HOUSTON – TEPPCO Partners, L.P. (NYSE:TPP) today reported second quarter net income of $13.6 million, or $0.35 per unit. This compares with 1999 second quarter net income of $14 million, or $0.38 per unit.

"The performance during the second quarter of 2000 declined slightly from the comparable 1999 quarter due to reduced motor fuel deliveries and revenues, and start-up expenses related to several large previously announced projects in development," said William L. Thacker, chairman, president and chief executive officer of the general partner of TEPPCO.

"Gasoline movements during the first two months of the second quarter 2000 were lower than in the comparable 1999 quarter due to tight Gulf Coast supplies, caused by seasonal vapor pressure changeover and much publicized market price volatility. As a result, TEPPCO saw gasoline volumes decline 7 percent in the 2000 quarter, compared with the 1999 quarter. Record jet fuel deliveries and revenues, higher butane deliveries and revenues, increased sales of product inventory and improved crude oil margins helped to offset the refined products revenue decline and operating expense increase," Thacker continued.

Transportation revenues for the products segment for the second quarter 2000 were $43.1 million, compared with $43.4 million for the 1999 quarter. The decrease was due primarily to lower deliveries of motor fuels as a result of previously mentioned factors. Record jet fuel deliveries helped to offset the motor fuels decline.

Mont Belvieu operations and Other revenues were $11.2 million for the second quarter 2000, compared with $10.9 million for the 1999 quarter. The increase was due primarily to higher sales of product inventory.

Gross margin for the crude oil segment was $10.5 million for the quarter, compared with $9.7 million for the 1999 second quarter. Crude oil marketing volumes in the 2000 quarter were approximately 288,000 barrels per day, compared with 253,000 barrels per day in 1999. Transportation volumes of crude oil and natural gas liquids (NGLs) were approximately 112,000 barrels per day in the current quarter, compared with 108,000 barrels per day in the 1999 comparable quarter. Lube oil volumes were approximately 432,000 gallons per month, compared with 717,000 gallons per month in the prior year quarter.

Operating expenses, including fuel and power, were $36.2 million for the second quarter 2000, compared with $34.8 million in the 1999 second quarter. The increase was due to higher labor and benefit costs, legal and associated start-up costs for projects in development, power costs from electrical service providers, field maintenance costs and outside services.

Interest expense – net was $7.3 million for the second quarter 2000, compared with $7.4 million for the comparable 1999 quarter. Interest expense increased $0.8 million due to higher borrowings for construction of three petrochemical pipelines between Mont Belvieu and Port Arthur, Texas, which are scheduled to be ready for service in the fourth quarter 2000. The increase was offset by higher interest capitalized on the project.

Other income – net for the second quarter 2000 was $0.7 million, compared with $0.4 million for the same quarter in 1999. The increase was attributable to higher interest income earned on cash investments and gains on the sale of right-of-way (ROW) easements.

Net income for the six months ended June 30, 2000, was $37.5 million, or $0.95 per unit, compared with $37.4 million, or $1.02 per unit, for the same period in 1999. The increase in net income was due to a record 11 percent increase in jet fuel deliveries compared with 1999, increased sales of product inventory and increased storage revenues at Mont Belvieu. The increase was offset by lower revenue from propane deliveries as a result of the warmest first quarter in U.S. history and increased operating expenses.

Transportation revenues for the products segment for the first six months of 2000 were $94.2 million, compared with $95.6 million for the comparable 1999 period. The decrease was due to lower deliveries of propane in the first quarter and lower deliveries of gasoline in the second quarter, offset somewhat by record deliveries of jet fuel.

Mont Belvieu operations and Other revenues were $23.9 million for the first half of 2000, compared with $19.8 million for the first half of 1999. The increase was due mainly to higher sales of product inventory resulting from improved product prices and greater demand for storage of inventory at Mont Belvieu.

Gross margin for the crude oil segment was $20 million for the first six months of 2000, compared with $18 million for the comparable 1999 period. Crude oil marketing volumes were approximately 287,000 barrels per day in the first six months of 2000, compared with 246,000 barrels per day in the 1999 period. Transportation volumes of crude oil and NGLs were approximately 111,000 barrels per day in the first six months of 2000, compared with 105,000 barrels per day in the 1999 period. Lube oil volumes were approximately 595,000 gallons per month in the 2000 period, compared with 685,000 gallons per month in the 1999 period.

Operating expenses, including fuel and power, for the six months ended June 30, 2000, totaled $70.5 million, compared with $65.6 million for the same period in 1999. The increase was due to higher labor and benefit costs, power cost increases from electrical service providers, expenses for projects in development, field maintenance expenditures and outside services.

Interest expense – net was $14.7 million during the first six months of 2000, compared with $14.8 million for the first six months of 1999. The increase in interest expense on borrowings for the petrochemical pipelines was offset by an increase in interest capitalized on the project.

Other income – net for the first six months of 2000 was $1.2 million, compared with $0.7 million for the 1999 period. The increase was due to higher interest income on invested cash and gains on the sale of ROW easements.

TEPPCO will be hosting a conference call related to second quarter 2000, on Tuesday, July 18, 2000, at 8:05 a.m. Central Daylight Time. 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.

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