This week I'm seeking a prestigious and long-term dividend-paying stock from the energy sector. 

That sector includes six industries all related to bringing oil and gas to market. They are: drilling, exploration and production (E&P), equipment and services, integrated, midstream, refining & marketing.(Those oily and gassy enterprises.)

Today I'm reviewing a large-cap oil and gas midstream firm named Spectra Energy Partners LP. Its trading ticker symbol is SEP. 

Spectra Energy Partners LP is a Houston-based master limited partnership. The company owns and operates natural gas transmission, gathering and storage assets, and transportation and storage assets.

As of December 31, 2007, it owned and operated 100% of the approximately 1,400-mile East Tennessee interstate natural gas transportation system that extends from central Tennessee eastward into southwest Virginia and northern North Carolina, and southward into northern Georgia; and a liquefied natural gas storage facility in Kingsport, Tennessee.

The company also owned a 24.5% interest in the approximate 700-mile Gulfstream interstate natural gas transportation system, which extends from Pascagoula, Mississippi, and Mobile, Alabama across the Gulf of Mexico and into Florida; a 50% interest in Market Hub, which owns and operates 2 salt cavern natural gas storage facilities,

The company transports and stores natural gas for local gas distribution companies, municipal utilities, interstate and intrastate pipelines, direct industrial users, electric power generators, marketers, and producers.

Spectra Energy Partners (DE) GP, LP, operates as the general partner to Spectra Energy Partners, LP. The company is based in Houston, Texas.

I use three key data points to gauge the value of any dividend equity or fund like Spectra Energy Partners LP (SEP): 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

SEP Price

Spectra's price per share was $37.37 at yesterday's market close. A year ago its price was $44.77 for a price loss of $7.40 per share.  

Assuming TLP's price will trade in the range of $30 to $50 next year, TransMontaigne's current $37.37 price could recover $8 to $45.37 by early-October, 2019. 

SEP Dividends

Spectra Energy Partners LP's most recent quarterly dividend was $0.7638 declared August 2nd and paidAugust 29th. That recent dividend was increased from $0.7512 in August.  

At this most recent $0.7638 quarterly rate, SEP's annual dividend equates to $3.06 yielding 8.2% at yesterday's closing $37.37 price.

Gains For SEP?

Adding the $3.06 estimated annual dividend to my estimated $8.00 annual price upside for SEP makes a $11.06potential gross annual per share gain, which gets reduced by the costs to trade the shares.  

A little over $1,000.00 invested today at the $37.37 recent price buys 27 Spectra Energy Partners LP (SEP) shares. 

A $10 broker fee paid half at purchase and half at sale costs $0.37 per share, subtracting that $0.37 brokerage cost from the estimated $11.18 gross annual gain leaves a net gain of $10.69 X 27 shares = $288.63 or a 29% net gain on a $1,008.99 investment.

Therefore, Spectra Energy Partners LP., whose trading ticker symbol is SEP, now shows a possible 29% net gain including an 8.2% dividend yield. 

Thirteen brokers cover this stock:

Three says SEP is a stock to "buy".

None say SEP will "outperform" its peers.

Nine say SEP is a stock to "hold".

One says "sell" SEP.

Thus, the consensus analyst recommendation number is 2.7 or "hold".

The median price target set by those thirteen brokers is$3.95 under the 45.37 price target I suggested for SEP. 

So, you could look at all these speculative numbers this way, Spectra Energy Partners LP., whose trading ticker symbol is SEP,has made money, is making money, and could net a 15% to 29% net annual gain including an 8.2% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. Actual results remain to be seen. Those results will determine if Spectra Energy Partners LP (SEP) is worth your time and money.