Pembina Increases 2007 Distribution Rate By 10 Percent
CALGARY, Nov. 30, 2006 (Canada NewsWire via COMTEX News Network) -- Pembina Pipeline Income Fund (TSX: PIF-UN) is pleased to announce that it today received the approval of its Board of Directors to increase its monthly distribution rate to 11 cents per Trust Unit, or $1.32 on an annualized basis, effective with the January 2007 distribution. This represents a 10 percent increase over the current monthly distribution rate of 10 cents per Trust Unit, or $1.20 annualized, and marks the third distribution rate increase announced over the past twelve months. The solid operating and financial performance of Pembina's premium energy infrastructure asset base, combined with ongoing development and expansion across Pembina's three business units, have enabled the increase.
This increase in distribution rate, which will become effective with the distribution payable to Unitholders of record on January 31, 2007, reflects management's ongoing confidence in the solid fundamentals and strong organic growth profile of its business interests. Pembina's conventional pipeline business continues to benefit from the rapid pace of oil and natural gas industry development in many of its service areas and from the associated growth in the midstream services offering. Significant expansion of Pembina's operating footprint in the rapidly developing oil sands sector is ongoing, with the mechanical completion of the $42 million Cheecham Lateral earlier this month and the initiation of construction activities on the $338 million Horizon Pipeline, scheduled for completion in mid-2008.
The distribution increase also signals Pembina's commitment to its business model and long-term plans in relation to the recently announced "Tax Fairness Plan for Canadians" which outlined the Canadian government's proposed income trust tax measures to become effective in 2011. Pembina will consider strategies and various alternatives to respond to these changes and will closely monitor further developments in this regard.
Pembina Pipeline Income Fund (TSX: PIF.UN, PIF.DB.A, PIF.DB.B) is among the leading issuers in the Canadian energy infrastructure trust sector. Pembina's extensive network of conventional liquids feeder pipelines, and growing presence in the oil sands and midstream sectors, provide an integral service to the western Canadian energy industry. This balanced portfolio of premium, long-life energy infrastructure assets supports the stability and sustainability of the Fund. Information on the Pembina Pipeline Income Fund is available on the Company's website at www.pembina.com.
Forward-Looking Information and Statements
This document contains certain forward-looking statements and information that are based on the Fund's current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In some cases, forward-looking statements and information can be identified by terminology such as "may", "will", "should", "expects", "projects", "plans", "proposed", "anticipates", "targets", "believes", "estimates", "continue", " designed", "objective", "potential" and similar expressions. In particular, this document contains forward-looking statements and information with respect to: future expansion, development, growth and performance of the Fund's business and asset base; future demand for oil sands transportation services; future levels of oil and natural gas development; the accretion potential of the Fund's business initiatives; future levels, stability and sustainability of cash distributions to Unitholders; planned and proposed capital spending; and tax laws and tax treatment of distributions. These statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties, including but not limited to: the impact of competitive entities and pricing; reliance on key industry partners, alliances and agreements; the strength and operations of the oil and natural gas production industry and related commodity prices; the continuation or completion of third party projects; regulatory environment; tax laws and treatment; fluctuations in operating results, lower than anticipated results of operations and accretion from the Fund's business initiatives; reduced amounts of cash available for distributions to Unitholders; the ability of Pembina to raise sufficient capital to complete future projects and satisfy future commitments; construction delays; labour and material shortages; and certain other risks detailed from time to time in the Fund's public disclosure documents. The Fund believes the expectations and material factors and assumptions reflected in these forward-looking statements and information are reasonable as of the date hereof and based on the current business and operations of the Fund and its customers and industry partners and the current industry conditions, but no assurance can be given that these expectations, factors and assumptions will prove to be correct. Undue reliance should not be placed on these forward-looking statements and information as both known and unknown risks and uncertainties, including those business risks stated above, may cause 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 and information. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted, forecasted or projected. Such forward-looking statements and information are expressly qualified by the above statements. The Fund does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws.
SOURCE: Pembina Pipeline Income Fund
Ms. Glenys Hermanutz, Vice President, Corporate Affairs, Pembina Pipeline Corporation, (403) 231-7500, 1-888-428-3222, e-mail: [email protected]