CALGARY, May 22 /CNW/ - Keyera Facilities Income Fund (TSX:KEY.UN;
KEY.DB) announced today a cash distribution for May 2007 of 12.5 cents per
unit. The distribution will be payable on June 15, 2007 to unitholders of
record on May 31, 2007. The ex-distribution date is May 29, 2007.
The distribution amount of 12.5 cents per unit reflects the 5% increase
that was announced on May 8, 2007. This represents a 38% increase in
distributions per unit since Keyera began operations in May 2003.
For tax purposes, Keyera currently expects that approximately 30% to 40%
of its 2007 distributions will be a return of capital for Canadian residents.
This outlook is subject to change depending on the levels of profitability and
capital expenditures in each of Keyera's operating entities. This outlook is
based in part on the assumption that the proposed internal reorganization of
Keyera announced on May 8, 2007 (the "Reorganization") will be implemented in
the third quarter of 2007 in substantially the form described in Keyera's
Information Circular dated April 30, 2007 which is available on the Sedar
website (www.sedar.com) and the Keyera website (www.keyera.com). If the
Reorganization does not proceed, this outlook would change significantly. For
non-resident unitholders, Keyera's distributions, including both income and
return of capital portions, are subject to Canadian withholding tax.
This document contains 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. Some of the factors which could
cause actual results or events to differ materially include the ability of
Keyera to successfully implement strategic initiatives, whether such
initiatives yield the expected benefits, operating and other costs, future
operating results and the components of those results, fluctuations in the
demand for natural gas, NGLs and crude oil, changes in commodity prices, the
activities of producers, competitors and others, the weather, overall economic
conditions, proposed or actual legislative changes, including any further
announcements by the federal government with respect to the tax treatment of
income trusts and other known or unknown factors. There can be no assurance
that the results or developments anticipated by Keyera will be realized or
that they will have the expected consequences for or effects on Keyera.
In particular, the discussion of the "Reorganization" is forward-looking
information and is based on certain assumptions and a number of known and
unknown risks and uncertainties, of both a general and specific nature, that
could result in the Reorganization not being completed or not being completed
in the manner anticipated. Readers should refer to Keyera's Information
Circular dated April 30, 2007 for a discussion of the Reorganization,
including the risks, assumptions and conditions associated therewith.
For additional information on these and other factors, 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
