Fort Chicago announces 2007 fourth quarter and annual results and updated 2008 guidance



    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES./

    Trading Symbol: FCE.UN
    Exchange: TSX

    CALGARY, March 6 /CNW/ - Fort Chicago Energy Partners L.P. today
announced its results for the three and twelve months ended December 31, 2007.
 Mr. Stephen H. White, President and Chief Executive Officer commented, "Fort
Chicago has again delivered excellent financial results due, primarily, to the
continued strength of the NGL markets in 2007."

    
    Highlights

    -   Record-breaking earnings and cash flows from Aux Sable
    -   Steady, reliable performance from Alliance and AEGS
    -   Accretive growth through acquisition of Countryside Power Income Fund
    -   Advancements on greenfield initiatives that are expected to deliver
        future growth

    Financial Highlights
    -------------------------------------------------------------------------
                                Three months ended                Year ended
                                       December 31               December 31
    -------------------------------------------------------------------------
    ($ Thousands,
     except per unit amounts)    2007         2006         2007         2006
    -------------------------------------------------------------------------
    Revenues                  173,257      137,787      589,223      563,108
    -------------------------------------------------------------------------
    Net income                 24,910       10,067       86,157       80,954
    -------------------------------------------------------------------------
      Per Unit ($)               0.19         0.08         0.66         0.62
    -------------------------------------------------------------------------
    Distributable cash         56,845       41,915      177,439      151,513
    -------------------------------------------------------------------------
      Per Unit ($)              0.432        0.320        1.350        1.160
    -------------------------------------------------------------------------
    Cash from operating
     activities                50,551       14,320      204,852      228,463
    -------------------------------------------------------------------------
    

    NGL market fundamentals continued to be very favourable for Aux Sable
during 2007. As a result, net income for the three and 12 months ended
December 31, 2007 was $24.9 million or $0.19 per Unit (2006 - $10.1 million or
$0.08 per Unit) and $86.2 million or $0.66 per Unit (2006 - $81.0 million or
$0.62 per Unit), respectively. These results reflect significantly higher
earnings from Aux Sable and a positive contribution from Fort Chicago's new
power assets acquired on August 10, 2007 from Countryside Power Income Fund,
and now held within Fort Chicago Power. These increases were tempered by lower
earnings from Alliance, resulting primarily from its depreciating investment
base, higher corporate costs, reflecting the recognition of foreign exchange
losses previously deferred and recorded as a cumulative translation adjustment
in partners' equity, increased administrative and interest costs associated
with the Countryside acquisition, increased future taxes, and a stronger
Canadian dollar.
    Fort Chicago's 2007 distributable cash reached record levels, as it has
each year since Fort Chicago began making distributions in 2001. Distributable
cash for the three and 12 months ended December 31, 2007 was $56.8 million or
$0.432 per Unit (2006 - $41.9 million or $0.320 per Unit) and $177.4 million
or $1.350 per Unit (2006 - $151.5 million or $1.160 per Unit), respectively.
Fort Chicago Power also made a positive contribution to distributable cash.
These increases were partially offset by the impact of a stronger Canadian
dollar and higher corporate costs. (See reconciliation of distributable cash
to cash flow from operating activities.)
    Cash generated from operating activities during the three months ended
December 31, 2007 was $50.6 million, compared to $14.3 million for the same
period last year. This increase is due primarily to Aux Sable's fourth quarter
2006 settlement of amounts due to BP under the NGL sales agreement that built
up during a transition period in the first three quarters of 2006. For the
year ended December 31, 2007, cash generated from operating activities was
$204.9 million compared to $228.5 million for the prior year. The decrease is
due primarily to changes in Alliance's operating working capital, Aux Sable's
2006 sale of inventory to BP, and increased corporate outflows primarily
resulting from the financing costs associated with the Countryside
acquisition.

