News Release
Feb. 11, 2004

TEPPCO PARTNERS L.P. REPORTS FOURTH QUARTER AND 2003 ANNUAL RESULTS

HOUSTON -- TEPPCO Partners L.P. (NYSE:TPP) today reported net income for 2003 of $125.8 million, or $1.52 per unit, compared with net income of $117.9 million, or $1.79 per unit for the year ended Dec. 31, 2002. Fourth quarter 2003 net income was $27.4 million, or $0.31 per unit, compared with fourth quarter 2002 net income of $34.6 million, or $0.46 per unit.

Net income per Limited Partner and Class B units for the 2003 periods reflects 9.2 million units issued in 2003, including 3.9 million units issued in April 2003 to repurchase the outstanding Class B Units. The weighted-average number of Limited Partner units outstanding for fourth quarter and year ended Dec. 31, 2003, was 63 million and 59.8 million, respectively, compared with 55.8 million and 49.2 million Limited Partner and Class B Units, respectively, for the corresponding 2002 periods.

EBITDA (earnings before interest, taxes, depreciation and amortization) was $80.1 million for fourth quarter 2003, compared with $83.2 million in fourth quarter 2002. EBITDA was $330.6 million for the year ended Dec. 31, 2003, compared with $281.9 million in the prior year period. The 2003 results include the full period impact of the addition of the Chaparral System on March 1, 2002, and the Val Verde Gas Gathering System, which was acquired on June 30, 2002.

"This was a very successful year for the Partnership, as we delivered record volumes in each of our three business segments and achieved substantial growth in EBITDA," said Barry R. Pearl, president and chief executive officer of the general partner of TEPPCO. "The earnings growth is particularly noteworthy in light of the costs associated with the pipeline rehabilitation project on our Northeast propane system. Our 2003 results were fueled by our past acquisitions and several organic growth projects. Capacity resulting from our investment in Centennial Pipeline and other system improvements allowed for increased refined products and liquefied petroleum gas (LPG) deliveries; capacity expansions on the Jonah system resulted in increased natural gas gathering volumes; and higher utilization across several crude oil systems, combined with the recently acquired Genesis Pipeline Texas, L.P. assets, resulted in increased crude oil deliveries.

"For 2004, we expect EBITDA to be in the range of $340 million to $370 million and earnings per unit in the range of $1.55 to $1.85 per unit, which reflects the full year impact of the Genesis acquisition and completion of several organic growth projects in 2004. We anticipate that total capital expenditures for 2004 will be approximately $140 million, which will include $112 million for revenue generating and facility improvement projects and $28 million for maintenance capital. We will continue our disciplined approach to growth while maintaining our strong financial condition," 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 $7.3 million for fourth quarter 2003, compared with $4.8 million for fourth quarter 2002. The increase resulted primarily from higher transportation volumes attributable to the assets acquired from Genesis Pipeline on Nov. 1, 2003, and lower depreciation expense. Since the acquisition, the Genesis assets have contributed approximately 26,000 barrels-per-day of additional throughput to our South Texas system.

Total year 2003 operating income for the upstream segment was $28.4 million, compared with $26.4 million for the corresponding 2002 period. The increase was due to higher transportation volumes throughout the year on the Red River, South Texas and Basin systems, and a $3.9 million gain on the sale of assets during second quarter 2003. These increases were partially offset by higher operating and legal expenses and settlement of customer crude oil imbalances. The gain on the sale of assets resulted from the sale of a portion of our interest in the Rancho Pipeline, which provided crude oil service from West Texas to Houston, and ceased operations in March 2003. In connection with the transaction, TEPPCO retained a 58-mile portion of the Rancho Pipeline extending from Sealy, Texas, to Houston.

