UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 1, 2011 (June 30, 2011)
SPECTRA ENERGY PARTNERS, LP
(Exact name of Registrant as specified in its charter)
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Delaware
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1-33556
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41-2232463
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(State or other jurisdiction
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(Commission
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(IRS Employer
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of incorporation)
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File Number)
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Identification Number)
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5400 Westheimer Court
Houston, Texas 77056
(Address of principal executive offices)
(713) 627-5400
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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TABLE OF CONTENTS
Item 2.01 Completion of Acquisition or Disposition of Assets.
As previously disclosed, on May 11, 2011, Spectra Energy Partners, LP ( SEP), entered into a
Purchase and Sale Agreement (the Purchase Agreement) with Equitrans, L.P. (Equitrans), EQT
Corporation (EQT) and Spectra Energy Capital, LLC (SE Capital), to acquire all of the ownership
interests of Big Sandy Pipeline, LLC (Big Sandy) from Equitrans (the Big Sandy Acquisition). On
July 1, 2011, SEP closed the Big Sandy Acquisition for total cash consideration of approximately
$390 million, less a $10 million holdback to secure certain post-closing obligations of Equitrans.
The cash consideration used in the Big Sandy Acquisition was funded through equity and debt
financing.
The primary asset acquired by SEP from Equitrans in the Big Sandy Acquisition is an
approximately 70-mile Federal Energy Regulatory Commission (FERC)-regulated natural gas pipeline
system in eastern Kentucky with capacity of 171,000 dekatherms per day. The natural gas pipeline
system connects Appalachian and Huron Shale natural gas supplies to markets in the Mid-Atlantic and
Northeast portions of the United States.
Under the Purchase Agreement, EQT has the option, until January 1, 2018, to cause Big Sandy to
increase capacity on the Big Sandy pipeline system and to make capacity available to EQT in three
tranches of between 50,000 dekatherms per day to 150,000 dekatherms per day (not to exceed an
aggregate of 150,000 dekatherms per day), on a firm basis for a term of 15 years, subject to
certain terms and conditions set forth in the Purchase Agreement.
On June 30, 2011, in connection with the closing of the Big Sandy Acquisition, SEP, Equitrans,
EQT and SE Capital entered into an amendment (the Amendment) to the Purchase Agreement in order
to extend certain indemnification obligations of Equitrans, among other things. The foregoing
description of the Amendment is qualified in its entirety by reference to the copy of the Amendment
filed as Exhibit 2.1 to this report and incorporated by reference into this Item.
Item 7.01 Regulation FD Disclosure.
On July 1, 2011, SEP issued a press release announcing the closing of the Big Sandy
Acquisition. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated
herein by reference.
The information furnished pursuant to this Item 7.01, including Exhibit 99.1, shall not be
deemed to be filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as
amended, and will not be incorporated by reference into any filing under the Securities Act of
1933, as amended, unless specifically identified therein as being incorporated therein by
reference.
Item 9.01. Financial Statements and Exhibits.
(d)
Exhibits.
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Exhibit
Number
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Description of the Exhibit
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Exhibit 2.1*
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First Amendment to Purchase and Sale Agreement, by and among
Equitrans, L.P. and, solely for the purpose of Sections 1.8,
1.9, 4.17 and 9.15, EQT Corporation, Spectra Energy Partners, LP
and, solely for the purpose of Section 9.16, Spectra Energy
Capital, LLC.
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Exhibit 99.1
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Press Release of Spectra Energy Partners, LP, dated July 1, 2011.
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*
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Pursuant to the rules of the Securities and Exchange Commission, the schedules and similar
attachments to the agreement have not been filed herewith. The registrant agrees to furnish
supplementally a copy of any omitted schedule to the Securities and Exchange Commission upon
request.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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SPECTRA ENERGY PARTNERS, LP
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By:
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Spectra Energy Partners (DE) GP, LP,
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its general partner
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By:
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Spectra Energy Partners GP, LLC,
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its general partner
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Date: July 1, 2011
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/s/ Laura Buss Sayavedra
Laura
Buss Sayavedra
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Vice President and Chief Financial Officer
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EXHIBIT INDEX
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Exhibit
Number
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Description of the Exhibit
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Exhibit 2.1*
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First Amendment to Purchase and Sale Agreement, by and among
Equitrans, L.P. and, solely for the purpose of Sections 1.8,
1.9, 4.17 and 9.15, EQT Corporation, Spectra Energy Partners, LP
and, solely for the purpose of Section 9.16, Spectra Energy
Capital, LLC.
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Exhibit 99.1
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Press Release of Spectra Energy Partners, LP, dated July 1, 2011.
