Issuances of SEP Units

9 Months Ended

Sep. 30, 2016

Effects of Change in Noncontrolling Interest Ownership

Issuances of SEP Units

During the nine months ended September 30, 2016, SEP issued 10.4 million common units to the public under its at-the-market program and approximately 212,000 general partner units to Spectra Energy. Total net proceeds to SEP were $483 million (net proceeds to Spectra Energy were $473 million).

In April 2016, SEP issued 10.4 million common units and 0.2 million general partner units to Spectra Energy in a private placement transaction. See Note 20 for further discussion.

In connection with the issuances of the units, a $40 million gain ($25 million net of tax) to Additional Paid-in Capital and a $432 million increase in Equity—Noncontrolling Interests were recorded during the nine months ended September 30, 2016. The issuances decreased Spectra Energy’s ownership in SEP from 78% to 76% at September 30, 2016.

The following table presents the effects of the issuances of SEP units:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
	(in millions)
Net income—controlling interests	$	195	$	174	$	578	$	459
Increase in additional paid-in capital resulting from issuances of SEP units	10		24		25		49
Total net income—controlling interests and changes in equity—controlling interests	$	205	$	198	$	603	$	508