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Veresen Announces 2013 First Quarter Results and Updates Guidance


Veresen Announces 2013 First Quarter Results and Updates Guidance

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./

CALGARY, May 8, 2013 /CNW/ - Veresen Inc. ("Veresen" or the "Company") (TSX: VSN) announced today its financial and operating results for the three months ended March 31, 2013.

First quarter highlights include:


    --  Distributable cash(1) of $54.6 million or $0.27 per Common
        Share.
    --  Net income attributable to Common Shares of $1.2 million or
        $0.01 per Common Share.
    --  Cash from operating activities of $37.4 million.
    --  Solid financial results from Veresen's recent Canadian
        midstream and power growth initiatives.
    --  Natural gas liquids (NGL) market conditions continued to be
        under pressure, resulting in lower earnings and cash flows from
        Veresen's U.S. midstream business.

"Growth in our fee-for-service business has increased cash flows and has 
offset the impact of continued weak NGL market conditions," said Don Althoff, 
President and CEO. "Growth in predictable cash flow generating assets 
continues to be our priority."

__________________________________
(1) This is not a standard measure under GAAP and may not be comparable to 
similar measures used by other entities. See the reconciliation of 
distributable cash to cash from operating activities in the tables attached to 
this news release.

Three months ended FINANCIAL HIGHLIGHTS March 31

($ Millions, except per Common 2012((1)) Share amounts) 2013

Net income (loss) before tax and non-controlling interest

Pipeline 24.8 24.1

Midstream 11.4 12.8

Power 1.0 2.8

Veresen - Corporate (26.9) (24.0)


                                                       10.3        15.7

Tax expense                                           (6.9)       (6.1)

Net income attributable to                                -       (0.1)
non-controlling interest

Net income                                              3.4         9.5

Preferred Share dividends                             (2.2)           -

Net income attributable to                                   

  Common Shares                                         1.2         9.5

  Per Common Share ($)                                 0.01        0.05

(1)   Comparative figures for the three months ended March 31, 2012
      have been
      revised. See Veresen's March 31, 2013 consolidated financial
      statements.
       

Financial Performance

For the first quarter of 2013, Veresen generated net income attributable to 
Common Shares of $1.2 million or $0.01 per Common Share compared to $9.5 
million or $0.05 per Common Share for the same period in 2012. Earnings from 
Veresen's operating business segments were generally consistent quarter over 
quarter, while corporate costs increased in comparison to the same period last 
year.

First quarter Midstream earnings decreased slightly compared to the same 
period last year, as earnings from the Hythe/Steeprock complex, a stable, 
fee-for-service asset, substantially offset reduced earnings from Aux Sable's 
margin-based business. The continued oversupply of ethane and high levels of 
propane inventory in Aux Sable's market region, and a 40% increase in natural 
gas prices in the US Gulf Coast resulted in lower realized NGL fractionation 
margins from the Aux Sable midstream business. Aux Sable reinjected ethane for 
a significant period in the first quarter of 2013.

York Energy Centre and Grand Valley wind farm, commissioned in May and March 
2012, respectively, made solid contributions to earnings from Veresen's Power 
business, although the effect of these increases were offset by a lower 
unrealized fair value gain recorded in the first quarter compared to the same 
period last year.

First quarter results also reflect higher corporate administrative costs 
incurred to support Veresen's growth activities, higher project development 
expenditures, and higher interest expense related to debt incurred to finance 
the Hythe/Steeprock acquisition.

In the first quarter of 2013, Veresen revised an accounting practice related 
to Alliance's rate regulated operations, which has no impact on Veresen's cash 
flows for any period, nor is it reflective of any change in the underlying 
financial or operating condition of the Company.

The Company's interpretation of the relevant accounting standard was 
researched in 1999, agreed upon with the Company's auditors, and has been 
applied consistently since then. The Company was recently advised by PWC LLP 
that, in their view, its interpretation was no longer appropriate. As such, 
the Company has revised its previously reported financial results. The details 
of this revision are presented in Veresen's first quarter 2013 consolidated 
financial statements.