Equity earnings from the investment in Seaway Crude Pipeline were $0.6 million for fourth quarter 2003, compared with $4.7 million for fourth quarter 2002. The decrease was primarily due to lower transportation revenue on Seaway during fourth quarter 2003, as a result of an annual incentive tariff structure that decreases rates as greater volumes are transported. This tariff structure originated in 2003 and resets annually in March. Operating expenses also increased as a result of increased maintenance at the Texas City, Texas, and Freeport, Texas, locations. Additionally, TEPPCO’s portion of equity earnings for 2003 was 60 percent, compared with 67 percent in 2002, which reflects the terms of the Seaway partnership agreement.

For the year ended Dec. 31, 2003, equity earnings from Seaway were $21 million, compared with $18.8 million for the corresponding 2002 period. The increase in equity earnings was primarily due to increased long-haul transportation volumes and related revenues and lower operating expenses during the earlier part of the year, partially offset by TEPPCO’s pro-rata portion of equity earnings being reduced to 60 percent in 2003 as previously noted. Long-haul volumes on Seaway averaged 174,000 barrels-per-day in fourth quarter 2003, compared with 171,000 barrels-per-day for the 2002 quarter, and 194,000 barrels-per-day for the year ended Dec. 31, 2003, compared with 182,000 barrels-per-day for the corresponding 2002 period.

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 $20.4 million for fourth quarter 2003, compared with $22.3 million for fourth quarter 2002. The decrease was due to lower gathering volumes on the Val Verde Gas Gathering System, partially offset by lower amortization expense on the Val Verde system due to lower gathering volumes in 2003.

For the year ended Dec. 31, 2003, operating income was $80.3 million, compared with $60.7 million for the 2002 period. The Val Verde system contributed an additional $11.5 million to operating income, and the expansion of the Jonah system resulted in a net increase in operating income of $11.8 million. These increases were partially offset by lower NGL transportation revenues on the Dean and Panola systems.

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

Downstream operating income was $20.1 million for fourth quarter 2003, compared with $21.1 million for fourth quarter 2002. The decrease was due to increased pipeline integrity management costs and increased depreciation expense. The decrease was also due to $4.1 million of Mont Belvieu revenues being reclassified to equity earnings as a result of the contribution of the Mont Belvieu assets to Mont Belvieu Storage Partners, L.P., a venture with Louis Dreyfus Energy Services L.P., which was established effective Jan. 1, 2003. These decreases were partially offset by an increase of $2.9 million in revenues as a result of increased demand for refined products and LPGs in the Midwest markets and LPGs in the Northeast markets.

For the year ended Dec. 31, 2003, operating income was $83.7 million, compared with $83.1 million for the 2002 period. The increase was due to higher refined products and LPG transportation revenues attributable to increased volumes received into our system from Centennial Pipeline at Creal Springs, Ill., and lower property tax expense, which offset increased pipeline integrity management costs and the $15.2 million of the 2002 Mont Belvieu revenues reclassified to equity earnings as described above.

The equity loss from unconsolidated investments was $1.4 million in fourth quarter 2003, compared with an equity loss of $1.8 million for fourth quarter 2002. For the year ended Dec. 31, 2003, the equity loss from unconsolidated investments was $4.1 million, compared with an equity loss from unconsolidated investments of $6.8 million for the corresponding 2002 period. The improved performance in the 2003 periods reflects equity earnings from the formation of Mont Belvieu Storage Partners, L.P., partially offset by increased equity losses from the investment in Centennial due to the acquisition of the additional 16.7 percent ownership interest in February 2003. TEPPCO’s equity earnings from Centennial’s performance in the 2003 periods excludes the impact of approximately $3.8 million of TEPPCO’s pipeline capacity lease with Centennial.

FINANCING ACTIVITIES AND OTHER INCOME

TEPPCO completed a public offering in August 2003 of 5.2 million limited partner units. The net proceeds totaled approximately $171 million. The net proceeds were used for revenue generating capital expenditures, including $45 million for the Jonah system expansion, $53 million to repay debt on the revolving credit facility, $21 million for the acquisition of crude oil pipeline assets from Genesis Pipeline Texas, L.P. and the balance for general partnership purposes.