    Operating Highlights

    During 2007, the Alliance pipeline continued to operate in a reliable
manner, fully meeting its contracted 1.325 billion cubic feet per day of
firm-service shipping capacity. Actual transportation deliveries increased
from an average of 1.592 bcf/d in 2006 to 1.598 bcf/d in 2007, a new record
for Alliance. AEGS also had a strong year from an operational perspective,
with its 2007 toll volumes of 308.6 mbbls/d approximating volumes of 310.3
mbbls/d in the prior year. Aux Sable facilities operated reliably and
benefited from exceptionally strong market conditions as 2007 crude oil prices
drove NGL fractionation margins to unprecedented levels. Average daily volumes
of 67.7 thousand barrels per day in 2007 approximated 2006 volumes of
68.8 mbbls/d. For the period August 10, 2007 to December 31, 2007, Fort
Chicago Power generated 157,746 megawatt hours of electricity, an approximate
23 percent decrease relative to volumes generated during the same period last
year under Countryside's ownership, reflecting Fort Chicago Power's decision
to accelerate the performance of major maintenance at the U.S. cogeneration
facilities in November 2007, a contractual off-peak period. NRGreen's
Kerrobert waste heat electrical generation facility completed its first full
year of operations in 2007, generating 35,183 MWh of electricity. Operating
and financial results were consistent with management's expectations for the
first nine months of the year. Thereafter, the Kerrobert facility experienced
two outages, one in October and another in January, in each case the result of
a mechanical failure. The necessary repairs and corrective measures have been
made and the facility has resumed operation.
    With a solid balance sheet, supported by investment grade credit ratings,
Fort Chicago is well positioned to capture new opportunities that meet its
investment criteria. This financial strength is based on a prudent capital
structure that includes fixed-rate, non-recourse long-term debt, with terms to
maturity and amortization periods designed to approximate the applicable
depreciation associated with its underlying assets. These attributes, together
with the long-term cash flow generating capability of its assets, are key
components of Fort Chicago's strategy to access cost-effective capital.

    Key Accomplishments and Growth Initiatives

    In August 2007, Fort Chicago acquired all of the outstanding units of
Countryside, the assets of which are now owned by Fort Chicago Power. Through
this acquisition, Fort Chicago acquired two gas-fired cogeneration facilities
in California, district energy systems in London, Ontario and Charlottetown,
Prince Edward Island, and a gas-fired cogeneration facility in London,
Ontario, currently under construction. Each facility is located in a
high-demand energy consuming market and is underpinned with long-term energy
sales agreements that are consistent with Fort Chicago's investment criteria.
    This acquisition was immediately accretive to earnings and cash flows and
complements an existing stable of greenfield capital projects that are in
various stages of completion. Fort Chicago's decision to pursue greenfield
development opportunities occurred several years ago, at a time when
acquisition valuations were considered expensive, and reflects Fort Chicago's
commitment to protect the strength of its existing asset base by not
overpaying for assets.
    Projects such as the NRGreen waste heat cogeneration facilities, situated
in Saskatchewan at compressor sites along the Alliance pipeline, demonstrate
Fort Chicago's ability to create long-term value from its existing asset base.
In addition to the Kerrobert facility, three additional waste heat facilities
are under construction and are expected to be placed into service on a
staggered basis in 2008. Construction is proceeding on schedule and on budget.
Upon being placed into commercial service, each facility will earn revenues
pursuant to 20-year contracts with the Saskatchewan Power Corporation.
    East Windsor Cogeneration also made significant progress in 2007. Its
84 megawatt cogeneration facility is currently under construction and is
scheduled to be placed into commercial service in the fall of 2009, whereupon
it will sell electrical capacity and energy into the Ontario power market, the
terms of which are backed by a 20-year power contract with the Ontario Power
Authority. East Windsor Cogeneration completed a $179 million private
placement of debentures in November 2007, the proceeds of which will be used
to fund construction costs.
    In addition to these power projects, Aux Sable continues to make progress
on its Heartland Off-gas project. Product sales agreements were executed in
2007, and construction is underway and on budget, with the commencement of
commercial operations scheduled for the second quarter of 2009, coincident
with the start-up of BA Energy's Heartland Upgrader.
    Beyond these capital projects, Fort Chicago is continuing to advance a
number of growth initiatives that, if completed, will create significant
value.
    In 2007, Jordan Cove, Pacific Connector and Alton each focused their
respective efforts on engineering and design, fulfilling environmental and
regulatory filing requirements, and pursuing commitments from prospective
customers regarding the utilization of their respective facilities. Jordan
Cove and Pacific Connector anticipate receiving all remaining significant
federal regulatory approvals and certifications by the end of 2008, which
would permit the commencement of commercial operations as early as 2012. Alton
expects to seek approval from its owners for the construction of its facility
in the first quarter of 2008.
    Other future growth prospects include the ongoing evaluation of
opportunities to construct additional waste heat facilities at Alliance's
other compressor stations and the development of new off-gas NGL processing
facilities in Alberta.
    These initiatives are a key component of Fort Chicago's strategy to
create additional long-term value. As well, potential acquisitions continue to
be evaluated as recent capital market issues have resulted in increased sales
activity and a decline in asset values.

