Veresen Inc. has announced guidance for next year and declared a cash dividend for December 2014.
Veresen is forecasting distributable cash in the range of US$0.93 - US$1.20 per common share for 2015. Based on an annualised dividend of US$1 per common share for 2015, the corresponding payout ratio will range between 83% and 108%.
Don Althoff, President and CEO of Veresen, said: "Our 2015 guidance range reflects our expectation of continued solid operating performance from our portfolio of assets, the majority of which are supported by fee-for-service contracts, and the pending sale of our three US gas-fired power plants. Our outlook for Aux Sable's 2015 variable-based earnings is lower than our 2014 forecast as we anticipate that NGL prices will continue to be under pressure due to the oil price environment. Further, distributable cash from Aux Sable in 2014 included gains realised in the first quarter which we do not expect to recur in 2015.
"As we look to the year ahead, our strong balance sheet provides us with the financial flexibility to execute our growth strategy and deliver on our key priorities in 2015, including the re-contracting of the Alliance Pipeline, achieving key milestones for Jordan Cove LNG, and expanding our Midstream footprint in western Canada."
For 2014, Veresen maintains its previously announced distributable cash guidance of US$1.05 - US$1.17 per common share.
December 2014 common share dividend
The Board of Directors of Veresen also declared a cash dividend of US$0.0833 per common share. The dividend will be paid on 23 January 2015 to shareholders of record at the close of business on 31 December 2014. This dividend is designated an ‘eligible dividend’ for Canadian income tax purposes.
Adapted from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquefaction/09122014/veresen-announces-2015-guidance-1929/