Veresen Inc. T.VSN.DB.B

Veresen - Strong 3rd Qtr Financial Results - Ups Guidance

[Beckysboss]

Veresen Announces Strong Third Quarter Financial Results and Increased 2016 Guidance

CALGARY, ALBERTA--(Marketwired - Nov. 1, 2016) - Veresen Inc. ("Veresen") (TSX:VSN) today announced its third quarter operating and financial results.
"Veresen's operational and financial performance in each of the first three quarters has continued to exceed expectations and has enabled us to raise guidance for the second time this year," said Don Althoff, President and CEO of Veresen. "Our underlying business remains strong, and we believe that Veresen Midstream will continue to provide meaningful growth. Importantly, through the expected sale of our power assets and the additional credit facilities secured within Veresen Midstream, our $1.3 billion of growth projects under construction is fully funded and will drive per share growth."
Third Quarter Financial and Operational Highlights

• Distributable cash for the quarter of $101 million or $0.33 per Common Share compared to $94 million or $0.30 per Common Share in the second quarter, with Alliance releasing an additional $8 million in distributable cash previously held in trust

• Throughput volumes on Alliance remained particularly strong in the third quarter, driven by continuing shipper uptake of seasonal firm and interruptible transportation in response to stronger relative pricing in U.S. Mid-West markets

• Total of $271 million ($128 million net to Veresen) in growth capital was invested by Veresen Midstream during the third quarter, including $244 million ($116 million net) for the construction of the Sunrise, Tower and Saturn Phase II processing facilities

• Full year 2016 distributable cash guidance increased approximately 6% to a range of $1.12 per Common Share to $1.16 per Common Share to reflect the continued strong performance in the underlying businesses and management's confidence in sustained momentum through the fourth quarter

Update on Key Strategic Initiatives

• In August, Veresen announced its intention to pursue the sale of its power generation business and the suspension of its Premium Dividend™ and Dividend Reinvestment Plan. Proceeds from the divestiture will initially be used to reduce debt outstanding and subsequently used to fund the remaining equity component of projects currently under construction through 2018

• In early September, Veresen Midstream secured an additional $650 million of new credit facilities comprised of a new US$150 million Senior Secured Term Loan B, a $405 million increase in the Expansion Facility and an incremental $50 million of capacity within the Revolving Facility. With the expansion of Veresen Midstream's credit facilities, the balance of the capital requirements within Veresen Midstream are now fully funded

• Subsequent to the end of the third quarter, Cutbank Ridge Partnership ("CRP") and Encana sanctioned approximately $22 million ($11 million net to Veresen) of incremental capital projects, with the continued expectation that additional capital projects will be sanctioned within Veresen Midstream by the end of this year