Distributable Cash
                                                                  
                                                     Three months ended
                                                               March 31

($ Millions, except per Common                            2013     2012
Share amounts)

Pipeline                                                  38.5     36.6

Midstream                                                 27.2     22.6

Power                                                      9.8      2.5

Veresen - Corporate                                     (18.5)   (16.2)

Taxes                                                    (0.2)    (2.8)

Preferred Share dividends                                (2.2)    (1.1)

Distributable Cash ((1))                                  54.6     41.6

Per Common Share ($)                                      0.27     0.23

(1) See the reconciliation of
distributable cash to cash from
operating activities in the
tables attached to this news
release.

For the first quarter of 2013, Veresen generated distributable cash of $54.6 
million or $0.27 per Common Share up from $41.6 million or $0.23 per Common 
Share for the same period last year. Distributable cash reflects an additional 
$8.1 million contribution from Hythe/Steeprock, and a $7.3 million increase 
from Veresen's Power business, primarily comprised of contributions from the 
York Energy Centre and the Grand Valley power facilities, and the release of 
operating funds generated by East Windsor Cogeneration previously held in 
reserve. These increases were partially offset by a $3.5 million decrease in 
distributions from Aux Sable, driven by lower fractionation margins; higher 
costs associated with Veresen's growth initiatives, mainly corporate 
administrative and interest costs, and dividends on the Company's Preferred 
Shares issued in February 2012. Taxes were lower than the comparative period 
in 2012 due to lower U.S.-based earnings from Veresen's U.S. midstream 
business.

Overview of Business Segments

Pipelines

Alliance is in active negotiations with existing and prospective shippers with 
respect to proposed new service offerings for contracting of the pipeline 
beyond 2015. Alliance's objective is to sign precedent agreements in 2013, 
after which one or more open seasons will be conducted to determine additional 
shipper interest.

Construction of Alliance's 127-km (79-mile) Tioga Lateral Pipeline and 
associated facilities in North Dakota is proceeding, with commercial 
in-service expected in the third quarter of 2013. Initial design capacity of 
the Tioga Lateral is 106 million cubic feet per day (mmcf/d). Alliance has a 
long-term firm transportation agreement with an anchor shipper for 61.5 mmcf/d 
of capacity. The Tioga Lateral will transport liquids-rich gas from the anchor 
shipper's processing facility to an interconnection point on the Alliance 
pipeline for onward shipment to Aux Sable's Channahon facility.

Midstream

During the first quarter, Veresen continued detailed planning for the 
scheduled major turnaround at the Hythe plant in late May 2013. Portions of 
the facility are expected to be out of service for up to 16 days. During the 
plant turnaround, Veresen will implement key tie-ins for a debottleneck at the 
Hythe plant which will eliminate the need for facility down-time if, and when, 
expansion projects are undertaken. As operator, Veresen's objective is to plan 
and execute the turnaround in a manner that ensures the safety of all 
stakeholders and mitigates risks and additional costs associated with extended 
facility down-time. The majority of the costs associated with the turnaround 
will be recoverable under Veresen's Midstream Services Agreement.

Aux Sable continues to work with producers within an economic radius of the 
Alliance pipeline to provide options and value for natural gas and NGLs to 
reach large and liquid U.S. markets. Aux Sable holds a number of rich gas 
premium ("RGP") agreements with producers that will enhance the value of the 
producers' NGLs. In the first quarter of 2013, Aux Sable executed additional 
RGP agreements with Canadian producers which are expected to result in 
increased volumes of liquids-rich natural gas for processing and fractionation 
at Aux Sable's Channahon facility beyond 2015.

Power

Veresen is advancing a number of contracted construction and development 
projects within its renewable power business. The Company is constructing the 
Dasque-Middle run-of-river hydro facility located in northwest British 
Columbia. This project has experienced delays due to challenges in progressing 
the civil works and commercial in-service has now moved into 2014. The 13-MW 
Whitecourt waste heat facility, currently being constructed by NRGreen (50% 
owned by Veresen), is proceeding as planned and is expected to be placed into 
service in the third quarter of 2013.

Veresen has a number of renewable power projects currently under development 
including Grand Valley III, St. Columban I and II and Culliton Creek. Upon 
receipt of the respective regulatory approvals, anticipated in 2013, Veresen 
will make final investment decisions regarding each development project.

