FARMINGTON HILLS, Mich., Feb. 21 /PRNewswire-FirstCall/ --
SEMCO ENERGY, Inc. (NYSE: SEN) today announced that the Board of Directors has
changed the dividend rate on the Common Stock of the Company. Future
dividends, when declared, will be at an annual rate of $.50 per share.
Previously, the annual dividend rate was $.84 per share.
Marcus Jackson, President and Chief Executive Officer of SEMCO ENERGY,
Inc., said, "This action was taken to strengthen the financial position of the
Company and to provide cash to fund growth in the gas distribution business.
As we execute our redirected business strategy, future dividend increases
would be based on improvements in the Company's financial performance."
This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 that are based on
current expectations, estimates and projections of SEMCO Energy, Inc. and its
subsidiaries ("the "Company"). Statements that are not historical facts,
including statements about the Company's outlook, beliefs, plans, goals, and
expectations, are forward-looking statements. These statements are subject to
potential risks and uncertainties and, therefore, actual results may differ
materially. The Company undertakes no obligation to update publicly any
forward-looking statements whether as a result of new information, future
events or otherwise. Factors that may impact forward-looking statements
include, but are not limited to, the following: (i) the effects of weather and
other natural phenomena; (ii) the economic climate and growth in the
geographical areas where the Company does business; (iii) the capital
intensive nature of the Company's business; (iv) increased competition within
the energy industry as well as from alternative forms of energy; (v) the
timing and extent of changes in commodity prices for natural gas and propane;
(vi) the effects of changes in governmental and regulatory policies, including
income taxes, environmental compliance and authorized rates; (vii) the
Company's ability to bid on and win construction contracts; (viii) the impact
of energy prices on the amount of projects and business available to the
Company's engineering and construction services segment; (ix) the nature,
availability and projected profitability of potential investments available to
the Company; (x) the Company's ability to remain in compliance with its debt
covenants and accomplish its financing objectives in a timely and cost-
effective manner in light of changing conditions in the capital markets; (xi)
the Company's ability to operate and integrate acquired businesses in
accordance with its plans and (xii) the Company's ability to effectively
execute its strategic plan.
SEMCO ENERGY, Inc. is a diversified energy and infrastructure company that
distributes natural gas to more than 374,000 Customers in Michigan and Alaska.
It also owns and operates businesses involved in natural gas pipeline
construction services, propane distribution, intrastate pipelines and natural
gas storage in various regions of the United States. In addition, it provides
information technology and outsourcing services, specializing in the mid-range
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SOURCE SEMCO ENERGY, Inc.
Web site: http: //www.semcoenergy.com
CONTACT: Analysts Contact: Thomas Connelly, Director of Investor Relations, +1-248-702-6240, or E-mail: email@example.com , or Media Contact: Francis R. Lieder, Manager of Corporate Communications, +1-810-987-2200, Ext. 4186, or E-mail: firstname.lastname@example.org , both of SEMCO ENERGY, Inc.