Inter Pipeline Fund Announces November 2009 Cash Distribution
CALGARY, ALBERTA--(Marketwire - Nov. 5, 2009) - Inter Pipeline Fund ("Inter Pipeline") (TSX:IPL.UN) announced today the declaration of a cash distribution of $0.07 per unit for November 2009. This distribution will be paid on or about December 15th to unitholders of record on November 23rd, 2009.
In October 2009, Inter Pipeline announced a 7.1% increase to its monthly cash distribution rate from $0.07 per unit to $0.075 per unit, or $0.90 per unit annualized. The increased rate will commence with December distributions, payable in January 2010. Continued strong performances across all business segments, combined with significant advances in organic development projects, led to Inter Pipeline's decision to increase distributions. Inter Pipeline believes it is well positioned to maintain the increased level of cash distributions to unitholders through 2011 and beyond, despite becoming a taxable entity.
It is also important to note that once Inter Pipeline becomes a taxable entity in 2011, cash distributions will receive more favourable tax treatment than is currently the case. Today the vast majority of Inter Pipeline's cash distributions are classified as business or interest income for tax purposes. Distributions paid after January 1, 2011 will be treated as eligible Canadian dividends, resulting in a lower effective tax rate in the hands of the taxable investor. For example, using 2009 enacted tax rates, a Canadian resident in the highest marginal tax bracket would have their effective tax rate on taxable distributions reduced by approximately 18% to 25% depending on their province of residence. This more favourable tax treatment will apply to the taxable portion of Inter Pipeline's distributions, excluding a minor amount of interest income sourced from foreign operations.
Investors should be advised that income tax rates are continually subject to future legislative changes, and unitholders are advised to consult their own tax advisors regarding tax-related matters.
Inter Pipeline Fund
Inter Pipeline is a major petroleum transportation, bulk liquid storage and natural gas liquids extraction business based in Calgary, Alberta, Canada. Structured as a publicly traded limited partnership, Inter Pipeline owns and operates energy infrastructure assets in western Canada, the United Kingdom, Germany and Ireland. Additional information about Inter Pipeline can be found at www.interpipelinefund.com.
Inter Pipeline is a member of the S&P/TSX Composite Index. Class A Units trade on the Toronto Stock Exchange under the symbol IPL.UN.
Only persons who are residents of Canada, or if partnerships are Canadian partnerships, in each case for purposes of the Income Tax Act (Canada) are entitled to purchase and own Class A Units of Inter Pipeline.
Certain information contained herein may constitute forward-looking statements that involve risks and uncertainties. Forward-looking statements in this news release include, but are not limited to, statements regarding Inter Pipeline's belief that it is well positioned to maintain its increased level of cash distributions to unitholders through 2011 and beyond. Readers are cautioned not to place undue reliance on forward-looking statements. Such information, although considered reasonable by the General Partner of Inter Pipeline at the time of preparation, may later prove to be incorrect and actual results may differ materially from those anticipated in the statements made. For this purpose, any statements that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements often contain terms such as "may", "will", "should", "anticipate", "expects" and similar expressions. Such risks and uncertainties include, but are not limited to, risks associated with operations, such as loss of markets, regulatory matters, environmental risks, industry competition, potential delays and cost overruns of construction projects, including the Corridor pipeline system expansion project, and the ability to access sufficient capital from internal and external sources. You can find a discussion of those risks and uncertainties in Inter Pipeline's securities filings at www.sedar.com. The forward-looking statements contained in this news release are made as of the date of this document, and, except to the extent required by applicable securities laws and regulations, Inter Pipeline assumes no obligation to update or revise forward-looking statements made herein or otherwise, whether as a result of new information, future events, or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary note.
All dollar values are expressed in Canadian dollars unless otherwise noted.
ContactInter Pipeline Fund
Vice President, Capital Markets
Inter Pipeline Fund
Director, Corporate and Investor Communications