LNG Development Project

Veresen has advanced engineering and permitting activities to allow the export 
of liquefied natural gas from Coos Bay, Oregon through the development of the 
Jordan Cove Energy Project and the Pacific Connector Gas Pipeline. Jordan Cove 
and Pacific Connector each initiated the Federal Energy Regulatory 
Commission's ("FERC") pre-filing process under the National Environmental 
Policy Act, which will lead to completion and submission of formal FERC 
applications later this month. Veresen continues to engage in discussions with 
potential strategic partners to secure a long-term arrangement to produce LNG 
for international customers.

2013 Guidance Update

While ethane and propane inventories in Aux Sable's market region appear to be 
levelling off, the Company does not anticipate a meaningful change in prices 
for the remainder of 2013. As a result, Veresen has narrowed its 2013 
distributable cash guidance range to $0.97 to $1.15 per Common Share, from the 
previous range of $0.92 to $1.19 per Common Share. The midpoint remains at 
$1.06 per Common Share. Further details concerning 2013 guidance can be found 
in the "Invest" section of Veresen's web site at www.vereseninc.com.

Conference Call and Webcast

Veresen will host a conference call and webcast on May 9 at 7:00 am MT (9:00 
am ET) to discuss its results.

Dial-in: 1 (888) 231-8191 or 1 (647) 427-7450 Conference ID 50463846

The link to the conference call webcast is available on Veresen's website by 
selecting "Invest" and then "Events & Presentations".

A replay of the call will be available at approximately 10:00 am MT (12 pm ET) 
on May 9, 2013 by dialing 1-855-859-2056 and 1-416-849-0833. The access code 
is 50463846, followed by the pound sign. The replay will expire at midnight 
(ET) on May 16, 2013.

MD&A, Financial Statements and Notes

Management's Discussion and Analysis ("MD&A") and consolidated financial 
statements provide a detailed explanation of Veresen's financial results for 
the first quarter ended March 31, 2013 compared to the first quarter ended 
March 31, 2012 and should be read in conjunction with this news release. These 
documents are available at www.vereseninc.com and at www.sedar.com.

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.

Forward-Looking Information

Certain information contained herein relating to, but not limited to, Veresen 
and its businesses constitutes forward-looking information under applicable 
securities laws. All statements, other than statements of historical fact, 
which address activities, events or developments that Veresen expects or 
anticipates may or will occur in the future, are forward-looking 
information.  Forward-looking information typically contains statements with 
words such as "may", "estimate", "anticipate", "believe", "expect", "plan", 
"intend", "target", "project", "forecast" or similar words suggesting future 
outcomes or outlook.  Forward-looking statements in this news release 
include, but are not limited to, statements with respect to: the ability of 
Alliance to implement new service offerings; the timing of completion of 
construction and start-up of the Dasque-Middle hydro project, the Tioga 
Lateral Pipeline and the Whitecourt waste heat facility; Veresen's ability to 
realize its growth objectives; the availability of financing for current 
capital projects and new investment opportunities; the timing of regulatory 
approvals for Grand Valley III and St. Columban I and II; and the ability of 
each of its businesses to generate distributable cash in 2013.  The risks and 
uncertainties that may affect the operations, performance, development and 
results of Veresen's businesses include, but are not limited to, the following 
factors: the ability of Veresen to successfully implement its strategic 
initiatives and achieve expected benefits; levels of oil and gas exploration 
and development activity; the status, credit risk and continued existence of 
contracted customers; the availability and price of capital; the availability 
and price of energy commodities; the availability of construction services and 
materials; fluctuations in foreign exchange and interest rates; Veresen's 
ability to successfully obtain regulatory approvals; changes in tax, 
regulatory, environmental, and other laws and regulations; competitive factors 
in the pipeline, midstream and power  industries; operational breakdowns, 
failures, or other disruptions; and the prevailing economic conditions in 
North America.  Additional information on these and other risks, 
uncertainties and factors that could affect Veresen's operations or financial 
results are included in its filings with the securities commissions or similar 
authorities in each of the provinces of Canada, as may be updated from time to 
time.  Readers are also cautioned that the foregoing list of factors and 
risks is not exhaustive.  The impact of any one risk, uncertainty or factor 
on a particular forward-looking statement is not determinable with certainty 
as these factors are independent and management's future course of action 
would depend on its assessment of all information at that time.  Although 
Veresen believes that the expectations conveyed by the forward-looking 
information are reasonable based on information available on the date of 
preparation, no assurances can be given as to future results, levels of 
activity and achievements.  Undue reliance should not be placed on the 
information contained herein, as actual result achieved will vary from the 
information provided herein and the variations may be material.  Veresen 
makes no representation that actual results achieved will be the same in whole 
or in part as those set out in the forward-looking information.  Furthermore, 
the forward-looking statements contained herein are made as of the date 
hereof, and Veresen does not undertake any obligation to update publicly or to 
revise any forward-looking information, whether as a result of new 
information, future events or otherwise. Any forward-looking information 
contained herein is expressly qualified by this cautionary statement.

