Veresen Announces 2013 Guidance and Common Share Dividend for December 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
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
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
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
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.
Dorreen Miller, Director Investor Relations Phone: (403) 213-3633
SOURCE: Veresen Inc.
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-0- Dec/07/2012 21:30 GMT
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