Fort Chicago announces 2007 third quarter earnings, record distributable cash, updates guidance and increases distribution



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

    Trading Symbol: FCE.UN
    Exchange: TSX

    CALGARY, Nov. 7 /CNW/ - Fort Chicago Energy Partners L.P. ("Fort
Chicago") today announced its results for the three and nine months ended
September 30, 2007. Mr. Stephen H. White, President and Chief Executive
Officer commented, "This has been a very good quarter for Fort Chicago, with
record levels of distributable cash generated from our NGL business and higher
than anticipated distributable cash generated from the assets acquired through
the Countryside Power Income Fund transaction in August. Year-to-date results
have outperformed our expectations due primarily to the combination of record
crude oil prices and a strong crude to gas ratio, as well as the positive
impact of the Countryside acquisition which, on an annualized basis, is
expected to add up to 6 cents of accretion to distributable cash. As a result,
we are increasing our guidance for the year and our cash distribution."

    Financial and Operating Highlights

    Distributable cash for the three and nine months ended September 30, 2007
was $49.9 million or $0.380 per Unit and $120.6 million or $0.918 per Unit,
respectively, compared to $42.8 million or $0.327 per Unit and $109.6 million
or $0.841 per Unit for the same periods last year. These increases were driven
primarily by the continuation of exceptionally strong margins in the NGL
business during the third quarter, which resulted in the recognition of
$23.4 million and $36.2 million of margin-based lease revenue for the three
and nine months ended September 30, 2007, respectively. The increase in
distributable cash also reflects a 52-day contribution from Fort Chicago's new
power assets, which was higher than anticipated. (See reconciliation of
distributable cash to cash flow from operating activities.)
    Net income for the three months ended September 30, 2007 was
$24.5 million or $0.19 per Unit, up from $24.0 million or $0.18 per Unit for
the same period last year. Fort Chicago's NGL business generated record levels
of earnings on the strength of favourable market conditions. Earnings from
Alliance decreased quarter over quarter, resulting primarily from the lower
return on equity due to the depreciating investment base and the effect of the
stronger Canadian dollar. For the nine months ended September 30, 2007, net
income was $61.2 million or $0.47 per Unit compared to $70.9 million or $0.54
per Unit for the same period in 2006. This decrease reflects the same factors
that contributed to the quarter-over-quarter variance, as well as the impact
of $9.7 million in income tax rate reductions that were recognized in the
second quarter of 2006.
    Cash generated from operating activities during the three and nine months
ended September 30, 2007 was $62.1 million and $154.3 million, respectively,
compared to $100.2 million and $218.4 million for the same periods last year.
These decreases are primarily the result of Aux Sable accumulating amounts
payable during the first nine months of 2006 while transition into the NGL
Sales Agreement was under way. These payables were ultimately settled in the
fourth quarter of 2006.
    For the three and nine months ended September 30, 2007, Fort Chicago paid
distributions of $0.2325 per Unit and $0.6975 per Unit, respectively,
consistent with distributions paid for the same periods last year.
Year-to-date, Fort Chicago's payout ratio was 76 percent, resulting in the
Distribution Account increasing by $18.0 million to $48.9 million due,
primarily, to increased distributable cash being generated by Aux Sable.
    During the first nine months of 2007, each of Fort Chicago's businesses
performed in a reliable manner. For the nine months ended September 30, 2007,
Alliance exceeded its contracted 1.325 bcf/d of firm-service capacity, with
shippers utilizing very high levels of the Authorized Overrun Service ("AOS")
available on the system. Actual transportation deliveries, including utilized
AOS, averaged 1.606 bcf/d (21.2 percent in excess of firm capacity), up from
1.595 bcf/d in 2006. Year-to-date toll volumes of 309.4 mbbls/d on AEGS
approximated volumes for the comparable period in 2006. Aux Sable year-to-date
volumes of 67.0 mbbls/d also remained constant with the prior year.

