Fort Chicago announces solid 2009 third quarter results and updated 2009
guidance

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

    Trading Symbol: FCE.UN
    Exchange: TSX
    

CALGARY, Nov. 3 /CNW/ - Fort Chicago Energy Partners L.P. ("Fort Chicago" or "the Partnership") today announced its results for the three months ended September 30, 2009. Mr. Stephen H. White, President and Chief Executive Officer commented, "I am very pleased with our third quarter results, as each of our businesses delivered solid earnings and cash flows. The continued improvement of NGL margins over the course of this year has resulted in the recognition of $22.1 million in Aux Sable's margin-based lease revenues, augmenting the steady and stable earnings generated by our Pipeline business."

"I am also pleased Aux Sable has entered into a strategic alliance with Crew Energy Inc. to develop infrastructure in the Montney region of British Columbia. The arrangement with Crew is an important step in the advancement of our strategy to target liquids-rich gas with the view to enhancing the heat content of natural gas transported on Alliance and NGL recovery at Aux Sable's fractionation facility."

    
    Highlights

    -   Net income of $30.8 million or $0.23 per Unit for third quarter 2009
    -   Distributable cash of $45.4 million or $0.33 per Unit for third
        quarter 2009
    -   Cash from operating activities of $89.4 million for third quarter
        2009
    -   $22.1 million of margin-based lease revenues recognized for third
        quarter 2009; additional $0.9 million generated but not yet
        recognized
    -   Aux Sable's strategic alliance with Crew Energy Inc. and agreement to
        acquire the Septimus Gas Plant in the liquids-rich Montney region


    Financial Highlights

                                    Three months ended     Nine months ended
                                          September 30          September 30
    -------------------------------------------------------------------------
    ($ Thousands, except per
     Unit amounts)                     2009       2008       2009       2008
    -------------------------------------------------------------------------
    Revenues

      Pipeline(1)                   102,786    100,705    312,643    310,036
      NGL                            42,478     55,754     92,175    152,060
      Power                          17,840     24,362     57,682     70,242
      Fort Chicago - Corporate           62         79        760        463
    -------------------------------------------------------------------------
                                    163,166    180,900    463,260    532,801
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net income (loss)
     before tax
      Pipeline                       26,514     26,154     80,540     87,801
      NGL                            20,063     27,440     23,412     65,527
      Power                           5,719      2,953      1,520      9,657
      Fort Chicago - Corporate
        General, administrative
         and project development     (5,817)    (5,220)   (19,311)   (17,184)
        Interest                     (4,181)    (4,160)    (9,820)   (13,019)
        Depreciation                 (1,011)    (1,029)    (3,043)    (3,254)
        Foreign exchange gains
         (losses)                       456     (5,742)     2,296    (19,888)
    -------------------------------------------------------------------------
                                    (10,553)   (16,151)   (29,878)   (53,345)
    -------------------------------------------------------------------------
                                     41,743     40,396     75,594    109,640
    Taxes                           (10,977)   (13,110)   (13,565)   (30,192)
    -------------------------------------------------------------------------
    Net income                       30,766     27,286     62,029     79,448
      Per Unit ($)                     0.23       0.20       0.46       0.59
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Adjustments to net income
     for non-recurring
     (gains) losses (net of tax)
      Fair value loss reclassified
       from other comprehensive
       income                             -          -      2,288          -
      Alliance shipper
       claim settlement                   -          -          -     (6,840)
      Gain on dilution
       of investment                      -          -          -     (3,660)
    -------------------------------------------------------------------------
    Adjusted Net income(2)           30,766     27,286     64,317     68,948
      Per Unit ($)                     0.23       0.20       0.48       0.52
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (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. The
        Partnership believes its use of Adjusted Net Income provides useful
        information to management and investors by improving the ability to
        compare financial results among reporting periods and by enhancing
        the understanding of the Partnership's operating performance and
        ability to fund distributions. See section entitled "Non-GAAP
        Financial Measures" contained in Fort Chicago's 2008 Management's
        Discussion and Analysis.
    

