Veresen Announces 2014 Third Quarter Results and Updates Guidance

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

CALGARY, Nov. 3, 2014 /CNW/ - Veresen Inc. ("Veresen" or the "Company") (TSX: VSN) announced today financial and operating results for the three and nine months ended September 30, 2014.

Highlights

• Veresen generated distributable cash¹ of $54.9 million ($0.25 per Common Share) in the third quarter of 2014 compared to $69.3 million ($0.35 per Common Share) in the third quarter of 2013.
• Veresen recorded net income attributable to Common Shares of $2.5 million ($0.01 per Common Share) in the third quarter of 2014 compared to net income attributable to Common Shares of $27.9 million ($0.14 per Common Share) in the third quarter of 2013.
• Cash from operating activities was $50.4 million in the third quarter of 2014 compared to $44.0 million in the third quarter of 2013.
• In September 2014, Veresen entered into an agreement to acquire a 50% convertible preferred interest in the Ruby pipeline system ("Ruby") for US$1.425 billion.
• Concurrent with the Ruby acquisition, Veresen issued 56.1 million subscription receipts at a price of $16.40 per subscription receipt for gross proceeds of approximately $920 million.
• In response to customer demand, an expansion of the Aux Sable Channahon Facility has been approved, which will allow for approximately 24,500 barrels per day of additional fractionation capacity, above the current nameplate capacity of approximately 107,000 barrels per day.

________________________

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.

"Our third quarter earnings and distributable cash were in line with our expectations and, as expected, the market environment for natural gas liquids margins continued to be challenging," said Don Althoff, President and CEO of Veresen. "Importantly, over the course of 2014, Veresen has advanced a number of projects that begin to build out a robust platform for future growth. The Ruby acquisition is a great example, providing natural gas connectivity from competitive supply regions to high-value markets and, down the road, integrating in Jordan Cove LNG."

Don Althoff added, "Producers recognize that transporting natural gas liquids out of Alberta and the Bakken into the U.S. Midwest represents a compelling alternative, and this view underpins the decision to proceed with an expansion at Aux Sable. Given that the initial focus of our strategy has been to fill the fractionation capacity at the Channahon Facility beyond December 2015, proceeding with this expansion demonstrates that our re-contracting strategy is on track. This expansion is supported by solid project economics and commercial customer support."

Financial Highlights	Three months ended    September 30		Nine months ended September 30
($ Millions, except per Common Share amounts)	2014	2013	2014	2013
Net income (loss) before tax
Pipeline	30.6	27.8	92.1	80.1
Midstream	17.9	33.6	60.5	60.6
Power	2.8	6.2	0.8	16.7
Veresen - Corporate	(43.2)	(29.9)	(112.5)	(83.4)
	8.1	37.7	40.9	74.0
Gain on sale of assets	-	-	14.3	-
Tax expense	(1.5)	(7.6)	(11.5)	(26.8)
Net income	6.6	30.1	43.7	47.2
Preferred Share dividends	(4.1)	(2.2)	(12.3)	(6.6)
Net income attributable to Common Shares	2.5	27.9	31.4	40.6
Per Common Share ($)	0.01	0.14	0.15	0.20

For the three months ended September 30, 2014, Veresen recorded net income attributable to Common Shares of $2.5 million or $0.01 per Common Share compared to net income of $27.9 million or $0.14 per Common Share for the same period last year. Third quarter earnings reflect solid performance from Veresen's pipeline, power and independent midstream business. However, results continued to be negatively impacted by weak natural gas liquids ("NGLs") margins. Third quarter earnings further reflect higher project development spending related to Veresen's efforts to advance Jordan Cove LNG's regulatory, commercial, engineering, procurement and construction ("EPC"), and financing work streams.

Power earnings also reflect the impact of the revaluation of the York Energy Centre interest rate hedge, resulting in a $2.7 million reduction in Power earnings for the three months ended September 30, 2014 compared to the same period last year.

