Two Utility Buys for Income and Growth

Article Excerpt

FORT CHICAGO ENERGY TRUST $10.89 (Toronto symbol FCE.UN; SI Rating: Extra Risk) owns 50% of the Alliance Pipeline, a 36-inch diameter natural gas pipeline. It extends 3,000 kilometres from Fort St. John in B.C. to Chicago, Illinois. Enbridge Inc. owns the other 50% interest. The other assets held by the two partners are 85.4% of the Aux Sable natural gas liquids plant. Fort Chicago also owns the 1,324-kilometre Alberta Ethane Gathering System. Through recently acquired Countryside Power, Fort Chicago now also owns and operates energy systems in Charlottetown, PEI, and London, Ontario, plus two gas-fired cogeneration plants in California. In the three months ended December 31, 2007, Fort Chicago’s revenues rose 25.7%, to $173.3 million from $137.8 million a year earlier. Cash flow per unit rose 34.4% in the quarter, to $0.43 from $0.32. The increased cash flow came from much stronger results at Aux Sable, plus the positive impact of the Countryside acquisition. Fort Chicago’s units now yield 9.2%. U.S. dividends paid in…

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