News Release
March 01, 2002

TEPPCO CLOSES ON ACQUISITION OF CHAPARRAL AND QUANAH PIPELINES

HOUSTON – TEPPCO Partners, L.P. (NYSE:TPP) today closed its previously announced acquisition of the Chaparral and Quanah pipelines, for approximately $132 million. TEPPCO projects first full-year earnings before interest, taxes, depreciation and amortization (EBITDA) from the Chaparral and Quanah systems of approximately $16 million. 

The Chaparral system is an 800-mile pipeline that extends from West Texas and New Mexico to Mont Belvieu, Texas, which is located along the upper Texas Gulf Coast. The pipeline delivers natural gas liquids (NGL) to fractionators and existing TEPPCO storage in Mont Belvieu. The approximately 170-mile Quanah Pipeline is a NGL gathering system located in West Texas. The Quanah Pipeline begins in Sutton County, Texas, and connects to the Chaparral Pipeline near Midland, Texas.

 

The pipelines are connected to 27 gas plants in West Texas and have approximately 28,000 horsepower of pumping capacity at 14 stations. The transaction also includes the San Andres facility in Andrews County, Texas – two underground NGL storage wells with 220,000 barrels of combined capacity.

 

The assets will be operated and commercially managed by Duke Energy Field Services, LP (DEFS) under agreements with TEPPCO.

 

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; owns and operates petrochemical and natural gas liquid pipelines; is engaged in crude oil transportation, storage, gathering and marketing; owns and operates a natural gas gathering system; and owns a 50-percent interest in Seaway Crude Pipeline Company, an interest in Centennial Pipeline LLC, 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, LLC, is the general partner of TEPPCO Partners, L.P. For more information, visit TEPPCO’s website at www.teppco.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.

Contact: Brenda J. Peters, Investor Relations
Phone: 713/759-3954
24 Hour Phone: N/A
Email: bpeters@teppco.com
Contact: Kathleen A. Sauve, MediaRelations
Phone: 713/759-3635
24 Hour Phone: 704/382-8333
Email: ksauve@teppco.com