News Release
April 16, 1999


HOUSTON - TEPPCO Partners, L.P. (NYSE:TPP) today reported record first quarter income of $23.4 million, or $0.64 per unit. This compares with 1998 first quarter income before loss on early extinguishment of debt of $13.2 million, or $0.41 per unit. The 1998 first quarter net loss after a charge of $72.8 million for early extinguishment of debt was $59.6 million, or $1.87 per unit.

"A return to normal winter weather and continued strength in the economy resulted in a record 1999 first quarter for TEPPCO," said William L. Thacker, chairman, president and chief executive officer. "Refined products transportation revenues and volumes were an all-time record for a first quarter and liquefied petroleum gases (LPGs) transportation revenues and volumes for the quarter were 22 percent and 29 percent higher, respectively, than first quarter 1998. Our fractionation assets in Colorado continue to meet or exceed our expectations. We are also pleased with the performance of the crude oil assets, especially in light of record low crude prices during the first quarter."

Transportation revenues for the products segment for the 1999 first quarter were $52.2 million, compared with $44.3 million for the 1998 quarter. The increase was due primarily to record deliveries of motor fuels, distillates and jet fuel. Offsetting these increases somewhat were decreased revenues and deliveries of butanes, natural gasoline and MTBE due to unfavorable gasoline blending economics.

Mont Belvieu operations and Other revenues were $8.9 million for the first quarter of 1999, compared with $5.9 million for the 1998 quarter. The increase was attributable to $1.8 million of revenues from the fractionators, $1.0 million from higher volumes at the Providence, Rhode Island, marine terminal and other refined products and LPGs operations, and $0.2 million from Mont Belvieu operations.

Gross margin for the crude oil segment was $8.3 million for the quarter on crude marketing volumes of approximately 235,000 barrels per day, transportation volumes of crude and natural gas liquids (NGLs) of approximately 99,000 barrels per day, and lube oil volumes of approximately 650,000 gallons per month.

Operating expenses for the 1999 first quarter totaled $30.8 million, compared with $24.6 million for the 1998 first quarter, which did not include any expenses for the fractionation or crude oil assets. The products segment operating expenses were $26.2 million, including fuel and power. The increase was due to higher costs associated with increased transportation volumes, increased costs for outside services and costs related to the fractionation assets. The crude oil segment operating expenses were $4.6 million.

Interest expense was $7.5 million for the quarter, compared with $7.1 million for the 1998 first quarter. The increase was due to interest costs on the debt incurred to acquire the fractionation assets.

TEPPCO Partners, L.P. is a publicly owned master limited partnership which conducts business through two operating partnerships. TE Products Pipeline Company, Limited Partnership is one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States. TCTM, L.P. is a crude oil gathering, transportation, storage and marketing company operating primarily in Texas and Oklahoma.

Except for the historical information contained herein, the matters discussed in this news release are forward looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, market conditions, governmental regulations and other factors discussed in TEPPCO’s filings with the Securities and Exchange Commission.

Contact: Eric W. Thode
Phone: (713) 759-3635
24 Hour Phone: (704) 382-8333
Contact: Brenda J. Peters
Phone: (713) 759-3954
24 Hour Phone: (704) 382-8333