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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported) : January 16, 1998
Commission File No. 1-10403
TEPPCO Partners, L.P.
(Exact name of Registrant as specified in its charter)
Delaware 76-0291058
(State of Incorporation (I.R.S. Employer
Organization) Identification Number)
2929 Allen Parkway
P.O. Box 2521
Houston, Texas 77252-2521
(Address of principal executive offices, including zip code)
(713) 759-3636
(Registrant's telephone number, including area code)
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Item 5. Other Events
On January 16, 1998, TEPPCO Partners, L.P. publicly announced the
results of operations for the year ended December 31, 1997. The purpose of
this report is to file the press release containing such announcement under the
Securities Exchange Act of 1934, as amended, so that such announcement may be
incorporated by reference in the Registration Statement on Form S-3 of TE
Products Pipeline Company, Limited Partnership, relating to the proposed public
offering by such entity of an aggregate of $390 million principal amount of
Senior Notes.
Item 7. Statements and Exhibits
(c) Exhibits:
Exhibit
Number Description
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99.1 Press release of TEPPCO Partners, L.P.,
dated January 16, 1998.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TEPPCO Partners, L.P.
(Registrant)
By: Texas Eastern Products
Pipeline Company, General
Partner
/s/ CHARLES H. LEONARD
----------------------------
Charles H. Leonard
Sr. Vice President,
Chief Financial Officer
and Treasurer
Date: January 16, 1998.
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EXHIBIT INDEX
Exhibit
Number Description
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99.1 Press release of TEPPCO Partners, L.P.,
dated January 16, 1998.
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EXHIBIT 99.1
Release: January 16, 1998
Contact: Media Relations -- Eric W. Thode, (713) 759-3635
Investor Relations -- Brenda J. Peters, (713) 759-3954
TEPPCO PARTNERS, L.P.
REPORTS RECORD FOURTH-QUARTER AND ANNUAL 1997 EARNINGS
Houston, January 16 -- TEPPCO Partners, L.P. (NYSE:TPP) today reported
record net income for both the quarter and year ended December 31, 1997.
Net income for 1997 was $61.3 million, or $3.90 per limited partner
unit, compared with net income of $58.6 million, or $3.79 per limited partner
unit, for the year ended December 31, 1996. Fourth quarter net income was
$18.9 million, or $1.20 per limited partner unit, compared with 1996 fourth
quarter net income of $17.8 million, or $1.15 per limited partner unit.
"TEPPCO achieved record net income for the sixth consecutive year in
1997," said William L. Thacker, chairman, president and chief executive
officer. "Record deliveries of distillates and jet fuel, the result of strong
demand in the surface transportation and airline sectors, led to the highest
volumes recorded by the partnership to date. TEPPCO also benefited from a full
year of deliveries to the Little Rock Air Force Base, completion of the Phase
II mainline capacity expansion project, and expansion of the Ark-La-Tex
pipeline system."
(more)
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Operating revenues of $222.1 million in 1997 increased 3 percent from
1996 revenues of $216.0 million. The increase was due to delivered volumes of
189.8 million barrels in 1997, up 6 percent from 179.4 million barrels in 1996.
Operating expenses for 1997 totaled $106.8 million, an increase of
$1.6 million from 1996 operating expenses of $105.2 million. The increase was
due to higher throughput and benefits costs and sales taxes.
Operating revenues were $60.7 million for the fourth quarter, compared
with 1996 fourth-quarter revenues of $58.7 million. The increase was due
primarily to higher deliveries of distillates, jet fuels and butane.
Operating expenses for the quarter were $28.0 million, compared with
$28.2 million for the 1996 fourth quarter. The decrease was due to lower
supplies and service costs and insurance expense, offset by increased
throughput-related and benefit costs and sales taxes.
TEPPCO Partners, L.P. is a publicly owned master limited partnership.
TE Products Pipeline Company, Limited Partnership, the operating partnership,
is one of the largest common carrier pipelines of refined petroleum products
and liquefied petroleum gases in the United States.
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TEPPCO PARTNERS, L.P.
