Copano Energy, L.L.C. (Nasdaq: CPNO) announced today a cash distribution
for the fourth 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 will be payable on February 11, 2011, to holders of record
of common units at the close of business on February 1, 2011.
"Copano will maintain its $0.575 quarterly distribution to unitholders,"
said R. Bruce Northcutt, President and Chief Executive Officer of Copano
Energy. "We estimate that our fourth quarter distribution coverage will
be flat to slightly down from our third quarter coverage primarily due
to unscheduled repairs at our Houston Central Complex, which reduced
total distributable cash flow by an estimated $1.6 million.We continue
to see improvements in our total segment gross margin largely resulting
from growth in rich gas volumes from the Eagle Ford Shale and Barnett
Shale Combo plays in Texas, and we remain focused on executing our
growth initiatives in support of Copano's overall strategy to benefit
from the high level of producer activity in these areas."
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.