For the third quarter of 2009 the Partnership generated net income of $30.8 million or $0.23 per Unit, a $3.5 million or $0.03 per Unit increase compared to the same period last year. Alliance and AEGS, which comprise Fort Chicago's Pipeline business, continued their steady financial performance, generating aggregate net income before tax of $26.5 million, up slightly from the same period last year. Alliance's third quarter earnings benefited from the effect of the weaker Canadian dollar relative to the same period last year and increased income tax recoveries.

The NGL business generated third quarter net income before tax of $20.1 million, compared to $27.4 million for the same period last year when NGL market conditions resulted in record breaking profits. Third quarter earnings include $22.1 million of margin-based lease revenues, representing the recognition of $15.0 million generated in the quarter and $7.1 million generated and deferred in the first half of 2009. At the end of the third quarter, $0.9 million of margin-based lease revenues remain unrecognized. In comparison, Aux Sable recognized $27.9 million of margin-based lease revenues in the third quarter of 2008, with $0.7 million unrecognized at September 30, 2008.

The Power business generated net income before tax of $5.7 million in the third quarter compared to $3.0 million during the same period last year, reflecting incremental tolling and capacity payments received in association with Fort Chicago Power's new power generation facilities, Brush and the London cogeneration facility, and the recognition of a non-cash fair value gain in respect of Fort Chicago Power's exchangeable debentures.

Corporate costs before income taxes for the third quarter were $10.6 million, down from $16.2 million for the same period last year, primarily reflecting lower foreign exchange losses, previously deferred and recorded in other comprehensive income, resulting from lower amounts of cash distributed by the Partnership's U.S. businesses and the weaker Canadian dollar. Income taxes for the third quarter amounted to $11.0 million compared to $13.1 million for the same period last year, reflecting the decrease in earnings from Aux Sable.

    
                                    Three months ended     Nine months ended
                                          September 30          September 30
    -------------------------------------------------------------------------
    ($ Thousands, except per
     Unit amounts)                     2009       2008       2009       2008
    -------------------------------------------------------------------------
    Distributable cash(3)
      Pipeline                       33,295     31,400    101,763    104,077
      NGL                            21,068     30,077     26,650     68,925
      Power                           7,018      8,059     16,847      9,087
      Fort Chicago - Corporate      (15,944)   (16,251)   (30,194)   (44,424)
    -------------------------------------------------------------------------
                                     45,437     53,285    115,066    137,665
      Per Unit                         0.33       0.40       0.85       1.04
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (3) 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. A reconciliation
        of Distributable Cash to Cash from Operating Activities is provided
        elsewhere in this news release.
    

Distributable cash for the third quarter of 2009 was $45.4 million or $0.33 per Unit, reflecting continued increases over the first and second quarters of this year. While fractionation margins have continued to strengthen over the course of 2009, they have not matched the record levels achieved in 2008, which contributed to distributable cash of $53.3 million or $0.40 per Unit for the third quarter of last year. Distributions from Aux Sable were $21.1 million this quarter, and include the recognition and distribution of $22.1 million in margin-based lease revenues, compared to $30.1 million of distributions in the third quarter of last year. Third quarter distributable cash from the Power business was also lower than the same period last year, as incremental cash flow from Fort Chicago Power's new facilities was offset by higher maintenance capital expenditures. These decreases were partially offset by the Pipeline business, which generated $33.3 million of distributable cash in the third quarter compared to $31.4 million for the same period last year, reflecting the effect of the weaker Canadian dollar and Alliance's increased income tax recoveries.

    
                                    Three months ended     Nine months ended
                                          September 30          September 30
    -------------------------------------------------------------------------
    ($ Thousands, except per
     Unit amounts)                     2009       2008       2009       2008
    -------------------------------------------------------------------------
    Cash from Operating Activities
      Pipeline                       75,784     69,874    176,702    176,388
      NGL                            19,977     21,861     22,766     64,353
      Power                           7,096        958     21,313      6,810
      Fort Chicago - Corporate      (13,408)    (4,471)   (53,725)   (24,218)
    -------------------------------------------------------------------------
                                     89,449     88,222    167,056    223,333
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

The Partnership generated cash from operating activities of $89.4 million for the three months ended September 30, 2009, a $1.2 million increase from the same period last year as increased operating cash flows from Alliance and Fort Chicago Power offset lower operating cash flows from Aux Sable and higher corporate cash outflows.

