News Release
Oct. 13, 2000

TEPPCO PARTNERS, L.P. REPORTS THIRD QUARTER RESULTS

HOUSTON -- TEPPCO Partners, L.P. (NYSE:TPP) today reported third quarter net income of $17.2 million, or $0.41 per unit. This compares with 1999 third quarter net income of $13.4 million, or $0.32 per unit.

"The results for the 2000 third quarter include the contribution of the pipeline and terminal assets acquired from ARCO Pipe Line Company in July," said William L. Thacker, chairman, president and chief executive officer of the general partner of TEPPCO. "This acquisition provided about $5 million of earnings for the quarter. It served to offset lower earnings in the products segment as a result of slightly lower revenues due to price volatility for gasoline and distillate in the Midwest market area, and increased interest costs associated with projects in development. The performance of the crude oil segment, excluding the assets acquired in July, was also slightly lower than third quarter 1999 as a result of increased maintenance and project costs and interest expense for acquisitions and expansion projects."

Products transportation revenues for third quarter 2000 were $44.0 million, compared with $43.0 million for the 1999 quarter. The increase was due to higher deliveries of liquefied petroleum gases (LPGs), primarily propane, as a result of cooler than normal weather in TEPPCO’s market areas, crop drying demand, favorable location differentials and lower inventories in customer storage. Offsetting this increase were lower deliveries of refined products, primarily gasoline and distillate, as a result of high refinery utilization rates in TEPPCO’s market area and continued price volatility in the Midwest.

Mont Belvieu operations and Other revenues for the products segment were $9.2 million for the current quarter, compared with $10.6 million for the 1999 quarter. The decrease was due to lower sales of product inventory and lower shuttle revenues at Mont Belvieu.

The crude oil gathering and marketing gross margin was $11.7 million for the 2000 third quarter, compared with $10.2 million for the 1999 quarter. Additionally, the 2000 quarter results include $9.3 million of equity in earnings from Seaway Crude Pipeline and $5.7 million of crude pipeline transportation and terminal services revenues from the assets acquired in July. Crude oil marketing volumes in the 2000 quarter were approximately 255,000 barrels per day, compared with approximately 253,000 barrels per day in 1999. Transportation volumes of crude oil and natural gas liquids (NGLs) were approximately 110,000 barrels per day in the 2000 quarter, compared with approximately 105,000 barrels per day in the 1999 quarter. Additionally, crude oil transportation volumes from the assets acquired in July were 55,000 barrels per day for the period owned. Lube oil volumes were approximately 654,000 gallons per month, compared with approximately 763,000 gallons per month in the 1999 quarter.

Operating expenses, including fuel and power, were $39.3 million for the third quarter of 2000, compared with $35.2 million in the 1999 third quarter. $3.1 million of the increase was for expenses associated with the assets acquired in July, plus higher labor costs, legal fees and associated start-up costs for projects in development, electric power costs, field maintenance costs and outside services.

Interest expense -- net was $14.4 million for third quarter 2000, compared with $7.4 million for the comparable 1999 quarter. Interest expense increased $7.9 million due to additional - more - - 3 - borrowings to fund the July asset acquisition and for other small crude pipeline acquisitions completed in the quarter at the crude oil segment. The increase was offset somewhat by higher interest capitalized on projects.

Net income for the nine months ended Sept. 30, 2000, was $54.6 million, or $1.36 per unit, compared with $50.8 million, or $1.34 per unit for the same period in 1999.

Products transportation revenues for the 2000 nine-month period were $138.2 million, compared with $138.6 million for the nine months ended Sept. 30, 1999. Lower deliveries of refined products, primarily gasoline, due to the previously mentioned price volatility that occurred in the spring and summer were offset by increased deliveries of LPGs, primarily propane.

Mont Belvieu operations and Other revenues for the products segment were $33.0 million for the first nine months of 2000, compared with $30.4 million for the first nine months of 1999. The increase was due to $1.0 million from sales of product inventory, $0.8 million from Mont Belvieu operations and $0.8 million of other revenues.

