Fort Chicago announces 2009 first quarter results



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

    Trading Symbol: FCE.UN
    Exchange: TSX
    

    CALGARY, May 7 /CNW/ - Fort Chicago Energy Partners L.P. ("Fort Chicago"
or "the Partnership") today announced its results for the three months ended
March 31, 2009. Mr. Stephen H. White, President and Chief Executive Officer
commented, "The first quarter performance of each of our businesses was
consistent with our expectations. We are pleased that NGL market conditions
began to improve in February, resulting in Aux Sable generating $4.7 million
in margin-based lease revenues during the first quarter, although these
revenues are not yet reflected in net income or distributable cash."

    
    Highlights for the Three Months Ended March 31, 2009

    -   Net income of $11.3 million or $0.08 per Unit
    -   Adjusted net income of $13.6 million or $0.10 per Unit
    -   Distributable cash of $31.0 million or $0.23 per Unit
    -   Improved NGL market conditions
    -   NGL margin-based lease revenues of $4.7 million or $0.03 per Unit
        generated but not recognized


    Financial Highlights

                                                          Three months ended
                                                                    March 31
    -------------------------------------------------------------------------
    ($ Thousands, except per Unit amounts)               2009           2008
    -------------------------------------------------------------------------
    Revenues
      Pipeline(1)                                     105,748        108,264
      NGL                                              21,541         37,856
      Power                                            22,939         26,760
      Fort Chicago - Corporate                            576            337
    -------------------------------------------------------------------------
                                                      150,804        173,217
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net income (loss) before tax
      Pipeline                                         27,961         36,156
      NGL                                              (2,540)        10,707
      Power                                            (1,986)         5,900
      Fort Chicago - Corporate
        General, administrative and project
         development                                   (6,738)        (4,772)
        Interest                                       (2,965)        (4,619)
        Depreciation                                   (1,015)        (1,212)
        Foreign exchange losses                          (688)        (6,797)
    -------------------------------------------------------------------------
                                                      (11,406)       (17,400)
    -------------------------------------------------------------------------
                                                       12,029         35,363
    Taxes                                                (725)        (3,318)
    -------------------------------------------------------------------------
    Net income                                         11,304         32,045
      Per Unit ($)                                       0.08           0.24
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Adjustments to net income for non-recurring
     (gains) losses
      Fair value loss reclassified from other
       comprehensive income                             2,288              -
      Alliance shipper claim settlement                     -         (6,840)
      Gain on dilution of investment                        -         (3,660)
    -------------------------------------------------------------------------
    Adjusted net income                                13,592         21,545
      Per Unit ($)                                       0.10           0.16
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Net of intersegment eliminations.
    (2) This item is not a standard measure under GAAP and may not be
        comparable to similar measures presented by other entities. See
        section entitled "Non-GAAP Financial Measures" contained in
        Fort Chicago's 2008 Management's Discussion and Analysis.
    

