Download 2009 Annual Report PDF
Letter from the Chairman
Dear fellow investors:
In my new role as chairman of Spectra Energy, I want to thank you for your continued confidence in our company. We’re grateful that you have chosen to align your future with that of Spectra Energy, and we’re working diligently every day not only to remain your “company of choice,” but to also make you delighted with your decision to invest in Spectra Energy.
I’m not the only one in a new role: 2009 marked Greg Ebel’s first full year as president and CEO of Spectra Energy, and he continues to demonstrate the leadership needed to take our company to the highest levels of achievement and distinction. Greg ably took the helm at a time of great market turmoil and immediately drove Spectra Energy toward an even brighter future. Your board is extremely pleased with Greg’s leadership and the success of the company in 2009.
They say opportunities are born of adversity, and Spectra Energy’s senior management team took that to heart in 2009. They seized the opportunities that presented themselves last year – and they positioned the company not only to weather tough times, but to also succeed in the face of challenge.
Delivering profitable growth and shareholder value in the midst of severe economic downturn demands extraordinary effort at every level, and we want to commend each member of Spectra Energy’s employee team for their role in advancing the business in 2009. Spectra Energy employees share an allegiance to the company’s values and a passion for serving customers, investors and communities. You saw that clearly last year in our commitment to building new energy infrastructure, securing close to $3 billion in new customer contracts and contributing more than $7.5 million to charitable endeavors, including 28,000 hours of volunteer service.
Our board was actively engaged throughout the year as Greg and his executive team set forth a diversified, balanced strategy designed to benefit from current realities and capitalize on longer-term earnings growth potential. The company is expanding its market presence in the profitable growth regions of North America, bolstering its solid financial position and proactively promoting the tremendous benefits of natural gas.
I have been privileged to serve on the board of Spectra Energy and its predecessor companies for close to 25 years, and have seen these companies through both good times and rough patches. My confidence in your company has never been stronger. We have a bright future ahead and the employees, board and executive team are just that, a team – fully committed to serving and securing North America’s energy future.
I am fortunate to work with a board of individuals who not only bring to bear a deep understanding of energy, but who also have diverse and far-reaching experience that allows us to consider the broader environment in which Spectra Energy operates. Each of your directors is motivated by the basic tenet that your interests are our interests. We are fully committed to overseeing the company’s strategic direction and executive decision-making – and we are fully confident in the direction, principles and leadership of Spectra Energy.
There’s been much in the news of late about executive compensation, and we want to assure you that your board is engaged on this issue and has taken steps to ensure that Spectra Energy executives are compensated in a manner that is fair, equitable, performance-based and guided by the long-term interests of investors.
Another issue we heard a lot about during 2009 was dividend security. At a time when many companies were forced to cut their dividends, Spectra Energy worked hard to safeguard our dividend at its current $1 per share level, even when that level exceeded our stated payout ratio. We understand the importance of an attractive dividend to our shareholders, and the board looks forward to the time when a dividend increase is appropriate.
Again, I have great confidence in your company, and great pride in the men and women of Spectra Energy who are dedicated to delivering enduring value and performance. From operating a stellar portfolio of infrastructure assets, to connecting new supply basins with growth markets, to preparing the next generation of leaders, to meeting the energy demands of tomorrow, Spectra Energy is focused on both serving and helping shape the future. We’re privileged to share that future with you, our investors, and we thank you for your continued
interest and support.
William T. Esrey, chairman of the board
