Enerplus Announces Cash Dividend for February 2011
January 31 2011 - 5:00AM
PR Newswire (Canada)
CALGARY, Jan. 31 /CNW/ -- CALGARY, Jan. 31 /CNW/ - Enerplus
Corporation ("Corporation") (TSX/NYSE - ERF) is pleased to announce
that a cash dividend in the amount of CDN$0.18 per share will be
payable on February 20, 2011 to all shareholders of record on
February 10, 2011. The ex-dividend date for this payment is
February 8, 2011. The CDN$0.18 per share dividend is equivalent to
approximately US$0.18 per share if converted using a Canadian/US
dollar exchange ratio of 1.00. The U.S. dollar equivalent dividend
will be based upon the actual Canadian/US exchange rate applied on
the payment date and will be net of any Canadian withholding taxes
that may be applicable. New Effective Tax Rates Effective January
1, 2011, Enerplus Resources Fund converted to Enerplus Corporation.
The distributions paid previously by Enerplus Resources Fund to
individual taxable Canadian investors in the highest marginal tax
bracket were subject to an effective income tax rate of
approximately 39% - 50%, depending on the provincial jurisdiction
and individual circumstances. As a corporation, dividends paid by
Enerplus to these taxable Canadian shareholders will now qualify
for a dividend tax credit resulting in an effective tax rate of 28%
- 41% until July of 2011. After July 2011, we expect our dividends
will be eligible for the enhanced tax credit typically applied to
dividends from most Canadian public companies resulting in an
effective tax rate of 18% - 36%, for those individuals in the
highest marginal tax bracket, depending upon provincial
jurisdiction and individual circumstances. Enerplus dividends are
not immediately eligible for the enhanced tax credit as we had
previously acquired Canadian private corporations that had low rate
income and this income must be paid out at the regular dividend tax
credit rate before the enhanced tax credit can be applied. These
expectations are based upon the current dividend policy of Enerplus
and could change if future dividend levels are adjusted. In the
U.S., Enerplus dividends will continue to be eligible for the
preferred dividend rate of 15% currently in effect. Dividends paid
into U.S. taxable accounts will continue to be subject to Canadian
withholding taxes, however, where Enerplus shares are held in U.S.
tax-sheltered accounts, these dividends should no longer be subject
to Canadian withholding taxes. Shareholders are advised to consult
their tax advisors regarding questions relating to the tax
treatment of Enerplus dividends. A summary of the taxable and
non-taxable portion of cash distributions paid by Enerplus in 2010
is available on our website at www.enerplus.com along with all of
our public information. Gordon J. Kerr President & Chief
Executive Officer Enerplus Corporation Except for the historical
and present factual information contained herein, the matters set
forth in this news release, including words such as "expects",
"projects", "plans" and similar expressions, are forward-looking
information that represents management of Enerplus' internal
projections, expectations or beliefs concerning, among other
things, future operating results and various components thereof or
the economic performance of Enerplus. The projections, estimates
and beliefs contained in such forward-looking statements
necessarily involve known and unknown risks and uncertainties,
which may cause Enerplus' actual performance and financial results
in future periods to differ materially from any projections of
future performance or results expressed or implied by such
forward-looking statements. These risks and uncertainties include,
among other things, those described in Enerplus' filings with the
Canadian and U.S. securities authorities. Accordingly, holders
of Enerplus shares and potential investors are cautioned that
events or circumstances could cause results to differ materially
from those predicted. To view this news release in HTML formatting,
please use the following URL:
http://www.newswire.ca/en/releases/archive/January2011/31/c6283.html
pplease call 1-800-319-6462 or e-mail a
href="mailto:investorrelations@enerplus.com"investorrelations@enerplus.com/a/p
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