    For the three months ended March 31, 2009 Fort Chicago reported net
income of $11.3 million or $0.08 per Unit compared to $32.0 million or $0.24
per Unit for the same period last year. Alliance Pipeline and AEGS, which
comprise the Pipeline Business, continued their steady performance, generating
aggregate net income before tax of $28.0 million. Alliance's first quarter
earnings also benefited from the effect of the weaker Canadian dollar.
Pipeline earnings for the same period last year include $10.3 million of
revenues ($6.8 million after-tax) related to the settlement of Alliance's
claim against Calpine Energy Services Canada Partnership.
    The NGL Business generated a pre-tax net loss of $2.5 million for the
three months ended March 31, 2009 compared to pre-tax net income of $10.7
million during the same period last year. NGL market conditions, which
experienced a severe downward shift in the fourth quarter of 2008, began to
improve in February 2009. In addition to the ongoing recovery of all operating
and capital costs associated with its Channahon facility and receipt of the
fixed fee, as provided for under the NGL Sales Agreement with BP, Aux Sable
generated $4.7 million in margin-based lease revenues under the profit-sharing
mechanism of the agreement. However, under generally accepted accounting
principles, the margin-based lease revenues can only be recognized to the
extent its realization is certain. Consequently, no portion of this revenue
was recognized or distributed during the first quarter of 2009. By comparison,
Aux Sable generated $21.2 million of margin-based lease revenues and
recognized $11.4 million in the first quarter of 2008. Also during the first
quarter, Aux Sable incurred higher costs associated with the purchase,
transport and sale of make-up gas compared to the same period last year. A
portion of these costs will be recovered over the course of the year through
the recognition of the deferred margin-based lease revenue.
    For the three months ended March 31, 2009 the Power Business generated a
pre-tax net loss of $2.0 million, reflecting Fort Chicago's decision to
transfer a $2.4 million non-cash expense ($2.3 million after-tax) from other
comprehensive income to net income, representing the fair value decrease of
its investment in Pristine Power Inc. from Pristine's initial public offering
in March 2008.  This loss was partially offset by incremental earnings from
Fort Chicago Power's Brush II facility, acquired in September 2008, and the
London cogeneration facility, which commenced operations in December 2008, as
well as the effect of the weaker Canadian dollar.  NRGreen also contributed
incremental earnings from its four waste heat units.  Net income before tax
for the same period last year was $5.9 million and included a $4.2 million
non-cash dilution gain ($3.7 million after-tax) relating to Fort Chicago's
investment in Pristine.
    Corporate costs for the three months ended March 31, 2009 were $11.4
million compared to $17.4 million for the same period last year, primarily
reflecting decreased recognition of foreign exchange losses, previously
deferred and recorded in other comprehensive income, resulting from lower
amounts of cash distributed by Fort Chicago's U.S. businesses and a weaker
Canadian dollar.
    Excluding the non-recurring items identified in the table above, adjusted
net income for the three months ended March 31, 2009, was $13.6 million or
$0.10 per Unit compared to $21.5 million or $0.16 per Unit for the same period
last year.

    
                                                          Three months ended
                                                                    March 31
    -------------------------------------------------------------------------
    ($ Thousands, except per Unit amounts)               2009           2008
    -------------------------------------------------------------------------
    Distributable cash(2)
      Pipeline                                         34,633         41,440
      NGL                                                (775)        10,240
      Power                                             5,062           (135)
      Fort Chicago - Corporate                         (7,910)        (8,730)
    -------------------------------------------------------------------------
                                                       31,010         42,815

      Per Unit                                           0.23           0.33
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash from operating activities                     44,380         95,599
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (2) This item is not a standard measure under GAAP and may not be
        comparable to similar measures presented by other entities. See
        section entitled "Non-GAAP Financial Measures" contained in Fort
        Chicago's 2008 Management's Discussion and Analysis.
    

    Distributable cash for the three months ended March 31, 2009 was $31.0
million or $0.23 per Unit compared to $42.8 million or $0.33 per Unit for the
same period last year, reflecting lower Aux Sable distributions in the first
quarter of 2009. Aux Sable generated negative $0.8 million of distributable
cash, representing the first quarter fixed fee, net of increased support
payments in respect of costs associated with the purchase, transport and sale
of make-up gas. The overall decrease in distributable cash for the quarter
also reflects lower distributions from Alliance, as first quarter 2008
distributions included funds received from the Calpine settlement, partially
offset by the effect of the weaker Canadian dollar. Fort Chicago Power made a
strong contribution to distributable cash this quarter, generating $4.6
million compared to negative $0.4 million during the same period last year.
This increase reflects incremental cash generated by Brush II and the London
cogeneration facility, as well as significantly lower maintenance capital
expenditures as major maintenance was performed at the Ripon and San Gabriel
facilities during the first quarter last year. Net corporate costs were $7.9
million this quarter, $0.8 million lower than the same period last year as
increases in advisory costs were more than offset by lower borrowing costs
associated with Fort Chicago's credit facilities.
    Cash from operating activities for the three months ended March 31, 2009
was $44.4 million compared to $95.6 million for the same period last year,
reflecting decreased cash generated from Aux Sable and Alliance's first
quarter 2008 settlement with Calpine. This decrease also reflects a
significant decrease in changes in non-cash working capital, resulting from
the first quarter 2009 payment of income taxes associated with 2008 NGL
earnings and accrued at December 31, 2008.

