News Release
July 19, 1999

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

HOUSTON -- TEPPCO Partners, L.P. (NYSE:TPP) today reported record second-quarter net income of $14.0 million, or $0.38 per unit. This compares with 1998 second-quarter net income of $12.5 million, or $0.39 per unit.

"The continued strength of the economy in the second quarter helped TEPPCO achieve record results," said William L. Thacker, chairman, president and chief executive officer. "Distillate and jet transportation revenues and volumes set new Partnership records, and total refined products volumes were a second-quarter record. Additionally, TEPPCO’s crude oil segment continued to perform well as crude prices rebounded during the quarter."

Transportation revenues for the products segment for the 1999 second quarter were $43.4 million, compared with $42.5 million for the 1998 quarter. The increase was due primarily to the record deliveries of distillate and jet fuel. Offsetting these increases somewhat were decreased revenues and deliveries of motor fuels and MTBE.

Mont Belvieu operations and Other revenues were $10.9 million for the second quarter of 1999, compared with $9.1 million for the 1998 second quarter. The increase was due to higher product sales as a result of favorable pricing, and higher storage and shuttle revenues at Mont Belvieu.

Gross margin for the crude oil segment was $9.7 million for the second quarter on crude marketing volumes of approximately 253,000 barrels per day, transportation volumes of crude and natural gas liquids (NGLs) of approximately 108,000 barrels per day, and lube oil volumes of approximately 717,000 gallons per month.

Operating expenses for the 1999 second quarter totaled $34.8 million, compared with $26.0 million for the 1998 second quarter, which did not include any expenses for the crude oil segment. The products segment operating expenses were $28.8 million, including fuel and power. The increase was due to higher costs associated with increased throughput and increased costs for outside services and rentals. The crude oil segment operating expenses were $6.0 million.

Other income-net for the 1999 second quarter was $0.4 million, compared with $0.8 million for the same quarter in 1998. The decrease was due primarily to $0.4 million of gain in the 1998 quarter from the disposition of assets.

Net income for the six months ended June 30, was $37.4 million, or $1.02 per unit, compared with $25.7 million, or $0.80 per unit for the same period in 1998, before loss on early extinguishment of debt. The 1998 year-to-date loss after the charge of $72.8 million for early extinguishment of debt was $47.1 million or $1.48 per unit.

Transportation revenues for the products segment for the 1999 first six months were $95.6 million, compared with $86.8 million for the 1998 first six months. The increase was due primarily to increased deliveries of LPGs, distillate, jet fuel and motor fuels, offset somewhat by decreased deliveries of natural gasoline and MTBE.

Mont Belvieu operations and Other revenues were $19.8 million for the 1999 first half, compared with $15.0 million for the 1998 first half The increase was primarily attributable to higher product sales, improved Mont Belvieu storage and shuttle activity, and six months of revenue from the fractionators in 1999 compared with three months in 1998.

Gross margin for the crude oil segment was $18.0 million for the first six months of 1999 on crude marketing volumes of approximately 246,000 barrels per day, transportation volumes of crude and natural gal liquids (NGLs) of approximately 105,000 barrels per day, and lube oil volumes of approximately 685,000 gallons per month.

Operating expenses for the six months ended June 30, 1999 totaled $65.6 million, compared with $50.6 million for the same period in 1998, which did not include any expenses for the crude oil assets. The products segment operating expenses were $55.0 million, including fuel and power. The increase was due to higher costs associated with increased throughput and increased outside services and rentals. The crude oil segment operating expenses were $10.6 million.

Interest expense - net increased $0.6 million, to $14.8 million, during the first six months of 1999 compared with $14.2 million for the first six months of 1998, due to the debt related to the purchase of the fractionators on March 31, 1998.

Other income-net for the first six months of 1999 was $0.7 million compared with $1.4 million for the first six months of 1998. The decrease was due primarily to the previously mentioned gain on the disposition of assets and lower interest income earned on cash investments.

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.

Duke Energy (NYSE:DUK) is a global energy company with more than $26 billion in assets. Headquartered in Charlotte, N.C., the company reaches into more than 50 countries, producing energy, transporting energy, marketing energy and providing energy services. In the United States, Duke Energy companies provide electric service to approximately two million customers in North Carolina and South Carolina; operate interstate pipelines that deliver natural gas to various regions of the country; and are leading marketers of electricity, natural gas and natural gas liquids. Additional information about the company is available on the Internet at: www.duke-energy.com

TEPPCO Partners, L. P.
Condensed Balance Sheets (Unaudited)

(In Millions)

June 30,

December 31,

1999

1998


Assets

Current assets

Cash and cash equivalents

$ 49.2

$ 47.4

Short-term investments

3.9

3.3

Other

178.8

137.9


Total current assets

231.9

188.6

Property, plant and equipment - net

699.5

671.6

Investments

4.2

6.5

Other assets

47.9

48.3


Total assets

$ 983.5

$ 915.0



Liabilities and Partners' Capital

Current liabilities

$ 181.8

$ 148.2

Senior Notes

389.7

389.7

Other long-term debt

68.0

38.0

Other non-current liabilities and minority interest

6.8

6.9

Class B Units

106.1

105.0

Partners' capital

General partner's interest

0.1

(0.4)

