Westcoast Energy Inc. ANNUAL REPORT 1999
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56914_CoverFront 3/16/2000 2:56 PM Page 1 Westcoast Energy Inc. The Year: Pipeline Expansion During five short months of 1999,Westcoast Energy built the 568-kilometre Canadian portion of the Maritimes & Northeast Pipeline.The cover photo for this Annual Report was captured on the mainline pipeline construction right-of-way in Nova Scotia. Now in operation, the 1,051-kilometre mainline pipeline transports natural gas from Goldboro, Nova Scotia, to markets in Atlantic Canada and New England. A NNUAL R EPORT 1999 The Maritimes & Northeast Pipeline is an integral part of a new energy initiative on Canada’s East Coast, opening a new natural gas supply basin in the Atlantic and bringing natural gas to the Maritimes for the first time. WESTCOAST ENERGY INC. DUPLICATE PUBLICATIONS ENERGY INC. WESTCOAST 1333 West Georgia Street Registered holders of the Company’s shares may receive Corporate Profile Va n cou ver, Br it i s h C olu mbi a more than one copy of Company publications. Westcoast Energy Inc. is a leader in the North American energy industry. Natural gas, a clean- Canada V6E 3K9 Shareholders can assist the Company in eliminating such burning,economical and plentiful energy source,is the foundation of the Company’s operations duplication by contacting the Montreal Trust Company in Telephone: (604) 488-8000 and Westcoast Energy’s fuel of choice to provide superior energy services value to its customers. Vancouver at (888) 661-5566 (Toll free). Facsimile: (604) 488-8500 Headquartered in Vancouver, British Columbia, Westcoast Energy operates a $12-billion Internet: www.westcoastenergy.com network of natural gas gathering,processing,transportation,storage and distribution assets,and related electric power generation, international, financial, information technology and energy VICE PRESIDENT, CORPORATE COMMUNICATIONS REPORT 1999 ANNUAL services businesses. Robert R. Foulkes (604) 488-8093 Building for the Future MANAGER, INVESTOR RELATIONS More than 40 years ago, the Company built Canada’s first “big-inch” pipeline from northeast Thomas M. Merinsky (604) 488-8021 British Columbia to the Canada-United States border, bringing natural gas supply from the Western Canadian Sedimentary Basin to emerging markets in British Columbia and the United States Pacific Northwest. Today, with operations across North America, the Company remains committed to building for the future.In 2000,Westcoast Energy,with its partners,will complete the Alliance and Vector pipelines to transport Western Canadian natural gas to growing Canadian and United States markets. Annual Meeting The Annual Meeting of Shareholders of Westcoast Energy Inc.will be held in the Robson Square Conference Centre in Vancouver, British Columbia, on Wednesday, April 26, 2000, 11:00 a.m. (Local time). CONTENTS Cover and Coated Stock: Insert 1999 Fact Book 1 Financial Summary Centura Gloss 2 Chairman’s Letter 10% total recovered fiber, 9 Financial Review Contents all post-consumer fiber 60 Directors and Senior Officer and Management Group 62 Investor Information Uncoated Stock: Resolve Premium Opaque Building Over 50% recycled paper including 10% post-consumer fiber for the Future Printed in Canada 56914_CoverFront 3/16/2000 2:56 PM Page 1 Westcoast Energy Inc. The Year: Pipeline Expansion During five short months of 1999,Westcoast Energy built the 568-kilometre Canadian portion of the Maritimes & Northeast Pipeline.The cover photo for this Annual Report was captured on the mainline pipeline construction right-of-way in Nova Scotia. Now in operation, the 1,051-kilometre mainline pipeline transports natural gas from Goldboro, Nova Scotia, to markets in Atlantic Canada and New England. A NNUAL R EPORT 1999 The Maritimes & Northeast Pipeline is an integral part of a new energy initiative on Canada’s East Coast, opening a new natural gas supply basin in the Atlantic and bringing natural gas to the Maritimes for the first time. WESTCOAST ENERGY INC. DUPLICATE PUBLICATIONS ENERGY INC. WESTCOAST 1333 West Georgia Street Registered holders of the Company’s shares may receive Corporate Profile Va n cou ver, Br it i s h C olu mbi a more than one copy of Company publications. Westcoast Energy Inc. is a leader in the North American energy industry. Natural gas, a clean- Canada V6E 3K9 Shareholders can assist the Company in eliminating such burning,economical and plentiful energy source,is the foundation of the Company’s operations duplication by contacting the Montreal Trust Company in Telephone: (604) 488-8000 and Westcoast Energy’s fuel of choice to provide superior energy services value to its customers. Vancouver at (888) 661-5566 (Toll free). Facsimile: (604) 488-8500 Headquartered in Vancouver, British Columbia, Westcoast Energy operates a $12-billion Internet: www.westcoastenergy.com network of natural gas gathering,processing,transportation,storage and distribution assets,and related electric power generation, international, financial, information technology and energy VICE PRESIDENT, CORPORATE COMMUNICATIONS REPORT 1999 ANNUAL services