Copano Energy, L.L.C. (NASDAQ: CPNO) announced today a cash distribution
for the first quarter of 2013 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 April 26, 2013, to holders of record of
common units at the close of business on April 22, 2013.
Pursuant to Copano's merger agreement with Kinder Morgan, Copano is
obligated not to increase its quarterly distribution above $0.575 per
unit for as long as the merger agreement remains in effect. Copano and
Kinder Morgan currently expect to complete the merger in May 2013,
subject to receipt of Copano's unitholder approval and other customary
closing conditions.
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.
About Copano Energy, L.L.C.
Copano Energy, L.L.C. (NASDAQ: CPNO) is a midstream natural gas company
with operations in Texas, Oklahoma and Wyoming. For more information,
please visit www.copano.com.
This news 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 forward-looking
statements include the following risks and uncertainties, many of
which are beyond Copano's control: the volatility of prices and market
demand for natural gas, crude oil, condensate and NGLs, and for
products derived from these commodities; Copano's ability to continue to
connect new sources of natural gas, crude oil and condensate, and
the NGL content of new gas supplies; the ability of key producers to
continue to drill and successfully complete and connect new
natural gas and condensate volumes and such producers' performance under
their contracts with Copano; Copano's ability to attract and retain
key customers and contract with new customers, and such customers'
performance under their contracts with Copano; Copano's ability to
access or construct new pipeline capacity, gas processing and NGL
fractionation and transportation capacity; the availability of local,
intrastate and interstate transportation systems, trucks and
other facilities and services for condensate, natural gas and NGLs;
Copano's ability (and the ability of its third-party service
providers) to meet in-service dates, cost expectations and operating
performance standards for construction projects; Copano's ability
to successfully integrate any acquired asset or operations; Copano's
ability to access its revolving credit facility and to obtain
additional financing on acceptable terms; the effectiveness of Copano's
hedging program; general economic conditions; force majeure
events such as the loss of a market or facility downtime; the effects of
government regulations and policies; Copano's ability to complete
its proposed merger with Kinder Morgan; and other financial, operational
and legal risks and uncertainties detailed from time to time in
Copano's quarterly and annual reports filed with the Securities and
Exchange Commission. Copano does not undertake to update any
forward-looking statement except as provided by law.