Fourth quarter 2003 interest expense -- net was $19.9 million, compared with fourth quarter 2002 interest expense -- net of $17.3 million. For the year ended Dec. 31, 2003, interest expense -- net was $84.3 million, including capitalized interest of $5.3 million. Interest expense -- net was $66.2 million for the year ended Dec. 31, 2002, including capitalized interest of $4.3 million. The increase in interest expense in 2003 was due to a higher percentage of fixed-rate debt in 2003, which carried a higher interest rate than variable rate debt, $1.3 million of debt issuance costs written off in second quarter 2003 related to the refinancing of our revolving credit facility, and $1 million of additional interest expense in 2003 related to a discontinued portion of a cash flow hedge.

NON-GAAP FINANCIAL MEASURES

The Financial Highlights table accompanying this earnings release and other disclosures herein include references to EBITDA, which is 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 believe EBITDA provides useful information to our investors regarding the performance of our assets without regard to financing methods, capital structures or historical costs basis. EBITDA should not be considered 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. Reconciliations of historical and projected EBITDA to historical and projected net income are provided in the Financial Highlights and Business Segment Data tables accompanying this earnings release.

Information in the accompanying Operating Data table includes margin of the upstream segment, which is 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 Thursday, Feb. 12, 2004. Interested parties may listen via the Internet at www.teppco.com or by dialing 800/478-6251. The confirmation code is 571756. Please call in five to 10 minutes prior to the scheduled start time. An audio replay of the conference call will be available for seven days by dialing 888/203-1112 with a confirmation code of 571756. A replay and transcript will also be available by accessing the investor section of the company’s Web site at www.teppco.com.

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 50-percent interests in Seaway Crude Pipeline Company, Centennial Pipeline LLC, and Mont Belvieu Storage partners, L.P., 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.



Contacts: Investor Relations - Brenda J. Peters
Phone: 713/759-3954
Toll-Free: 800/659-0059
   
  Media Relations - Kathleen A. Sauvé
Phone: 713/759-3635
24-Hour: 704/382-8333
TEPPCO Partners, L. P.
FINANCIAL HIGHLIGHTS

(Unaudited - In Millions, Except Per Unit Amounts)
             
     
Three Months Ended
Twelve Months Ended
     
December 31,
December 31,
     
     
2003
2002(1)
2003
2002(1)
   
Operating Revenues:          
  Sales of petroleum products  
$917.0 
$712.0 
$3,766.7 
$2,823.8 
  Transportation - Refined Products  
36.3 
31.3 
138.9 
123.5 
  Transportation - LPGs  
29.1 
27.9 
91.8 
74.6 
  Transportation - Crude oil  
8.3 
7.4 
29.1 
27.4 
  Transportation - NGLs  
10.5 
10.9 
39.8 
38.9 
  Gathering - Natural Gas  
34.5 
36.0 
135.1 
90.1 
  Mont Belvieu operations  
-
4.1 
-
15.2 
  Other  
13.2 
12.3 
54.4 
48.7 
     



  Total Operating Revenues  
1,048.9 
841.9 
4,255.8 
3,242.2 
     




Costs and Expenses:  
  Purchases of petroleum products  
903.4 
698.7 
3,711.2 
2,772.4 
  Operating expenses - general and administrative
62.3 
55.8 
216.9 
176.7 
  Operating fuel and power  
8.0 
11.3 
38.5 
36.8 
  Depreciation and amortization  
27.4 
27.9 
100.7 
86.1 
  Gain on sale of assets  
-
-
(3.9)
-
   



    Total Costs and Expenses  
1,001.1 
793.7 
4,063.4 
3,072.0 
   



    Operating Income  
47.8 
48.2 
192.4 
170.2 
     




Interest expense - net  
(19.9)
(17.3)
(84.3)
(66.2)
Equity earnings (losses) (2)  
(0.8)
2.9 
16.9 
12.0 
Other income - net  
0.3 
0.8 
0.8 
1.9 
   