    Distributions and Tax Allocations

    Commencing in November 2007, the Board of Directors increased Fort
Chicago's annualized cash distribution from $0.93 per Unit to $1.00 per Unit,
an increase of 7.5 percent, reflecting the Board's belief in the ongoing
strength of Fort Chicago's businesses and its ability to sustain this
increased distribution. For 2007, a Unitholder holding a Fort Chicago Unit
throughout the year will be allocated taxable income of approximately $0.9322
per Unit, representing a taxable income allocation as a percentage of cash
distributions paid for 2007 of approximately 99 percent.

    Updated 2008 Guidance

    For 2008, Fort Chicago is currently forecasting distributable cash in the
range of $1.10 per Unit to $1.45 per Unit, reflecting a $0.15 per Unit upward
adjustment to the high end of the previous guidance issued. This range
reflects the continued strong performance of the NGL business. Fort Chicago's
payout ratio for 2008 is expected to be between 69 percent and 91 percent.
Further details concerning 2008 guidance can be found in the "Investor
Information" section of Fort Chicago's website - www.fortchicago.com.

    Webcast
    -------
    Fort Chicago Energy Partners L.P. will hold a conference call and webcast
at 9:00 a.m. Mountain time (11:00 a.m. Eastern time) on Friday, March 7, 2008,
to discuss the 2007 fourth quarter and annual results. The call can be
accessed at 1-800-733-7571 or 1-416-644-3414 and will be broadcast live on the
Internet. This can be accessed either through a link contained in the "Event"
section located on the home page of Fort Chicago's website or through the
following URL:
    http://w.on24.com/r.htm?e=101812&s=1&k=01C8C115E543E8721DEE4C7AEAE0E5CF
    A replay will be available shortly thereafter at 1-877-289-8525 and
1-416-640-1917. The access code is 21259064 (followed by the pound sign).

    Fort Chicago is a publicly traded limited partnership based in Calgary,
Alberta, that owns and operates energy infrastructure assets across North
America. Its Class A Units are listed on the TSX under the symbol FCE.UN and
have been assigned a stability rating by Dominion Bond Rating Service and
Standard & Poor's of STA-2 (low) and SR-2, respectively. Fort Chicago is
engaged in three principal businesses: a pipeline transportation business
comprised of interests in two pipeline systems, the Alliance Pipeline and the
Alberta Ethane Gathering System; an NGL extraction business which includes a
significant interest in a world-class extraction facility near Chicago; and a
power business with cogeneration facilities in Ontario and California,
district energy systems in Ontario and Prince Edward Island and waste heat
power facilities along the Alliance Pipeline. Fort Chicago and its businesses
are also actively developing a number of greenfield investment opportunities
that will be a key source of future growth, including LNG and pipeline
facilities on the U.S. west coast, Alberta-based ethane and NGL extraction
facilities, repowering and expansion opportunities at the California power
facilities and a Nova Scotia-based underground natural gas storage facility.

    
                     Class A Unit Ownership Restrictions
    

    Fort Chicago is organized in accordance with the terms and conditions of
a limited partnership agreement which provides that no Class A Units may be
transferred to, among other things, a person who is a "non-resident" of
Canada, a person in which an interest would be a "tax shelter investment" or a
partnership which is not a "Canadian partnership" for purposes of the Income
Tax Act (Canada).

