Calgary, November 21, 2006 Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB) announced today a cash distribution for November 2006 of 11.9 cents per unit. The distribution will be payable on December 15, 2006 to unitholders of record on November 30, 2006. The ex-distribution date is November 28, 2006.
For tax purposes, Keyera currently expects that approximately 50% to 60% of its 2006 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 or as a result of further announcements by the federal government. For non-resident unitholders, Keyera’s distributions, including both income and return of capital portions, are subject to Canadian withholding tax.
The revision to the estimated taxability of Keyera’s distributions is due to proposed changes regarding the taxation of Canadian income trusts that were unexpectedly announced by the federal government on October 31st. Although the new tax will not be imposed on Keyera until 2011, the proposed changes have led to a re-consideration of Keyera’s near-term tax planning strategies. In order to maximize long-term value for all of its unitholders, Keyera’s tax planning objective has been, and continues to be, the minimization of cash taxes paid by the Fund and its subsidiaries.
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. 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. For additional information on these and other factors, see Keyera’s public filings on www.sedar.com. Unlessotherwise 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.
For further information about Keyera Facilities Income Fund, please visit our website at www.keyera.com or contact:
John Cobb, Director, Investor Relations or Avery Reiter, Investor Relations Advisor.
E-mail: ir@keyera.com,
Telephone: (403) 205-7670
Toll Free: (888) 699-4853
Facsimile: (403) 205-8303
