying value adjustments.

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Risk Management and Hedging Activities (Details) - Interest Rate Swap - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax	$ 0
Derivative Asset, Fair Value, Gross Asset	35	$ 14
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	0	0
Derivative Asset	$ 35	$ 14

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Risk Management and Hedging Activities Risk Management and Hedging Activities - Additional Detail (Details) $ in Millions	Jun. 30, 2016 USD ($)
Interest Rate Swap
Derivative [Line Items]
Derivative, Notional Amount	$ 900

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Issuances of Common Units (Additional Information) (Detail) - USD ($) shares in Thousands, $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Issuances of Common Units [Line Items]
Proceeds from issuance of common units	$ 489			$ 816	$ 184
Limited Partners Common
Issuances of Common Units [Line Items]
Partners units issued (in shares)	10,400			7,000
General Partner
Issuances of Common Units [Line Items]
Partners units issued (in shares)	200			143
Proceeds from issuance of common units	$ 10			$ 6
Limited Partner and General Partner [Member]
Issuances of Common Units [Line Items]
Proceeds from issuance of common units				$ 327
Partnership Interest
Issuances of Common Units [Line Items]
General partner's interest in net income, ownership interest percentage	2.00%	2.00%	2.00%	2.00%	2.00%