    Key Strategic Initiatives

    On August 10, 2007, Fort Chicago completed the acquisition of Countryside
Power Income Fund, acquiring all of the outstanding Countryside trust units
and US $18.1 million of its related outstanding exchangeable debentures for
cash consideration of approximately $203.7 million and US $18.3 million,
respectively. The acquisition was initially financed with excess cash balances
on hand at the time of closing and Fort Chicago's existing committed revolving
credit facility. Given continued strong cash flow generation and the planned
2008 debt refinancing of Aux Sable, Fort Chicago does not anticipate a need to
issue additional equity to fund this acquisition. Fort Chicago intends to
refinance the Countryside acquisition with the issuance of long-term debt in
2008, representing 60 to 70 percent of the total purchase price, with the
balance to be financed utilizing excess cash flow. Through this acquisition,
Fort Chicago has broadened its asset base to include two gas-fired
cogeneration facilities in California, district energy systems in London,
Ontario and Charlottetown, Prince Edward Island, and a gas-fired cogeneration
facility currently under construction in London, Ontario. Each of the existing
facilities is underpinned with long-term contracts and has made an immediate
contribution to Fort Chicago's distributable cash.
    On November 2, 2007, East Windsor Cogeneration LP, an entity in which
Fort Chicago holds a 50 percent ownership interest, completed a $179 million
private placement of debentures due September 29, 2029, the proceeds of which
will be used to fund the costs associated with its 84-megawatt cogeneration
project in Windsor, Ontario. East Windsor Cogeneration also provided a full
notice to proceed to Aecon Industrial, a division of Aecon Construction Group
Inc., for the complete design, engineering, procurement and construction
services for the East Windsor Cogeneration project. Construction of the
cogeneration facility is expected to commence within the next 30 days, with
start up anticipated in the fall of 2009. The aggregate cost of the East
Windsor Cogeneration project, including financing costs incurred during
construction of $14.2 million, is estimated to be $207 million (100 percent).

    Updated Guidance and Increased Distribution

    Over the balance of the year, Fort Chicago expects NGL market
fundamentals to continue to support very strong earnings and cash flows from
Aux Sable. The pipeline business is expected to continue to generate stable
earnings and cash flows, which are underpinned by long-term contracts.
Earnings and cash flows from Fort Chicago's power business are also expected
to increase, as the third quarter only reflected a partial contribution given
that the assets were acquired from Countryside on August 10, 2007. Based on
Fort Chicago's year-to-date performance and current outlook, 2007
distributable cash earned is expected to be in the range of $1.25 per Unit to
$1.31 per Unit. The payout ratio for the year is expected to be between 72
percent and 75 percent. For 2008, Fort Chicago is forecasting distributable
cash in the range of $1.10 per Unit to $1.30 per Unit, with a corresponding
range in the payout ratio of 77 percent to 91 percent. Further details
concerning 2007 and 2008 guidance can be found in the Investor Information
section of Fort Chicago's website at www.fortchicago.com.
    "We are increasingly confident NGL market conditions will remain
favourable and, in conjunction with contributions from our new power assets,
will result in sustained higher levels of distributable cash for Fort
Chicago," said Mr. White. "Accordingly, the Board of Directors of the General
Partner has announced its intention to increase Fort Chicago's annualized cash
distribution from $0.93 per Unit to $1.00 per Unit, an increase of 7.5
percent, effective November 2007."
    The Partnership is also realigning its general distribution policy to be
consistent with its practice of establishing and maintaining a sustainable and
stable monthly distribution over time, having regard for the accumulated
Distribution Account balance, forecast distributable cash, and the
Partnership's growth capital requirements.

    Board and Management Changes

    The Board has appointed Verne G. Johnson as Chairman of the Board of the
General Partner to succeed Mr. Guy Turcotte effective December 31, 2007. Mr.
Johnson has served on the Board since Fort Chicago's inception in 1997, been a
member of the Audit and Compensation Committees, and served as Chair of the
Corporate Governance and Nominating Committee for a number of years. Mr.
Johnson has held senior executive positions with a number of oil and gas
companies during his career and presently serves on the boards of several
public entities. As announced earlier this year, Mr. Turcotte, a founder of
Fort Chicago, has tendered his resignation as a director and Chairman of the
Board effective December 31, 2007. Mr. Turcotte advised he has decided to
reduce the public board positions he holds. Mr. White commented, "We are sorry
to lose Guy Turcotte from our Board. He was the driving force behind the
creation of Fort Chicago and has been a very strong director and Chairman for
the past 10 years. Everyone at Fort Chicago wishes Guy the very best in the
future. The appointment of Mr. Johnson is welcomed and will provide an orderly
transition in this important role."
    Fort Chicago also announced today the hiring of Mr. John O'Rourke, who
will assist Fort Chicago with the running of its power business. Mr. O'Rourke
brings to us a great deal of experience in managing power operations and
developments, in particular in the Western U.S. Mr. O'Rourke's expertise will
be a great asset to Fort Chicago in managing and developing its existing
facilities, and in the pursuit of new opportunities in the U.S. and Canada.
Fort Chicago welcomes Mr. O'Rourke to its team.

