Focused primarily on maintenance capital expenditures
Horizon expects that its results for Q4 2014 will be in line with its previously provided guidance, generating EBITDAS levels similar to Q3 2014 results. Horizon anticipates a challenging operating environment for 2015 and has updated its earnings and cash flow expectations accordingly. Based on contracts currently in place, anticipated contract renewals and other highly probable activity, Horizon anticipates that EBITDAS levels for 2015 will be similar to 2014 results.
Horizon's Board of Directors recently approved an initial capital budget for 2015 of $25 million focused primarily on maintenance capital expenditures. Capital expenditures related to potential growth opportunities will be evaluated on a case by case basis to ensure they meet the Corporation's investment criteria.
Based on its earnings expectations for 2015 and a conservative capital program, Horizon expects its leverage position and financial flexibility to improve exiting 2014 and throughout 2015. As a result, Horizon is confident that it will be able to maintain its current quarterly dividend, subject to review and evaluation by its Board of Directors on a quarterly basis.
"Given the challenging environment anticipated for 2015, management will be focused on controlling costs, improving project execution and on capital discipline. This focus will allow us to maintain our core operating capabilities, improve our balance sheet position and manage through the cycle" noted Rod Graham, President and Chief Executive Officer.
Mr. Graham added, "Although not included in our 2015 expectations, Horizon is well positioned to take advantage of development opportunities in British Columbia related to potential LNG projects by virtue of our strategic land positions in close proximity to proposed project sites. As well, there are opportunities to utilize Horizon's in-house manufacturing capabilities located in Kamloops, British Columbia and Grande Prairie, Alberta which we believe to be a competitive advantage."