Fort Chicago announces 2010 guidance and monthly cash distribution for
December 2009


    Trading Symbol: FCE.UN
    Exchange: TSX

CALGARY, Dec. 7 /CNW/ - Fort Chicago Energy Partners L.P. ("Fort Chicago") announced today initial 2010 guidance and the declaration of a cash distribution for December 2009.

    2010 Guidance

For 2010, Fort Chicago is forecasting distributable cash in the range of $0.80 to $1.30 per Class A limited partnership unit of Fort Chicago ("Class A Unit"), with a corresponding range in the payout ratio of 77 percent to 125 percent. The midpoint reflects a slight decrease from 2009 guidance of $1.04 to $1.11 per Class A Unit, which remains unchanged from that previously announced. Further details concerning 2009 and 2010 guidance can be found in the Investor Information section of Fort Chicago's website at

    December Cash Distribution

The board of directors of the General Partner also declared a cash distribution for December 2009 of $0.0833 per Class A limited partnership unit of Fort Chicago ("Class A Unit"). The distribution will be paid on January 22, 2010 to unitholders of record at the close of business on December 31, 2009.

Of this distribution, $0.0037 per Class A Unit will be considered U.S. source interest income and $0.0181 per Class A Unit will be considered U.S. source dividend income, each of which may be subject to U.S. withholding taxes. The balance of the cash distribution of $0.0615 per Class A Unit will be distributed without any deduction for U.S. withholding taxes. While this distribution is considered to be a return of capital for Canadian income tax purposes, unitholders are allocated a proportionate share of Fort Chicago's taxable income. As a percent of projected cash distributions paid, taxable income allocations are expected to be in the range of 95% to 100% in 2009.

In connection with this distribution, Fort Chicago has determined that, for purposes of the Premium Distribution(TM) and Distribution Reinvestment Plan ("Plan"), $0.0796 per Class A Unit (representing the full amount of the distribution of $0.0833 per Class A Unit less the $0.0037 per Class A Unit considered to be U.S. source interest income), less the amount of any applicable U.S. withholding taxes, is eligible to be reinvested by unitholders, at a 5% discount, in additional Class A Units held for their account under the Plan, or have them delivered to a designated plan broker in exchange for a premium cash payment equal to 102% of the reinvested amount under the Premium Distribution(TM) component of the Plan. Any portion of a cash distribution that is not reinvested under the Plan will be paid in the normal manner.

A registered unitholder who has not previously enrolled in the Plan and wishes to enroll in the Plan for the December 2009 distribution and for future distributions must deliver a completed enrolment form to Computershare Trust Company of Canada, as Plan Agent, at or before 5:00 pm (Toronto time) on Wednesday, December 23, 2009. Beneficial unitholders who wish to participate or to continue to participate in the Plan should contact their broker, investment dealer, financial institution or other nominee to provide appropriate enrolment instructions and to ensure any deadlines or other requirements that such nominee may impose or be subject to are met.

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. 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 power 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 held by or 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 ability of each of Fort Chicago's businesses to generate distributable cash in 2009 and 2010. 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.

(TM) denotes trademark of Canaccord Capital Corporation.

SOURCE Veresen Inc.

For further information: For further information: Stephen H. White, President and C.E.O.; Richard Weech, 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,

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