Veresen Inc. T.VSN.DB.B

RE:Becky

[Backwardblade]

Becky, I wouldn't be so mean as Righand, but he is making a very valid point.  All three pipes, have a DRIP.  All 3 pipes are saving money by it.  The problem with VSN is that it is diluting a lot faster.  Yes,  they are using it for a 700 million dollar montney project.  That has a ways to go yet to prove itself out.  

So you have a time lag on the processing facilities, and an unknown time lag on whether or not the LNG plant will ever even get going.  After which there will be plenty of dilution if they DID get the go ahead.  

Prior to the FERC decision the DRIP worked well to actually provide a bargaining chip for better financing terms to fund Jordan Cove because they could say HEY look at how much we and our shareholder base can accomplish on our own.  The DRIP was functioning as it should.

Now its dilution for the sake of keeping the numbers reasonable while their only growth asset plays itself out.  I wouldn't be surprised if the DRIP was cancelled.  Like I said, sooner or later even the most patient of investors want real dollars to materialize.  And it is going to be a while before they can realize cash flow from the Montney.  Without cash flow, a DRIP is a failure. 

Still in btw