    Certain information contained herein relating to, but not limited to,
Fort Chicago and its businesses constitutes forward-looking information under
applicable securities laws. All statements, other than statements of
historical fact, which address activities, events or developments that we
expect or anticipate may or will occur in the future, are forward-looking
information. Forward-looking information typically contains statements with
words such as "may", "estimate", "anticipate", "believe", "expect", "plan",
"intend", "target", "project", "forecast" or similar words suggesting future
outcomes or outlook. The following discussion is intended to identify certain
factors, although not necessarily all factors, which could cause future
outcomes to differ materially from those set forth in the forward-looking
information. The risks and uncertainties that may affect the operations,
performance, development and results of our businesses include, but are not
limited to, the following factors: the ability of Fort Chicago to successfully
implement its strategic initiatives and achieve expected benefits; the status,
credit risk and continued existence of contracted customers; the availability
and price of energy commodities; fluctuations in foreign exchange and interest
rates; the regulatory environment; competitive factors in the pipeline, NGL
and power industries; and the prevailing economic conditions in North America.
The reader is cautioned that these factors and risks are difficult to predict
and that the assumptions used in the preparation of such information, although
considered reasonably accurate by Fort Chicago at the time of preparation, may
prove to be incorrect or may not occur. Accordingly, readers are cautioned
that the actual results achieved will vary from the information provided
herein and the variations may be material. Readers are also cautioned that the
foregoing list of factors and risks is not exhaustive. Additional information
on these and other risks, uncertainties and factors that could affect Fort
Chicago's operations or financial results are included in our filings with the
securities commissions or similar authorities in each of the provinces of
Canada, as may be updated from time to time. There is no representation by
Fort Chicago that actual results achieved will be the same in whole or in part
as those set out in the forward-looking information. Furthermore, the
forward-looking statements contained herein are made as of the date hereof,
and Fort Chicago does not undertake any obligation to update publicly or to
revise any forward-looking information, whether as a result of new
information, future events or otherwise. Any forward-looking information
contained herein is expressly qualified by this cautionary statement.
    Certain financial information contained in this news release may not be
standard measures under Generally Accepted Accounting Principles ("GAAP") in
Canada and may not be comparable to similar measures presented by other
entities. These measures are considered to be important measures used by the
investment community and should be used to supplement other performance
measures prepared in accordance with GAAP in Canada. For further information
on non-GAAP financial measures used by Fort Chicago see Management's
Discussion and Analysis, in particular, the section entitled "Non-GAAP
Financial Measures" contained in the annual Management Discussion and
Analysis, filed by Fort Chicago with Canadian securities regulators.


    
    Fort Chicago Energy Partners L.P.
    -------------------------------------------------------------------------

    Consolidated Statement of Financial Position
    -------------------------------------------------------------------------
                                                    December 31, December 31,
    ($ Thousands)                                          2007         2006
    -------------------------------------------------------------------------

    Assets
    Current assets
      Cash and short-term investments                    47,191       44,718
      Transportation security deposits
       and revenue adjustments                            5,991        9,510
      Receivables                                        59,568       40,368
      Inventory                                           2,623          698
      Prepaid expenses                                    6,321        4,190
    -------------------------------------------------------------------------
                                                        121,694       99,484

    Long-term receivables                               218,701      217,523
    Pipeline, plant and other capital assets          2,326,057    2,371,041
    Intangible assets                                    98,876       13,319
    Goodwill                                             19,104            -
    Other assets                                         86,932       16,185
    -------------------------------------------------------------------------
                                                      2,871,364    2,717,552
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities
    Current liabilities
      Payables                                           69,943       64,667
      Transportation security deposits                    5,275        6,298
      Distribution payable                               10,968       10,049
      Current portion of long-term senior debt
       and capital leases                                65,292       64,398
      Subordinated convertible debentures and
       exchangeable debentures                           46,783            -
    -------------------------------------------------------------------------
                                                        198,261      145,412

    Long-term senior debt and capital leases          1,652,133    1,484,582
    Subordinated convertible debentures                  23,783       52,922
    Future taxes                                        198,985      172,268
    Other long-term liabilities                          42,749       43,872
    -------------------------------------------------------------------------
                                                      2,115,911    1,899,056
    -------------------------------------------------------------------------