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*
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Pursuant to the rules of the Securities and Exchange Commission, the schedules and similar
attachments to the agreement have not been filed herewith. The registrant agrees to furnish
supplementally a copy of any omitted schedule to the Securities and Exchange Commission upon
request.
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Exhibit 2.1
FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT
THIS FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT (this
Agreement
) is made and
entered into as of June 30, 2011, by and among Equitrans, L.P., a Pennsylvania limited partnership
(the
Seller
), Spectra Energy Partners, LP, a Delaware limited partnership (the
Buyer
), EQT Corporation, a Pennsylvania corporation (
EQT
), and Spectra Energy
Capital, LLC, a Delaware limited liability company (
SE Capital
). The Seller and the
Buyer are referred to herein as the parties and individually as a party.
RECITALS
WHEREAS, the parties, EQT and SE Capital have entered into that certain Purchase and Sale
Agreement dated as of May 11, 2011 (the
PSA
);
WHEREAS, the parties desire to amend the PSA as described in this Agreement and stipulate to
certain events under the PSA; and
WHEREAS, EQT and SE Capital, in their respective limited capacities described in the PSA, have
joined herein to evidence their consent to the amendments to the PSA and stipulations described in
this Agreement.
NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:
Section 1.1
Definitions
.
All capitalized terms used herein and not otherwise defined herein shall have the respective
meanings set forth (or otherwise provided for) in the PSA.
Section 1.2
Amendment to Article IV of the PSA
.
Article IV of the PSA is hereby amended to add the following new Section 4.18:
Section 4.18
AC Mitigation
.
From and after the Closing the Company will repair and test, or cause to be repaired
and tested, the AC mitigation system for the Pipeline in accordance with the written
proposal dated June 13, 2011 received by EQT, Inc. from ARK Engineering & Technical
Services, Inc. Seller covenants and agrees that Seller shall reimburse the Company for the
actual costs and expenses incurred for the AC mitigation work up to the amount of $45,000,
within fifteen (15) days following receipt by Seller of Companys written request together
with supporting documentation.
Section 1.3
Amendment to Section 8.1 of the PSA.
Section 8.1 of the PSA is hereby amended and restated in its entirety to read as follows:
Section 8.1
Indemnification of the Buyer.
Subject to the limitations set forth in this Agreement, the Seller, from and
after the Closing Date, shall indemnify, defend and hold the Buyer, its Affiliates
(including the Company) and their respective, directors, officers, and employees
(the
Buyer Indemnified Parties
) harmless from and against any and all
Damages suffered or incurred by any Buyer Indemnified Party as a result of or
arising out of (a) any breach or inaccuracy of a representation or warranty of the
Seller in this Agreement or the Seller Closing Certificate, (b) any breach of any
agreement or covenant on the part of the Seller made under this Agreement, (c) the
Seller Pre-Closing Liabilities, (d) any Indebtedness not taken into account in
connection with the adjustment of the Purchase Price under
Section 1.2
, (e)
all Mineral Owner Obligations, and (f) all Easement Title Claims. Notwithstanding
the foregoing, in no event shall the Sellers aggregate liability to the Buyer
Indemnified Parties under Section 8.1(f) exceed $1,500,000. For purposes of this
Section 8.1
, whether the Seller has breached any of its representations and
warranties herein, and the determination and calculation of any Damages resulting
from such breach, shall be determined without giving effect to any qualification as
to materiality (including the word material or Material Adverse Effect).
Section 1.4
Amendment to Subsection 10.1 of the PSA
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Section 10.1 is hereby amended to add the following definition:
Easement Title Claim
means any claim by a Third Party challenging the
Companys, or any of its successors or assigns, title or interest in any Easement
used in connection with the Transferred Business due to (i) the fact that such
Easement was initially taken in the name of Equitable Gathering Company, LLC or
Equitable Gathering Co., LLC, or (ii) the fact that the original executed and
acknowledged copy of such Easement was not filed in the real property records of the
county in which such Easement is located.
Section 1.5
Exhibits
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(a) Exhibit A (General Conveyance, Assignment and Bill of Sale) to the Contribution Agreement
attached to the PSA as
Exhibit A
has been superseded and replaced in its entirety by
Exhibit I
attached hereto.
Section 1.6
Disclosure Schedules
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(a) The Real Property portion of Disclosure Schedule 2.6(a) (originally pages 1 through 57)
to the PSA is amended and restated in its entirety to conform to Schedule 2.6(a) Real Property
attached hereto.
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(b) Disclosure Schedule 2.13 to the PSA is amended and restated in its entirety to conform to
Schedule 2.13 Contracts attached hereto.