Operating Highlights

During the third quarter of 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 third quarter transportation deliveries averaged 1.559 bcf/d, a slight increase from volumes of 1.546 bcf/d delivered during the same period last year. AEGS third quarter toll volumes of 278.8 thousand barrels per day decreased relative to 298.4 mbbls/d in the same period last year, due primarily to lower ethane receipts from Empress-area extraction plants during the quarter. Aux Sable processed 97.5 percent of the natural gas delivered by Alliance during the third quarter. Average NGL daily volumes were 66.3 mbbls/d for the quarter, up from 64.6 mbbls/d for the third quarter of 2008. Fort Chicago Power generated 115,131 megawatt hours of electricity compared to 115,439 MWh in the third quarter of 2008. Incremental electricity generation from Brush and the London cogeneration facility was offset by reduced electricity output from the California cogeneration facilities, resulting from economic dispatch decisions and down time related to equipment repairs at the Ripon facility. NRGreen's waste heat electrical generation facilities operated reliably throughout the third quarter. Construction of the East Windsor cogeneration facility is nearing completion, with operations expected to commence in the fourth quarter of 2009. The project is expected to be completed at a capital cost of $105.5 million, slightly above its original budget of $103.5 million after taking into account a performance bonus payable to a supplier for better than guaranteed performance for plant capacity and efficiency.

Aux Sable's Agreement to Acquire Septimus Gas Plant

On August 7, 2009 Aux Sable entered into an agreement forming a strategic alliance with Crew Energy Inc. regarding the construction and operation of the 25 mmcf/d Septimus gas plant in the liquids-rich Montney region of northeast British Columbia. Crew is a growth-oriented oil and natural gas producer with activities concentrated in central Alberta and northeast British Columbia. The plant is currently under construction and is expected to be placed into service in the fourth quarter of 2009. Upon commencement of operations, Aux Sable will purchase the plant from Crew at the cost of construction, expected to be approximately $11.3 million (100 percent - $22.5 million). Crew will operate the facility and will pay Aux Sable capital throughput fees on a take-or-pay basis.

Aux Sable has entered into a committed term sheet with a Canadian financial institution to fund up to 60 percent of the acquisition cost of the Septimus gas plant, to a maximum of $8.4 million (100 percent - $16.8 million).

Crew has the option to repurchase 50 percent of the plant and to share in the ownership of future developments associated with the plant. Aux Sable and Crew are currently proposing an expansion that would increase the Septimus gas plant's capacity to 50 mmcf/d and a 21-kilometre rich gas pipeline to interconnect with the Alliance pipeline. The proposed pipeline would allow for the delivery of Montney natural gas and liquids to export markets and provide processing and transportation alternatives for producers in the Septimus area.

Updated 2009 Guidance

Over the balance of the year the Partnership expects NGL market fundamentals to continue to support solid 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 the Power business are expected to be impacted by planned maintenance at the California cogeneration facilities. Based on the Partnership's year-to-date performance and its current outlook, 2009 distributable cash is now expected to be in the range of $1.04 per Unit to $1.11 per Unit, compared to $1.00 per Unit to $1.25 per Unit, and the payout ratio for the year is expected to be between 90 percent and 96 percent. Further details concerning updated 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 11:00 a.m. Mountain time (1:00 p.m. Eastern time) on Thursday, November 4, 2009, to discuss the third quarter results of 2009. The call can be accessed at 1-877-974-0452 or 1-416-644-3428. A replay will be available shortly thereafter at 1-877-289-8525 and 1-416-640-1917. The access code in each case is 4175914 (followed by the number 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. 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: timing of the start-up of the East Windsor cogeneration facility; NGL market conditions for 2009; the timing, purchase price, financing and potential expansion related to Aux Sable's acquisition of the Septimus gas plant; 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
    -------------------------------------------------------------------------
                                                        September   December
                                                               30,        31,
    ($ Thousands; unaudited)                                 2009       2008
    -------------------------------------------------------------------------