    Net Income  
$27.4 
$34.6 
$125.8 
$117.9 
     




  Net Income Allocation:  
    Limited Partner Unitholders  
$19.8 
$24.0 
$89.2 
$81.2 
    General Partner  
7.6 
8.7 
34.8 
29.7 
    Class B Unitholder (3)  
-
1.9 
1.8 
7.0 
     




   
    Total Net Income Allocated  
$27.4 
$34.6 
$125.8 
$117.9 
     




  Basic Net Income  
    Per Limited Partner and Class B Unit  
$0.31 
$0.46 
$1.52 
$1.79 
     



     
  Weighted Average Number of Limited Partner
    and Class B Units
 
63.0 
55.8 
59.8 
49.2
     



     
(1) Certain 2002 amounts have been reclassified to conform to current 2003 presentation.
(2) EBITDA  
Net Income  
$27.4 
$34.6 
$125.8 
$117.9 
  Interest expense - net  
19.9 
17.3 
84.3 
66.2 
  Depreciation and amortization (D&A)  
27.4 
27.9 
100.7 
86.1 
  TEPPCO's pro-rata percentage of joint
  venture
interest expense and D&A
     
   
5.4 
3.4 
19.8 
11.7 
   



Total EBITDA  
$80.1 
$83.2 
$330.6 
$281.9 
     



             
(3) Class B Units were repurchased and retired on April 8, 2003.


TEPPCO Partners, L.P.
BUSINESS SEGMENT DATA

(Unaudited - In Millions)
             
Three Months Ended
December 31, 2003
Downstream
Midstream
Upstream
Intersegment
Eliminations
Consolidated

             
Operating revenues
$73.4 
$47.7 
$928.1 
$(0.3)
$1,048.9 
Purchases of petroleum products
-
-
903.7 
(0.3)
903.4 
Operating expenses
43.0 
13.4 
13.9 
-
70.3 
Depreciation and amortization (D&A)
10.3 
13.9 
3.2 
-
27.4 
   




  Operating Income
20.1 
20.4 
7.3 
-
47.8 
   
Equity (loss) earnings
(1.4)
-
0.6 
-
(0.8)
Other - net
0.1 
0.1 
0.1 
-
0.3 
   




  Income before interest
$18.8 
$20.5 
$8.0 
$-
$47.3 
 




Depreciation and amortization
10.3 
13.9 
3.2 
-
27.4 
TEPPCO's pro-rata percentage of
   joint venture interest expense
   and D&A
3.7 
-
1.7 
-
5.4 
   




   
  Total EBITDA
$32.8 
$34.4 
$12.9 
$-
$80.1 
 




Depreciation and amortization
(27.4)
Interest expense - net
(19.9)
TEPPCO's pro-rata percentage of
   joint venture interest expense
   and D&A
(5.4)
           
  Net Income
$27.4 
           
             
Three Months Ended
December 31, 2002(1)
Downstream
Midstream
Upstream
Intersegment
Eliminations
Consolidated

             
Operating revenues
$70.5 
$50.0 
$722.0 
$(0.6)
$841.9 
Purchases of petroleum products
-
-
699.3 
(0.6)
698.7 
Operating expenses
40.9 
13.2 
13.0 
-
67.1 
Depreciation and amortization
8.5 
14.5 
4.9 
-
27.9 
   




   
  Operating Income
21.1 
22.3 
4.8 
-
48.2 
   
Equity (loss) earnings
(1.8)
-
4.7 
-
2.9 
Other - net
0.6 
-
0.6 
(0.4)
0.8 
   




   
  Income before interest
$19.9 
$22.3 
$10.1 
$(0.4)
$51.9 
   




Depreciation and amortization
8.5 
14.5 
4.9 
-
27.9 
TEPPCO's pro-rata percentage of
   joint venture interest expense
   and D&A
1.8 
-
1.6 
-
3.4 
   





  Total EBITDA
$30.2 
$36.8 
$16.6 
$(0.4)
$83.2 
 




Depreciation and amortization
(27.9)
Interest expense - net
(17.3)
TEPPCO's pro-rata percentage of
   joint venture interest expense
   and D&A
(3.4)
           
  Net Income
$34.6 
           
             
(1) Certain 2002 amounts have been reclassified to conform to current 2003 presentation.


