Calgary, July 2, 2004 KeySpan Facilities Income Fund (TSX:KEY.UN;KEY.DB) (the “Fund” or
“KeySpan”) announced today the closing of its acquisition of EnerPro Midstream Company
(“EnerPro”). EnerPro is a wholly owned subsidiary of Chevron Canada Resources and is among
the largest midstream companies in Canada. It operates the same three business lines as
KeySpan, consisting of natural gas gathering and processing, natural gas liquids (NGL)
processing and associated storage and pipeline infrastructure and NGL marketing. The total
purchase price was $272.8 million, including $4.3 million of net working capital adjustments.
Peters & Co. Limited acted as financial advisor to KeySpan on this transaction.
“We are looking forward to moving on to the next phase of this transaction, the integration of
EnerPro’s assets into our business operations,” said Jim Bertram, KeySpan President and CEO.
“I am pleased to welcome 47 EnerPro employees into the KeySpan organization, and we are
moving forward to implement specific strategies to capture the operating synergies and growth
opportunities in each business area”.
EnerPro owns interests in five natural gas processing plants and associated gathering systems,
including the Rimbey and Bigoray facilities where KeySpan already holds significant ownership
interests. EnerPro’s strategic NGL infrastructure consists of NGL processing and storage at Fort
Saskatchewan and a sizeable interest in the Rimbey pipeline, terminal and NGL loading facilities.
KeySpan has existing ownership interests in all of these facilities. EnerPro also manages an NGL
marketing business that will integrate well with KeySpan’s larger NGL marketing program.
The acquisition was funded by issuing approximately $115 million of trust units, including a 15%
over-allotment option, and $100 million of subordinated unsecured convertible debentures for total
gross proceeds of $215 million. The sale of these securities was completed through a syndicate
of underwriters, led by RBC Capital Markets. The portion of the purchase price not covered by
these financings was funded through existing debt facilities.
About KeySpan Facilities Income Fund
Each unit of the Fund represents an indirect ownership interest in the business of KeySpan
Energy Canada. KeySpan Energy Canada 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). KeySpan
Energy Canada'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 infrastructure includes pipelines, terminals and processing and storage facilities in
Edmonton and Fort Saskatchewan, Alberta, a major North American NGL hub. KeySpan Energy
Canada markets propane, butane and condensate to customers in Canada and the United States.
This press release contains certain forward-looking statements that involve significant known and
unknown risks, uncertainties and other factors that could cause actual results, performance,
achievements or industry results to differ materially from any future results, performance or
achievements expressed or implied by such forward-looking statements. These risks,
uncertainties and other factors include, among others, those discussed in more detail under the
heading “Risk Factors” in the prospectus filed with the securities regulatory authorities throughout
Canada.
For further information about KeySpan Facilities Income Fund, please visit our website at
www.keyspancanada.com or contact:
David G. Smith, Senior Vice President and Chief Financial Officer, E-mail:
David_Smith@keyspancanada.com Telephone (403) 205-7604 Toll Free:
(888) 699-4853 Facsimile: (403) 205-8303
John Cobb, Director, Investor Relations, E-mail: John_Cobb@keyspancanada.com
Telephone (403) 205-7670 Toll Free: (888) 699-4853 Facsimile: (403) 205-
8303
