Financial Report - Veresen Inc.

For the three and 12 months ended December 31, 2012, cash generated from operating activities was $65.1 million and $179.9 million,
respectively, compared to $59.9 million and $191.4 million for the same periods last year, reflecting:
• lower distributions received from Alliance;
• new cash flows from Hythe/Steeprock, partially offset by lower distributions received from Aux Sable;
• higher cash flows from our Power business due to distributions received from York Energy Centre; and
• corporate cash outflows that approximated outflows for the same three-month period last year and were higher compared
to the same 12-month period last year due to increased administrative, project development, and interest costs.
Investing Activities
For the year ended December 31, 2012, we used $1,080.7 million of cash to fund our investing activities compared to $283.5 million
last year. Significant investing activities for the year ended December 31, 2012 included:
• $865.5 million related to the Hythe/Steeprock acquisition;
• $25.0 million related to the acquisition of the remaining 25% interests in East Windsor Cogeneration and EnPower;
• $106.0 million in equity contributions to our jointly-controlled businesses, partially offset by $8.5 million in returns of capital; and
• $91.5 million of capital expenditures, primarily related to an extension of AEGS ($11.1 million), our midstream business ($11.3 million),
construction of the Dasque-Middle run-of-river hydro facility ($38.2 million), our operating power facilities ($10.3 million), and the
acquisition of land in relation to the Jordan Cove LNG project ($19.8 million).
Significant investing activities for 2011 included:
• $94.6 million primarily related to the acquisition of the Furry Creek and Clowhom run-of-river hydro facilities;
• $50.0 million paid as a deposit on the Hythe/Steeprock acquisition;
• $125.2 million in equity contributions to our jointly-controlled businesses; and
• $18.5 million in capital expenditures.
Financing Activities
For the year ended December 31, 2012, cash provided by financing activities was $894.7 million compared to $84.9 million for
the same period last year. Financing activities for the year ended December 31, 2012 were primarily related to the Hythe/Steeprock
acquisition and are more fully described below:
• $348.6 million from our December 2011 subscription receipts offering, released from escrow in February 2012;
• $249.1 million of short-term debt borrowed, net of issue costs, and $250.0 million repaid;
• $347.8 million from our March 2012 medium term note offerings, net of issue costs; and
• $193.7 million from our February 2012 Series A Preferred Share offering, net of issue costs.
Other significant financing activities included:
• $11.2 million of senior debt repayments;
• $154.2 million of net draws from our Revolving Credit Facility;
• $104.2 million of Common Share dividend payments;
• $7.7 million of Preferred Share dividend payments; and
• $20.5 million advanced to our jointly-controlled businesses.
Significant financing activities for 2011 included:
• $348.6 million issuance of subscription receipts;
• $348.6 million proceeds from the issuance of subscription receipts held in escrow;
• $202.3 million of senior debt issued, net of issue costs;
• $57.2 million of senior debt repayments;
• $32.4 million of net draws from our Revolving Credit Facility;
• $53.3 million of Common Share dividend payments; and
• $25.5 million advanced to our jointly-controlled businesses.
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