Distributable Cash
	Three months ended September 30		Nine months ended                          September 30
($ Millions, except per Common Share amounts)	2014	2013	2014	2013
Pipeline	40.7	39.9	122.3	116.3
Midstream	27.1	43.4	96.8	94.3
Power	14.8	12.2	39.7	29.1
Veresen - Corporate	(15.9)	(18.1)	(47.9)	(52.4)
Current tax	(7.7)	(5.9)	(14.4)	(7.6)
Preferred Share dividends	(4.1)	(2.2)	(12.3)	(6.6)
Distributable Cash ^(1)	54.9	69.3	184.2	173.1
Per Common Share ($)	0.25	0.35	0.86	0.87

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

For the three months ended September 30, 2014, Veresen generated distributable cash of $54.9 million or $0.25 per Common Share compared to $69.3 million or $0.35 Common Share for the same period in 2013. The decrease in distributable cash primarily reflects lower contributions from Veresen's Aux Sable midstream business.

Overview of Business Segments

Pipelines

Subject to regulatory approval, Alliance pipeline is offering capacity for natural gas transportation commencing December 1, 2015 under a proposed new services framework. This framework includes both fixed and flexible tolling options and responds to current market dynamics and the diverse needs of existing and prospective shippers. The offering also includes full-path and segmented services with a new Canadian trading pool (the Alliance Transfer Pool or "ATP") and a revised hydrocarbon dewpoint specification, which will facilitate the transportation of higher heat content natural gas. The services offer shippers competitive fixed tolls for medium and long-term services, and biddable tolls for interruptible and seasonal service.

In May 2014, Alliance Canada filed an application with Canada's National Energy Board ("NEB") for regulatory approval of the tolls and tariff provisions required to implement its new services. While the NEB process is underway, and is expected to be completed in mid-2015, Alliance has been working with producers to sign Precedent Agreements to secure capacity on its system. Shippers have expressed interest in each of Alliance's firm service offerings - receipt, delivery and full-path.

There is approximately 6 billion cubic feet per day ("bcf/d") of natural gas produced within Alliance's gathering area, with approximately 4 bcf/d of natural gas currently connected to the Alliance's extensive gathering system. Alliance has placed into service several new receipt interconnection facilities that have increased its receipt capacity from developing liquids-rich sources of natural gas in northeast British Columbia and northwest Alberta, and a number of receipt interconnection facilities are also in the planning and design stage. Market fundamentals are driving substantial investment opportunities in North American gathering, processing and pipeline infrastructure, so Alliance is well-positioned for further re-contracting beyond 2015.

Midstream

As part of Aux Sable's strategy to attract liquids-rich natural gas to its Channahon Facility for the period following the expiry of Alliance's current transportation contracts on December 1, 2015, efforts have focused on working with producers developing liquids-rich fields in the Montney and Duvernay which are not yet connected to the Alliance pipeline system. Aux Sable has offered Rich Gas Premium ("RGP") agreements which share NGLs margins with producers.

The RGP agreements allow producers to avoid capital investment and receive NGL value tied to large, liquid U.S. Midwest markets. Aux Sable has executed several RGP agreements to date and, as a result, Aux Sable's ability to extract additional NGLs beyond 2015 at the Channahon Facility is reaching its limit. In response to customer demand, an expansion of the Channahon Facility has been approved which will allow for approximately 24,500 barrels per day of additional fractionation capacity, over and above the current nameplate capacity of 107,000 barrels per day. The Channahon Facility expansion, which will increase propane and butane processing capacity, has an estimated capital cost of US$130 million (gross) and is expected to be completed in mid-2016. Veresen holds an approximate 43% interest in Aux Sable.

With respect to Veresen's wholly-owned Canadian midstream assets, the Company continues to explore significant opportunities to grow its midstream footprint in the Western Canadian Sedimentary Basin. The Company believes the continued development of the Montney and Duvernay resource plays will drive significant additional infrastructure requirements, and Veresen is well-positioned to offer innovative, customer-focused solutions to meet producers' needs.

Power

Construction of the Dasque-Middle run-of-river project in northwest British Columbia is nearing completion, with the facility expected to be in-service in the fourth quarter of 2014. Construction of the 33 MW St. Columban wind project is progressing, with commercial in-service expected in the first half of 2015. The 40 MW Grand Valley III wind project received regulatory approval by Ontario's environmental regulator on October 15, 2014; however, the Renewable Energy Approval may be appealed to the Environmental Review Tribunal, in writing, within 15 days of the decision.

Jordan Cove LNG

Veresen has been expanding its capability to execute on Jordan Cove LNG's key project milestones and the Company continues to make strong progress in advancing its four key work streams. Activities to date have focused on regulatory approvals and permitting, commercial off-take agreements, advancing engineering to obtain an updated cost estimate and finalizing an EPC contract, and project financing.

