Veresen Inc. has provided its business outlook and distributable cash guidance for 2017.
"Veresen has delivered very strong operational and financial results over the course of 2016, with particularly impressive performance from Alliance," said Don Althoff, President and CEO of Veresen. "We expect to sustain this momentum throughout 2017. We will continue to deliver on our strategy, with several key milestones in the coming year, including entering into an agreement for the sale of the power business in the first quarter and bringing the first two processing facilities currently under construction at Veresen Midstream into service towards the end of the year."
2017 budget highlights:
- Strong performance is expected to continue, underpinning a dividend that remains entirely supported by distributable cash generated from existing take-or-pay and fee-for-service contracts.
- Capital program of approximately US$475 to US$525 million to advance Veresen's inventory of US$1.3 billion of projects under construction, with the Tower and Sunrise processing facilities to be placed into service towards the end of the year.
- Remain fully funded, with no requirement to access equity or debt capital markets to finance projects currently under construction, supporting the company's objective of growing distributable cash per share.
Jordan Cove LNG Project
Veresen will continue to advance the Jordan Cove LNG export terminal and Pacific Connector natural gas pipeline. Veresen's Board of Directors have approved a 2017 project development budget of approximately US$30 million. The focus will remain on securing additional agreements for the long-term sale of natural gas liquefaction capacity at the export terminal as well as obtaining the requisite regulatory permits for both the terminal and the pipeline. The project development budget will continue to be reviewed by Veresen's Board of Directors throughout the year to ensure that project development spend is tied to progress on commercial and regulatory milestones.