    Assets
    Current assets
      Cash and short-term investments                      88,037     56,064
      Restricted cash                                       3,517     20,280
      Transportation security deposits and revenue
       adjustments                                          2,066      7,989
      Receivables                                          60,406     61,935
      Inventory                                             4,578      3,913
      Prepaid expenses and other                            4,596     12,349
    -------------------------------------------------------------------------
                                                          163,200    162,530

    Long-term receivables                                 364,350    273,392
    Pipeline, plant and other capital assets            2,347,837  2,547,701
    Intangible assets                                     105,362    121,267
    Other assets                                           22,567     22,789
    -------------------------------------------------------------------------
                                                        3,003,316  3,127,679
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities
    Current liabilities
      Payables                                             97,671    112,623
      Transportation security deposits and revenue
       adjustments                                          5,367      5,581
      Distribution payable                                  6,776     11,162
      Current portion of long-term senior debt and
       capital leases                                     123,215     89,176
      Exchangeable debentures                              24,543     25,717
    -------------------------------------------------------------------------
                                                          257,572    244,259

    Long-term senior debt and capital leases            1,594,786  1,758,958
    Subordinated convertible debentures                    24,017     23,909
    Future taxes                                          324,258    239,823
    Other long-term liabilities                            55,660     60,143
    -------------------------------------------------------------------------
                                                        2,256,293  2,327,092
    -------------------------------------------------------------------------
    Partners' Equity
    Partners' capital account                           1,042,345  1,013,278
    Cumulative other comprehensive loss                   (50,478)    (7,306)
    Cumulative net income                                 608,172    546,143
    Cumulative distributions                             (853,016)  (751,528)
    -------------------------------------------------------------------------
                                                          747,023    800,587
    -------------------------------------------------------------------------
                                                        3,003,316  3,127,679
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    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)          2009       2008       2009       2008
    -------------------------------------------------------------------------

    Revenues
      Operating revenues            162,081    180,294    459,465    515,865
      Interest and other              1,085        606      3,795     16,936
    -------------------------------------------------------------------------
                                    163,166    180,900    463,260    532,801
    -------------------------------------------------------------------------
    Expenses
      Operations and maintenance     44,451     56,981    141,491    171,302
      Depreciation and amortization  34,334     32,265    106,329     94,851
      Interest and other finance     25,578     26,558     77,104     81,277
      General, administrative and
       project development           20,385     18,956     63,874     55,756
      Foreign exchange and other     (3,325)     5,744     (1,132)    19,975
    -------------------------------------------------------------------------
                                    121,423    140,504    387,666    423,161
    -------------------------------------------------------------------------
    Net income before taxes          41,743     40,396     75,594    109,640
      Current taxes                   7,588      8,510     10,407     19,781
      Future taxes                    3,389      4,600      3,158     10,411
    -------------------------------------------------------------------------
    Net income                       30,766     27,286     62,029     79,448
    Cumulative net income at the
     beginning of the period        577,406    536,806    546,143    484,644
    -------------------------------------------------------------------------
    Cumulative net income at the
     end of the period              608,172    564,092    608,172    564,092
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net income per Unit
      Basic and diluted                0.23       0.20       0.46       0.59
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Consolidated Statements of Comprehensive Income and Cumulative Other
    Comprehensive Income
    -------------------------------------------------------------------------
                                    Three months ended     Nine months ended
                                          September 30          September 30
    -------------------------------------------------------------------------
    ($ Thousands; unaudited)           2009       2008       2009       2008
    -------------------------------------------------------------------------

