Spectra Energy Corp announced its intention to drop down all of its remaining U.S. Transmission and Storage assets to Spectra Energy Partners by the end of the year, subject to market conditions.

"We fully expect this move to be a win for investors in both SE and SEP and it will give us a more robust MLP to advance our growth opportunities. By completing this drop-down, we expect to provide investors in Spectra Energy with higher dividend growth of approximately 12 cents a year versus our current commitment of 8 cents a year. Of equal importance, this transaction will provide Spectra Energy Partners' investors with higher distribution growth by increasing its quarterly distribution rate to a penny a quarter versus the current three quarters of a cent," said Greg Ebel, president and chief executive officer, Spectra Energy Corp.

Management expects to provide more details concerning this transaction in its second quarter earnings call scheduled for August 6.

Tags: Spectra Energy