    Partners' Equity
    Partners' capital account                           991,294      985,595
    Cumulative other comprehensive loss                (102,092)     (70,892)
    Cumulative net income                               484,644      398,487
    Cumulative distributions                           (618,393)    (494,694)
    -------------------------------------------------------------------------
                                                        755,453      818,496
    -------------------------------------------------------------------------
                                                      2,871,364    2,717,552
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Fort Chicago Energy Partners L.P.
    -------------------------------------------------------------------------

    Consolidated Statement of Income and Cumulative Income
    -------------------------------------------------------------------------
                                Three months ended                Year ended
                                       December 31               December 31
    -------------------------------------------------------------------------
    ($ Thousands,
     except per unit amounts)    2007         2006         2007         2006
    -------------------------------------------------------------------------
    Revenues
      Operating revenues      171,303      136,277      584,201      558,806
      Interest and other        1,954        1,510        5,022        4,302
    -------------------------------------------------------------------------
                              173,257      137,787      589,223      563,108
    -------------------------------------------------------------------------
    Expenses
      Operations and
       maintenance             52,826       34,303      157,632      158,096
      Depreciation and
       amortization            30,814       28,848      121,438      116,098
      Interest and
       other finance           27,661       27,518      109,346      110,948
      General, administrative
       and project
       development             18,134       17,723       66,262       61,535
      Foreign exchange
       and other               14,223       12,155       21,168       20,660
    -------------------------------------------------------------------------
                              143,658      120,547      475,846      467,337
    -------------------------------------------------------------------------
    Net income before taxes    29,599       17,240      113,377       95,771
      Current taxes               833          450        1,536        1,144
      Future taxes              3,856        6,723       25,684       13,673
    -------------------------------------------------------------------------
    Net income                 24,910       10,067       86,157       80,954
    Cumulative net income
     at the beginning of
     the period               459,734      388,420      398,487      317,533
    -------------------------------------------------------------------------
    Cumulative net income
     at the end of the
     period                   484,644      398,487      484,644      398,487
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net income per Unit
      Basic and diluted          0.19         0.08         0.66         0.62
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated Statements of Comprehensive Income and Cumulative Other
    Comprehensive Income
    -------------------------------------------------------------------------
                                Three months ended                Year ended
                                       December 31               December 31
    -------------------------------------------------------------------------
    ($ Thousands)                2007         2006         2007         2006
    -------------------------------------------------------------------------

    Net income                 24,910       10,067       86,157       80,954
    Other comprehensive income
     (loss), net of taxes
      Cumulative translation
       adjustment
        Unrealized foreign
         exchange gain (loss)
         on translation of
         self-sustaining
         foreign operations    (4,362)      16,539      (63,496)         808
        Deemed realization of
         cumulative translation
         adjustment
         reclassified to
         net income            14,893        9,872       26,099       19,871
        Gain on hedge of
         unrealized foreign
         currency translation
         loss                     656            -        5,464            -
      Other                       554            -          733            -
    -------------------------------------------------------------------------
                               11,741       26,411      (31,200)      20,679
    -------------------------------------------------------------------------
    Comprehensive income       36,651       36,478       54,957      101,633
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Cumulative other
     comprehensive loss at
     the beginning of the
     period                  (113,833)     (97,303)     (70,892)     (91,571)
    Other comprehensive
     income (loss), net
     of taxes                  11,741       26,411      (31,200)      20,679
    -------------------------------------------------------------------------
    Cumulative other
     comprehensive loss at
     the end of the period   (102,092)     (70,892)    (102,092)     (70,892)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Fort Chicago Energy Partners L.P.
    -------------------------------------------------------------------------

    Consolidated Statement of Cash Flows
    -------------------------------------------------------------------------
                                Three months ended                Year ended
                                       December 31               December 31
    -------------------------------------------------------------------------
    ($ Thousands)                2007         2006         2007         2006
    -------------------------------------------------------------------------

