Inter Pipeline Fund ("Inter Pipeline") (TSX:IPL.UN), a capital trust engaged in petroleum transportation, bulk liquid storage and natural gas liquids extraction based in Canada, announced its second quarter results today.
Inter Pipelne`s funds from operations, the equivalent of cash flow from operations for capital trusts, totalled $88.3 million, increasing 29% from the second quarter of 2009.
Of the $88.3 million of funds from operations, $18.9 million, $42.2 million, and $27.7 million was contributed by Inter Pipeline's oil sands transportation, NGL extraction, conventional oil pipelines and bulk liquid storage businesses, respectively.
The increase in funds from operations was due to higher production volumes and better frac-spread prices realized for its propane-plus products.
In second quarter of 2010, Inter Pipeline paid out $57.8 million, or $0.225 per share, to its unit holders. Its payout ratio was 69.9% for the period.
Volumes on Inter Pipeline’s Cold Lake and Corridor oilsand pipeline system averaged 575,100 barrels per day (b/d) in the second quarter of 2010, an increase of 5,100 b/d from the second quarter of 2009. Inter Pipeline's three NGL extraction facilities at Cochrane and Empress processed 2.8 billion cubic feet per day (bcf/d) of natural gas during the quarter,an increase of 0.6 bcf/d from second quarter of 2009.
Inter Pipelines’s conventional pipeline system averaged 160,400 b/d in the second quarter, a 7% decrease from second quarter of 2009 . Tank utilization rates for Inter Pipeline’s bulk liquid storage averaged 95.8% during the quarter, in line with the 95.9% utilization rate achieved in the second quarter of 2009.
Inter Pipeline also announced that $40 million expansion plan for its Cold Lake pipeline system.
As of 3: 29 pm, Inter Pipeline traded up 1.25% to $12.96 on the Toronto Stock Exchange.