ARC Energy Trust announces October 15, 2008 cash distribution amountadmin
ARC Energy Trust announces that the cash distribution to be paid on October 15, 2008, in respect of the September 2008 production, for unitholders of record on September 30, 2008, will be $0.24 per trust unit. The ex-distribution date is September 26, 2008. This represents a $0.04 per unit decrease from the August 15 distribution and the upcoming September 15th distribution.
On May 7 and June 26 of this year the Trust increased distributions in the context of rising commodity prices. Since June 26th, oil prices have declined by approximately 22 per cent while natural gas prices have fallen 45 per cent. In light of the commodity price decline, the Board has determined that ARC’s distribution to be paid on October 15th and thereafter will be $0.24 per unit, consisting of a base distribution of $0.20 plus a $0.04 per unit top-up, such distribution levels will continue to be reviewed on an ongoing basis in the context of commodity prices and other factors.
As at October 15, 2008 the Trust’s trailing twelve-month cash distributions, including the October 15, 2008 payment, total $2.68 per trust unit.
ARC Energy Trust is one of Canada’s largest conventional oil and gas royalty trusts with an enterprise value of approximately $6.5 billion. The Trust expects full year 2008 oil and gas production to average approximately 64,000 to 65,000 barrels of oil equivalent per day from six core areas in western Canada. The Trust’s 2008 capital expenditure program remains unchanged, including the ongoing development of its Montney assets. ARC Energy Trust units trade on the TSX under the symbol AET.UN and ARC Resources exchangeable shares trade under the symbol ARX.