TEPPCO Partners, L.P.
BUSINESS SEGMENT DATA - (Continued)
(Unaudited - In Millions)
             
Twelve Months Ended
December 31, 2003
Downstream
Midstream
Upstream
Intersegment
Eliminations
Consolidated

             
Operating revenues  
$266.4 
$185.1 
$3,806.2 
$(1.9)
$4,255.8 
Purchases of petroleum products
-
-
3,713.1 
(1.9)
3,711.2 
Operating expenses  
151.1 
47.0 
57.3 
-
255.4 
Depreciation and amortization (D&A)
31.6 
57.8 
11.3 
-
100.7 
Gain on sale of assets
-
-
(3.9)
-
(3.9)
   




  Operating Income  
83.7 
80.3 
28.4 
-
192.4 
Equity (loss) earnings
(4.1)
-
21.0 
-
16.9 
Other - net  
0.3 
0.3 
0.3 
(0.1)
0.8 
   




  Income before interest  
$79.9 
$80.6 
$49.7 
$(0.1)
$210.1 
 




Depreciation and amortization
31.6 
57.8 
11.3 
-
100.7 
TEPPCO's pro-rata percentage of
   joint venture interest expense
   and D&A
13.3 
-
6.5 
-
19.8 
   




   
  Total EBITDA  
$124.8 
$138.4 
$67.5 
$(0.1)
$330.6 
 




Depreciation and amortization
(100.7)
Interest expense - net
(84.3)
TEPPCO's pro-rata percentage of
   joint venture interest expense
   and D&A
(19.8)
           
  Net Income  
$125.8 
           
             
             
Twelve Months Ended
December 31, 2002(1)
Downstream
Midstream
Upstream
Intersegment
Eliminations
Consolidated

             
Operating revenues
$243.6 
$138.9 
$2,861.7 
$(2.0)
$3,242.2 
Purchases of petroleum products
-
-
2,774.4 
(2.0)
2,772.4 
Operating expenses
130.3 
33.5 
49.7 
-
213.5 
Depreciation and amortization
30.2 
44.7 
11.2 
-
86.1 
   




   
  Operating Income  
83.1 
60.7 
26.4 
-
170.2 
   
Equity (loss) earnings
(6.8)
-
18.8 
-
12.0 
Other - net  
0.8 
0.3 
1.6 
(0.8)
1.9 
   




  Income before interest  
$77.1 
$61.0 
$46.8 
$(0.8)
$184.1 
 




Depreciation and amortization
30.2 
44.7 
11.2 
-
86.1 
TEPPCO's pro-rata percentage of
   joint venture interest expense
   and D&A
-
5.3 
-
6.4 
-
11.7 
   




   
  Total EBITDA  
$112.6 
$105.7 
$64.4 
$(0.8)
$281.9 
 




Depreciation and amortization
(86.1)
Interest expense - net
(66.2)
TEPPCO's pro-rata percentage of
   joint venture interest expense
   and D&A
(11.7)
           
  Net Income  
$117.9 
           
(1) Certain 2002 amounts have been reclassified to conform to current 2003 presentation.