    Operating Highlights

    During the three months ended March 31, 2009, 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 averaged 1.690 bcf/d, a new first quarter record for
Alliance and a slight increase from volumes of 1.685 bcf/d delivered during
the same period last year. AEGS first quarter toll volumes of 284.1 thousand
barrels per day decreased slightly relative to 307.8 mbbls/d in the same
period last year, due primarily to lower ethane receipts from the Empress-area
extraction plants during the quarter. Ethane production in the U.S. Gulf Coast
returned to a profitable margin and production at Aux Sable recommenced in
early February. NGL average daily volumes were 53.9 mbbls/d during the first
quarter of 2009, down from 70.6 mbbls/d for the same period last year,
reflecting ethane reinjection during the first part of the quarter. Fort
Chicago Power generated 182,686 megawatt hours of electricity, reflecting
ambient weather conditions and plant efficiency increases at the Ripon
cogeneration facility and incremental electricity generation at the Brush II
and London cogeneration facilities. NRGreen's waste heat electrical generation
facilities, which experienced outages in December 2008 and January 2009 due to
extremely cold weather, were repaired and placed back on line in January and
February 2009. Construction of the East Windsor cogeneration facility
continues to make good progress. The project is expected to be completed
within its original budget of $103.5 million and to be placed into commercial
service early in the third quarter of 2009.

    Update on Projects Under Development

    On May 1, 2009, Jordan Cove Energy Project L.P. and Pacific Connector Gas
Pipeline L.P. received notification that the Final Environmental Impact
Statement had been issued by the Federal Energy Regulatory Commission in the
United States.  Each of Jordan Cove and Pacific Connector had filed, in
September 2007, an application to the FERC for approval to construct a
liquefied natural gas import terminal at Coos Bay, Oregon and a 377-kilometre
interstate natural gas transmission system from the terminal to Malin, Oregon,
respectively.  The FERC is expected to issue a Certificate of Public
Convenience and Necessity in the third quarter of 2009.  Under our current
timeline, and subject to securing long-term contractual commitments,
construction of the LNG terminal could commence in the second half of 2010,
with an in-service date for both projects to be during 2014.

    2009 Guidance

    Looking toward the balance of the year, the Pipeline Business, which is
underpinned by long-term contracts, is expected to continue to generate stable
earnings and cash flows. While NGL market conditions are not expected to reach
the record levels achieved last year, Fort Chicago is encouraged that margins
have strengthened in recent months. Further, the Partnership anticipates
continued solid cash flow generation from Fort Chicago Power. Based on its
year-to-date performance and current outlook, Fort Chicago is maintaining its
2009 distributable cash guidance of $0.96 per Unit to $1.27 per Unit, with the
payout ratio expected to be between 79 percent to 104 percent. Further details
concerning 2009 guidance can be found in the Investor Information section of
Fort Chicago's website at www.fortchicago.com.

    
    Conference Call
    ---------------
    

    Fort Chicago will hold a conference call at 9:00 a.m. Mountain time
(11:00 a.m. Eastern time) on Friday, May 8, 2009, to discuss the first quarter
results of 2009. The call can be accessed at 1-800-732-6179 or 1-416-644-3418.
A replay will be available shortly thereafter at 1-877-289-8525 and
1-416-640-1917. The access code in each case is 21302748 (followed by the No.
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 Standard & Poor's of SR-2. 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,
Colorado 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 Nova Scotia-based underground natural gas
storage and pipeline facilities.