    Net income                       30,766     27,286     62,029     79,448
    Other comprehensive income
     (loss), net of taxes
      Cumulative translation
       adjustment
        Unrealized foreign exchange
         gain (loss) on translation
         of self-sustaining foreign
         operations                 (36,288)    15,403    (62,174)    25,240
        Deemed realization of
         cumulative translation
         adjustment reclassified
         to net income                1,097      5,182      2,135     21,079
        Gain (loss) on hedge of
         self-sustaining foreign
         operation                    6,514     (3,304)    14,384     (5,744)
    Fair value loss transferred to
     net income                           -          -      1,427          -
    Other                               187     (4,178)     1,056       (641)
    -------------------------------------------------------------------------
                                    (28,490)    13,103    (43,172)    39,934
    -------------------------------------------------------------------------
    Comprehensive income              2,276     40,389     18,857    119,382
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Cumulative other comprehensive
     loss at the beginning of the
     period                         (21,988)   (75,261)    (7,306)  (102,092)
    Other comprehensive income
     (loss), net of taxes           (28,490)    13,103    (43,172)    39,934
    -------------------------------------------------------------------------
    Cumulative other comprehensive
     loss at the end of the period  (50,478)   (62,158)   (50,478)   (62,158)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



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

    Consolidated Statement of Cash Flows
    -------------------------------------------------------------------------
                                    Three months ended     Nine months ended
                                          September 30          September 30
    -------------------------------------------------------------------------
    ($ Thousands; unaudited)           2009       2008       2009       2008
    -------------------------------------------------------------------------

    Operating
      Net income                     30,766     27,286     62,029     79,448
      Non-cash transportation
       revenue                       (2,192)    (2,179)    (3,444)    (5,687)
      Depreciation, amortization
       and other non-cash items      35,642     32,475    109,484     89,039
      Unrealized foreign exchange
       loss (gain)                   (4,866)     6,352     (4,644)    21,056
      Future taxes                    3,389      4,600      3,158     10,411
      Changes in non-cash working
       capital                       26,710     19,688        473     29,066
    -------------------------------------------------------------------------
                                     89,449     88,222    167,056    223,333
    -------------------------------------------------------------------------
    Financing
      Long-term debt issued, net
       of issue costs               198,115          -    198,115          -
      Long-term debt repaid            (929)      (971)   (38,216)   (36,785)
      Net change in credit
       facilities                  (205,852)    39,244   (199,395)    53,663
      Distributions paid            (21,258)   (33,443)   (76,810)   (99,426)
      Other                             472          -        (40)      (402)
    -------------------------------------------------------------------------
                                    (29,452)     4,830   (116,346)   (82,950)
    -------------------------------------------------------------------------
    Investing
      Acquisition of Brush II
       Generation Facility, net
       of cash acquired                   -    (34,015)         -    (34,015)
      Pipeline, plant and other
       capital assets                (8,017)   (32,133)   (22,091)   (96,901)
      Restricted cash                 4,852     12,241     16,763     43,038
      Other                             858          -       (150)   (11,307)
      Changes in non-cash
       investing working capital       (534)    (1,516)    (9,335)    (1,801)
    -------------------------------------------------------------------------
                                     (2,841)   (55,423)   (14,813)  (100,986)
    -------------------------------------------------------------------------
    Increase in cash and
     short-term investments
     before the effect of
     foreign exchange rate
     changes on cash and
     short-term investments          57,156     37,629     35,897     39,397
    Effect of foreign exchange
     rate changes on cash and
     short-term investments          (1,347)     1,288     (3,924)     1,943
    Cash and short-term
     investments at the
     beginning of the period         32,228     49,614     56,064     47,191
    -------------------------------------------------------------------------
    Cash and short-term
     investments at the end
     of the period                   88,037     88,531     88,037     88,531
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



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

    Distributable Cash (1)
    -------------------------------------------------------------------------
                                    Three months ended     Nine months ended
                                          September 30          September 30
    -------------------------------------------------------------------------
    ($ Thousands, except
     where noted; unaudited)           2009       2008       2009       2008
    -------------------------------------------------------------------------