TEPPCO Partners, L.P.
Earnings Estimate 2004
   
Net Income
$135 million - $165 million
 
Basic Net Income Per Limited Partner Unit
$1.55 - $1.85
 
Interest Expense, net
$75 million
 
Depreciation and Amortization Expense (D&A)
$110 million
 
TEPPCO's Pro-rata Percentage of Joint Venture
Interest Expense and D&A
$20 million
 
EBITDA
$340 million - $370 million


TEPPCO Partners, L. P.
Condensed Statements of Cash Flows
(Unaudited) (In Millions)
           
     
Twelve Months Ended
     
December 31,
     
     
2003
2002
   
 

Cash Flows from Operating Activities        
Net income  
$125.8 
$117.9 
Gain on sale of assets  
(3.9)
-
Depreciation, working capital and other  
117.5 
117.0 

     
Net Cash Provided by Operating Activities  
239.4 
234.9 

     
Cash Flows from Investing Activities:  
  Proceeds from sale of assets  
8.5 
3.4 
  Proceeds from cash investments  
0.8 
-
  Purchase of Jonah Gas Gathering Company  
-
(7.3)
  Purchase of Chaparral and Quanah Pipelines  
-
(132.4)
  Purchase of Val Verde Gas Gathering System  
-
(444.2)
  Acquisition of additional interest in Centennial
   Pipeline LLC
 
(20.0)
-
  Acquisition of crude oil assets  
(27.5)
-
  Investments in Centennial Pipeline LLC  
(4.0)
(10.9)
  Investments in Mont Belvieu Storage Partners, LP  
(2.5)
-
  Capital expenditures(1)  
(140.6)
(133.3)

     
Net Cash Used in Investing Activities  
(185.3)
(724.7)

     
Cash Flows from Financing Activities:  
  Issuance of Senior Notes  
198.6 
497.8 
  Proceeds from term loan and revolving credit facility  
382.0 
675.0 
  Debt issuance costs  
(3.4)
(7.0)
  Payments on revolving credit facility  
(604.0)
(943.7)
  Proceeds from termination of interest rate swap  
-
44.9 
  Proceeds from issuance of LP units, net  
287.5 
372.5 
  Repurchase and retirement of Class B Units  
(113.8)
-
  General Partner contributions  
-
7.6 
  Distributions paid  
(202.5)
(151.8)

     
Net Cash Provided by (Used in) Financing Activities  
(55.6)
495.3 

     
Net (Decrease) Increase in Cash and Cash Equivalents  
(1.5)
5.5 
Cash and Cash Equivalents -- beginning of period  
31.0 
25.5 

     
Cash and Cash Equivalents -- end of period  
$29.5 
$31.0 

     
Supplemental Information:  
  Non-cash investing activities:  
    Net assets transferred to Mont Belvieu Storage Partners, LP  
$61.4 
-
  Interest paid (net of capitalized interest)  
$79.9 
$48.9 

           
(1) Includes capital expenditures for maintaining existing operations of $32.9 million in 2003, and $22.0 million in 2002.


TEPPCO Partners, L. P.
Condensed Balance Sheets (Unaudited)
(In Millions)
       
   
December 31,
December 31,
   
2003
2002(1)

       
Assets      
Current assets      
  Cash and cash equivalents
$29.5 
$31.0 
  Other
423.3 
327.3 

   
Total current assets  
452.8 
358.3 
   
Property, plant and equipment - net
1,619.2 
1,587.8 
Intangible assets (2)  
438.6 
465.4 
Equity investments  
365.3 
284.7 
Other assets  
65.1 
72.2 

   
Total assets  
$2,941.0 
$2,768.4 

   
   
Liabilities and Partners' Capital
   
Total current liabilities  
$475.6 
$364.5 

   
Senior Notes(3)  
1,129.7 
945.7 
Other long-term debt  
210.0 
432.0 
Other non-current liabilities
16.4 
31.0 
Class B Units(4)  
-
103.4 
Partners' capital  
  Accumulated other comprehensive income
(2.9)
(20.1)
  General partner's interest(5)
(7.2)
12.8 
  Limited partners' interests
1,119.4 
899.1 

   
Total partners' capital  
1,109.3 
891.8 

   
Total liabilities and partners' capital
$2,941.0 
$2,768.4 

       
(1) Certain 2002 amounts have been reclassified to conform to current 2003 presentation.
(2) Includes the value of long-term service agreements between TEPPCO and its customers.
(3) Includes $42.9 million and $57.9 million at Dec. 31, 2003, and 2002, respectively related to fair value hedges.
(4) Class B Units were repurchased and retired on April 8, 2003.
(5) Amount does not represent a commitment by the General Partner to make a contribution to TEPPCO.


