ENERGY TRUSTS /Morrison Facilities Income Fund Announces Fourth
Quarter Results
TSE SYMBOL: FND.UN
FEBRUARY 26, 1998
CALGARY, ALBERTA--Morrison Facilities Income Fund (the "Fund"),
today announces that for the three months ended December 31, 1997
gross revenue was $9.1 million and net income was $2.1 million.
Distributable cash flow for the period was $4.2 million or $0.21
per trust unit, up from $3.8 million or $0.19 per unit in the
third quarter. The next quarterly distribution date will be March
31, 1998 for unitholders of record on March 16, 1998.
Distributions to unitholders, primarily as a return of capital,
will be $4.2 million or $0.21 per trust unit.
For the twelve months ended December 31, 1997, gross revenue was
$40.9 million and net income was $9.6 million. Distributable cash
flow for the period was $17.8 million or $0.90 per trust unit,
which was $1.0 million or $0.05 per trust unit lower than the
financial forecast included in the Fund's initial public offering
prospectus dated January 13, 1997 of $18.8 million or $0.95 per
trust unit.
For the twelve months ended December 31, 1997, the Nevis Gas Plant
contributed cash flow of $14.6 million or $0.74 per trust unit,
which was $2.3 million or $0.12 per trust unit less than the
financial forecast of $16.9 million or $0.86 per trust unit. The
variance is attributable primarily to reduced natural gas
processing volumes. Average processing volumes at the Nevis Gas
Plant during 1997 were 113 mmcf/d, approximately 12 mmcf/d lower
than the 125 mmcf/d processing volume assumed in the financial
forecast. In addition, the lower volumes were primarily sour gas
which require extra processing and hence provide higher margins.
Lower processing volumes were the result of extended and
unscheduled maintenance at the Nevis Gas Plant and natural
declines in production which were not replaced due to reduced oil
and gas producer activity in the Nevis area. This negative
variance was offset, in part, by pipeline cash flow. The Northeast
B.C. Pipeline contributed $3.3 million or $0.17 per trust unit
which was substantially equal to the financial forecast. The
Blueberry-Taylor Pipeline contributed $1.5 million or $0.07 per
trust unit, which was not included in the financial forecast and
thus had a positive effect. The additional borrowing associated
with the $12.5 million acquisition of the Blueberry-Taylor
Pipeline resulted in total interest expense of $0.4 million or
$0.02 per trust unit, which was $0.3 million or $0.01 per trust
unit greater than the financial forecast of $0.1 million or $0.01
per trust unit.
As a result of reduced oil and gas producer activity levels in the
Nevis area, current processing volumes at the Nevis Gas Plant are
approximately 103 mmcf/d. Consequently, current processing
volumes with the current composition of natural gas together with
cash flow from the oil pipelines are expected to result in
quarterly distributable cash flow for the period ended March 31,
1998 (payable on June 30, 1998) of approximately $3.8 million or
$0.19 per trust unit.
/T/
Highlights: For the period ended December 31, 1997
($000's except per unit amounts) Three Months Twelve Months
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Revenue $ 9,050 $ 40,881
Net income $ 2,138 $ 9,570
Distributable cash flow $ 4,159 $ 17,825
Distributable cash flow per unit $ 0.21 $ 0.90
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Volumes
Gas plant processing volumes (mmcf/d) 122 113
Crude oil pipeline throughput (bbls/d) 45,947 44,846
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/T/
Trust units of the Fund are listed on The Toronto Stock Exchange
under the symbol "FND.UN". |