    Conference Call
    ---------------
    Fort Chicago will hold a conference call at 9:00 a.m. Mountain time
(11:00 p.m. Eastern time) on Thursday, November 8, 2007, to discuss the third
quarter results of 2007. The call can be accessed at 1-800-733-7571 or 
1-416-644-3414. A replay will be available shortly thereafter at
1-877-289-8525 and 1-416-640-1917. The access code in each case is 21246673
(followed by the No. sign).

    About Fort Chicago

    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.

    Fort Chicago's consolidated financial statements and Management's
Discussion and Analysis for the three and nine months ended September 30, 2007
are available on Fort Chicago's website at www.fortchicago.com.

    
                     Class A Unit Ownership Restrictions
    

    Fort Chicago is organized in accordance with the terms and conditions of
a limited Fort Chicago 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
Fort Chicago which is not a "Canadian Fort Chicago" for purposes of the Income
Tax Act (Canada).

    Certain information contained herein relating 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.


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



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

    Consolidated Statement of Financial Position
    -------------------------------------------------------------------------

                                             September   December  September
    ($ Thousands; unaudited)                  30, 2007   31, 2006   30, 2006
    -------------------------------------------------------------------------

    Assets
    Current assets
      Cash and short-term investments           85,867     44,718    107,571
      Transportation security deposits
       and revenue adjustments                   4,089      9,510      6,956
      Receivables                               67,802     40,368     68,576
      Inventory                                  2,273        698      1,920
      Prepaid expenses and other                11,084      4,190      3,499
    -------------------------------------------------------------------------
                                               171,115     99,484    188,522

    Long-term receivables                      212,381    217,523    202,159
    Pipeline, plant and other capital
     assets                                  2,335,492  2,371,041  2,340,666
    Intangible assets                           98,673     13,319     13,597
    Goodwill                                    25,466          -          -
    Other assets                                 6,043     16,185     15,930
    -------------------------------------------------------------------------
                                             2,849,170  2,717,552  2,760,874
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities
    Current liabilities
      Payables                                  84,092     63,846    120,441
      Transportation security deposits           5,559      6,298      6,141
      Distribution payable                      10,121     10,049      9,911
      Deferred revenue                           9,353        821        623
      Current portion of long-term senior
       debt and capital leases                  63,837     64,398     61,932
      Subordinated convertible debentures
       and exchangeable debentures              49,257          -          -
    -------------------------------------------------------------------------
                                               222,219    145,412    199,048

    Long-term senior debt and capital
     leases                                  1,612,251  1,484,582  1,494,454
    Subordinated convertible debentures         23,746     52,922     54,697
    Future taxes                               200,976    172,268    160,512
    Other long-term liabilities                 40,884     43,872     41,540
    -------------------------------------------------------------------------
                                             2,100,076  1,899,056  1,950,251
    -------------------------------------------------------------------------

    Partners' Equity
    Partners' capital account                  989,452    985,595    983,741
    Cumulative other comprehensive loss       (113,833)   (70,892)   (97,303)
    Cumulative net income                      459,734    398,487    388,420
    Cumulative distributions                  (586,259)  (494,694)  (464,235)
    -------------------------------------------------------------------------
                                               749,094    818,496    810,623
    -------------------------------------------------------------------------
                                             2,849,170  2,717,552  2,760,874
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



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

    Consolidated Statement of
     Income and Cumulative Income
    -------------------------------------------------------------------------
                                    Three months ended     Nine months ended
                                          September 30          September 30
    -------------------------------------------------------------------------
     ($ Thousands, except per
      unit amounts; unaudited)         2007       2006       2007       2006
    -------------------------------------------------------------------------

