All values are in Canadian dollars unless otherwise indicated.
CALGARY, Sept. 8, 2011 /CNW/ - Provident Energy Ltd. (Provident) (TSX:
PVE) (NYSE: PVX) announces today that its previously disclosed $10
million increase in expansion capital is related to the construction of
a truck unloading terminal located at Cromer, Manitoba. The terminal,
plus associated storage, will have an initial capacity of approximately
2,000 barrels per day of natural gas liquids production from the Bakken
area. The natural gas liquids from this terminal will be injected into
the Enbridge mainline for transport to Sarnia, Ontario. Provident has
entered into a supply agreement with Petrobakken Energy Ltd. to
underpin the terminal project and, as supply in the area grows,
Provident will be able to expand its terminal on a very cost effective
"The Cromer terminal project is a key initiative that was an important
part of our Three Star Trucking Ltd. acquisition strategy, is
underpinned with producer supply agreements, augments our Empress East
NGL supply, and will be immediately accretive to EBITDA," said
President and Chief Executive Officer, Doug Haughey.
Provident anticipates the project will cost approximately $10 million to
complete and will begin receiving volumes in the first quarter of 2012.
Provident's September cash dividend of $0.045 per share is payable on
October 14, 2011 and will be paid to shareholders of record on
September 21, 2011. The ex-dividend date will be September 19, 2011.
Provident's 2011 annualized dividend rate is $0.54 per common share.
Based on the current annualized dividend rate and the TSX closing price
on September 7, 2011 of $8.34, Provident's yield is approximately 6.5
For shareholders receiving their dividends in U.S. funds, the September
2011 cash dividend will be approximately US$0.045per share based on an
exchange rate of 1.011. The actual U.S. dollar dividend will depend on
the Canadian/U.S. dollar exchange rate on the payment date and will be
subject to applicable withholding taxes.
Peters & Co. Limited 2011 North American Oil & Gas Conference
Brent Heagy, Senior Vice President, Finance and Chief Financial Officer,
will be presenting at the Peters & Co. Limited North American Oil and
Gas Conference in Toronto, Ontario on Tuesday, September 13, 2011 at 2:15 p.m. eastern
time. A link to the webcast will be available on Provident's website at
Provident Energy Ltd. is a Calgary-based corporation that owns and
manages a natural gas liquids (NGL) infrastructure and logistics
business. Provident's Midstream facilities are strategically located in
Western Canada and in the premium NGL markets in Eastern Canada and the
U.S. Provident provides monthly cash dividends to its shareholders and
trades on the Toronto Stock Exchange and the New York Stock Exchange
under the symbols PVE and PVX, respectively.
This document contains certain forward-looking statements concerning
Provident, as well as other expectations, plans, goals, objectives,
information or statements about future events, conditions, results of
operations or performance that may constitute "forward-looking
statements" or "forward-looking information" under applicable
securities legislation. Such statements or information involve
substantial known and unknown risks and uncertainties, certain of which
are beyond Provident's control, including the impact of general
economic conditions in Canada and the United States, industry
conditions, changes in laws and regulations including the adoption of
new environmental laws and regulations and changes in how they are
interpreted and enforced, increased competition, the lack of
availability of qualified personnel or management, pipeline design and
construction, fluctuations in commodity prices, foreign exchange or
interest rates, stock market volatility and obtaining required
approvals of regulatory authorities.
Such forward-looking statements or information are based on a number of
assumptions which may prove to be incorrect. In addition to other
assumptions identified in this news release, assumptions have been made
regarding, among other things, commodity prices, operating conditions,
capital and other expenditures, and project development activities.
Although Provident believes that the expectations reflected in such
forward-looking statements or information are reasonable, undue
reliance should not be placed on forward-looking statements because
Provident can give no assurance that such expectations will prove to be
correct. Forward-looking statements or information are based on current
expectations, estimates and projections that involve a number of risks
and uncertainties which could cause actual results to differ materially
from those anticipated by Provident and described in the
forward-looking statements or information.
The forward-looking statements or information contained in this news
release are made as of the date hereof and Provident undertakes no
obligation to update publicly or revise any forward-looking statements
or information, whether as a result of new information, future events
or otherwise unless so required by applicable securities laws. The
forward-looking statements or information contained in this news
release are expressly qualified by this cautionary statement.
SOURCE Provident Energy Ltd.
For further information:
| Investor and Media Contact: || || || |
| Investor Relations |
Director Finance & Investor Relations
Investor Relations & Communications Analyst
Phone (403) 231-6710
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| Corporate Head Office: |
2100, 250 -2nd Street SW
Calgary, Alberta T2P 0C1
Phone: (403) 296-2233
Toll Free: 1-800-587-6299
Fax: (403) 264-5820