The crude oil gathering and marketing gross margin was $31.7 million for the first nine months of 2000, compared with $28.2 million for the comparable 1999 period. Additionally, the 2000 year-to-date results include $9.3 million of equity in earnings from Seaway Crude Pipeline and $5.7 million of crude pipeline transportation and terminal services revenues from the assets acquired in July. Crude oil marketing volumes were approximately 277,000 barrels per day in the first nine months of 2000, compared with 1999 nine month volumes of approximately 250,000 barrels per day. Transportation volumes of crude oil and NGLs were approximately 111,000 barrels per day in the nine months of 2000 compared with approximately 105,000 barrels per day in the 1999 nine months. Additionally, crude transportation volumes from the assets acquired in July were 55,000 barrels per day for the period owned. Lube oil volumes were approximately 795,000 gallons per month in the 2000 period, compared with approximately 714,000 gallons per month in the 1999 period.

Operating expenses, including fuel and power, for the nine months ended Sept. 30, 2000, totaled $110.0 million, compared with $100.8 million for the same period in 1999. The increase was due to higher labor costs, electric power costs, expenses for projects in development, field maintenance expenditures and outside service costs. The costs associated with the July asset acquisition were $3.1 million.

Interest expense -- net was $29.1 million during the first nine months of 2000, compared with $22.2 million during the first nine months of 1999. The increase was due primarily to higher borrowings to fund the acquisition of assets in July and crude oil segment projects, offset somewhat by higher interest capitalized on projects.

TEPPCO will be hosting a conference call related to third quarter 2000 on Friday, Oct., 13, 2000, at 3:15 p.m. Central Daylight Time. Interested parties may listen via the Internet, on either a live or replay basis at http://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. filings with the Securities and Exchange Commission.

TEPPCO Partners, L.P. is a publicly traded master limited partnership, which conducts business through various subsidiary operating companies. TEPPCO owns and operates one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States; is engaged in crude oil gathering, transportation, storage and marketing; and a 50 percent interest in Seaway Crude Pipeline Company and an undivided ownership interest in the Rancho and Basin Pipelines. Texas Eastern Products Pipeline Company, LLC, an indirect wholly owned subsidiary of Duke Energy Field Services, is the general partner of TEPPCO Partners, L.P. For more information, access TEPPCO’s website at http://www.teppco.com.

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

(In Millions)

September 30,

December 31,

2000(1)

1999


Assets

Current assets

Cash and cash equivalents

$ 25.0

$ 32.6

Short-term investments

1.0

1.5

Other

273.3

229.0


Total current assets

299.3

263.1

Property, plant and equipment - net

852.2

720.9

Investments - Other

6.2

5.2

Equity investments

237.6

-

Other assets

67.6

52.2


Total assets

$ 1,462.9

$ 1,041.4


Liabilities and Partners' Capital

Current liabilities and maturities of debt

$ 300.6

$ 243.5

Senior Notes

389.7

389.7

Other long-term debt

433.0

66.0

Other non-current liabilities and minority interest

7.1

6.5

Class B Units

105.5

105.9

Partners' capital

General partner's interest

0.7

0.7

Limited partners' interests

226.3

229.1


Total partners' capital

227.0

229.8


Total liabilities and partners' capital

$ 1,462.9

$ 1,041.4


(1) Includes the acquisition of crude pipeline and terminal assets acquired July 21, 2000.

TEPPCO Partners, L. P.
FINANCIAL HIGHLIGHTS

(Unaudited - In Millions, Except Per Unit Amounts)

Three Months
Ended
September 30,

Nine Months
Ended
September 30,



2000(1)

1999

2000(1)

1999





Operating Revenues:

Sales of crude oil and petroleum products

$686.7

$497.8

$2,059.2

$1,118.3

Transportation - Refined Products

29.5

33.5

90.2

92.4

Transportation - LPGs

14.5

9.5

48.0

46.2

Transportation - Crude oil and NGLs

7.9

3.0

15.8

8.5

Equity in earnings of Seaway Crude Pipeline Co.

9.3

-

9.3

-

Mont Belvieu operations

3.0

3.3

10.4

9.6

Other

8.3

7.3

24.7

20.8





Total Operating Revenues

759.2

554.4

2,257.6

1,295.8





Purchases of crude oil and petroleum products

679.5

490.6

2,039.8

1,098.6

Operating, general and administrative

30.5

27.0

85.3

77.6

Operating fuel and power

8.8

8.2

24.7

23.2

Depreciation and amortization

9.2

8.2

25.7

24.5





Total costs and expenses

728.0

534.0

2,175.5

1,223.9





Operating income

31.2

20.4

82.1

71.9





Interest expense - net

(14.4)

(7.4)

