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Cathedral Energy Services announces February distribution and reduced 2009 capital expenditure program
/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/ CALGARY, Feb. 17 /CNW/ - Cathedral Energy...
About this update from Act Energy Technologies Ltd.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/\n\n\nCALGARY, Feb. 17 /CNW/ - Cathedral Energy Services Income Trust (the\n"Trust" - TSX: CET.UN) announces that the Trustees have approved a\ndistribution for February 2009 of $0.04 per Trust Unit in the form of cash.\nThis is a decrease of $0.03 per Trust Unit from the Trust's January 2009\ndistribution. The distribution will be paid on March 16, 2009 to Unitholders\nof record on February 28, 2009. In light of the current and forecast market\nconditions, the Administrator of the Trust's operating entities determined\nthat a reduction in distributions was a prudent measure to manage liquidity,\nfurther strengthen the Trust's strong balance sheet and better position itself\nto take advantage of opportunistic transactions which may present themselves.\nThe Administrator of the Trust reviews the level and nature of distributions\n(cash, in-kind or a combination of cash and in-kind) on an on-going basis\ngiving consideration to many factors including current performance; historical\nand future trends in the business and the expected sustainability of those\ntrends; enacted tax legislation which will affect future taxes payable;\nlong-term debt repayments; and maintenance capital expenditures required to\nsustain performance and future growth capital expenditures.\n\n\nIn addition, recognizing the expected lower activity levels, the Trust\nhas taken several initiatives to improve operating results and further\nstrengthen its balance sheet. During the fourth quarter of 2008 the approved\ncapital budget of $51.4 million was reduced by approximately $0.6 million with\nan additional $3.6 million being deferred until 2009, resulting in total\ncapital expenditures of approximately $47.2 million in 2008. The initial 2009\ncapital budget of $17.0 million together with the $3.6 million deferred from\n2008 for a total of $20.6 million has been reduced by $9.5 million to $11.1\nmillion. The revised 2009 capital expenditure program of $11.1 million\nincludes approximately $0.5 million of maintenance capital. In addition, the\nTrust's operating entities are undertaking a detailed review of all operating\ncosts and general and administrative expenditures and have initiated cost\nreductions to enhance profitability.\n\n\n------------------------------------------------------...