    Revenues
      Operating revenues            153,131    136,243    412,898    422,529
      Interest and other                683        922      3,068      2,792
    -------------------------------------------------------------------------
                                    153,814    137,165    415,966    425,321
    -------------------------------------------------------------------------
    Expenses
      Operations and maintenance     38,866     25,881    104,806    123,793
      Depreciation and amortization  29,623     28,826     90,624     87,250
      Interest and other finance     27,549     27,195     81,685     83,430
      General, administrative and
       project development           15,362     15,155     48,128     43,812
      Foreign exchange and other      5,180      5,388      6,945      8,505
    -------------------------------------------------------------------------
                                    116,580    102,445    332,188    346,790
    -------------------------------------------------------------------------
    Net income before taxes          37,234     34,720     83,778     78,531
      Current taxes                     582        396        703        694
      Future taxes                   12,116     10,323     21,828      6,950
    -------------------------------------------------------------------------
    Net income                       24,536     24,001     61,247     70,887
    Cumulative net income at the
     beginning of the period        435,198    364,419    398,487    317,533
    -------------------------------------------------------------------------
    Cumulative net income at the
     end of the period              459,734    388,420    459,734    388,420
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net income per Unit
      Basic and diluted                0.19       0.18       0.47       0.54
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Consolidated Statements of
     Comprehensive Income and
     Cumulative Other Comprehensive
     Income
    -------------------------------------------------------------------------
                                    Three months ended     Nine months ended
                                          September 30          September 30
    -------------------------------------------------------------------------
     ($ Thousands; unaudited)          2007       2006       2007       2006
    -------------------------------------------------------------------------

    Net income                       24,536     24,001     61,247     70,887
    Other comprehensive loss,
     net of taxes
      Cumulative translation
       adjustment
        Unrealized foreign
         exchange loss on
         translation of
         self-sustaining
         foreign operations         (27,317)   (14,169)   (59,134)   (15,731)
        Deemed realization of
         cumulative translation
         adjustment reclassified
         to net income                6,882      5,390     11,206      9,999
      Other                           4,267          -      4,987          -
    -------------------------------------------------------------------------
                                    (16,168)    (8,779)   (42,941)    (5,732)
    -------------------------------------------------------------------------
    Comprehensive income              8,368     15,222     18,306     65,155
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Cumulative other comprehensive
     loss at the beginning of the
     period                         (97,665)   (88,524)   (70,892)   (91,571)
    Other comprehensive loss,
     net of taxes                   (16,168)    (8,779)   (42,941)    (5,732)
    -------------------------------------------------------------------------
    Cumulative other comprehensive
     loss at the end of the period (113,833)   (97,303)  (113,833)   (97,303)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



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

    Consolidated Statement of
     Cash Flows
    -------------------------------------------------------------------------
                                    Three months ended     Nine months ended
                                          September 30          September 30
    -------------------------------------------------------------------------
    ($ Thousands; unaudited)           2007       2006       2007       2006
    -------------------------------------------------------------------------

    Operating
      Net income                     24,536     24,001     61,247     70,887
      Less: Non-cash
             transportation revenue  (6,050)    (5,032)   (16,144)   (21,401)
      Add:  Depreciation,
             amortization and other
             non-cash items          31,131     29,578     91,188     88,669
            Unrealized foreign
             exchange loss            3,594      5,656      4,208      9,198
            Future taxes             12,116     10,323     21,828      6,950
      Changes in non-cash
       working capital               (3,205)    35,655     (8,026)    64,080
    -------------------------------------------------------------------------
                                     62,122    100,181    154,301    218,383
    -------------------------------------------------------------------------
    Financing
      Long-term debt issued,
       net of issue costs           226,612      3,989    269,753     22,500
      Long-term debt repaid         (23,362)    (6,430)   (56,567)   (41,542)
      Distributions paid            (30,539)   (29,214)   (91,532)   (86,955)
      Other                               -          -          -        986
    -------------------------------------------------------------------------
                                    172,711    (31,655)   121,654   (105,011)
    -------------------------------------------------------------------------
    Investing
      Acquisition of Countryside
       Power Income Fund, net of
       cash acquired               (167,327)         -   (167,327)         -
      Pipeline, plant and other
       capital assets               (29,555)   (11,201)   (61,213)   (22,852)
      Other                            (900)         -       (900)         -
      Changes in non-cash
       investing working captial      4,113     (5,101)      (444)    (3,131)
    -------------------------------------------------------------------------
                                   (193,669)   (16,302)  (229,884)   (25,983)
    -------------------------------------------------------------------------

    Increase in cash and
     short-term investments before
     the effect of foreign
     exchange rate changes on cash
     and short-term investments      41,164     52,224     46,071     87,389
    Effect of foreign exchange
     rate changes on cash and
     short-term investments          (1,819)       272     (4,922)    (1,191)
    Cash and short-term
     investments at the beginning
     of the period                   46,522     55,075     44,718     21,373
    -------------------------------------------------------------------------
    Cash and short-term
     investments at the end of
     the period                      85,867    107,571     85,867    107,571
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



