CALGARY, Jan. 2 /CNW/ - Keyera Facilities Income Fund (TSX:KEY.UN;
KEY.DB) ("Keyera" or the "Fund") announced today that it completed an internal
reorganization of the Fund and certain of its subsidiaries previously approved
by its Unitholders in June 2007.
In late December Keyera received both an advance income tax ruling from
the Canada Revenue Agency confirming that the reorganization could be
completed without adverse Canadian tax consequences for the Fund or its
Unitholders, and a final court order approving the plan of arrangement
pursuant to which the reorganization was implemented. Receipt of the ruling
and the court approval paved the way for Keyera to implement the
reorganization earlier today.
The reorganization streamlines Keyera's existing structure, simplifies
accounting, legal, reporting and income tax compliance, and reduces the
general and administrative costs associated with these activities. In
addition, it provides enhanced tax planning flexibility that should enable
Keyera to minimize the amount of cash taxes payable by Keyera in 2011, when
the Government of Canada's new tax on the distributions of existing
publicly-traded Canadian income trusts takes effect. The reorganization did
not involve the acquisition of any additional interest in any operating assets
or the disposition of any of the Fund's existing interests in operating
assets.
As at January 1, 2007, Keyera had approximately $385 million of
unutilized tax pools and deductions, consisting mostly of class 41
undepreciated capital costs, available for deduction by the Fund's
subsidiaries. Keyera plans to reduce the use of its available tax deductions
in years 2008 through 2010, thereby increasing deductions available for the
years after 2010.
About Keyera Facilities Income Fund
Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB) operates one of the
largest natural gas midstream businesses in Canada. Its business consists of
natural gas gathering and processing as well as the processing,
transportation, storage and marketing of natural gas liquids (NGLs) and crude
oil midstream activities.
Keyera's gas processing plants and associated facilities are
strategically located in the west central and foothills natural gas production
areas of the Western Canadian Sedimentary Basin. Its NGL and crude oil
infrastructure includes pipelines, terminals and processing and storage
facilities in Edmonton and Fort Saskatchewan, Alberta, a major North American
NGL hub. Keyera markets propane, butane and condensate to customers in Canada
and the United States.
This release, and the documents referred to herein, contain
forward-looking statements that involve known and unknown risks and
uncertainties, many of which are beyond Keyera's control. The forward-looking
statements are based on management's current expectations and assumptions
relating to Keyera's business and the environment in which it operates. As the
results or events predicted or implied in these forward-looking statements
depend upon future events, actual results or events may differ materially from
those predicted. In particular, the discussion of future use of tax pools and
future taxes is forward looking. The assumptions and factors upon which this
discussion is based include, but are not limited to distribution levels and
the potential for tax or other regulatory or policy changes to be announced by
the federal government. Keyera cautions that the foregoing list of factors and
assumptions is not exhaustive. Unitholders and prospective investors are
cautioned not to place undue reliance on such forward-looking information as
such information is based on certain assumptions and a number of known and
unknown risks and uncertainties, of both a general and specific nature, that
could cause actual results to be materially different than described above.
These assumptions and factors include, but are not limited to distribution
levels and the potential for tax or other regulatory or policy changes to be
announced by the federal government.
For additional information on the factors which could cause actual
results or events to differ materially from the forward-looking information
contained herein, see Keyera's public filings on www.sedar.com. Unless
otherwise required by applicable laws, Keyera does not intend to publicly
update or revise forward-looking statements, whether as a result of new
information, future events or otherwise.
%SEDAR: 00019203E