    Cash inflows
      Alliance distributions,
       prior to withholdings
       for capital expenditures
       and net of debt service       29,403     27,527     90,576     92,210
      AEGS distributable cash,
       after non-recoverable
       capital expenditures
       and debt service               3,892      3,873     11,187     11,867
      Aux Sable distributions,
       net of support payments,
       non-recoverable debt
       service costs and
       maintenance capital           21,068     30,077     26,650     68,925
      Fort Chicago Power
       distributable cash,
       after maintenance capital
       expenditures and debt
       service                        6,578      7,559     15,527      8,062
      NRGreen distributions,
       prior to withholding
       for project development
       costs                            440        500      1,320      1,025
      Realized foreign
       exchange gains (losses),
       interest income and other       (358)        79      3,989        449
    -------------------------------------------------------------------------
                                     61,023     69,615    149,249    182,538
    Cash outflows
      General and administrative     (3,463)    (2,955)   (11,917)   (10,219)
      Interest and other finance     (3,854)    (4,099)    (9,486)   (12,590)
      Taxes                          (7,452)    (8,494)   (10,142)   (19,718)
      Principal repayments on
       senior debt                     (817)      (782)    (2,638)    (2,346)
    -------------------------------------------------------------------------
                                    (15,586)   (16,330)   (34,183)   (44,873)
    -------------------------------------------------------------------------

    Distributable cash(1)            45,437     53,285    115,066    137,665
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Distributable cash
     per Unit ($)(2)                   0.33       0.40       0.85       1.04
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Distributions paid/payable       34,240     33,494    101,541     99,618
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Distributions paid/payable
     per Unit ($)                      0.25       0.25       0.75       0.75
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (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 September 30, 2009, the average number of
        Units outstanding for this calculation was 136,796,843 (2008 -
        134,110,877) and 139,058,464 (2008 - 136,372,498) on a basic and
        diluted basis, respectively.  For the nine months ended September 30,
        2009, the average number of units outstanding for this calculation
        was 135,371,692 (2008 - 132,905,440) and 137,633,313 (2008 -
        136,433,895) on a basic and diluted basis, respectively. The number
        of Units outstanding would increase by 2,261,621 (2008 - 2,261,621)
        Units if the outstanding Convertible Debentures as at September 30,
        2009 were converted into Units.



    Fort Chicago Energy Partners L.P.
    -------------------------------------------------------------------------
    Reconciliation of Distributable Cash to Cash Flow from Operating
    Activities
    -------------------------------------------------------------------------
                                    Three months ended     Nine months ended
                                    September 30, 2009    September 30, 2009
    -------------------------------------------------------------------------
    ($ Thousands; unaudited)           2009       2008       2009       2008
    -------------------------------------------------------------------------

    Consolidated cash flow from
     operating activities            89,449     88,222    167,056    223,333
    Add (deduct): Cash flow
     generated from operating
     activities applicable to
     jointly held businesses(1)     (41,148)   (22,721)   (82,031)   (67,889)
    -------------------------------------------------------------------------
    Cash flow from operating
     activities applicable to
     wholly-owned businesses(2)      48,301     65,501     85,025    155,444

    Add (deduct) amounts
     applicable to wholly-owned
     businesses:
      Project development costs       2,442      2,693      8,408      8,122
      Change in non-cash working
       capital                       (3,553)    (6,335)    14,156    (13,781)
      Principal repayments on
       senior notes                  (1,464)    (1,378)    (4,544)    (4,134)
      Maintenance capital
       expenditures                    (603)       805       (585)    (6,645)
      Distributions earned greater
       than distributions
       received(3)                      314     (8,001)    12,606     (1,341)
    -------------------------------------------------------------------------

    Distributable cash               45,437     53,285    115,066    137,665
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    (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 $2.4
        million and $6.5 million for the three and nine months ended
        September 30, 2009 respectively (2008 - $0.5 million and $2.2
        million, respectively).
    (3) Represents the difference between distributions declared by jointly
        held businesses and distributions received.
    

SOURCE Veresen Inc.

For further information: For further information: Stephen H. White, President and Chief Executive Officer; Richard G. Weech, Vice President, Finance and Chief Financial Officer; 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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