CALGARY, Oct. 18, 2006 (Canada NewsWire via COMTEX News Network) -- Pembina Pipeline Income Fund announces the October 2006 cash distribution to Unitholders of 10 cents per Trust Unit, to be paid November 15, 2006 to Unitholders of record on October 31, 2006. Pembina has delivered stable and growing distributions since inception in October 1997 and has increased its distribution rate twice to date in 2006, resulting in a cumulative 14 percent increase. Based on Pembina's outlook, Management is confident that its annual distribution objective will be achieved in 2006.
A component of the Fund's cash distributions are 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 2006 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 Pipeline Income Fund (TSX: PIF.UN, PIF.DB.A, 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 on the Company's website 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", "proposed", "anticipates", "targets", "believes", "estimates", "continue", "designed", "objective", "potential" and similar expressions. In particular, this document contains forward-looking statements and information with respect to: 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; future levels, stability and sustainability of cash distributions to Unitholders; and tax laws and tax treatment of distributions. These statements 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; 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 to complete future projects and satisfy future commitments; 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 and based on the current business and operations of the Fund and its customers and industry partners and the current industry conditions, 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, forecast 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.
SOURCE: Pembina Pipeline Income Fund
Ms. Glenys Hermanutz, Manager, Corporate Development, Pembina Pipeline Corporation,
(403) 231-7500, 1-888-428-3222, e-mail: [email protected]