Closed-End FundsEnerVest Diversified Income Trust

Tax

Adjusted Cost Base

Canoe is not able to calculate this information for investors. Please consult with your investment advisor regarding this, or go to ACB Tracking, providers of an adjusted cost base calculator on a fee for service basis.

2011 Tax Year – Distribution Breakdown

Please note that the information provided below is for information purposes only.  You will receive a T3 slip, which is not prepared by Canoe, from your investment advisor or, if you are a registered unitholder, from Computershare Trust Company of Canada.  Please consult with your investment advisor directly regarding their preparation and mailing deadlines.

For the year ended December 31, 2011, distributions to Canadian resident unitholders of EnerVest Diversified Income Trust are to be treated for income tax purposes as follows:

EnerVest distributed $1.20 per unit in 2011. The 28.6% Return of Capital to Unitholders reduces the adjusted cost base of the Unitholder’s trust unit.

2011 EnerVest Diversified Income Trust Warrants

EnerVest Diversified Income Trust issued two Warrant Offerings in 2011. 

Unitholders of record on January 25, 2011 received a non-cash distribution of one-quarter of a warrant for each EnerVest unit held. Each one-quarter of a warrant has a deemed value of $0.0635 which has been allocated 100% as Return of Capital. 

Unitholders of record on November 11, 2011 received a non-cash distribution of one-quarter of a warrant for each EnerVest unit held. Each one-quarter of a warrant has a deemed value of $0.02025 which has been allocated 100% as Return of Capital. 

These return of capital allocations are over and above the 28.6% related to the $1.20 per unit distributed during the year.  

Unitholders who received warrants through the January 25, 2011 or November 11, 2011 distributions will reflect an Adjusted Cost Base (ACB) of zero on these warrants.  Please note this ACB does not apply to investors who purchased units on the secondary market through the Toronto Stock Exchange under the symbol EIT.WT.A or EIT.WT.B.

Other Tax Information

• T3 Tax Slips

  Information regarding the tax breakdown of the EnerVest distributions has been sent electronically to Investment Dealers, who are responsible for the preparation and delivery of T3 slips to their clients. The mailing deadline for delivery of the slips is March 31, 2012.  We urge investors to contact their Investment Dealer directly to determine their specific preparation and delivery schedule.

• Non-Resident Unitholders

  Existing Non-Resident unitholders are not entitled to the same tax breakdown as Canadian unitholders. Please consult your tax professional or financial advisor to discuss your specific situation.

Historical Information by Tax Year

• 2010

  1. 17.62% of the distributions received are taxable as “other taxable income” (Investment Income);
  2. 6.11% of the distributions received are taxable as “other taxable income” (Not Investment Income);
  3. 21.49% of the distributions received are taxable as “actual amount of eligible dividends”;
  4. 0.12% of the distributions received are taxable as “actual amount of non-eligible dividends”;
  5. 0.70% of the distributions received are taxable as “foreign business income”;
  6. 1.12% of the distributions received are taxable as “foreign non-business income”;
  7. 0.00% of the distributions received are taxable as “capital gains”; and
  8. 52.84% of the distributions received are return of capital.
  (100.00%)

  The 52.84% Return of Capital to Unitholders reduces the adjusted cost base of the Unitholder’s trust unit.

  EnerVest distributed $1.20 per unit in 2010.

• 2009

  1. 15.80% of the distributions received are taxable as “other taxable income” (Investment Income);
  2. 8.81% of the distributions received are taxable as “other taxable income” (Not Investment Income);
  3. 12.84% of the distributions received are taxable as “actual amount of eligible dividends”;
  4. 0.37% of the distributions received are taxable as “actual amount of non-eligible dividends”;
  5. 0.80% of the distributions received are taxable as “foreign business income”;
  6. 0.97% of the distributions received are taxable as “foreign non-business income”;
  7. 0.0% of the distributions received are taxable as “capital gains”;
  8. 60.52% of the distributions received are return of capital;
  9. (0.08%) of the distribution is foreign business income tax paid; and
  10. (0.03%) of the distribution is foreign non-business income tax paid.
  (100.00%)

  The 60.52% return of capital to Unitholders reduces the adjusted cost base of the Unitholder’s trust unit.

  EnerVest distributed $1.61 per unit (on a consolidated basis) in 2009.

• 2008

  1. 43.02822% of the distributions received are taxable as “other taxable income” (Investment Income);
  2. 2.14524% of the distributions received are taxable as “other taxable income” (Not Investment Income);
  3. 3.82763% of the distributions received are taxable as “actual amount of eligible dividends”;
  4. 0.63759% of the distributions received are taxable as “actual amount of non-eligible dividends”;
  5. 2.04317% of the distributions received are taxable as “foreign business income”;
  6. 0.72092% of the distributions received are taxable as “foreign non-business income”;
  7. 0.0% of the distributions received are taxable as “capital gains”;
  8. 48.36518% of the distributions received are return of capital;
  9. (0.75694%) of the distribution is foreign business income tax paid; and
  10. (0.01101%) of the distribution is foreign non-business income tax paid.
  (100.00%)

  The 48.36158% return of capital to Unitholders reduces the adjusted cost base of the Unitholder’s trust unit. Please note that the above allocations, including the foreign business and non-business income taxes paid, add to a combined total of 100%.