    Operating
      Net income               24,910       10,067       86,157       80,954
      Less: Non-cash
       transportation revenue  (8,373)      (9,569)     (24,517)     (30,970)
      Add: Depreciation,
       amortization and other
       non-cash items          30,460       31,876      121,648      120,545
        Unrealized foreign
         exchange loss         14,830       11,159       19,038       20,357
        Future taxes            3,856        6,723       25,684       13,673
      Changes in non-cash
       working capital        (15,132)     (35,936)     (23,158)      23,904
    -------------------------------------------------------------------------
                               50,551       14,320      204,852      228,463
    -------------------------------------------------------------------------
    Financing
      Long-term debt issued,
       net of issue costs      86,510            -      356,263       14,029
      Long-term debt repaid   (31,100)     (34,378)     (87,667)     (67,449)
      Distributions paid      (31,354)     (30,168)    (122,886)    (117,123)
      Other                         -            -            -          986
    -------------------------------------------------------------------------
                               24,056      (64,546)     145,710     (169,557)
    -------------------------------------------------------------------------
    Investing
      Acquisition of
       Countryside Power
       Income Fund, net of
       cash acquired             (410)           -     (167,737)           -
      Pipeline, plant and
       other capital assets   (38,384)     (19,269)     (99,597)     (42,121)
      Restricted cash         (75,236)           -      (75,236)           -
      Other                    (5,841)      (1,497)      (6,741)      (1,497)
      Changes in non-cash
       investing working
       capital                  6,747        6,388        6,303        7,497
    -------------------------------------------------------------------------
                             (113,124)     (14,378)    (343,008)     (36,121)
    -------------------------------------------------------------------------
    Increase (decrease) in
     cash and short-term
     investments before the
     effect of foreign
     exchange rate changes
     on cash and short-term
     investments              (38,517)     (64,604)       7,554       22,785
    Effect of foreign
     exchange rate changes
     on cash and short-term
     investments                 (159)       1,751       (5,081)         560
    Cash and short-term
     investments at the
     beginning of the period   85,867      107,571       44,718       21,373
    -------------------------------------------------------------------------
    Cash and short-term
     investments at the end
     of the period             47,191       44,718       47,191       44,718
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Fort Chicago Energy Partners L.P.
    -------------------------------------------------------------------------

    Distributable Cash(1)
    -------------------------------------------------------------------------
                                Three months ended                Year ended
                                       December 31               December 31
    -------------------------------------------------------------------------
    ($ Thousands,
     except where noted)         2007       2006(3)        2007       2006(3)
    -------------------------------------------------------------------------

    Cash inflows
      Alliance distributions,
       prior to withholdings
       for capital
       expenditures and net
       of debt service         27,057       27,314      112,636      110,388
      AEGS distributable cash,
       after non-recoverable
       capital expenditures
       and debt service         3,772        4,671       15,351       17,003
      Aux Sable distributions,
       net of support payments,
       non-recoverable debt
       service costs and
       maintenance capital     31,532       15,263       67,618       44,456
      Fort Chicago Power
       distributable cash,
       after maintenance
       capital expenditures
       and debt service(4)      1,804            -        5,394            -
      NRGreen distributions,
       prior to withholding
       for project development
       costs                       68            -        1,078            -
      Interest income
       and other                1,301          119        2,056          877
    -------------------------------------------------------------------------
                               65,534       47,367      204,133      172,724
    Cash outflows
      General and
       administrative          (3,253)      (1,613)      (8,735)      (6,170)
      Interest and other
       finance                 (3,882)      (2,527)     (13,232)     (10,505)
      Taxes                      (828)        (456)      (1,514)      (1,136)
      Principal repayments
       on senior debt            (726)        (856)      (3,213)      (3,400)
    -------------------------------------------------------------------------