(29.1)

(22.2)

Other income - net

0.4

0.4

1.6

1.1





Net income

$17.2

$13.4

$54.6

$50.8





Net Income Allocation:

Limited Partner Unitholders

$12.0

$9.4

$39.5

$39.0

Class B Unitholder

1.6

1.3

5.3

5.3

General Partner

3.6

2.7

9.8

6.5





Total net income allocated

$17.2

$13.4

$54.6

$50.8





Basic and Diluted Net Income

Per Limited Partner and Class B Unit

$0.41

$0.32

$1.36

$1.34





Number of Limited Partner and Class B Units

32.9

32.9

32.9

32.9





(1) Results for 2000 include the acquisition of crude pipeline and terminal assets acquired July 21, 2000.

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

Nine Months
Ended
September 30,

2000(1)

1999


Cash Flows from Operating Activities

Net income

$54.6

$50.8

Depreciation, working capital and other

23.3

18.3


Net Cash Provided by Operating Activities

77.9

69.1


Cash Flows from Investing Activities:

Proceeds from cash investments

1.5

3.8

Purchases of cash investments

(2.0)

(3.2)

Purchase of Seaway Crude Pipeline interest and other assets

(322.6)

-

Investment in Centennial Pipeline

(3.0)

-

Purchase of crude oil assets

(7.8)

(2.2)

Capital expenditures

(53.3)

(60.4)


Net Cash Used in Investing Activities

(387.2)

(62.0)


Cash Flows from Financing Activities:

Issuance of term loan and revolving credit facility

367.0

33.0

Debt issuance costs

(7.1)

-

Payment on revolving credit facility

-

(5.0)

Distributions paid

(58.2)

(51.0)


Net Cash Used in Financing Activities

301.7

(23.0)


Net Decrease in Cash and Cash Equivalents

(7.6)

(15.9)

Cash and Cash Equivalents -- beginning of period

32.6

47.4


Cash and Cash Equivalents -- end of period

$25.0

$31.5

Supplemental Cash Information:

Interest paid during the year (net of capitalized interest)

$27.7

$28.5


Non-cash Financing Activities:

Refinancing of term loan and revolving credit facility

$86.0

-

(1) Includes the acquisition of crude pipeline and terminal assets acquired July 21, 2000.

TEPPCO Partners, L. P.
OPERATING DATA

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

Three Months
Ended
September 30,

Nine Months
Ended
September 30,



2000

1999

2000

1999





Products System:

Barrels Delivered

Refined Products

32.5

35.9

97.2

99.8

LPGs

9.1

6.4

27.4

25.9

Mont Belvieu Operations

5.5

8.0

19.2

20.8





TOTAL

47.1

50.3

143.8

146.5





Average Rate Per Barrel

Refined Products

$ 0.91

$ 0.93

$ 0.93

$ 0.93

LPGs

1.60

1.48

1.75

1.78

Mont Belvieu Operations

0.16

0.15

0.15

0.16





Average System Rate Per Barrel

$ 0.95

$ 0.88

$ 0.98

$ 0.97





Crude Oil System (1)

Margins:

Crude oil transportation

$ 5.1

$ 4.5

$ 14.8

$ 13.4

Crude oil marketing

3.9

3.5

9.5

8.5

NGL transportation

1.8

1.6

5.1

4.6

LSI

0.9

0.6

2.3

1.7





Total Margin

$ 11.7

$ 10.2

$ 31.7

$ 28.2





Volumes: (MBbl/day)

Crude oil transportation

94.9

90.8

97.3

92.1

Crude oil marketing

254.6

253.3

276.8

250.1

NGL transportation

15.5

14.3

14.1

12.8

LSI Volume (Total Gallons)

2.0

2.3

7.2

6.4

Margin (Per Barrel)

Crude oil transportation

$ 0.581

$ 0.533

$ 0.555

$ 0.533

Crude oil marketing

$ 0.165

$ 0.149

$ 0.125

$ 0.124

NGL transportation

$ 1.267

$ 1.206

$ 1.332

$ 1.301

LSI Margin (Per Gallon)

$ 0.470

$ 0.265

$ 0.321

$ 0.271

Note (1) Above excludes data associated with crude pipeline and terminal assets acquired in July 21, 2000. Data related to the acquired assets for the above periods is to be posted by October 31, 2000 on TEPPCO's website at www.teppco.com.

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