NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
DISSEMINATION IN THE UNITED STATES.
Trading Symbol: FCE.UN
CALGARY, Aug. 20 /CNW/ - Fort Chicago Energy Partners L.P. ("Fort
Chicago") announced today that the board of directors of Fort Chicago
Energy Management Ltd., the general partner of Fort Chicago Energy
Partners L.P., has declared a cash distribution for August 2010 of
$0.0833 per Class A limited partnership unit of Fort Chicago ("Class A
Unit"). The distribution will be paid on September 23, 2010 to
unitholders of record at the close of business on August 31, 2010.
Of this distribution, $0.0021 per Class A Unit will be considered U.S.
source interest income, which may be subject to U.S. withholding taxes.
The balance of the cash distribution of $0.0812 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 2010.
Fort Chicago has determined that, for purposes of the Premium
Distribution™ and Distribution Reinvestment Plan ("Plan"), the full
amount of $0.0833 per Class A Unit, 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™ component of the Plan. Any portion of a cash
distribution that is not reinvested under the Plan will be paid in the
A registered unitholder who has not previously enrolled in the Plan and
wishes to enroll in the Plan for the August 2010 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 Tuesday, August 24, 2010. 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 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, New York, Colorado and California, district
energy systems in Ontario and Prince Edward Island, and waste heat power
facilities along the Alliance Pipeline. Fort Chicago and each of its
pipeline, NGL extraction and power businesses are also actively
developing a number of greenfield investment opportunities that will be
a key source of future growth. In the normal course of its business,
Fort Chicago and each of its businesses regularly evaluate and pursue
acquisition and development opportunities.
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 taxable allocations
to unitholders in 2010 and the development of greenfield investment
opportunities. 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:
failure to complete the Offer; 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 forgoing 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.
™ denotes trademark of Canaccord Capital Corporation.
SOURCE Veresen Inc.
For further information: For further information:
|Stephen H. White |
President and C.E.O.
Vice President, Finance and C.F.O.
Fort Chicago Energy Partners L.P.
Suite 440, 222 - 3rd Avenue S.W.
Calgary, AB T2P 0B4
Phone: (403) 296-0140; Fax: (403) 213-3648