Veresen has also advanced the organizational structure of Jordan Cove LNG to ensure the appropriate resources are in place for the success of the project. Supporting this objective, in October 2014, the Company announced the appointment of Elizabeth (Betsy) Spomer as President and Chief Executive Officer of Jordan Cove LNG LLC and an Executive Vice President of Veresen. Ms. Spomer brings over 30 years of experience in the energy industry, having spent the majority of her career in the LNG industry. With a final investment decision for Jordan Cove LNG expected in 2015, Veresen plans to continue to augment its LNG team, adding professionals who will be required through the construction and operating phases. Ms. Spomer and her team will be based in Houston, Texas.

Acquisition of 50% Interest in Ruby

On September 22, 2014, Veresen entered into an agreement with Global Infrastructure Partners ("GIP") to acquire GIP's 50% convertible preferred interest in Ruby. The pipeline is a newly-built, large-scale natural gas transmission system delivering U.S. Rockies natural gas production to markets in the western United States. The 680-mile, 42-inch pipeline has a capacity of approximately 1.5 bcf/d, with expansion potential to 2.0 bcf/d through the addition of compression. Ruby originates at the Opal hub in Wyoming and extends to the Malin hub in Oregon. The Malin hub is the main interconnect to the proposed Pacific Connector Gas Pipeline (50% owned by Veresen), which would supply Veresen's proposed Jordan Cove LNG terminal.

Ruby is an ideal fit for Veresen as it offers immediate long-term contracted cash flows with downside protection through the preferred interest structure, and provides significant future added upside related to the Jordan Cove LNG project.

Today, Veresen received notice from the Committee on Foreign Investment in the United States ("CFIUS") that there are no unresolved national security issues relating to Veresen's acquisition of Ruby. The clearance by CFIUS was without conditions and terminates the review of the transaction. The completion of the Ruby acquisition remains subject to customary closing conditions. Closing is expected to occur on November 6, 2014.

On October 1, 2014, in conjunction with the Ruby acquisition, Veresen completed the issuance of 56,120,000 subscription receipts at a price of $16.40 per subscription receipt for gross proceeds of approximately $920 million. The net proceeds of the offering will be used to partially fund the Ruby acquistion.

2014 Guidance Update

Veresen has narrowed its guidance for 2014 distributable cash to be in the range of $1.05 per Common Share to $1.17 per Common Share, with the midpoint unchanged at $1.11 per Common Share. Further details concerning 2014 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 November 4, 2014 at 6:30 am MT (8:30 am ET) to discuss its results and activities.

Dial-in: 1 [phone] or 1 [phone] Conference ID 27910985.

The link to the conference call webcast is available on Veresen's website at www.vereseninc.com.

A replay of the call will be available at approximately 9:30 am MT (11:30 am ET) on November 4, 2014 by dialing 1 [phone] and 1 [phone]. The access code is 27910985, followed by the pound sign. The replay will expire at midnight (ET) on November 11, 2014.

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 third quarter ended September 30, 2014 compared to the third quarter ended September 30, 2013 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 complex, and other natural gas and NGL processing energy infrastructure; and a power business with a portfolio of assets in Canada and the United States. Veresen is also actively developing a number of greenfield projects, including the Jordan Cove LNG terminal to be constructed in Coos Bay, Oregon and the Pacific Connector Gas Pipeline. In the normal course of its business, Veresen regularly evaluates and pursues acquisition and development opportunities.