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

    Distributable Cash(1)
    -------------------------------------------------------------------------
                                    Three months ended     Nine months ended
                                          September 30          September 30
    -------------------------------------------------------------------------
    ($ Thousands, except where
     noted; unaudited)                 2007     2006(3)      2007     2006(3)
    -------------------------------------------------------------------------

    Cash inflows
      Alliance distributions,
       prior to withholdings for
       capital expenditures and
       net of debt service           27,057     25,625     85,579     83,074
      AEGS distributable cash,
       after non-recoverable
       capital expenditures and
       debt service                   3,740      3,985     11,579     12,332
      Aux Sable distributions,
       net of support payments,
       non-recoverable debt
       service costs and
       maintenance capital           22,346     18,434     36,086     29,193
      Fort Chicago Power
       distributable cash, after
       maintenance capital
       expenditures and debt
       service                        2,087          -      2,087          -
      NRGreen distributions, prior
       to withholding for project
       development costs                350          -      1,010          -
      Interest income                   268        240        737        567
      Realized foreign exchange
       gains (losses)                     2        (13)        18        191
    -------------------------------------------------------------------------
                                     55,850     48,271    137,096    125,357
    Cash outflows
      General and administrative     (1,863)    (1,573)    (5,482)    (4,557)
      Interest and other finance     (2,727)    (2,682)    (7,906)    (7,978)
      Taxes                            (521)      (385)      (627)      (680)
      Principal repayments on
       senior debt                     (791)      (841)    (2,487)    (2,544)
    -------------------------------------------------------------------------

    Distributable cash(1)            49,948     42,790    120,594    109,598
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Distributable cash per
     Unit ($)(2)                      0.380      0.327      0.918      0.841
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Distributions paid/payable       30,552     30,395     91,567     90,946
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Distributions paid/payable
     per Unit ($)                    0.2325     0.2325     0.6975     0.6975
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (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 and does not
        include distribution reserves, if any, available in Fort Chicago's
        jointly owned 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 September 30, 2007, the average number of
        Units outstanding for this calculation was 131,407,903 (2006 -
        130,733,614) and 136,483,012 (2006 - 136,430,245) on a basic and
        diluted basis, respectively. For the nine months ended September 30,
        2007, the average number of Units outstanding for this calculation
        was 131,278,792 (2006 - 130,389,810) and 136,483,012 (2006 -
        136,279,184) on a basic and diluted basis, respectively. The number
        of Units outstanding would increase by 5,020,480 (2006 - 5,634,292)
        Units if the outstanding Convertible Debentures as at September 30,
        2007 were converted into Units.
    (3) Certain comparative figures have been reclassified to conform to
        presentation adopted in 2007.



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

    Reconciliation of Distributable
     Cash to Cash Flow from
     Operating Activities
    -------------------------------------------------------------------------
                                    Three months ended     Nine months ended
                                          September 30          September 30
    -------------------------------------------------------------------------
    ($ Thousands, except where
     noted; unaudited)                 2007     2006(1)      2007     2006(1)
    -------------------------------------------------------------------------

    Consolidated cash flow from
     operating activities            62,122    100,181    154,301    218,383
    Deduct: Cash flow from
     operating activities
     applicable to jointly
     held businesses(2)             (26,199)   (54,030)   (58,104)  (116,325)
    -------------------------------------------------------------------------
    Cash flow from operating
     activities applicable to
     wholly-owned businesses(3)      35,923     46,151     96,197    102,058

    Add (Deduct):
      Corporate project
       development costs              2,858      3,789      8,842      9,998
      Change in non-cash working
       capital applicable to
       wholly-owned businesses       13,473     (1,670)    11,128       (578)
      Principal repayments on
       senior notes                  (1,371)    (1,390)    (4,195)    (4,161)
      Distributions earned greater
       (less) than distributions
       received(4)                     (935)    (4,090)     8,622      2,281
    -------------------------------------------------------------------------

    Distributable cash               49,948     42,790    120,594    109,598
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (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 nil and $1.5 million for
        the three and nine months ended September 30, 2007 (2006 -
        $0.5 million and $1.5 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.,
Stock Exchange Tower, 2150, 300 Fifth Avenue S.W., Calgary, AB, T2P 3C4,
Phone: (403) 296-0140, Fax: (403) 213-3648, www.fortchicago.com

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Veresen Inc.

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