Market Realist recently ran an excellent, must-read investor’s guide to Spectra Energy. This report describes Spectra’s corporate structure and details Spectra Energy (SE) and affiliates’ plans to build out gathering, storage and transmission infrastructure across the USA and Canada. It provides a fact base for understanding the frothy exuberance about Spectra & friends among energy investment boosters.
To fully appreciate Market Realist’s report, however, you need to understand how Spectra Energy Corp attracts capital investment. The two main dimensions are Spectra’s revenue model, and a tax loophole, described below.