Veresen's Common Shares, Series A Preferred Shares, Series C 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", "VSN.PR.C" 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 Aux Sable and Alliance to implement new service offerings; the timing of completion of construction and start-up of the Dasque-Middle hydro project and the St. Columban Wind Project; the estimated capital cost and timing of the final investment decision of the Jordan Cove LNG project, and Veresen's ability to negotiate long-term service agreements with offtake customers for LNG; Veresen's ability to realize its growth objectives; the availability of financing for current capital projects and new investment opportunities; the timing of the closing of the acquisition of an interest in the Ruby pipeline system, and the ability to, and timing of, any expansion of the system; and the ability of each of its businesses to generate distributable cash in 2014.  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)					September 30, 2014		December 31, 2013
Assets
Current assets
	Cash and short-term investments				26.2		26.6
	Restricted cash				6.9		3.7
	Distributions receivable				45.1		46.2
	Receivables				75.0		62.9
	Other				16.4		11.3
					169.6		150.7
Investments in jointly-controlled businesses					836.9		857.7
Rate-regulated asset					26.7		34.7
Pipeline, plant and other capital assets					1,519.2		1,438.1
Intangible assets					408.4		430.7
Other assets					64.5		61.5
					3,025.3		2,973.4
Liabilities
Current liabilities
	Payables				79.0		55.0
	Dividends payable				14.2		13.2
	Current portion of long-term senior debt				11.4		212.4
					104.6		280.6
Long-term senior debt					1,000.2		975.1
Subordinated convertible debentures					51.7		86.2
Deferred tax liabilities					266.4		277.3
Other long-term liabilities					50.2		48.5
					1,473.1		1,667.7
Shareholders' Equity
Share capital
	Preferred shares				341.4		341.4
	Common shares (223.5 and 201.5 outstanding at September 30, 2014 and				2,197.8		1,848.6
		December 31, 2013, respectively)
Additional paid-in capital					4.3		4.3
Cumulative other comprehensive loss					(107.3)		(134.0)
Accumulated deficit					(884.0)		(754.6)
					1,552.2		1,305.7
					3,025.3		2,973.4

 

Veresen Inc.
Consolidated Statement of Income
			Three months ended September 30		Nine months ended September 30
(Canadian $ Millions, except per Common Share amounts; unaudited)			2014	2013	2014	2013
Equity income			33.8	50.6	113.1	120.2
Operating revenues			82.0	84.5	263.3	245.9
Operations and maintenance			(35.7)	(38.2)	(130.7)	(116.9)
General, administrative and project development			(40.8)	(19.8)	(96.2)	(61.6)
Depreciation and amortization			(24.6)	(22.8)	(73.5)	(67.5)
Interest and other finance			(12.6)	(15.7)	(41.4)	(46.8)
Foreign exchange and other			6.0	(0.9)	6.3	0.7
Gain on sale of assets			-	-	14.3	-
Net income before tax			8.1	37.7	55.2	74.0
Current tax			(9.3)	(6.8)	(19.2)	(10.2)
Deferred tax			7.8	(0.8)	7.7	(16.6)
Net income			6.6	30.1	43.7	47.2
Preferred Share dividends			(4.1)	(2.2)	(12.3)	(6.6)
Net income attributable to Common Shares			2.5	27.9	31.4	40.6
Net income per Common Share
		Basic and diluted	0.01	0.14	0.15	0.20

 

Consolidated Statement of Comprehensive Income
			Three months ended September 30		Nine months ended September 30
(Canadian $ Millions; unaudited)			2014	2013	2014	2013
Net income			6.6	30.1	43.7	47.2
Other comprehensive income (loss)
	Cumulative translation adjustment
	Unrealized foreign exchange gain (loss) on translation		24.1	(10.0)	26.7	14.7
Other comprehensive income (loss)			24.1	(10.0)	26.7	14.7
Comprehensive income			30.7	20.1	70.4	61.9
Preferred Share dividends			(4.1)	(2.2)	(12.3)	(6.6)
Comprehensive income attributable to Common Shares			26.6	17.9	58.1	55.3

 

Veresen Inc.
Consolidated Statement of Cash Flows
		Three months ended September 30		Nine months ended September 30
(Canadian $ Millions; unaudited)		2014	2013	2014	2013
Operating
	Net income	6.6	30.1	43.7	47.2
	Equity income	(33.8)	(50.6)	(113.1)	(120.2)
	Distributions from jointly-controlled businesses	50.9	51.0	168.0	143.0
	Depreciation and amortization	24.6	22.8	73.5	67.5
	Foreign exchange and other non-cash items	(5.7)	2.4	(2.5)	1.6
	Deferred tax	(7.8)	0.8	(7.7)	16.6
	Gain on sale of assets	-	-	(14.3)	-
	Changes in non-cash working capital	15.6	(12.5)	(4.3)	(19.3)
		50.4	44.0	143.3	136.4
Investing
	Proceeds from sale of assets	-	-	18.7	-
	Investments in jointly-controlled businesses	(6.5)	(17.3)	(19.2)	(53.2)
	Return of capital from jointly-controlled businesses	-	-	11.2	-
	Pipeline, plant and other capital assets	(31.4)	(14.4)	(111.9)	(38.5)
	Restricted cash	(1.1)	0.3	(3.2)	(2.6)
	Other	-	-	(0.5)	0.1
		(39.0)	(31.4)	(104.9)	(94.2)
Financing
	Restricted cash	-	-	-	3.9
	Long-term issued, net of issue costs	-	-	198.7	-
	Long-term debt repaid	(201.8)	(2.1)	(258.1)	(7.9)
	Net change in credit facilities	41.4	26.0	(121.1)	93.0
	Common Shares issued, net of issue costs	-	-	272.9	-
	Common Share dividends paid	(40.9)	(38.6)	(121.0)	(116.2)
	Preferred Share dividends paid	(4.1)	(2.2)	(12.3)	(6.6)
	Repayments from jointly-controlled businesses	0.4	0.4	1.2	1.1
	Other	-	1.7	1.3	(0.2)
		(205.0)	(14.8)	(38.4)	(32.9)
Increase (decrease) in cash and short-term investments		(193.6)	(2.2)	-	9.3
Effect of foreign exchange rate changes on cash and short-term investments		0.3	(0.1)	(0.4)	0.1
Cash and short-term investments at the beginning of the period		219.5	27.8	26.6	16.1
Cash and short-term investments at the end of the period		26.2	25.5	26.2	25.5