  EnerVest distributed $0.84 per unit in 2008, distributing $0.07 per unit per month to Unitholders of record on the last trading day of each month.

• 2007

  1. 40.98693% of the distributions received are taxable as “other taxable income”;
  2. 3.29846% of the distributions received are taxable as “actual amount of eligible dividends”;
  3. 0.24960% of the distributions received are taxable as “actual amount of non-eligible dividends”;
  4. 2.87684% of the distributions received are taxable as “foreign business income”;
  5. 1.10151% of the distributions received are taxable as “foreign non-business income”;
  6. 51.68218% of the distributions received are taxable as “capital gains”;
  7. 0.04438% of the distributions received are return of capital;
  8. (0.21816%) of the distribution is foreign business income tax paid; and
  9. (0.02174%) of the distribution is foreign non-business income tax paid.
  (100.00%)

  The 0.04438% return of capital to unitholders will reduce the adjusted cost base of the unitholder’s trust unit. Please note that the above allocations including the foreign business and non-business income taxes paid add to a combined total of 100%.

  EnerVest distributed $0.84 per unit in 2007, consistently distributing $0.07 per unit per month to unitholders of record on the last trading day of each month.

• 2006

  1. 38.41637% of the distributions received are taxable as “other taxable income”;
  2. 5.57191% of the distributions received are taxable as “actual amount of eligible dividends”;
  3. 0.40499% of the distributions received are taxable as “actual amount of non-eligible dividends”;
  4. 0.76079% of the distributions received are taxable as “foreign business income”;
  5. 3.24339% of the distributions received are taxable as “foreign non-business income”;
  6. 21.72926% of the distributions received are taxable as “capital gains”;
  7. 29.87329% of the distributions received are return of capital.
  (100.00%)

  The 29.87329% return of capital to unitholders will reduce the adjusted cost base of the unitholder’s trust unit. Foreign business and non-business income taxes paid were 0.09027% and 0.00675%, respectively, of the 2006 distributions received.

  EnerVest distributed $0.84 per unit in 2006, consistently distributing $0.07 per unit per month to unitholders of record on the last trading day of each month.

• 2005

  1. 34.60437% of the distributions received are taxable as “other income”;
  2. 6.99692% of the distributions received are taxable as “dividend income”;
  3. 0.87203% of the distributions received are taxable as “foreign business income”;
  4. 0.47169% of the distributions received are taxable as “foreign non-business income”;
  5. 29.68501% of the distributions received are taxable as “capital gains”;
  6. 27.36998% of the distributions received is return of capital.
  (100.00%)

  The 27.36998% return of capital to unitholders will reduce the adjusted cost base of the unitholder’s trust unit. Foreign business and non-business income taxes paid were 0.09391% and 0.02011%, respectively, of the 2005 distributions received.

  EnerVest distributed $0.84 per unit in 2005, consistently distributing $0.07 per unit per month to unitholders of record on the last trading day of each month.

• 2004

  1. 28.49709% of the distributions received are taxable as “other income”;
  2. 5.05757% of the distributions received are taxable as “dividend income”;
  3. 0.01345% of the distributions received are taxable as “foreign business income”;
  4. 0.30594% of the distributions received are taxable as “foreign non-business income”;
  5. 22.63101% of the distributions received are taxable as “capital gains”;
  6. 43.49494% of the distributions received are not taxable in 2004.
  (100.00%)

  The non-taxable portion (43.49494%) will be considered a return of capital to the unitholder and will reduce the adjusted cost base of the unitholder’s trust unit. The tax identification number of EnerVest Diversified Income Trust is T18-759-107.

  Distributions totaling $0.84 per unit were made to unitholders during 2004, $0.07 per unit per month to unitholders of record at month end for the period January 2004 to December 2004. Based on the December 2003 closing price of $6.77 per unit and the December 2004 closing price of $8.40 per unit, the annualized cash on cash return to unitholders for the year was 12.4% and the total return to unitholders was 36.5%.

• 2003

  1. 26.57023% of the distributions received are taxable as “other income”;
  2. 5.10373% of the distributions received are taxable as “dividend income”;
  3. 0.38100% of the distributions received are taxable as “foreign non-business income”;
  4. 9.01684% of the distributions received are taxable as “capital gains”;
  5. 58.92820% of the distributions received are not taxable in 2003.
  (100.00%)

  The nontaxable portion (58.92820%) will be considered a return of capital to the unitholder and will reduce the adjusted cost base of the unitholder’s trust unit. The tax identification number of EnerVest Diversified Income Trust is T18-759-107.

  Distributions totaling $0.84 per unit were made to unitholders during 2003, $0.07 per unit per month to unitholders of record at month end for the period January 2003 to December 2003. Based on the December 2002 closing price of $6.58 per unit and the December 2003 closing price of $6.77 per unit, the annualized cash on cash return to unitholders for the year was 12.8% and the total return to unitholders was 15.7%.