    Distributable cash(1)      56,845       41,915      177,439      151,513
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Distributable cash
     per Unit ($)(2)            0.432        0.320        1.350        1.160
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Distributions
     paid/payable              32,132       30,458      123,699      121,404
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Distributions paid/
     payable per Unit ($)      0.2441       0.2325       0.9416       0.9300
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (1) Distributable cash is not a standard measure under generally accepted
        accounting principles in Canada and may not be comparable to similar
        measures presented by other entities. Distributable cash represents
        the cash available to Fort Chicago for distribution to holders of
        Units after providing for debt service obligations and any capital
        expenditures that are not growth-oriented or recoverable but does not
        include distribution reserves, if any, available in Fort Chicago's
        jointly held businesses, or project development costs, which
        represent discretionary costs, the recoverability of which has not
        been established, incurred to assess the commercial viability of new
        Greenfield business initiatives unrelated to the Partnership's
        operating businesses. Distributable cash is an important measure
        used by the investment community to assess the source and
        sustainability of Fort Chicago's cash distributions and should be
        used to supplement other performance measures prepared in accordance
        with generally accepted accounting principles in Canada. See the
        following table for the reconciliation of distributable cash to cash
        flow from operating activities.
    (2) The number of Units used to calculate distributable cash per Unit is
        based on the average number of Units outstanding at each record date.
        For the three months ended December 31, 2007, the average number of
        Units outstanding for this calculation was 131,635,013 (2006 -
        131,002,454) and 136,483,012 (2006 - 136,479,170) on a basic and
        diluted basis, respectively. For the 12 months ended December 31,
        2007, the average number of Units outstanding for this calculation
        was 131,367,847 (2006 - 130,542,971) and 136,483,012 (2006 -
        136,329,208) on a basic and diluted basis, respectively. The number
        of Units outstanding would increase by 4,814,926 (2006 - 5,452,717)
        Units if the outstanding Convertible Debentures as at December 31,
        2007 were converted into Units.
    (3) Certain comparative figures have been reclassified to conform to
        presentation adopted in 2007.
    (4) Fort Chicago Power distributable cash is for the period August 10 to
        December 31, 2007.


    Fort Chicago Energy Partners L.P.
    -------------------------------------------------------------------------

    Reconciliation of Distributable Cash to Cash Flow from Operating
    Activities
    -------------------------------------------------------------------------
                                Three months ended                Year ended
                                       December 31               December 31
    -------------------------------------------------------------------------
    ($ Thousands, except
     where noted; unaudited)     2007       2006(1)        2007       2006(1)
    -------------------------------------------------------------------------

    Consolidated cash flow
     from operating
     activities                50,551       14,320      204,852      228,463
    Deduct: Cash flow from
     operating activities
     applicable to jointly
     held businesses(2)         7,302       25,364      (50,802)     (86,721)
    -------------------------------------------------------------------------
    Cash flow from operating
     activities applicable
     to wholly-owned
     businesses(3)             57,853       39,684      154,050      141,742

    Add (Deduct):
      Corporate project
       development costs        3,130        4,813       11,972       14,811
      Change in non-cash
       working capital
       applicable to wholly-
       owned businesses        (2,798)         861        8,330          283
      Principal repayments
       on senior notes         (1,306)      (1,406)      (5,501)      (5,567)
      Distributions earned
       greater (less) than
       distributions
       received(4)                (34)      (2,037)       8,588          244
    -------------------------------------------------------------------------

    Distributable cash         56,845       41,915      177,439      151,513
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (1) Certain comparative figures have been reclassified to conform to
        presentation adopted in 2007.
    (2) Represents the cash flow from operating activities applicable to
        jointly held businesses which is not under the sole control of the
        Partnership and, as a consequence, is not included in distributable
        cash until such time as distributions are declared by the jointly
        held businesses.
    (3) Net of support payments made to Aux Sable of $1.3 million and
        $2.8 million for the three and twelve months ended December 31, 2007
        (2006 - $2.6 million and $4.1 million), respectively.
    (4) Represents the difference between distributions declared by jointly
        held businesses and distributions received.
    





For further information:

For further information: Stephen H. White, President and C.E.O.; Hume D.
Kyle, Vice President, Finance and C.F.O., Fort Chicago Energy Partners L.P.,
Livingston Place, Suite 440, 222 - 3rd Avenue S.W., Calgary, AB, T2P 0B4,
Phone: (403) 296-0140, Fax: (403) 213-3648, www.fortchicago.com

Organization Profile

Veresen Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890