Veresen Inc.
Distributable Cash
	Three months ended September 30		Nine months ended September 30
(Canadian $ Millions, except where noted; unaudited)	2014	2013	2014	2013
Pipeline	40.7	39.9	122.3	116.3
Midstream	27.1	43.4	96.8	94.3
Power	14.8	12.2	39.7	29.1
Veresen-Corporate	(15.9)	(18.1)	(47.9)	(52.4)
Current tax	(7.7)	(5.9)	(14.4)	(7.6)
Preferred Share dividends	(4.1)	(2.2)	(12.3)	(6.6)
Distributable cash  ^(1)	54.9	69.3	184.2	173.1
Distributable cash per Common Share ($) ^(2)	0.25	0.35	0.86	0.87
Dividends paid/payable^(3)	55.4	50.0	160.8	149.4
Dividends paid/payable per Common Share ($)	0.25	0.25	0.75	0.75

(1)	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.
(2)	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 September 30, 2014 the average number of Common Shares outstanding for this calculation was 221,672,715 (2013 - 200,230,641) and 226,718,492 (2013 - 206,137,149) on a basic and diluted basis, respectively. For the nine months ended September 30, 2014 the average number of Common Shares outstanding for this calculation was 214,566,437 (2013 - 199,306,345) and 220,169,699 (2013 - 205,212,853) on a basic and diluted basis, respectively. The number of Common Shares outstanding would increase by 3,538,248 (2013 - 5,906,508) Common Shares if the outstanding Convertible Debentures on September 30, 2014 were converted into Common Shares.
(3)	Includes $13.9 million and $38.8 million of dividends for the three and nine months ended September 30, 2014, respectively (2013 - $11.4 million and $33.2 million) satisfied through the issuance of Common Shares under the Company's Premium Dividend^TM (trademark of Canaccord Genuity Corp.) and Dividend Reinvestment Plan.

 

Veresen Inc.
Reconciliation of Distributable Cash to Cash from Operating Activities
		Three months ended September 30		Nine months ended September 30
(Canadian $ Millions; unaudited)		2014	2013	2014	2013
Cash from operating activities		50.4	44.0	143.3	136.4
Add (deduct):
	Project development costs ^(4)	28.5	8.1	58.8	23.9
	Change in non-cash working capital	(15.1)	12.0	6.4	20.3
	Principal repayments on senior notes	(2.7)	(2.9)	(8.6)	(8.7)
	Maintenance capital expenditures	(0.9)	(1.2)	(4.7)	(5.0)
	Distributions earned greater (less) than distributions received ^(5)	(2.8)	10.6	(3.5)	10.3
	Preferred Share dividends	(4.1)	(2.2)	(12.3)	(6.6)
	Current tax on Preferred Share dividends	1.6	0.9	4.8	2.5
Distributable cash		54.9	69.3	184.2	173.1

(4)	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 and nine months ended September 30, 2014 relate primarily to the Jordan Cove LNG terminal project, the Pacific Connector Gas Pipeline project, and various power development projects.
(5)	Represents the difference between distributions declared by jointly-controlled businesses and distributions received.

 

 

 

 

 

 

 

 

SOURCE: Veresen Inc.

Dorreen Miller, Director, Investor Relations
Phone: [phone]
Email: [email protected]