    
                     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 Fort
Chicago expects or anticipates 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. Forward-looking statements in this news
release include, but are not limited to, statements with respect to: the
timing of Alliance's receipt point near Towner, North Dakota being placed into
service; the timing of the start-up of the East Windsor cogeneration facility;
the timing of and obtaining of regulatory approvals for, and the timing of the
development of the Jordan Cove LNG terminal and Pacific Connector gas pipeline
projects; the timing, amount, structure and term of the proposed financing for
Fort Chicago Power; NGL market conditions for 2009; and the ability of each of
its businesses to generate distributable cash in 2009. The risks and
uncertainties that may affect the operations, performance, development and
results of Fort Chicago's 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; levels of oil and gas
exploration and development activity; the status, credit risk and continued
existence of contracted customers; the availability and price of capital; the
availability and price of energy commodities; the availability of construction
services and materials; fluctuations in foreign exchange and interest rates;
Fort Chicago's ability to successfully obtain regulatory approvals; changes in
tax, regulatory, environmental, and other laws and regulations; competitive
factors in the pipeline, NGL and power industries; operational breakdowns,
failures, or other disruptions; and the prevailing economic conditions in
North America. Additional information on these and other risks, uncertainties
and factors that could affect Fort Chicago's operations or financial results
are included in its filings with the securities commissions or similar
authorities in each of the provinces of Canada, as may be updated from time to
time. Readers are also cautioned that the foregoing list of factors and risks
is not exhaustive. The impact of any one risk, uncertainty or factor on a
particular forward-looking statement is not determinable with certainty as
these factors are independent and management's future course of action would
depend on its assessment of all information at that time. Although Fort
Chicago believes that the expectations conveyed by the forward-looking
information are reasonable based on information available on the date of
preparation, no assurances can be given as to future results, levels of
activity and achievements. Undue reliance should not be placed on the
information contained herein, as actual result achieved will vary from the
information provided herein and the variations may be material. Fort Chicago
makes no representation 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
    -------------------------------------------------------------------------
                                                     March 31,   December 31,
    ($ Thousands; unaudited)                             2009           2008
    -------------------------------------------------------------------------

    Assets
    Current assets
      Cash and short-term investments                  76,318         56,064
      Restricted cash                                  12,683         20,280
      Transportation security deposits and revenue
       adjustments                                      4,489          7,989
      Receivables                                      59,382         61,935
      Inventory                                         4,574          3,913
      Prepaid expenses and other                        9,089         12,349
    -------------------------------------------------------------------------
                                                      166,535        162,530

    Long-term receivables                             387,785        273,392
    Pipeline, plant and other capital assets        2,549,630      2,547,701
    Intangible assets                                 121,726        121,267
    Other assets                                       22,043         22,789
    -------------------------------------------------------------------------
                                                    3,247,719      3,127,679
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities
    Current liabilities
      Payables                                         99,598        112,623
      Transportation security deposits                  4,367          5,581
      Distribution payable                              7,398         11,162
      Current portion of long-term senior debt
       and capital leases                              91,368         89,176
      Exchangeable debentures                          25,217         25,717
    -------------------------------------------------------------------------
                                                      227,948        244,259

    Long-term senior debt and capital leases        1,795,448      1,758,958
    Subordinated convertible debentures                23,945         23,909
    Future taxes                                      352,670        239,823
    Other long-term liabilities                        53,782         60,143
    -------------------------------------------------------------------------
                                                    2,453,793      2,327,092
    -------------------------------------------------------------------------

    Partners' Equity
    Partners' capital account                       1,017,041      1,013,278
    Cumulative other comprehensive gain (loss)          4,480         (7,306)
    Cumulative net income                             557,447        546,143
    Cumulative distributions                         (785,042)      (751,528)
    -------------------------------------------------------------------------
                                                      793,926        800,587
    -------------------------------------------------------------------------
                                                    3,247,719      3,127,679
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