Certain financial information contained in this news release may not be 
standard measures under Generally Accepted Accounting Principles ("GAAP") in 
the United States and may not be comparable to similar measures presented by 
other entities.  These measures are considered to be important measures used 
by the investment community and should be used to supplement other performance 
measures prepared in accordance with GAAP in the United States.   For 
further information on non-GAAP financial measures used by Veresen see 
Management's Discussion and Analysis, in particular, the section entitled 
"Non-GAAP Financial Measures" contained in the annual Management Discussion 
and Analysis, filed by Veresen with Canadian securities regulators.

Veresen Inc.                                                           
                                                                       

Consolidated Statement of
Financial Position                                                     
                                                                       

 (Canadian $ Millions; number
of shares in Millions;
unaudited)                     March 31, 2013   December 31, 2012 ((1))
                                                                       

Assets                                                                 
                                                                       

Current assets                                                         

  Cash and short-term
investments                              22.3                      16.1

  Restricted cash                         4.4                       5.8

  Distributions receivable               39.7                      39.9

  Receivables                            70.7                      72.6

  Other                                  14.1                      11.5
                                        151.2                     145.9
                                                                       

Investments in
jointly-controlled businesses           821.5                     807.0

Rate-regulated asset                     40.9                      43.8

Pipeline, plant and other
capital assets                        1,439.7                   1,443.8

Intangible assets                       449.0                     455.0

Other assets                             64.6                      65.5
                                      2,966.9                   2,961.0
                                                                       

Liabilities                                                            

Current liabilities                                                    

  Payables                               50.7                      63.4

  Dividends payable                      12.9                      12.9

  Current portion of long-term
senior debt                              11.9                      11.7
                                         75.5                      88.0
                                                                       

Long-term senior debt                 1,289.5                   1,247.6

Subordinated convertible
debentures                               86.2                      86.2

Deferred taxes                          268.4                     262.0

Other long-term liabilities              44.6                      46.2
                                      1,764.2                   1,730.0
                                                                       

Shareholders' Equity                                                   

Share capital                                                          

  Preferred shares                      195.2                     195.2

  Common shares (198.7 and
197.8 outstanding at March 31,
2013 and

December 31, 2012, respectively) 1,815.1 1,804.3

Additional paid-in capital 4.3 4.3

Cumulative other comprehensive loss (155.5) (164.8)

Accumulated deficit (656.5) (608.1)


                                      1,202.6                   1,230.9

Non-controlling interest                  0.1                       0.1
                                      1,202.7                   1,231.0
                                      2,966.9                   2,961.0

(1) Comparative figures as at December 31, 2012 have been revised. See
    Veresen's March 31, 2013
    consolidated financial statements.
           
                                                    

Veresen Inc.                                                           
                                                                       

Consolidated Statement of Income                                       
                                            Three months ended March 31

 (Canadian $ Millions, except per Common
Share amounts; unaudited)                     2013           2012 ((1))
                                                                       

Equity income                                 28.4                 35.5

Operating revenues                            71.6                 55.0

Operations and maintenance                  (31.7)               (26.3)

General, administrative and project
development                                 (20.6)               (18.5)

Depreciation and amortization               (22.4)               (16.5)

Interest and other finance                  (15.5)               (13.0)

Foreign exchange and other                     0.5                (0.5)

Net income before taxes and non-controlling
interest                                      10.3                 15.7

Current taxes                                (1.0)                (2.8)

Deferred taxes                               (5.9)                (3.3)

Net income before non-controlling interest     3.4                  9.6

Non-controlling interest                         -                (0.1)