• 2002

  1. 21.0864% of the distributions received are taxable as “other income”;
  2. 4.3030% of the distributions received are taxable as “dividend income”;
  3. 0.1451% of the distributions received are taxable as “foreign non-business income”;
  4. 27.3447% of the distributions received are taxable as “capital gains”;
  5. 47.1208% of the distributions received are not taxable in 2002.
  (100.00%)

  The nontaxable portion (47.1208%) will be considered a return of capital to the unitholder and will reduce the adjusted cost base of the unitholder’s trust unit. The tax identification number of EnerVest Diversified Income Trust is T18-759-107.

  Distributions totaling $0.84 per unit were made to unitholders during 2002, $0.07 per unit per month to unitholders of record at month end for the period January 2002 to December 2002. Based on the December 2001 closing price of $6.90 per unit and the December 2002 closing price of $6.58 per unit, the annualized cash on cash return to unitholders for the year was 12.2% and the total return to unitholders was 7.5%.

• 2001

  1. 22.8538 % of the distributions received are taxable as “other income”;
  2. 4.2083 % of the distributions received are taxable as “dividend income”;
  3. 0.3349 % of the distributions received are taxable as “foreign non-business income”;
  4. 72.6030 % of the distributions received are not taxable in 2001.
  (100.00%)

  The nontaxable portion (72.6030%) will be considered a return of capital to the unitholder and will reduce the adjusted cost base of the unitholder’s trust unit. The tax identification number of EnerVest Diversified Income Trust is T18-759-107.

  Distributions totaling $0.84 per unit were made to unitholders during 2001, $0.07 per unit per month to unitholders of record at month end for the period January 2001 to December 2001. Based on the December 2000 closing price of $6.05 per unit and the December 2001 closing price of $6.90 per unit, the annualized cash on cash return to unitholders for the year was 13.88 % and the total return to unitholders was 27.93 %.

• 2000

  1. 23.3947 % of the distributions received are taxable as “other income”;
  2. 2.8410 % of the distributions received are taxable as “dividend income”;
  3. 0.1112 % of the distributions received are taxable as “foreign income”;
  4. 73.6531 % of the distributions received are not taxable in 2000.
  (100.00%)

  The nontaxable portion (73.6531%) will be considered a return of capital to the unitholder and will reduce the adjusted cost base of the unitholder’s trust unit. The tax identification number of EnerVest Diversified Income Trust is T18-759-107.

  Distributions totaling $0.82 per unit were made to unitholders during 2000 ($0.065 per unit per month was made to unitholders of record at month end for the period January 2000 to April 2000, and $0.07 per unit per month was made to unitholders of record at month end for the period May 2000 to December 2000). Based on the December 1999 closing price of $5.15 per unit and the December 2000 closing price of $6.05 per unit,
  the annualized cash on cash return to unitholders for the year was 15.92% and the total return to unitholders was 33.40%.

• 1999

  1. 16.5948 % of the distributions received are taxable as “other income”;
  2. 2.8062 % of the distributions received are taxable as “dividend income”;
  3. 80.5990 % of the distributions received are not taxable in 1999.
  (100.00%)

  The nontaxable portion (80.5990%) will be considered a return of capital to the unitholder and will reduce the adjusted cost base of the unitholder’s trust unit. The tax identification number of EnerVest Diversified Income Trust is T18-759-107.

  Distributions totaling $0.755 per unit were made to unitholders of record at month end during the period commencing January 30, 1999 and ending December 31, 1999. Based on the December 31, 1998 closing price of $4.75 per unit the total return to unitholders for the period was 24.3%.

• 1998

  1. 7.0630 % of the distributions received are taxable as “other income”;
  2. 5.8654 % of the distributions received are taxable as “dividend income”;
  3. 0.0819 % of the distributions received are taxable as "foreign non-business income";
  4. 86.9897 % of the distributions received are not taxable in 1998.
  (100.00%)

  The nontaxable portion (86.9897%) will be considered a return of capital to the unitholder and will reduce the adjusted cost base of the unitholder’s trust unit.

  Distributions totaling $0.94 per unit were made to unitholders of record at month end during the period commencing January 30,1998 and ending December 31, 1998. Based on the December 31, 1998 closing price of $4.75 per unit, $0.94 represents a cash on cash yield of 19.79%.

• 1997

  1. 11.987 % of the distributions received are taxable as “other income”;
  2. 3.524 % of the distributions received are taxable as “dividend income”;
  3. 0.066 % of the distributions received are taxable as "foreign non-business income";
  4. 84.423 % of the distributions received are not taxable in 1997.
  (100.00%)

  The nontaxable portion (84.423%) will be considered a return of capital to the unitholder and will reduce the adjusted cost base of the unitholder’s trust unit.

  Distributions totaling $0.36 per unit were made to unitholders of record at month end during the period commencing September 30, 1997 and ending December 31, 1997.