TEPPCO PARTNERS,
L.P. REPORTS FIRST QUARTER 2000 EARNINGS
HOUSTON -- TEPPCO Partners,
L.P. (NYSE:TPP) today reported net income for the quarter ended March 31, 2000
of $23.9 million, or $0.60 per unit, compared with net income of $23.4 million,
or $0.64 per unit for the quarter ended March 31, 1999.
"The first quarter
of 2000 was the best quarter in TEPPCO’s history, producing record revenues
and net income," said William L. Thacker, chairman, president and chief
executive officer of the general partner of TEPPCO. "Refined products transportation
revenues and volumes set a first quarter record, with strong deliveries of gasolines,
distillates and jet fuel. Total system throughput was also a first quarter record
despite the warmest weather in U.S. history, which negatively impacted LPG volumes.
"Crude oil margins
exceeded the 1999 first quarter in all segments. Additionally, non-transportation
activity added to the quarter’s results with contributions from product
sales and the storage services at Mont Belvieu," Thacker continued.
Transportation revenues
for the products segment for the first quarter of 2000 were $51.1 million, compared
with $52.2 million for the 1999 quarter. The decrease was due to lower propane
deliveries as a result of unusually mild weather in the upper Midwest and the
Northeast. Offsetting the decrease were record refined products deliveries,
which were 5 percent higher than the previous first quarter record, set in 1999.
Mont Belvieu operations
and Other revenues were $12.7 million for the first quarter of 2000, compared
with $8.9 million for the 1999 quarter. The increase was attributable to increased
storage revenue at Mont Belvieu and the sale of increased volumes of product
inventory compared with 1999.
Gross margin for the crude
oil segment was $9.5 million for the first quarter, compared with $8.3 million
for the 1999 first quarter. Crude oil marketing volumes in the 2000 quarter
were approximately 270,000 barrels per day compared with 239,000 barrels per
day in 1999. Transportation volumes of crude and natural gas liquids (NGLs)
were approximately 109,000 barrels per day in the current quarter, compared
with 101,000 barrels per day in the prior year quarter. Lube oil volumes were
approximately 768,000 gallons per month, compared with 653,000 gallons per month
in 1999.
Operating expenses, including
fuel and power, for the 2000 first quarter totaled $34.3 million, compared with
$30.8 million for the 1999 quarter. The increase was due to the write-off of
$0.9 million of project evaluation costs, higher costs associated with increased
transportation volumes and increased costs for outside services.
TEPPCO will be hosting a
first-quarter 2000 related conference call on Monday, April 17, 2000, commencing
at 8:05 a.m. (CST). Interested parties may listen via the Internet, on either
a live or replay basis, at www.streetevents.com.
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 factors discussed in TEPPCO Partners, L.P.’s filings with
the Securities and Exchange Commission.
TEPPCO Partners, L.P. is
a publicly owned master limited partnership, which conducts business through
two operating companies. 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. TEPPCO Crude Oil, LLC is a crude
oil gathering, transportation, storage and marketing company operating primarily
in Texas and Oklahoma. Texas Eastern Products Pipeline Company, LLC, which is
an indirect wholly owned subsidiary of Duke Energy Field Services, LLC, is the
general partner of TEPPCO Partners, L.P.
###
TEPPCO Partners, L. P.
OPERATING DATA
(Unaudited - In Millions, Except Per Barrel, Per Gallon and MBbl/day Amounts) |
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Three Months
Ended
March 31, |
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2000 |
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1999 |
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Products System: |
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|
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|
Barrels Delivered |
|
|
|
|
|
Refined Products |
29.6 |
|
28.1 |
|
|
LPGs |
11.7 |
|
13.2 |
|
|
Mont Belvieu Operations |
7.1 |
|
6.9 |
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TOTAL |
48.4 |
|
48.2 |
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Average Tariff Per Barrel |
|
|
|
|
|
Refined Products |
$0.95 |
|
$0.91 |
|
|
LPGs |
1.98 |
|
2.02 |
|
|
Mont Belvieu Operations |
0.16 |
|
0.16 |
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|
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Average System Tariff Per Barrel |
$1.08 |
|
$1.11 |
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Crude Oil System(1) |
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Margins: |
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Crude oil transportation |
$4.9 |
|
$4.3 |
|
|
Crude oil marketing |
2.2 |
|
2.0 |
|
|
NGL transportation |
1.8 |
|
1.4 |
|
|
LSI |
0.6 |
|
0.6 |
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Total Margin |
$9.5 |
|
$8.3 |
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Volumes (MBbl/day): |
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|
|
|
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Crude oil transportation |
95.9 |
|
90.5 |
|
|
Crude oil marketing |
269.7 |
|
239.2 |
|
|
NGL transportation |
13.3 |
|
10.8 |
|
|
|
|
|
|
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LSI Volume (Total Gallons) |
2.3 |
|
2.0 |
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Margin (Per Barrel): |
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|
|
|
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Crude oil transportation |
$0.558 |
|
$0.527 |
|
|
Crude oil marketing |
$0.092 |
|
$0.093 |
|
|
NGL transportation |
$1.449 |
|
$1.449 |
|
|
|
|
|
|
|
LSI Margin (Per Gallon) |
$0.272 |
|
$0.277 |
|
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|
|
|
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|
|
|
|
|
|
(1) Certain amounts from the prior year have been revised or reclassified to
conform to current presentation. |
TEPPCO Partners, L. P.