Net income                                     3.4                  9.5

Preferred Share dividends                    (2.2)                    -

Net income attributable to Common Shares       1.2                  9.5
                                                                       

Net income per Common Share                                            

  Basic and diluted                           0.01                 0.05


(1) Comparative figures for the three
    months ended March 31, 2012 have been
    revised. See Veresen's March 31, 2013
    consolidated financial statements.
                                                    
                                                   

Consolidated Statement of                  
Comprehensive Income                                                   
                                                   
                                            Three months ended March 31

 (Canadian $ Millions;                     
unaudited)                                   2013            2012 ((1))
                                                                       

Net income before non-controlling          
interest                                      3.4                   9.6

Other comprehensive income (loss)                                      

  Cumulative translation                   
  adjustment                                                           
    Unrealized foreign exchange            
    gain (loss) on translation                9.3                 (2.8)

Other comprehensive income (loss)             9.3                 (2.8)

Comprehensive income before                
non-controlling interest                     12.7                   6.8

Comprehensive income attributable          
to non-controlling interest                     -                 (0.1)

Comprehensive income                         12.7                   6.7

Preferred Share dividends                   (2.2)                     -

Comprehensive income attributable          
to Common Shares                             10.5                   6.7

(1) Comparative figures for the three months ended March 31, 2012 have
    been revised. See Veresen's
    March 31, 2013 consolidated financial statements.
     

 
                                             

Veresen Inc.                                                           
                                                                       

Consolidated Statement of Cash             
Flows                                                                  
                                            Three months ended March 31

(Canadian $ Millions; unaudited)              2013           2012 ((1))
                                                                       

Operating                                                              

  Net income before                        
  non-controlling interest                     3.4                  9.6

  Equity income                             (28.4)               (35.5)

  Distributions from                       
  jointly-controlled businesses               46.5                 54.7

  Depreciation and amortization               22.4                 16.5

  Foreign exchange and other               
  non-cash items                             (1.4)                (2.5)

  Deferred taxes                               5.9                  3.3

  Changes in non-cash working              
  capital                                   (11.0)               (16.7)
                                              37.4                 29.4

Investing                                                              

  Acquisitions, net of cash                
  acquired                                       -              (881.2)

  Investments in                           
  jointly-controlled businesses             (22.4)               (15.9)

  Pipeline, plant and other                
  capital assets                             (9.1)               (17.0)

  Restricted cash                            (2.5)                  0.4

  Other                                          -                (0.2)
                                            (34.0)              (913.9)

Financing                                                              

  Restricted cash                              3.9                347.1

  Short-term debt issued, net of           
  issue costs                                    -                249.1

  Short-term debt repaid                         -              (250.0)

  Long-term debt issued, net of            
  issue costs                                    -                347.8

  Long-term debt repaid                      (2.0)                (2.1)

  Net change in credit facilities             44.0                 81.0

  Preferred Shares issued, net of          
  issue costs                                    -                193.7

  Common Share dividends paid               (38.8)                (9.1)

  Preferred Share dividends paid             (2.2)                    -

  Repayments from (advances to)            
  jointly-controlled businesses                0.3               (21.5)

  Other                                      (2.5)                (2.6)
                                               2.7                933.4
                                                                       

Increase in cash and short-term            
investments                                    6.1                 48.9

Effect of foreign exchange rate
changes on cash and short-term             
investments                                    0.1                    -

Cash and short-term investments            
at the beginning of the period                16.1                 21.9

Cash and short-term investments            
at the end of the period                      22.3                 70.8

(1) Comparative figures for the three months ended March 31, 2012 have
    been revised. See Veresen's March 31,
    2013 consolidated financial statements.

 
                                             

Veresen Inc.                                                           
                                                                       

Distributable Cash                                                     
                                            Three months ended March 31

(Canadian $ Millions, except               
where noted; unaudited)                       2013                 2012
                                                                       

Alliance distributions, prior to
withholdings for capital                   
expenditures and net of debt
service                                       33.9                 32.6

AEGS distributable cash, after
non-recoverable capital                    
expenditures and debt service                  4.6                  4.0

Hythe/Steeprock distributable
cash, after non-recoverable                
maintenance capital expenditures              17.6                  9.5

Aux Sable distributions, net of
support payments, non-recoverable          
maintenance capital expenditures
and debt service                               9.6                 13.1

Power distributable cash, after
maintenance capital expenditures           
and debt service                               9.8                  2.5
                                              75.5                 61.7