Section 1.7
Intentionally Omitted
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Section 1.8
Closing Payment
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Pursuant to Section 1.2(b) of the PSA, Seller has prepared in consultation with, and delivered
to, Buyer its good faith estimate of the Initial Adjustment, together with its calculation of the
Closing Date Estimate, a copy of which is attached as
Exhibit J
hereto. Based on the
Closing Date Estimate, the Closing Payment is $389,474,639, of which (a)
$379,474,639 shall be paid to Seller at the Closing in accordance with Sections 1.4 and 1.6(b)
of the PSA, and (b) $10,000,000 shall be retained by Buyer as the Closing Payment Holdback in
accordance with Section 1.4(a) of the PSA. Notwithstanding anything contained in the PSA to the
contrary, Buyer and Seller have agreed to exclude all accounts receivable of the Company as of the
Closing Date from Current Assets, Working Capital, Working Capital Adjustment, Initial Adjustment,
the Closing Date Estimate, the Closing Payment, the Closing Date Balance Sheet, the Closing Date
Working Capital, the Closing Statement, and the Final Closing Statement, and that Seller shall be
entitled to receive and retain all proceeds from such accounts receivable.
Section 1.9
Miscellaneous
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(a) All Article and Section headings in this Agreement are for convenience only and shall not
be deemed to control or affect the meaning or construction of any of the provisions hereof. The
words hereof, herein and hereunder and words of similar import, when used in this Agreement
(excluding any quoted language being substituted for provisions of the PSA), shall refer to this
Agreement as a whole and not to any particular provision of this Agreement. All references herein
to Articles and Sections (excluding any quoted language being substituted for provisions of the
PSA) shall, unless the context requires a different construction, be deemed to be references to the
Articles and Sections of this Agreement, respectively. All Disclosure Schedules and Exhibits
attached hereto are hereby incorporated herein and in the PSA and made a part hereof and thereof
for all purposes, and unless the context expressly requires otherwise, such Disclosure Schedules
and such Exhibits are incorporated in the definition of Agreement and PSA (as amended hereby).
All personal pronouns used in this Agreement, whether used in the masculine, feminine or neuter
gender, shall include all other genders, and the singular shall include the plural and vice versa.
The use herein of the word including following any general statement, term or matter shall not be
construed to limit such statement, term or matter to the specific items or matters set forth
immediately following such word or to similar items or matters, whether or not non-limiting
language (such as without limitation, but not limited to, or words of similar import) is used
with reference thereto, but rather shall be deemed to refer to all other items or matters that
could reasonably fall within the broadest possible scope of such general statement, term or matter.
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(b) This Agreement shall be governed by and construed in accordance with the laws of the State
of New York, without regard to principles of conflicts of law.
(c) This Agreement may be executed in any number of counterparts, all of which together shall
constitute one agreement binding on the parties hereto. Execution of this Agreement by an
electronic form of signature that is an exact copy of the original signature shall be deemed to be,
and shall have the same effect as, execution by original signature, and an electronic form
counterpart of this Agreement signed by all parties hereto shall be sufficient to bind all such
parties.
(d) Except as modified herein, the parties hereby agree that the terms of the PSA (including
the Schedules and Exhibits thereto) remains in full force and effect, and all references therein to
the Agreement shall be deemed to mean the PSA as amended by this Agreement.
[Signature Pages Follow]
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IN WITNESS WHEREOF, this First Amendment to Purchase and Sale Agreement has been duly
executed and delivered by each party as of the date first above written.
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SELLER
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EQUITRANS, L.P.
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By:
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ET Blue Grass, LLC
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its general partner
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By:
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/s/ Randall
L. Crawford
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Name:
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Randall
L. Crawford
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Title:
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Executive Vice President
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EQT
(solely for the purpose of
Section 1.8, 1.9,
4.17 and 9.15
of the PSA)
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EQT CORPORATION
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By:
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/s/ Randall
L. Crawford
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Name:
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Randall
L. Crawford
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Title:
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Senior Vice President
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Signature Page to First Amendment to Purchase and Sale Agreement
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BUYER
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SPECTRA ENERGY PARTNERS, LP, a Delaware
limited partnership
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By:
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Spectra Energy Partners (DE) GP, LP,
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its general partner
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By: Spectra Energy Partners GP, LLC,
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its general partner
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By:
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/s/ Gregory
J. Rizzo
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Name:
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Gregory
J. Rizzo
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Title:
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President and Chief Executive Officer
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SE Capital
(solely for the purpose of
Section 9.16
of the PSA)
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SPECTRA ENERGY CAPITAL, LLC,
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a Delaware limited liability company
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By:
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/s/ Stephen
W. Baker
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Name:
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Stephen
W. Baker
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Title:
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Vice President and Treasurer
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Signature Page to First Amendment to Purchase and Sale Agreement