Condensed Balance Sheets (Unaudited)
(In Millions) |
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March 31, |
|
December 31, |
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|
2000 |
|
1999 |
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Assets |
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Current assets |
|
|
|
|
Cash and cash equivalents |
$45.0 |
|
$32.6 |
|
Short-term investments |
1.5 |
|
1.5 |
|
Other |
262.3 |
|
229.0 |
|
|
|
|
|
|
Total current assets |
308.8 |
|
263.1 |
|
|
|
|
|
Property, plant and equipment - net |
731.2 |
|
720.9 |
Investments |
5.2 |
|
5.2 |
Other assets |
51.5 |
|
52.2 |
|
|
|
|
|
|
Total assets |
$1,096.7 |
|
$1,041.4 |
|
|
|
|
|
|
Liabilities and Partners' Capital |
|
|
|
Current liabilities |
$273.3 |
|
$243.5 |
Senior Notes |
389.7 |
|
389.7 |
Other long-term debt |
86.0 |
|
66.0 |
Other non-current liabilities and minority interest |
6.4 |
|
6.5 |
Class B Units |
106.4 |
|
105.9 |
Partners' capital |
|
|
|
|
General partner's interest |
2.2 |
|
0.7 |
|
Limited partners' interests |
232.7 |
|
229.1 |
|
|
|
|
|
|
Total partners' capital |
234.9 |
|
229.8 |
|
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|
|
|
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Total liabilities and partners' capital |
$1,096.7 |
|
$1,041.4 |
|
|
TEPPCO Partners, L. P.
Condensed Statements of Cash Flow (Unaudited) (In Millions) |
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Three Months
Ended
March 31, |
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|
2000 |
|
1999 |
|
Cash Flows from Operating Activities |
|
|
|
|
Net income |
$23.9 |
|
$23.4 |
|
Depreciation, working capital and other |
4.8 |
|
(12.6) |
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities |
28.7 |
|
10.8 |
|
|
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|
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|
Cash Flows from Investing Activities: |
|
|
|
|
Proceeds from cash investments |
- |
|
3.0 |
|
Purchases of cash investments |
- |
|
(1.2) |
|
Purchase of crude oil system |
- |
|
(2.2) |
|
Capital expenditures |
(18.0) |
|
(11.9) |
|
|
|
|
|
|
|
Net Cash Used in Investing Activities |
(18.0) |
|
(12.3) |
|
|
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|
Cash Flows from Financing Activities: |
|
|
|
|
Proceeds from term loan |
20.0 |
|
- |
|
Distributions paid |
(18.3) |
|
(16.0) |
|
|
|
|
|
|
|
Net Cash Provided by (Used in) Financing Activities |
1.7 |
|
(16.0) |
|
|
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|
|
|
Net Increase (Decrease) in Cash and Cash Equivalents |
12.4 |
|
(17.5) |
Cash and Cash Equivalents -- beginning of period |
32.6 |
|
47.4 |
|
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|
|
|
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|
Cash and Cash Equivalents -- end of period |
$45.0 |
|
$29.9 |
|
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Supplemental Cash Information: |
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|
Interest paid during the year (net of capitalized interest) |
$13.8 |
|
$14.2 |
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|
TEPPCO Partners, L. P.
FINANCIAL HIGHLIGHTS
(Unaudited - In Millions, Except Per Unit Amounts) |
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Three Months
Ended
March 31, |
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2000 |
|
1999 |
|
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|
Operating Revenues: |
|
|
|
|
Sales of crude oil and petroleum products |
$682.8 |
|
$222.4 |
|
Transportation - Refined Products |
28.0 |
|
25.6 |
|
Transportation - LPGs |
23.1 |
|
26.6 |
|
Transportation - Crude oil and NGLs |
4.1 |
|
2.6 |
|
Mont Belvieu operations |
4.5 |
|
2.9 |
|
Other |
|
8.2 |
|
6.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Revenues |
750.7 |
|
286.1 |
|
|
|
|
|
|
|
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|
|
|
Costs and Expenses: |
|
|
|
|
Purchases of crude oil and petroleum products |
677.4 |
|
216.7 |
|
Operating expenses - general and administrative |
26.8 |
|
23.9 |
|
Operating fuel and power |
7.5 |
|
6.9 |
|
Depreciation and amortization |
8.2 |
|
8.1 |
|
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|
|
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|
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|
|
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|
Total Costs and Expenses |
719.9 |
|
255.6 |
|
|
|
|
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|
|
|
|
|
|
|
|
|
Operating income |
30.8 |
|
30.5 |
|
|
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|
|
|
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|
|
|
|
Interest expense - net |
(7.4) |
|
(7.4) |
Other income - net |
0.5 |
|
0.3 |
|
|
|
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|
|
|
|
|
|
|
|
|
|
Net Income |
$23.9 |
|
$23.4 |
|
|
|
|
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|
Net Income Allocation: |
|
|
|
|
|
General Partner |
$4.0 |
|
$2.4 |
|
|
Limited Partners |
$19.9 |
|
$21.0 |
|
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|
|
|
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|
Net Income |
$23.9 |
|
$23.4 |
|
|
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|
Basic and Diluted Net Income |
|
|
|
|
Per Limited Partner and Class B Unit: |
$0.60 |
|
$0.64 |
|
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|
Number of Limited Partner and Class B Units |
32.9 |
|
32.9 |
| Contact: |
Brenda J. Peters (Investor Relations) |
|
| Phone: |
(713) 759-3954 |
|
| 24 Hour Phone: |
(704) 382-8333 |
|
| Email: |
media_relations@duke-energy.com |
|
| Contact: |
Kathleen A. Sauvé |
|
| Phone: |
713) 759-3635 |
|
| 24 Hour Phone: |
(704) 382-8333 |
|
| Email: |
ksauve@teppco.com |
|
