CALGARY, Mar 16, 2009 (Canada NewsWire via COMTEX) -- Pembina Pipeline Income Fund ("Pembina" or the "Fund") announces the March 2009 cash distribution to Unitholders of 13 cents per Trust Unit, to be paid April 15, 2009 to Unitholders of record on March 31, 2009.
Pembina's strong record of achievement and established reputation of delivering stable and reliable distributions to Unitholders is supported by premium energy infrastructure assets, diversified services, strategic expansions and additions, prudent financial management, and strong stakeholder relationships.
The Fund recently released record financial results for 2008. These strong results attest to the successful execution of Pembina's business plan and are indicative of the strength of the Fund. Pembina's proven business strategy and premium assets, together with well developed growth initiatives, such as the estimated $400 million Nipisi and Mitsue Pipeline projects, are expected to continue to produce solid, sustainable results. Based on internal projections and certain assumptions, Pembina projects that these solid, sustainable results will support the Fund's commitment to sustain its current distribution objective of $1.56 per Trust Unit annually over the next five years (in the form of a dividend after planned corporate conversion, which is expected to occur prior to January 1, 2011) (see "Forward-Looking Statements and Information" below).
A component of the Fund's cash distributions is taxable in the hands of the Unitholder, with the remaining portion a return of capital, unless held in a tax-deferred account. Pembina estimates 75 percent of the 2009 distributions will be taxable and 25 percent will be a return of capital for Canadian tax purposes. Pembina's distributions are subject to current domestic tax laws which require a withholding tax from distribution income to nonresidents of Canada. Pembina's 2008 tax information for Canadian and US investors is available at www.pembina.com under the heading "Investors" and at www.cds.ca.
Pembina's audited consolidated financial statements and accompanying management's discussion and analysis, which provide a detailed explanation of Pembina's results for the year ended December 31, 2008, have been filed on Pembina's SEDAR profile at www.sedar.com and are posted on Pembina's website at www.pembina.com.
For eligible investors, the Fund offers a Premium Distribution, Distribution Reinvestment and Optional Unit Purchase Plan ("DRIP"), which provides Unitholders with a convenient and economical way to maximize their investment in Pembina. Further details and enrollment forms for the DRIP are available on Pembina's website at www.pembina.com under the heading "Investors".
Pembina Pipeline Income Fund (TSX: PIF.UN, 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 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", "proposes", "anticipates", "targets", "believes", "strives", "intends", "views", "indicates", "estimates", "assumes", "continues", "maintains", "endeavors", "designs", "objective", "potential", "analysis", "conditions" "schedule", and similar expressions.
In particular, this document contains forward-looking statements, including certain financial outlook, regarding (i) the possible conversion of Pembina to a corporate form prior to January 1, 2011 and the ability of Pembina to maintain its current level of cash distributions to its equity holders both prior to and for the foreseeable future after conversion (in the form of dividends after conversion); and (ii) the proposed construction of the Nipisi and Mitsue Pipelines and related facilities. These forward-looking statements are being made by Pembina based on certain assumptions that Pembina has made in respect thereof as at the date of this document. These assumptions include, in respect of the possible corporate conversion of Pembina and future cash distributions or dividends to equity holders, that Pembina's internal cash flow and tax projections are correct; that Pembina can obtain all necessary approvals in respect of the corporate conversion; that favourable growth parameters continue to exist in respect of current and future projects of Pembina (including in respect of the ability to finance such projects on favourable terms); that there will be no changes to current tax laws governing the taxation of specified investment flow-through ("SIFT") entities and the treatment of distributions from such entities; that the draft legislation related to the conversion of SIFT entities into corporations, as introduced on July 14, 2008, will be enacted in the form proposed; and the continued sustainable results of all three of Pembina's business segments. In respect of the forward-looking statements made in relation to the Nipisi and Mitsue Pipelines and related facilities, Pembina has assumed that future tolls in respect of such pipelines will be consistent with internal projections; that counterparties will comply with contracts in a timely manner; that there are no unforeseen events preventing the performance of contracts by Pembina; that Pembina is able to obtain financing on favourable terms in respect of the costs associated with the Nipisi and Mitsue Pipelines and related facilities; that there are no unforeseen construction costs related to the Nipisi and Mitsue Pipelines and related facilities; that Pembina can obtain all required regulatory approvals in respect of the Nipisi and Mitsue Pipelines and related facilities; and that there are no unforeseen material costs relating to the pipeline systems which are not recoverable from shippers.
Further, this document contains forward-looking statements and information with respect to: ongoing utilization and 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 in proximity to Pembina's pipelines and other assets (which could be affected by, among other things, possible changes to applicable royalty and tax regimes); the amount of future liabilities related to environmental incidents; the availability of coverage under Pembina's insurance policies (including in respect of Pembina's business interruption insurance policy); future acquisitions, growth and growth potential in Pembina's conventional pipelines, oil sands & heavy oil infrastructure and midstream & marketing operations, potential revenue and cash flow enhancement; future cash flows; maintenance of operating margins; additional throughput potential on additional connections and other initiatives on the conventional system; expected project start-up and construction dates; future distributions, payout ratios and taxation of distributions; future financing capability and sources; negative credit rating adjustments; and the expansion of midstream services.
These forward-looking statements and information 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 and inability to obtain required regulatory approvals (including in respect of the Nipisi and Mitsue pipelines and related facilities); 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 (or to raise capital on favourable terms) to complete future projects and satisfy future commitments, including the construction of the Nipisi and Mitsue Pipelines and related facilities; construction costs of the Nipisi and Mitsue Pipelines and related facilities, 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, 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. Management of the Fund approved the financial outlook contained herein as of the date of this press release. The purpose of the financial outlook contained herein is to give the reader an indication of the potential effects to Unitholders of a possible conversion of Pembina to corporate form. Readers should be aware that the information contained in the financial outlook contained herein may not be appropriate for other purposes.
%SEDAR: 00008906E
SOURCE: Pembina Pipeline Income Fund
Glenys Hermanutz, Vice President, Corporate Affairs, Pembina Pipeline Corporation,
(403) 231-7500, 1-888-428-3222, e-mail: investor-relations@pembina.com