Limited partners' interests

231.0

227.6


Total partners' capital

231.1

227.2


Total liabilities and partners' capital

$ 983.5

$ 915.0


TEPPCO Partners, L. P.
Condensed Statements of Cash Flow (Unaudited) (In Millions)

Six Months
Ended
June 30,

1999

1998


Cash Flows from Operating Activities

Net income (loss)

$37.4

$(47.1)

Extraordinary loss on debt extinguishment,

net of minority interest

-

72.8

Depreciation, working capital and other

8.0

17.0


Net Cash Provided by Operating Activities

45.4

42.7


Cash flows from Investing Activities:

Proceeds from cash investments

3.8

2.1

Purchases of cash investments

(2.2)

-

Purchase of fractionators and related intangible assets

-

(40.0)

Purchase of crude oil system

(2.2)

-

Proceeds from sale of property, plant and equipment

-

0.5

Capital expenditures

(40.3)

(9.5)


Net Cash Used in Financing Activities

(40.9)

(46.9)


Cash Flows from Financing Activities:

Principal payment, First Mortgage Notes

-

(326.5)

Prepayment premium, First Mortgage Notes

-

(70.1)

Issuance of Senior Notes

-

389.7

Debt issue costs, Senior Notes

-

(3.6)

Proceeds from term loan

25.0

38.0

Proceeds from revolving credit agreement

5.0

-

Distributions paid

(32.7)

(27.4)


Net Cash Provided by (Used in) Financing Activities

(2.7)

0.1


Net Decrease in Cash and Cash Equivalents

1.8

(4.1)

Cash and Cash Equivalents -- beginning of period

47.4

43.9


Cash and Cash Equivalents -- end of period

$49.2

$39.8


Supplemental Cash Information:

Interest paid (net of capitalized interest)

$14.5

$12.3

TEPPCO Partners, L. P.
FINANCIAL HIGHLIGHTS

(Unaudited - In Millions, Except Per Unit Amounts)

Three Months
Ended
June 30,

Six Months
Ended
June 30,



1999

1998

1999

1998





Operating Revenues:

Sales of crude oil and petroleum products

$398.1

$     -

$620.5

$      -

Transportation - Refined Products

33.3

32.7

58.9

55.2

Transportation - LPGs

10.1

9.8

36.7

31.6

Transportation - Crude oil and NGLs

2.9

       -

5.5

        -

Mont Belvieu operations

3.4

2.4

6.3

5.1

Other

7.5

6.7

13.5

9.9





Total Operating Revenues

455.3

51.6

741.4

101.8





Purchases of crude oil and petroleum products

391.3

       -

608.0

        -

Operating expenses - general and administrative

26.7

19.4

50.6

37.8

Operating fuel and power

8.1

6.6

15.0

12.8

Depreciation and amortization

8.2

6.6

16.3

12.7





Total Costs and Expenses

434.3

32.6

689.9

63.3





Operating income

21.0

19.0

51.5

38.5





Interest expense - net

(7.4)

(7.3)

(14.8)

(14.2)

Other income - net

0.4

0.8

0.7

1.4





Income before extraordinary loss on debt extinguishment

14.0

12.5

37.4

25.7





Extraordinary loss on debt extinguishment, net of minority interest

-

-

-

(72.8)

Net Income (Loss)

$14.0

$12.5

$37.4

$(47.1)





Basic and Diluted Income (Loss)

Per Limited Partner and Class B Unit:

Income before extraordinary loss

$0.38

$0.39

$1.02

$0.80

Extraordinary loss

-

-

-

(2.28)

Net Income (Loss)

$0.38

$0.39

$1.02

$(1.48)





Number of Limited Partner and Class B Units

32.9

29.0

32.9

29.0

TEPPCO Partners, L. P.
OPERATING DATA

(Unaudited - In Millions, Except Per Barrel,
Per Gallon and MBbl/day Amounts)

Three Months
Ended
June 30,

Six Months
Ended
June 30,



1999

1998

1999

1998





Products System:

Barrels Delivered

Refined Products

35.8

35.2

63.9

59.7

LPGs

6.4

5.6

19.6

15.8

Mont Belvieu Operations

5.9

5.6

12.8

11.5





TOTAL

48.1

46.4

96.3

87.0





Average Tariff Per Barrel

Refined Products

$0.93

$0.93

$0.92

$0.93

LPGs

1.59

1.72

1.88

2.00

Mont Belvieu Operations

0.15

0.15

0.16

0.16





Average System Tariff Per Barrel

$0.92

$0.94

$1.01

$1.02





Crude Oil System

Margins:

Crude oil transportation

$4.6

$8.9

Crude oil marketing

3.0

5.0

NGL transportation

1.6

3.0

LSI

0.5

1.1




Total Margin

$9.7

$18.0

Volumes: (MBbl/day)

Crude oil transportation

94.4

92.5

Crude oil marketing

253.2

246.2

NGL transportation

13.2

12.1

LSI Volume (Total Gallons)

2.2

4.1

Margin (Per Barrel)

Crude oil transportation

$0.542

$0.535

Crude oil marketing

$0.130

$0.112

NGL transportation

$1.295

$1.358

LSI Margin (Per Gallon)

$0.275

$0.276



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