Copano Energy, L.L.C. (Nasdaq: CPNO) announced today a cash distribution
for the third 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 second quarter of
2010 and will be payable on November 11, 2010, to holders of record of
common units at the close of business on November 1, 2010.
"Copano will maintain its $0.575 quarterly distribution to unitholders,"
said Bruce Northcutt, President and Chief Executive Officer of Copano
Energy. "In spite of lower commodity prices, we estimate that our third
quarter distribution coverage will improve over second quarter coverage
due primarily to improving volumes in our Texas segment.We continue to
see a high level of producer activity in the Eagle Ford Shale and
Barnett Shale Combo plays in Texas. These two areas will be key drivers
of continuing cash flow improvement from our operating segments over the
near-term."
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. (NASDAQ: CPNO) 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 eight natural gas processing plants, with over one Bcf per
day of combined processing capacity and 22,000 barrels per day of
fractionation capacity. For more information, please visit www.copanoenergy.com.
This press release includes "forward-looking statements," as defined by
the Securities and Exchange Commission. Statements that address
activities or events that Copano believes will or may occur in the
future are forward-looking statements. These statements include, but are
not limited to, statements about future producer activity and Copano's
total distributable cash flow and distribution coverage. These
statements are based on management's experience and perception of
historical trends, current conditions, expected future developments and
other factors management believes are reasonable. Important factors that
could cause actual results to differ materially from those in the
forward-looking statements include the following risks and
uncertainties, many of which are beyond Copano's control: price
volatility and market demand for natural gas and natural gas liquids;
Copano's ability to continue to obtain new sources of natural gas supply
and retain its key customers; the impact on volumes and resulting cash
flow of technological, economic and other uncertainties inherent in
estimating future production, producers' ability to drill and
successfully complete and attach new natural gas supplies and the
availability of downstream transportation systems and other facilities
for natural gas and NGLs; higher construction costs or project delays
due to inflation, limited availability of required resources or the
effects of environmental, legal or other uncertainties; general economic
conditions; the effects of government regulations and policies; and
other financial, operational and legal risks and uncertainties detailed
from time to time in Copano's filings with the Securities and Exchange
Commission.