businesses. Robert R. Foulkes (604) 488-8093 Building for the Future MANAGER, INVESTOR RELATIONS More than 40 years ago, the Company built Canada’s first “big-inch” pipeline from northeast Thomas M. Merinsky (604) 488-8021 British Columbia to the Canada-United States border, bringing natural gas supply from the Western Canadian Sedimentary Basin to emerging markets in British Columbia and the United States Pacific Northwest. Today, with operations across North America, the Company remains committed to building for the future.In 2000,Westcoast Energy,with its partners,will complete the Alliance and Vector pipelines to transport Western Canadian natural gas to growing Canadian and United States markets. Annual Meeting The Annual Meeting of Shareholders of Westcoast Energy Inc.will be held in the Robson Square Conference Centre in Vancouver, British Columbia, on Wednesday, April 26, 2000, 11:00 a.m. (Local time). CONTENTS Cover and Coated Stock: Insert 1999 Fact Book 1 Financial Summary Centura Gloss 2 Chairman’s Letter 10% total recovered fiber, 9 Financial Review Contents all post-consumer fiber 60 Directors and Senior Officer and Management Group 62 Investor Information Uncoated Stock: Resolve Premium Opaque Building Over 50% recycled paper including 10% post-consumer fiber for the Future Printed in Canada 56914_CoverFront 3/16/2000 2:56 PM Page 2 BUILDING FOR THE FUTURE: A NORTH AMERICAN FOOTPRINT Canadian West,Arctic and U.S.Pacific Northwest Investor Information Westcoast Energy began operating British Columbia’s first A component of Westcoast Energy’s corporate goal – to become one of the few big North American energy natural gas mainline pipeline in 1957. Today, the Company’s companies by providing superior energy services value to its customers – is to increase the density of its natural gas gathering pipelines, processing facilities and transmission systems connect natural gas supply in northeast activities in four geographic areas where the Company has significant assets and market presence. British Columbia, northwest Alberta, the Yukon, and the Northwest Territories with markets in Western Canada and the United States Pacific Northwest. Natural gas fuels cogen- eration facilities that provide electric power to British Columbia’s industrial customers, and is transported and dis- tributed to consumers on the British Columbia North Coast DIVIDEND REINVESTMENT STOCK EXCHANGES AND SYMBOLS and Vancouver Island through the Company’s Pacific AND SHARE PURCHASE PLAN Westcoast Energy common shares are listed on the Toronto, New York and Pacific Northern Gas and Centra Gas British Columbia subsidiaries. Westcoast Energy’s Dividend Reinvestment and Share Purchase Plan provides registered stock exchanges. Canadian West, Arctic Westcoast Energy is committed to maximizing the value of holders of Westcoast Energy common shares and convertible preferred shares with two In Canada – W convenient and economic ways to increase their holdings in the Company. In the United States – WE and U.S. Pacific Northwest these existing assets through its participation in new industry 17,332 kilometres of natural Registered shareholders may elect to reinvest the cash dividends paid on all or some gas pipelines activity in the southern Northwest Territories. The Alliance of their common and convertible preferred shares in additional common shares of the Westcoast Energy preferred shares are listed on The Toronto Stock Exchange. 8 natural gas processing plants Pipeline, expected to begin service in late 2000, will extend Company, and are also entitled to make optional cash purchases of common shares 8.08% First Preferred, Series 2 – W.PR.D through the Plan in amounts from $50 to $5,000 per calendar quarter. 4.90% First Preferred, Series 5 – W.PR.F 2 natural gas cogeneration plants the market scope for Western Canadian natural gas supply, [367 MW] and further integrate the North American energy industry. The Plan allows participants to acquire new common shares through the reinvestment 4.72% First Preferred, Series 6 – W.PR.G of dividends at 95% of the average market price as defined in the Plan. Optional cash 5.50% First Preferred, Series 7 – W.PR.H 1,866 billion cubic feet of natural Ontario and U.S. Great Lakes gas transported annually purchases are made at the average market price. Participants do not pay any brokerage 5.60% First Preferred, Series 8 – W.PR.J commissions or other fees on the reinvestment of dividends or the optional cash purchase of 5.00% First Preferred, Series 9 – W.PR.K 105,000 natural gas Through more than 34,000 kilometres of natural gas distribution customers transmission and distribution pipelines, Westcoast new shares through the Plan. All notices and enquiries relating to the Plan should be addressed to the Montreal Trust Company at: AUDITORS 2,226 billion cubic feet of natural Atlantic Canada and Energy’s Union Gas subsidiary delivers energy to more than Northeast U.S. Montreal Trust Company Stock Transfer Services Ernst & Young LLP gas traded annually one million Ontario natural gas consumers. With 1,110 kilometres of natural gas pipelines 510 Burrard Street P.O.