CALGARY, Jan. 31 /CNW/ - Enerplus Corporation ("Corporation") (TSX/NYSE
- ERF) is pleased to announce that a cash dividend in the amount of
CDN$0.18 per share will be payable on February 20, 2011 to all
shareholders of record on February 10, 2011. The ex-dividend date for
this payment is February 8, 2011.
The CDN$0.18 per share dividend is equivalent to approximately US$0.18
per share if converted using a Canadian/US dollar exchange ratio of
1.00. The U.S. dollar equivalent dividend will be based upon the actual
Canadian/US exchange rate applied on the payment date and will be net
of any Canadian withholding taxes that may be applicable.
New Effective Tax Rates
Effective January 1, 2011, Enerplus Resources Fund converted to Enerplus
Corporation. The distributions paid previously by Enerplus Resources
Fund to individual taxable Canadian investors in the highest marginal
tax bracket were subject to an effective income tax rate of
approximately 39% - 50%, depending on the provincial jurisdiction and
As a corporation, dividends paid by Enerplus to these taxable Canadian
shareholders will now qualify for a dividend tax credit resulting in an
effective tax rate of 28% - 41% until July of 2011. After July 2011, we
expect our dividends will be eligible for the enhanced tax credit
typically applied to dividends from most Canadian public companies
resulting in an effective tax rate of 18% - 36%, for those individuals
in the highest marginal tax bracket, depending upon provincial
jurisdiction and individual circumstances. Enerplus dividends are not
immediately eligible for the enhanced tax credit as we had previously
acquired Canadian private corporations that had low rate income and
this income must be paid out at the regular dividend tax credit rate
before the enhanced tax credit can be applied. These expectations are
based upon the current dividend policy of Enerplus and could change if
future dividend levels are adjusted.
In the U.S., Enerplus dividends will continue to be eligible for the
preferred dividend rate of 15% currently in effect. Dividends paid into
U.S. taxable accounts will continue to be subject to Canadian
withholding taxes, however, where Enerplus shares are held in U.S.
tax-sheltered accounts, these dividends should no longer be subject to
Canadian withholding taxes.
Shareholders are advised to consult their tax advisors regarding
questions relating to the tax treatment of Enerplus dividends.
A summary of the taxable and non-taxable portion of cash distributions
paid by Enerplus in 2010 is available on our website at www.enerplus.com along with all of our public information.
Gordon J. Kerr
President & Chief Executive Officer
Except for the historical and present factual information contained
herein, the matters set forth in this news release, including words
such as "expects", "projects", "plans" and similar expressions, are
forward-looking information that represents management of Enerplus'
internal projections, expectations or beliefs concerning, among other
things, future operating results and various components thereof or the
economic performance of Enerplus. The projections, estimates and
beliefs contained in such forward-looking statements necessarily
involve known and unknown risks and uncertainties, which may cause
Enerplus' actual performance and financial results in future periods to
differ materially from any projections of future performance or results
expressed or implied by such forward-looking statements. These risks
and uncertainties include, among other things, those described in
Enerplus' filings with the Canadian and U.S. securities
authorities. Accordingly, holders of Enerplus shares and potential
investors are cautioned that events or circumstances could cause
results to differ materially from those predicted.
SOURCE Enerplus Corporation
For further information:
please call 1-800-319-6462 or e-mail email@example.com