TEPPCO PARTNERS, L.P. REPORTS FIRST QUARTER RESULTS

HOUSTON -- TEPPCO Partners, L.P. (NYSE:TPP) today reported net income for first quarter 2003 of $33.9 million, or $0.43 per unit, compared with net income of $26.8 million, or $0.46 per unit for first quarter 2002. Net income per unit for first quarter 2003 reflects 11.4 million units issued subsequent to first quarter 2002. The number of units outstanding at March 31, 2003, was 57.8 million, compared with 46.3 million at March 31, 2002.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was $87.0 million for first quarter 2003, compared with $58.8 million in the prior year quarter. The 2003 results include the addition of the Val Verde Gas Gathering System which was acquired in July 2002.

"We are pleased with our first quarter results, with solid performance across each of our business segments," said Barry R. Pearl, president and chief executive officer of the general partner of TEPPCO. "Our downstream segment had a particularly strong quarter due to the cold winter weather in the Northeast and Midwest, with LPG transportation revenue more than 30 percent greater than in 2002. The incremental capacity from Centennial Pipeline allowed us to provide a high level of service to our propane customers under difficult market conditions, without impacting service levels to our refined products customers.

"Our upstream segment had a very good quarter despite turbulent supply and market conditions caused by the Venezuelan petroleum industry strike. Our midstream
segment also performed very well, with substantial contributions from both our Jonah and Val Verde gas gathering systems," continued Pearl.

"We remain confident in achieving our previously stated earnings per unit and EBITDA ranges for 2003 of $1.40 to $1.65 per unit and $305 million to $325 million, respectively," added Pearl.

OPERATING RESULTS BY BUSINESS SEGMENT

Upstream Segment
The upstream segment includes crude oil transportation, storage, gathering and marketing activities; and distribution of lubrication oils and specialty chemicals.

Operating income for the upstream segment was $3.6 million for first quarter 2003, compared with $6.3 million for first quarter 2002. Increased marketing and transportation volumes and related margin were more than offset by higher environmental related expenses of $1.6 million and $1.7 million from the net settlement of some customer crude oil imbalances.

Equity earnings from the investment in Seaway Crude Pipeline were $5 million, compared with $4.4 million for first quarter 2002. The increase in equity earnings was due to increased revenues at the Texas City, Texas, facility, and lower operating expenses. Long-haul volume on Seaway averaged 150,000 barrels per day in the 2003 quarter, compared with 169,000 barrels per day in the 2002 quarter, reflecting lower Venezuelan crude being imported during the early part of 2003.

Midstream Segment
The midstream segment includes natural gas gathering services, and storage, transportation and fractionation of natural gas liquids (NGLs).

Operating income for the midstream segment was $18.4 million for first quarter 2003, compared with $7.7 million for first quarter 2002. The Val Verde Gathering System, acquired June 30, 2002, and the Chaparral NGL System, acquired March 1, 2002, contributed an additional $7.4 million and $1.7 million, respectively, to operating income during the 2003 quarter. Expansion of the Jonah system and the related increase in throughput contributed a $3.4 million increase in operating income compared to first quarter 2002.

Downstream Segment
The downstream segment includes the transportation and storage of refined products, liquefied petroleum gases (LPGs) and petrochemicals.

Downstream operating income was $29.3 million for first quarter 2003, compared with $23.6 million for first quarter 2002. The increase was due primarily to higher propane demand resulting from colder winter weather, increased refined products delivery capability attributable to the connection with Centennial Pipeline, which became operational in second quarter 2002, and sales of product inventory.

The equity loss from unconsolidated investments totaled $1.3 million for first quarter 2003, compared with a loss of $0.8 million for first quarter 2002. The first quarter 2003 loss is comprised of a $3.2 million loss from our ownership interest in Centennial Pipeline, partially offset by $1.9 million of equity earnings from our interest in Mont
Belvieu Storage Partners, L.P., a venture with Louis Dreyfus Energy Services L.P., which was established effective Jan. 1, 2003. The increase in equity loss in Centennial resulted from higher operating expenses, as well as TEPPCO’s increase in ownership of Centennial to 50 percent, which was effective Feb. 10, 2003.

FINANCING ACTIVITIES
TEPPCO completed an offering in January 2003 of senior unsecured notes for $200 million. Net proceeds totaled $197.3 million after offering costs and debt discount.
These proceeds were used to repay a portion of a bank credit facility. Total debt outstanding was $1.35 billion at March 31, 2003, compared with $1.32 billion at Dec. 31, 2002.

First quarter 2003 interest expense was $21.9 million, compared with $16.8 million first quarter 2002 interest expense. The increase of $5.1 million was primarily due to an increase in total debt outstanding of approximately $130 million at March 31, 2003, compared with March 31, 2002. Capitalized interest was $0.6 million for first quarter 2003, compared with first quarter 2002 capitalized interest of $2.1 million. The decrease of $1.5 million was due to lower capital expenditures in the 2003 period compared with the 2002 period.

NON-GAAP FINANCIAL MEASURES
The Financial Highlights table accompanying this earnings release and other disclosures herein include references to EBITDA, which may be viewed as a non-GAAP (Generally Accepted Accounting Principles) measure under the rules of the Securities and Exchange Commission (SEC). We define EBITDA as net income plus interest expense -- net, depreciation and amortization, and a pro rata portion, based on our equity ownership, of the interest expense and depreciation and amortization of each of our joint ventures. We have included EBITDA as a supplemental disclosure because we believe EBITDA is used by our investors as a supplemental financial measure in the evaluation of our business. A reconciliation of EBITDA to net income is provided in the Financial Highlights table.

We believe EBITDA provides useful information regarding the performance of our assets without regard to financing methods, capital structures or historical costs basis.
EBITDA should not be considered as an alternative to net income as an indicator of our operating performance or as a measure of liquidity, including as an alternative to cash
flows from operating activities or other cash flow data calculated in accordance with GAAP. Our EBITDA may not be comparable to EBITDA of other entities because other entities may not calculate EBITDA in the same manner as we do.

Information in the accompanying Operating Data table includes margin of the upstream segment, which may be viewed as a non-GAAP financial measure under the rules of the SEC. Margin is calculated as revenues generated from the sale of crude oil and lubrication oil, and transportation of crude oil, less the costs of purchases of crude oil and lubrication oil. We believe margin is a more meaningful measure of financial performance than operating revenues and operating expenses due to the significant fluctuations in revenues and expenses caused by variations in the level of marketing activity and prices for products marketed. A reconciliation of margin to operating revenues and operating expenses is provided in the Operating Data table accompanying this earnings release.

TEPPCO will host a conference call related to earnings performance at 8 a.m. CT on Wednesday, April 30, 2003. Interested parties may listen via the Internet, live or on a replay basis at www.teppco.com or by dialing 800/665-0430. The confirmation code is 457160. Please call in five to 10 minutes prior to the scheduled start time. A replay of the conference call will be available for seven days by dialing 888/203-1112 with a confirmation code of 457160.

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. For more information, visit TEPPCO’s Web site at www.teppco.com.

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