Veresen Announces 2013 Guidance and Common Share Dividend for December 2012
Dec 7, 2012
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CALGARY, Dec. 7, 2012 /CNW/ - Veresen Inc. ("Veresen" or "the Company") (TSX: VSN) today announced guidance for 2013 and declared a cash dividend for December 2012.
Veresen is forecasting distributable cash in the range of $0.92 to $1.19 per Common Share for 2013. Based on a forecast aggregate dividend payout of $1.00 per Share for 2013, the corresponding range of the payout ratio will be 84 percent to 109 percent.
"Our 2013 guidance reflects continued growth and stability in each of our businesses on a per Share basis, with the exception of our Aux Sable midstream business. The variability in our guidance range is primarily attributed to Aux Sable's margin-based activities. The low end of our range reflects a conservative view of NGL margins, which could result from weaker ethane and propane markets in 2013," said Don Althoff, President and CEO of Veresen.
"Over the long term, we believe the fundamentals of the NGL markets remain strong as a result of growth in petrochemical demand and export capability. Aux Sable is a world-class, strategically-located facility with a competitive advantage to deliver NGLs into premium North American markets."
Veresen is well-positioned with a strong balance sheet and a diverse portfolio of assets, including its pipeline, power and independent midstream businesses that will continue to generate steady earnings and cash flow to support the Company's dividend.
For 2012, Veresen maintains its previously announced guidance for distributable cash of $1.03 to $1.12 per Common Share. Further details concerning 2012 and 2013 guidance can be found in the Investor Information section of Veresen's website at www.vereseninc.com.
December Cash Dividend
The Board of Directors of Veresen declared a cash dividend of $0.0833 per common share. The dividend will be paid on January 23, 2012 to shareholders of record at the close of business on December 31, 2012. This dividend is designated an "eligible dividend" for Canadian income tax purposes.
The dividend is eligible to be reinvested by shareholders, at a 5% discount, in common shares of Veresen under the dividend reinvestment component of the Premium Dividend and Dividend Reinvestment Plan of Veresen ("Plan") to be held for their account under the Plan. No portion of this dividend will be eligible for a premium cash payment under the Premium Dividend component of the Plan.
Registered shareholders of Veresen who have not previously enrolled in the Plan and wish to enroll in the Plan with respect to the December 2012 cash dividend and future cash dividends declared by Veresen, must deliver to Computershare Trust Company of Canada, as Plan Agent, a completed enrollment form which is available at www.computershare.com/investorcentrecanada, at or before 5:00 pm (ET) on Thursday, December 20, 2012. A copy of the enrollment form may also be obtained by calling Computershare Trust Company of Canada at 1-800-564-6253, or from Veresen's website at www.vereseninc.com.
Beneficial shareholders of Veresen who have not previously enrolled in the Plan and wish to participate in the Plan with respect to the December 2012 cash dividend and future cash dividends declared by Veresen, should contact their broker, investment dealer, financial institution or other nominee to provide appropriate enrollment instructions and to ensure any deadlines or other requirements that such nominee may impose or be subject to are met.
About Veresen Inc.
Veresen is a publicly-traded dividend paying corporation based in Calgary, Alberta, that owns and operates energy infrastructure assets across North America. Veresen 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; a midstream business which includes ownership interests in a world-class natural gas liquids extraction facility near Chicago, the Hythe/Steeprock gas gathering and processing complex, and other natural gas and NGL processing energy infrastructure; and a power business with renewable and gas-fired facilities and development projects in Canada and the United States, and district energy systems in Ontario and Prince Edward Island. Veresen and each of its pipeline, midstream and power businesses are also actively developing a number of greenfield projects. In the normal course of its business, Veresen and each of its businesses regularly evaluate and pursue acquisition and development opportunities.
Veresen's common shares, Series A preferred shares, and 5.75% convertible unsecured subordinated debentures, Series C due July 31, 2017 are listed on the Toronto Stock Exchange under the symbols "VSN", "VSN.PR.A" and VSN.DB.C", respectively. For further information, please visit www.vereseninc.com.
SOURCE: Veresen Inc.