APA Group (APA) today announced its estimated interim distribution of 16.5 cents per stapled security for the six months ending 31 December 2010.

The actual amount of the interim distribution, and its tax deferred status, will be determined following finalisation of the half year results, which are due for release on 23 February 2011.

The key dates for the interim distribution are:

Securities trade "ex distribution" 23 December 2010
Record Date 31 December 2010
Payment Date 17 March 2011

The Distribution Reinvestment Plan (DRP) will operate for this interim distribution at a discount of 2.5%, and the DRP issue price will be based on the volume weighted average price of APA’s securities traded on the ASX for the ten trading days ending on 10 March 2011, less the discount.

Securityholders may elect to participate in the DRP or vary their participation by notice in writing to APA’s registry Link Market Services Limited. Forms can be downloaded from APA’s website www.apa.com.au or requested on 1800 992 312, and must be received by the Record Date (31 December 2010) to apply to this distribution.

There is no change with respect to prior guidance on distributions. APA will continue to balance the Group's need to retain sufficient equity in the business to support the funding of its significant growth prospects, whilst also increasing returns to securityholders by, on average, 5% over the medium term. Barring unforeseen circumstances, APA expects to increase distributions in the 2011 financial year by at least 5%, with distributions fully covered by operating cash flow.