TSX:SPF.UN
CALGARY, Jan. 7 /CNW/ - Superior Plus Income Fund (the "Fund") announced today that its wholly owned indirect subsidiary Superior Energy Management Gas LP ("SEM") has entered into a long-term natural gas supply agreement with Constellation Energy Commodities Group, Inc. ("Constellation"), a major North American energy provider.
Under the terms of the agreement, Constellation will supply natural gas to support SEM's fixed-priced natural gas marketing business. The deal is structured with an initial term of five years and may renew annually thereafter. During the term of the agreement, SEM will purchase natural gas from Constellation for customer contracts of terms up to five years.
Grant Billing, CEO Superior Plus stated: "We are very pleased to have entered into this arrangement which will provide the Fund with dependable, long-term fixed-price natural gas supply for Superior Energy Management. The agreement with Constellation provides increased physical and financial capacity for our energy marketing services business. We now have established strong partnerships for both natural gas and electricity supply which will support Superior Energy Management's long-term growth objectives and help the Fund increase unitholder value over the long-term."
"Today's announcement positions Superior Energy Management to implement the next phase of our growth strategy" said Greg McCamus, President of SEM. "Our high-quality sales team, enhanced support infrastructure and long-term natural gas supply agreement with Constellation provide SEM with an exciting platform for growth."
About Superior Plus and the Fund
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Superior Plus Income Fund is a diversified business trust. The Fund holds 100% of Superior Plus LP, a limited partnership formed between Superior Plus Inc., as general partner and the Fund as limited partner. Superior Plus is focused on stability of distributions with value growth and has four Canadian based operating divisions: Superior Propane is Canada's largest distributor of propane, related products and services; ERCO Worldwide is a leading supplier of chemicals and technology to the pulp and paper industries, a regional Midwest supplier of chloralkali products and the third largest producer of potassium products in North America; Winroc is the seventh largest distributor of walls and ceilings construction products in North America; and Superior Energy Management provides fixed-price natural gas supply services in British Columbia, Ontario and Quebec and fixed-price electricity supply services in Ontario.
The Fund's trust units and convertible debentures trade on the Toronto Stock Exchange as follows Trading Symbol Security Issued and Outstanding ------------------------------------------------------------------------- SPF.un Trust Units 87.3 million SPF.db.b 5.75% Debentures, Series 1 $174.9 million principal amount SPF.db.c 5.85% Debentures, Series 1 $ 75.0 million principal amount -------------------------------------------------------------------------