| Key Terms |
AOSP
|
Athabasca Oil Sands Project |
| Condensate |
A mixture of hydrocarbons consisting primarily of pentanes and heavier liquids |
| Convertible Debenture |
A long term, unsecured corporate bond that can be exchanged for units |
| Cost-of-Service Contract |
A contract that provides for recovery of operating costs and a fixed capital charge. Cost of service contracts are generally not subject to commodity risk |
| Bitumen |
A term commonly applied to various mixtures of naturally occurring solid or liquid hydrocarbons |
| Diluent |
A lower density fluid used to blend with heavy oil or bitumen in order to reduce viscosity and density to pipeline conditions (condensate is the most commonly used diluent for pipeline transportation of heavy oil or bitumen) |
| Distributable Cash |
The cash which is available for distribution to unitholders |
| Distribution Record Date |
The date that an investor must be on record as being a holder of the unit in order to be eligible to receive the distribution for that period |
| DRIP |
Distribution reinvestment plan |
| Eligible Investor |
A person other than a person who is, or who acts on behalf of a person who will have a beneficial interest in Class A Units or Class B Units who is, in either case (i) a "non resident" within the meaning of the Tax Act or a partnership that is not a "Canadian partnership" under the Tax Act, or (ii) a person an interest in which would be a "tax shelter investment" as defined in the Tax Act |
| Enterprise Value |
Is calculated by adding debt to Market Capitalization, and is commonly used to indicate the total value (equity + debt) of a company |
| Ethane or C2 |
An NGL, the chemical formula of which is C2H6, used primarily as a feedstock to the petrochemical industry and for use in enhanced oil recovery projects |
| Extraction |
The process of removing higher value NGL's such as ethane, propane, butane and pentane-plus from the natural gas stream. The extracted liquids are generally removed in mixes, which must be further processed in subsequent steps to separate the individual products |
| Fee-Based Contract |
A contract that provides for a fixed fee per unit of production sold or service provided, are generally not subject to commodity risk |
| Frac Spread |
The relative spread between NGL prices and natural gas prices |
| Fractionation |
The process of using temperature and pressure to separate a mixture of NGLs with differing boiling points into individual products such as ethane, propane and butane |
| Hydrocarbons |
Organic compounds containing a mixture of carbon and hydrogen |
| Natural Gas Liquids or NGL |
Liquids obtained from natural gas processing or refining of crude oil. NGLs include ethane, propane, butane and pentanes-plus/condensate |
| Oil Sands |
A deposit of sand saturated with bitumen. Canada has some of the largest oil sands deposits in the world |
| OUPP |
Optional Unit Purchase Plan |
| Payout Ratio |
Calculated by expressing the cash distribution as a percentage of cash flow from operations for a given period. |
| Petrochemical |
A chemical derived from petroleum, its derivatives or natural gas |
| Profit-share Contracts |
A contract where profits are shared between one or more parties, subject to volume and price risk |
| Propane Plus or C3+ |
An NGL that contains a mixture of any one or more of propane, butane and pentanes-plus (condensate) |
| Raw Gas |
Natural gas before it has been subjected to any processing that may be required for it to become suitable for sale |
| Shrinkage Gas |
The natural gas supplied by an NGL extractor to replace heat value removed in the form of NGLs; also commonly referred to as "make-up gas" |
| Take-or-Pay Contract |
A form of contract in which the payor is obligated to pay regardless of whether or not the payor uses the services, volumes or capacity available under the contract |
| WCSB |
The western Canadian sedimentary basin which is the major natural gas producing area of Canada, covering parts of the provinces of Alberta, British Columbia and Saskatchewan and the southern areas of the Yukon Territory and the Northwest Territories |
| Yield (Distribution Yield or Cash Yield) |
Calculated by dividing forecast annual cash distributions by the current unit price |
