News Release
April 02, 2003

TEPPCO PARTNERS, L.P. ANNOUNCES PRICING OF UNITS

HOUSTON – TEPPCO Partners, L.P. (NYSE: TPP) announced today that it has priced 3,425,000 units representing limited partner interests at $30.35 per unit. The offering is scheduled to close on April 8.

 

TEPPCO has also granted the underwriters a 30-day option to purchase up to an additional 513,750 units to cover over-allotments at the initial price to the public less the underwriting discount. 

 

The net proceeds from the offering of approximately $99.5 million will be used by TEPPCO to repurchase 3,425,000 Class B units owned by Duke Energy Transport and Trading Company, LLC (DETTCO), the number of units sold by TEPPCO in the offering. DETTCO, an indirect wholly-owned subsidiary of Duke Energy Corporation (Duke), presently owns all the outstanding 3,916,547 Class B units. The full exercise of the over-allotment option, if exercised, will result in the repurchase of all outstanding Class B units with any remaining net proceeds from the over-allotment exercise used by TEPPCO for general partnership purposes.

 

If the over-allotment option is fully exercised, Duke will have a 5.6 percent ownership interest in TEPPCO units, compared with their current ownership interest of 12.3 percent, which includes the Class B units.

 

Salomon Smith Barney, as lead manager, and A.G. Edwards & Sons, Lehman Brothers, UBS Warburg and Goldman, Sachs & Co., acted as underwriters for the offering. A copy of a final prospectus supplement and related prospectus can be obtained from any of the underwriters, including Salomon Smith Barney at 388 Greenwich Street, New York, NY, 10013.

 

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 natural gas gathering systems; and owns a 50-percent interest in Seaway Crude Pipeline Company, a 50-percent interest in Centennial Pipeline LLC, and an undivided ownership interest in the Basin Pipeline. 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.

 

This press release does not constitute an offer to sell or a solicitation of an offer to buy the limited partnership interests described herein, nor shall there be any sale of these limited partnership interests in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering may be made only by means of a prospectus and related prospectus supplement.

 

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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, Toll-free: 800/659-0059
24 Hour Phone: n/a
Email: bjpeters@teppco.com
Contact: Kathleen A. Sauve -- Media Relations
Phone: 713/759-3635
24 Hour Phone: 704/382-8333
Email: kasauve@teppco.com