News Release
Jan. 16, 1998

TEPPCO PARTNERS, L.P. REPORTS RECORD FOURTH-QUARTER AND ANNUAL 1997 EARNINGS

Houston -- TEPPCO Partners, L.P. (NYSE:TPP) today reported record net income for both the quarter and year ended December 31, 1997.

Net income for 1997 was $61.3 million, or $3.90 per limited partner unit, compared with net income of $58.6 million, or $3.79 per limited partner unit, for the year ended December 31, 1996. Fourth quarter net income was $18.9 million, or $1.20 per limited partner unit, compared with 1996 fourth quarter net income of $17.8 million, or $1.15 per limited partner unit.

"TEPPCO achieved record net income for the sixth consecutive year in 1997," said William L. Thacker, chairman, president and chief executive officer. "Record deliveries of distillates and jet fuel, the result of strong demand in the surface transportation and airline sectors, led to the highest volumes recorded by the partnership to date. TEPPCO also benefited from a full year of deliveries to the Little Rock Air Force Base, completion of the Phase II mainline capacity expansion project, and expansion of the Ark-La-Tex pipeline system."

Operating expenses for 1997 totaled $106.8 million, an increase of $1.6 million from 1996 operating expenses of $105.2 million. The increase was due to higher throughput and benefits costs and sales taxes.

Operating revenues were $60.7 million for the fourth quarter, compared with 1996 fourth-quarter revenues of $58.7 million. The increase was due primarily to higher deliveries of distillates, jet fuels and butane.

Operating expenses for the quarter were $28.0 million, compared with $28.2 million for the 1996 fourth quarter. The decrease was due to lower supplies and service costs and insurance expense, offset by increased throughput-related and benefit costs and sales taxes.

TEPPCO Partners, L.P. is a publicly owned master limited partnership. TE Products Pipeline Company, Limited Partnership, the operating partnership, is one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States.

Contact: Eric W. Thode
Phone: (713) 759-3635
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com
Contact: Brenda J. Peters (Investor Relations)
Phone: (713) 759-3954
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com