ENERGY TRUSTS / OPTUS Natural Gas Distribution Income Fund
Increases Monthly Cash Distribution.
OPTUS NATURAL GAS DISTRIBUTION INCOME FUND ANNOUNCES 15% INCREASE IN
MONTHLY DISTRIBUTIONS
ANNUAL RATE GOES TO $2.30 FROM $2.00 FIFTH INCREASE IN THE PAST 24 MONTHS
CALGARY, June 24 /CNW/ - OPTUS Natural Gas Distribution Income Fund
(''OPTUS'') announced today that it is increasing its monthly cash
distribution to $0.1917 ($2.30 per year) per trust unit effective with the
distribution to be paid on Wednesday, July 15, 1998 to unitholders of record
on Tuesday, July 7, 1998. The cash distribution consists of approximately
$0.1153 interest income and $0.0764 dividend income.
This increase is the fifth since OPTUS completed its initial public
offering in July, 1996. The annual distribution rate was raised from an
initial $1.40 to $1.50 in February 1997, to $1.70 in May 1997, to $2.00 in
November 1997 and now to $2.30 in July 1998.
Gary Drummond, President of OPTUS operating arm Direct Energy Marketing
Limited (''DEML''), attributed the increased distribution rate to ''continued
conversion of existing customers to fixed price contracts and to the addition
of new customers. Since we went public, our residential and small business
customer base has increased from 265,000 to approximately 500,000 today. The
June 9, 1998 announcement of the establishment of Energy America, our US joint
venture with two of the largest United States utilities, also offers exciting
growth opportunities. This joint venture will allow DEML to offer energy
packages in newly deregulated jurisdictions in the United States.'' He went on
to note ''that the new electricity deregulation legislation in Ontario will
provide further opportunities for growth.''
OPTUS is a Toronto Stock Exchange listed (OPT.UN) income trust which
through DEML, Canada's largest independent natural gas marketing company,
currently distributes natural gas to approximately 500,000 residential and
small business customers in Ontario, Manitoba and Quebec. DEML supplies
approximately 750 mmcf of gas per day to industrial, institutional and utility
customers in North America. OPTUS has no external term debt and a market
capitalization of $250 million.
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