Copano Energy, L.L.C. (Nasdaq: CPNO) announced today a cash distribution
for the first quarter of 2010 of $0.575 per unit, or $2.30 per unit on
an annualized basis, for all of its outstanding common units. This
distribution is equal to Copano's distribution for the fourth quarter of
2009 and will be payable on May 13, 2010, to holders of record of common
units at the close of business on April 30, 2010.
"Copano's cash reserves and 2010 outlook support maintaining a $0.575
quarterly distribution to unitholders. As a result of our recent public
offering of common units and a temporary shut-down of the Houston
Central plant to enable the start-up of our fractionator, we estimate
that distribution coverage for the quarter will be less than 100%. We
expect coverage to improve throughout the balance of 2010 based on
increased drilling activity in north Texas and in the Eagle Ford Shale
in south Texas as well as the start-up of our fractionator," said Bruce
Northcutt, President and Chief Executive Officer of Copano Energy.
This release serves as qualified notice to nominees under Treasury
Regulation Sections 1.1446-4(b)(4) and (d). Please note that 100% of
Copano's distributions to foreign investors are attributable to income
that is effectively connected with a United States trade or business.
Accordingly, all of Copano's distributions to foreign investors are
subject to federal income tax withholding at the highest effective tax
rate for individuals or corporations, as applicable. Nominees, and not
Copano, are treated as the withholding agents responsible for
withholding on the distributions received by them on behalf of foreign
investors.
Houston-based Copano Energy, L.L.C. is a midstream natural gas company
with operations in Oklahoma, Texas, Wyoming and Louisiana. Its assets
include approximately 6,400 miles of active natural gas gathering and
transmission pipelines, 250 miles of NGL pipelines and seven natural gas
processing plants, with more than one Bcf per day of combined processing
capacity. For more information please visit www.copanoenergy.com.
This press release may include "forward-looking statements" as defined
by the Securities and Exchange Commission. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that the company expects,
believes or anticipates will or may occur in the future are
forward-looking statements. These statements are based on certain
assumptions made by the company based on management's experience and
perception of historical trends, current conditions, expected future
developments and other factors it believes are appropriate in the
circumstances. These statements include, but are not limited to
statements with respect to future distribution coverage. Such statements
are subject to a number of assumptions, risks and uncertainties, many of
which are beyond the control of the company, which may cause the
company's actual results to differ materially from those implied or
expressed by the forwardlooking statements. These risks include an
inability to obtain new sources of natural gas supplies, the loss of key
producers that supply natural gas to the company, key customers reducing
the volume of natural gas and natural gas liquids they purchase from us,
a decline in the price and market demand for natural gas and natural gas
liquids, the incurrence of significant costs and liabilities in the
future resulting from our failure to comply with new or existing
environmental regulations or an accidental release of hazardous
substances into the environment and other factors detailed in the
company's Securities and Exchange Commission filings.