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

    Consolidated Statement of Income and Cumulative Income
    -------------------------------------------------------------------------
                                                 Three months ended March 31
    -------------------------------------------------------------------------
    ($ Thousands, except per unit amounts;
     unaudited)                                          2009           2008
    -------------------------------------------------------------------------

    Revenues
      Operating revenues                              148,820        156,769
      Interest and other                                1,984         16,448
    -------------------------------------------------------------------------
                                                      150,804        173,217
    -------------------------------------------------------------------------
    Expenses
      Operations and maintenance                       51,273         54,248
      Depreciation and amortization                    36,245         31,781
      Interest and other finance                       26,126         28,367
      General, administrative and project
       development                                     22,412         16,700
      Foreign exchange and other                        2,719          6,758
    -------------------------------------------------------------------------
                                                      138,775        137,854
    -------------------------------------------------------------------------
    Net income before taxes                            12,029         35,363
      Current taxes                                       102            166
      Future taxes                                        623          3,152
    -------------------------------------------------------------------------
    Net income                                         11,304         32,045
    Cumulative net income at the beginning of the
     period                                           546,143        484,644
    -------------------------------------------------------------------------
    Cumulative net income at the end of the period    557,447        516,689
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net income per Unit
      Basic and diluted                                  0.08           0.24
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Consolidated Statements of Comprehensive Income and Cumulative Other
    Comprehensive Income
    -------------------------------------------------------------------------
                                                 Three months ended March 31
    -------------------------------------------------------------------------
    ($ Thousands; unaudited)                             2009           2008
    -------------------------------------------------------------------------

    Net income                                         11,304         32,045
    Other comprehensive income, net of taxes
      Cumulative translation adjustment
        Unrealized foreign exchange gain on
         translation of self-sustaining foreign
         operations                                    12,996         13,023
       Deemed realization of cumulative
        translation adjustment reclassified to
        net income                                        661          8,843
       Loss on hedge of self-sustaining foreign
        operation                                      (3,560)        (3,184)
      Fair value loss transferred to net income         1,427              -
      Other                                               262          3,321
    -------------------------------------------------------------------------
                                                       11,786         22,003
    -------------------------------------------------------------------------
    Comprehensive income                               23,090         54,048
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Cumulative other comprehensive loss at the
     beginning of the period                           (7,306)      (102,092)
    Other comprehensive income, net of taxes           11,786         22,003
    -------------------------------------------------------------------------
    Cumulative other comprehensive income (loss)
     at the end of the period                           4,480        (80,089)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Fort Chicago Energy Partners L.P.
    -------------------------------------------------------------------------
    Consolidated Statement of Cash Flows
    -------------------------------------------------------------------------
                                                 Three months ended March 31
    -------------------------------------------------------------------------
    ($ Thousands; unaudited)                             2009           2008
    -------------------------------------------------------------------------

    Operating
      Net income                                       11,304         32,045
      Non-cash transportation revenue                     431           (748)
      Depreciation, amortization and other
       non-cash items                                  34,552         24,245
      Unrealized foreign exchange loss (gain)            (223)         6,665
      Future taxes                                        623          3,142
      Changes in non-cash working capital              (2,307)        30,250
    -------------------------------------------------------------------------
                                                       44,380         95,599
    -------------------------------------------------------------------------
    Financing
      Long-term debt repaid                              (987)        (2,392)
      Net change in credit facilities                  18,990         24,915
      Distributions paid                              (33,515)       (32,921)
      Other                                                 -            856
    -------------------------------------------------------------------------
                                                      (15,512)        (9,542)
    -------------------------------------------------------------------------
    Investing
      Pipeline, plant and other capital assets         (8,519)       (28,120)
      Restricted cash                                   7,620         10,608
      Other                                            (1,008)       (11,307)
      Changes in non-cash investing working
       capital                                         (7,215)         5,330
    -------------------------------------------------------------------------
                                                       (9,122)       (23,489)
    -------------------------------------------------------------------------
    Increase in cash and short-term investments
     before the effect of foreign exchange rate
     changes on cash and short-term investments        19,746         62,568
    Effect of foreign exchange rate changes on
     cash and short-term investments                      508          1,054
    Cash and short-term investments at the
     beginning of the period                           56,064         47,191
    -------------------------------------------------------------------------
    Cash and short-term investments at the end
     of the period                                     76,318        110,813
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