TEPPCO Partners, L. P.
OPERATING DATA
(Unaudited - In Millions, Except as Noted)
             
     
Three Months Ended
Twelve Months Ended
     
December 31,
December 31,
     
     
2003
2002
2003
2002
     
Downstream Segment:          
  Barrels Delivered          
    Refined Products  
39.1 
37.0 
154.1 
138.2 
    LPGs  
12.9 
12.7 
42.5 
40.5 
     
    Total    
52.0 
49.7 
196.6 
178.7 
     



     
  Average Tariff Per Barrel  
    Refined Products  
$0.93 
$0.85 
$0.90 
$0.89 
    LPGs  
2.26 
2.19 
2.16 
1.84 
     
  Average System Tariff Per Barrel  
$1.26 
$1.19 
$1.17 
$1.11 
     
Upstream Segment(1):  
  Margins:  
    Crude oil transportation  
$12.5 
$10.8 
$45.8 
$39.0 
    Crude oil marketing  
5.1 
5.6 
22.1 
22.9 
    Crude oil terminaling  
2.6 
2.4 
9.4 
10.1 
    LSI  
1.4 
1.3 
5.4 
4.8 
   



      Total Margin  
$21.6 
$20.1 
$82.7 
$76.8 
     



     
  Reconciliation of Margin to Operating  
    Revenue and Operating Expenses:  
      Sales of petroleum products  
$917.0 
$712.0 
$3,766.7 
$2,823.8 
      Transportation - Crude oil  
8.3 
7.4 
29.1 
27.4 
      Purchases of petroleum products  
(903.7)
(699.3)
(3,713.1)
(2,774.4)
   



        Total Margin  
$21.6 
$20.1 
$82.7 
$76.8 
     




  Total barrels  
    Crude oil transportation  
24.9 
21.1 
95.5 
82.8 
    Crude oil marketing  
41.4 
35.8 
159.7 
139.2 
    Crude oil terminaling  
31.5 
33.7 
115.1 
127.4 
  Lubrication oil volume (total gallons):  
2.9 
2.7 
10.4 
9.6 
  Margin per barrel:  
    Crude oil transportation  
$0.503 
$0.512 
$0.479 
$0.471 
    Crude oil marketing  
0.123 
0.155 
0.138 
0.165 
    Crude oil terminaling  
0.081 
0.072 
0.082 
0.080 
     
  Lubrication oil margin (per gallon):  
$0.474 
$0.484 
$0.514 
$0.500 
     
Midstream Segment(1):  
  Gathering - Natural Gas(2)  
    Bcf  
119.7 
119.5 
461.2 
340.7 
    Btu (in trillions)  
122.8 
120.9 
469.1 
353.7 
     
    Average fee per MMBtu  
$0.281 
$0.303 
$0.288 
$0.256 
     
  Transportation - NGLs(3)  
    Total barrels  
14.8 
14.7 
57.9 
54.0 
    Margin per barrel  
$0.712 
$0.738 
$0.688 
$0.720 
     
  Fractionation - NGLs  
    Total barrels  
1.1 
1.0 
4.1 
4.1 
    Margin per barrel  
$1.773 
$1.806 
$1.804 
$1.824 
     
  Sales - Condensate  
    Total barrels (thousands)  
11.4 
22.4 
63.3 
80.0 
    Margin per barrel  
$30.35 
$27.81 
$30.25 
$25.39 
             
             
(1) Certain 2002 amounts have been reclassified to conform to current 2003 presentation.
(2) Includes operating data for Val Verde Gas Gathering System acquired effective June 30, 2002.
(3) Includes operating data for Chaparral NGL System acquired March 1, 2002.