08.19
Cathedral announced its intention to convert to a growth-oriented
corporation. The trust expects a management proxy circular to be mailed to
unitholders in the coming months with the vote and closing of the
conversion to occur before the end of 2009.
In conjunction with its conversion to a corporation, Cathedral will
discontinue its current $0.04 per unit per month distribution effective
August. Upon conversion, Cathedral will pay a $0.06 quarterly dividend,
with the first dividend expected to be declared for Q4/09 (payable January).
Concurrent with its conversion announcement, Cathedral provided an
operational update. The trust has recently expanded into the Marcellus
Shale region and is in the process of opening a facility in Oklahoma,
targeting the Fayetteville, Woodford and Haynesville Shale plays.
Overall we believe Cathedral’s conversion to a corporation and reduced
distribution are strategic measures that improve the trust’s near-term
financial flexibility and position Cathedral to capitalize on growth
opportunities.
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