Pembina Increases Distribution Rate For Second Time In 2006
CALGARY, Jul 26, 2006 (Canada NewsWire via COMTEX News Network) -- Pembina Pipeline Income Fund ("Pembina" TSX:PIF.UN) is pleased to announce an increase to its monthly distribution rate to 10 cents per Trust Unit, or $1.20 per Trust Unit on an annualized basis. This represents a 5 percent increase from the previous monthly rate of 9.5 cents per Trust Unit, or $1.14 per Trust Unit annually, and a cumulative 14 percent increase in 2006 from the $1.05 per Trust Unit paid annually in the preceding five years. The ongoing expansion, development and solid performance across Pembina's premium energy infrastructure asset base has generated the strong results which have enabled the increase.
Pembina's conventional asset base continues to benefit from the rapid pace of oil and natural gas development in many of its traditional service areas, including associated growth in Pembina's midstream services offering. Similarly, Pembina's oil sands unit continues to expand its operating footprint in response to increasing demand for transportation service by both existing and new customers in a region that has become a focal point of energy industry capital spending in western Canada in recent years.
Robert Michaleski, Pembina's President and Chief Executive Officer, commented, "I take pride in Pembina once again demonstrating its ability to successfully execute its business plan and deliver on its commitment to Unitholders. The 14 percent cumulative increase over the 2005 distribution rate reflects the realization of the accretion potential embedded in the numerous initiatives that we have disclosed and developed over the past several years. The potential exists for further positive consideration of the distribution rate as a result of anticipated organic growth in our conventional pipelines and expansion of our oil sands business, together with the continuing development of our midstream services." With a current total enterprise value of approximately $2.5 billion and roughly $1.5 billion in previously disclosed planned and proposed capital spending in the coming three years, Pembina is poised to capture future growth opportunities and to further expand its presence in the western Canadian energy infrastructure sector.
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; and planned and proposed capital spending. 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, forecast 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, Manager, Corporate Development, Pembina Pipeline Corporation, (403) 231-7500, 1-888-428-3222, e-mail: [email protected]