Corporate                                                              

  General and administrative                 (8.5)                (8.1)

  Interest and other finance                (10.0)                (8.1)
                                            (18.5)               (16.2)

  Taxes                                      (0.2)                (2.8)

  Preferred Share dividends                  (2.2)                (1.1)
                                            (20.9)               (20.1)
                                                                       

Distributable cash  ((2))                     54.6                 41.6
                                                                       

Distributable cash per Common              
Share ($) ((3))                               0.27                 0.23
                                                                       

Dividends paid/payable( (4))                  49.6                 46.1
                                                                       

Dividends paid/payable per Common          
Share ($)                                     0.25                 0.25

(2)   Distributable cash is not a standard measure under generally
      accepted accounting principles in the United States and may not
      be
      comparable to similar measures presented by other entities.
      Distributable cash represents the cash available to Veresen for
      distribution to common shareholders after providing for debt
      service obligations, Preferred Share dividends, and any
      maintenance
      and sustaining capital expenditures. Distributable cash does not
      include distribution reserves, if any, available in
      jointly-controlled
      businesses, project development costs, or transaction costs
      incurred in conjunction with acquisitions. Project development
      costs
      are discretionary, non-recoverable costs incurred to assess the
      commercial viability of greenfield business initiatives unrelated
      to
      the Company's operating businesses. The Company considers
      transaction costs to be part of the consideration paid for an
      acquired business and, as such, are unrelated to the Company's
      operating businesses. Distributable cash is an important measure
      used by the investment community to assess the source and
      sustainability of Veresen's cash distributions and should be used
      to
      supplement other performance measures prepared in accordance with
      generally accepted accounting principles in the United States.
      See the following table for the reconciliation of distributable
      cash to cash from operating activities.

(3)   The number of Common Shares used to calculate distributable cash
      per Common Share is based on the average number of
      Common Shares outstanding at each record date.  For the three
      months ended March 31, 2013 the average number of Common
      Shares outstanding for this calculation was 198,405,736 (2012 -
      184,656,102) and 204,312,244 (2012 - 190,562,838) on a basic
      and diluted basis, respectively. The number of Common Shares
      outstanding would increase by 5,906,508 (2012 - 5,906,508)
      Common Shares if the outstanding Convertible Debentures on March
      31, 2013 were converted into Common Shares.

(4)   Includes $10.8 million of dividends for the three months ended
      March 31, 2013 (2012 - $37.1 million) satisfied through the
      issuance of Common Shares under the Company's Premium Dividend
      (TM) and Dividend Reinvestment Plan (trademark of
      Canaccord Genuity Corp.).
       
                                                     
                                                     

Veresen Inc.                                                           
                                                                       

Reconciliation of Distributable Cash to Cash from Operating Activities
             
                                           
                                            Three months ended March 31

(Canadian $ Millions; unaudited)             2013                  2012
                                                                       

Cash from operating activities               37.4                  29.4

Add (deduct):                                                          

  Project development costs ((5))             6.7                   5.6

  Change in non-cash working               
  capital                                    12.8                  18.4

  Principal repayments on senior           
  notes                                     (2.8)                 (2.1)

  Maintenance capital                      
  expenditures                              (2.0)                 (0.9)

  Distributions earned greater
  (less) than distributions                
  received ((6))                              3.9                 (8.8)

  Preferred Share dividends                 (2.2)                     -

  Current tax on Preferred Share           
  dividends                                   0.8                     -
                                                                       

Distributable cash                           54.6                  41.6

(5)   Represents costs incurred by the Company in relation to projects
      where the recoverability of such costs has not yet been
      established.  Amounts incurred for the three months ended March
      31, 2013 relate primarily to the Jordan Cove LNG
      terminal project, the Pacific Connector Gas Pipeline project, and
      various power development projects.

(6)   Represents the difference between distributions declared by
      jointly-controlled businesses and distributions received.

 

 

 

 

 

 

 

 

 

 

Dorreen Miller, Director, Investor Relations Phone: (403) 213-3633 
Email: investor-relations@vereseninc.com

SOURCE: Veresen Inc.

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CO: Veresen Inc.
ST: Alberta
NI: OIL ERN CONF 

-0- May/08/2013 20:22 GMT

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