News Release
Oct. 16, 1998

TEPPCO PARTNERS, L.P. REPORTS RECORD THIRD-QUARTER RESULTS

Houston, October 16 -- TEPPCO Partners, L.P. (NYSE: TPP) today reported record third-quarter net income of $12.7 million, or $0.39 per limited partner unit. This compares with 1997 then record third-quarter net income of $11.5 million, or $0.36 per limited partner unit. "MI-time highs for deliveries of motor fuels, jet fuel and total volumes resulted in record revenues, net income and net income per limited partner unit in a third quarter for TEPPCO. Strong demand in the surface and airline transportation sectors was the primary reason for the strong performance. A continuation of high propane inventory levels and low demand for both propane and butane, carrying over from the historically warm weather earlier in the year, kept the quarter from being even better," said William L. Thacker, chairman, president and chief executive officer. "Additional contributors to the excellent results were the fractionator revenues, more efficient utilization of the pipeline, and decreased interest expense from the refinancing of the Partnership’s debt earlier this year."

Operating revenues of $54.2 million for the quarter were 2 percent above the $53.3 million for the third quarter of 1997, due to the record product deliveries noted above.

Operating expenses, including fuel and power, were $27.9 million for both the 1998 and 1997 third quarters. Lower costs for outside services, insurance, mainline power costs and ad valorem taxes in the 1998 quarter were offset by an insurance recovery of environmental litigation costs in the 1997 third quarter.

Net income for the nine months ended September 30, 1998, before loss on early extinguishment of debt was $38.4 million, or $1.19 per limited partner unit, compared with $42.4 million, or $1.35 per unit for the same period in 1997. The year-to-date loss after the charge of $72.8 million for early extinguishment of debt was $34.4 million, or $1.07 per limited partner unit.

Operating revenues for the 1998 nine-month period were $156.0 million, compared with $161.4 million for the nine months ended September 30, 1997. The decrease was due primarily to lower propane deliveries resulting from warmer-than-normal weather and high propane inventory levels, which persisted throughout the first nine months of the year.

Operating expenses, including fuel and power, were $78.5 million for the nine months ended September 30, 1998, compared with 1997 nine-month expenses of $78.8 million. The decrease was due to mainline pumping efficiencies, reduced insurance and ad valorem tax expenses, offset by increased costs for the addition of the fractionators, the connection to Colonial Pipe Line near Beaumont, Texas during May, 1997, and employee benefits.

This release may contain certain forward-looking information regarding the Partnership, including projections, estimates, forecasts, plans and objectives. Although management believes that all such statements are based upon reasonable assumptions, no assurance can be given that the actual results will not differ materially from those contained in such forward-looking statements.

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
Phone: (713) 759-3954
24 Hour Phone: (704) 382-8333
Email: media-relations@duke-energy.com