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

    Distributable Cash(1)
    -------------------------------------------------------------------------
                                                 Three months ended March 31
    -------------------------------------------------------------------------
    ($ Thousands; unaudited)                             2009           2008
    -------------------------------------------------------------------------

    Cash inflows
      Alliance distributions, prior to
       withholdings for capital expenditures and
       net of debt service                             30,888         37,498
      AEGS distributable cash, after
       non-recoverable capital expenditures and
       debt service                                     3,745          3,942
      Aux Sable distributions, net of support
       payments, non-recoverable debt service
       costs and maintenance capital                     (775)        10,240
      Fort Chicago Power distributable cash,
       after maintenance capital expenditures
       and debt service                                 4,622           (385)
      NRGreen distributions, prior to withholding
       for project development costs                      440            250
      Interest income and other                           656            326
    -------------------------------------------------------------------------
                                                       39,576         51,871

    Cash outflows
      General and administrative                       (4,629)        (3,066)
      Interest and other finance                       (2,963)        (5,054)
      Taxes                                               (38)          (133)
      Principal repayments on senior debt                (936)          (803)
    -------------------------------------------------------------------------
                                                       (8,566)        (9,056)
    -------------------------------------------------------------------------

    Distributable cash(1)                              31,010         42,815
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Distributable cash per Unit($)(2)                    0.23           0.33
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Distributions paid/payable                        331,513         32,941
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Distributions paid/payable per Unit ($)              0.25           0.25
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Distributable Cash Footnotes:

    (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 March 31, 2009, the average number of
        Units outstanding for this calculation was 134,110,877
        (2008 - 131,816,446) and 136,372,498 (2008 - 136,483,012) on a basic
        and diluted basis, respectively. The number of Units outstanding
        would increase by 2,261,621 (2008 - 4,754,174) Units if the
        outstanding Convertible Debentures as at March 31, 2009 were
        converted into Units.



    Fort Chicago Energy Partners L.P.
    -------------------------------------------------------------------------
    Reconciliation of Distributable Cash to Cash Flow from Operating
    Activities
    -------------------------------------------------------------------------
                                                 Three months ended March 31
    -------------------------------------------------------------------------
    ($ Thousands; unaudited)                             2009           2008
    -------------------------------------------------------------------------

    Consolidated cash flow from operating
     activities                                        44,380         95,599
    Deduct: Cash flow generated from operating
     activities applicable to jointly held
     businesses(1)                                    (36,969)       (53,404)
    -------------------------------------------------------------------------
    Cash flow from operating activities
     applicable to wholly-owned businesses(2)           7,411         42,195

    Add (deduct) amounts applicable to
     wholly-owned businesses:
      Project development costs                         2,764          2,043
      Change in non-cash working capital               16,953         (1,123)
      Principal repayments on senior notes             (1,564)        (3,512)
      Maintenance capital expenditures                   (213)        (1,399)
      Distributions earned greater (less) than
       distributions received(3)                        5,659          4,611
    -------------------------------------------------------------------------

    Distributable cash                                 31,010         42,815
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Reconciliation of Distributable Cash to Cash Flow from Operating
    Activities Footnotes:

    (1) 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.
    (2) Net of support payments made to Alliance Canada Marketing of
        $2.8 million for the three months ended March 31, 2009
        (2008 - $1.1 million).
    (3) 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., 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

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Veresen Inc.

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