Spectra Energy plans to fund capex program with internal funds, debt

By Jennifer Lanning Drey

Savannah, Ga., May 3 - Spectra Energy Corp. expects to fund its capital expenditures program with a combination of internally generated funds and debt while staying within its targeted range for leverage, Pat Reddy, the company's chief financial officer, said Tuesday during its first-quarter earnings conference call.

The company targets maintaining its debt-to-total capitalization ratio in the 55% to 60% range, he said. The ratio stood at 55% as of March 31.

Spectra had total capacity under its credit facilities of $2.7 billion and available liquidity of $1.8 billion at quarter-end, Reddy reported.

For the first quarter, Spectra reported net income from controlling interests of $357 million, compared with $358 million in the first quarter of the prior year.

"We feel very good about where we are today and where we're headed in the balance of the year. Our solid financial position allows us to execute our 2011 financial and business plans and keeps us on track to deliver the results that our investors expect of us," Reddy said.

Spectra is a natural gas company based in Houston.

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