RE: DIVIDEND CUT MAY BE TEMPORARY Management are fairly consistent in executing their strategic policy concerning dividend levels and payouts.
"The AvenEx Board of Directors reviews the dividend level monthly, based on the Corporation’s expected cash flows, forecast commodity prices, and balance sheet strength with a targeted dividend payout ratio of 60% of Funds from Operations. Based on the current outlook for continued very low natural gas prices the Board of Directors has set the April 2012 dividend, payable May 15, 2012, at
.035 per share. This is a reduction from
.045 per share for the March 2012 dividend, payable on April 15, 2012. AvenEx remains committed to paying a sustainable monthly dividend."
Their business environment stated above will dictate whether they maintain, increase or further decrease the dividend. Management's recent review resulted in a negative outlook which resulted in the current cut. "Temporary" is dictated by changes in those circumstances and corresponding results.