1373835--2/29/2008--Spectra_Energy

related topics

{gas, price, oil}

{cost, contract, operation}

{cost, regulation, environmental}

{capital, credit, financial}

{financial, litigation, operation}

{operation, natural, condition}

{product, liability, claim}

{operation, international, foreign}

{loss, insurance, financial}

{investment, property, distribution}

Reductions in demand for natural gas and low market prices of commodities affect Spectra Energy s operations and cash flows. The lack of availability of natural gas resources may cause customers to contract with alternative service providers, which could materially adversely affect Spectra Energy s revenues, earnings and cash flows. Investments and projects located in Canada expose Spectra Energy to fluctuations in currency rates that may adversely affect results of operations and cash flows. Natural gas gathering and processing operations are subject to commodity price risk which could result in losses in earnings and reduced cash flows. Spectra Energy s business is subject to extensive regulation that affects operations and costs. Execution of Spectra Energy s capital projects subjects Spectra Energy to construction risks, increases in labor costs and materials, and other risks that may adversely affect financial results. Transmission and storage, distribution, and gathering and processing activities involve numerous risks that may result in accidents or otherwise affect operations. Spectra Energy is subject to numerous environmental laws and regulations, compliance with which requires significant capital expenditures, can increase cost of operations, and may affect or limit business plans, or expose Spectra Energy to environmental liabilities. Spectra Energy is involved in numerous legal proceedings, the outcome of which are uncertain, and resolution adverse to Spectra Energy could negatively affect results of operations, financial condition and cash flows. Spectra Energy relies on access to short-term money markets and longer-term capital markets to finance capital requirements and support liquidity needs, and access to those markets can be adversely affected, particularly if Spectra Energy or its rated subsidiaries are unable to maintain an investment-grade credit rating, which could adversely affect cash flows or restrict business. Spectra Energy may be unable to secure long-term transportation agreements, which could expose transportation volumes and revenues to increased volatility. Market based natural gas storage operations are subject to commodity price volatility which could result in variability in earnings and cash flows. Native land claims have been asserted in British Columbia and Alberta which could affect future access to public lands, the success of which claims could have a significant adverse affect on Spectra Energy s natural gas production and processing. Protecting against potential terrorist activities requires significant capital expenditures and a successful terrorist attack could adversely affect Spectra Energy s business. Due to changes in Canadian tax laws, Spectra Energy may not be able to fully realize its goal of utilizing tax-efficient structures to improve its cost of capital, optimize returns on assets and finance portfolio growth. Spectra Energy might not be able to engage in desirable strategic transactions and equity issuances as a result of its separation from Duke Energy. Poor investment performance of pension plan holdings and other factors affecting pension plan costs could unfavorably affect Spectra Energy s earnings and liquidity.

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1373835--2/29/2008--Spectra_Energy_Corp.