FINANCIAL HIGHLIGHTS
(Unaudited - In Millions, Except Per Unit and Per Barrel Amounts)
<TABLE>
<CAPTION>
Three Months Twelve Months
Ended Ended
December 31 December 31
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Operating Revenues:
Transportation-Refined Products $26.3 $23.7 $107.3 $ 98.6
Transportation - LPGs 26.8 25.9 79.4 80.2
Gain on Sale of Inventory -- 0.1 2.3 3.7
Mont Belvieu Operations 3.4 3.4 12.8 11.8
Other 4.2 5.6 20.3 21.7
----- ----- ------ ------
Total operating revenues 60.7 58.7 222.1 216.0
----- ----- ------ ------
Operating expenses 28.0 28.2 106.8 105.2
Depreciation 6.1 5.6 23.8 23.4
----- ----- ------ ------
Operating income 26.6 24.9 91.5 87.4
----- ----- ------ ------
Interest expense (8.4) (8.7) (33.7) (34.9)
Other income - net 0.7 1.6 3.5 6.1
----- ----- ------ ------
Net Income $18.9 $17.8 $ 61.3 $ 58.6
===== ===== ====== ======
Basic Net Income Per
Limited Partner Unit $1.20 $1.15 $ 3.90 $ 3.79
===== ===== ====== ======
Diluted Net Income Per
Limited Partner Unit $1.20 $1.15 $ 3.90 $ 3.78
===== ===== ====== ======
Number of Limited
Partner Units 14.5 14.5 14.5 14.5
OPERATING DATA
Barrels Delivered
Refined Products 29.2 28.1 120.0 115.3
LPGs 12.9 12.7 42.0 41.6
Mont Belvieu Operations 7.2 5.4 27.8 22.5
----- ----- ------ ------
TOTAL 49.3 46.2 189.8 179.4
===== ===== ====== ======
Average Tariff Per Barrel
Refined Products $0.90 $0.85 $ 0.89 $ 0.86
LPGs 2.07 2.03 1.89 1.93
Mont Belvieu Operations 0.15 0.18 0.15 0.17
----- ----- ------ ------
Average System Tariff
Per Barrel $1.10 $1.09 $ 1.00 $ 1.02
===== ===== ====== ======
</TABLE>
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TEPPCO PARTNERS, L.P.
CONDENSED BALANCE SHEETS (Unaudited)
(In millions)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
December 31,
1997 1996
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<S> <C> <C>
ASSETS
Current assets
Cash and cash equivalents $ 43.9 $ 34.0
Short-term investments 2.1 24.1
Other 45.1 40.6
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Total current assets 91.1 98.7
Property, plant and equipment - net 567.7 561.1
Investments 10.0 6.9
Other assets 5.1 4.5
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Total assets $673.9 $671.2
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LIABILITIES AND PARTNERS' CAPITAL
Current liabilities $ 53.9 $ 47.5
First Mortgage Notes 309.5 326.5
Other non-current liabilities and
minority interest 7.5 6.9
Partners' capital
General partner's interest 5.8 4.6
Limited partners' interests 297.2 285.7
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Total partners' capital 303.0 290.3
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Total liabilities and partners' capital $673.9 $671.2
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</TABLE>
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TEPPCO PARTNERS, L.P.
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)
<TABLE>
<CAPTION>
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Twelve Months
Ended
December 31,
1997 1996
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<S> <C> <C>
Cash Flows from Operating Activities:
Net income $ 61.3 $ 58.6
Depreciation, working capital and other 22.3 27.5
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Net Cash Provided by Operating Activities 83.6 86.1
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Cash Flows from Investing Activities:
Proceeds from investments 25.0 18.6
Investments (6.2) (14.4)
Insurance proceeds related to damaged asset 1.0 -
Proceeds from the sale of property, plant
and equipment 1.4 -
Restricted investments designated for
property additions - 10.5
Capital expenditures (32.9) (51.3)
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Net Cash Used in Investing Activities (11.7) (36.6)
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Cash Flows from Financing Activities:
Principal payment, First Mortgage Notes (13.0) (10.0)
Distributions paid (49.0) (45.2)
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Net Cash Used in Financing Activities (62.0) (55.2)
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Net Increase (Decrease)in Cash
and Cash Equivalents 9.9 (5.7)
Cash and Cash Equivalents--
beginning of period 34.0 39.7
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Cash and Cash Equivalents--end of period $ 43.9 $ 34.0
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