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EXHIBIT 99.1
TEPPCO Partners, L.P. Reports Third Quarter Results
HOUSTON, Oct. 13 /PRNewswire/ -- TEPPCO Partners, L.P. (NYSE: TPP - news) today
reported third quarter net income of $17.2 million, or $0.41 per unit. This
compares with 1999 third quarter net income of $13.4 million, or $0.32 per unit.
"The results for the 2000 third quarter include the contribution of the pipeline
and terminal assets acquired from ARCO Pipe Line Company in July," said William
L. Thacker, chairman, president and chief executive officer of the general
partner of TEPPCO. "This acquisition provided about $5 million of earnings for
the quarter. It served to offset lower earnings in the products segment as a
result of slightly lower revenues due to price volatility for gasoline and
distillate in the Midwest market area, and increased interest costs associated
with projects in development. The performance of the crude oil segment,
excluding the assets acquired in July, was also slightly lower than third
quarter 1999 as a result of increased maintenance and project costs and interest
expense for acquisitions and expansion projects."
Products transportation revenues for third quarter 2000 were $44.0 million,
compared with $43.0 million for the 1999 quarter. The increase was due to higher
deliveries of liquefied petroleum gases (LPGs), primarily propane, as a result
of cooler than normal weather in TEPPCO's market areas, crop drying demand,
favorable location differentials and lower inventories in customer storage.
Offsetting this increase were lower deliveries of refined products, primarily
gasoline and distillate, as a result of high refinery utilization rates in
TEPPCO's market area and continued price volatility in the Midwest.
Mont Belvieu operations and Other revenues for the products segment were $9.2
million for the current quarter, compared with $10.6 million for the 1999
quarter. The decrease was due to lower sales of product inventory and lower
shuttle revenues at Mont Belvieu.
The crude oil gathering and marketing gross margin was $11.7 million for the
2000 third quarter, compared with $10.2 million for the 1999 quarter.
Additionally, the 2000 quarter results include $9.3 million of equity in
earnings from Seaway Crude Pipeline and $5.7 million of crude pipeline
transportation and terminal services revenues from the assets acquired in July.
Crude oil marketing volumes in the 2000 quarter were approximately 255,000
barrels per day, compared with approximately 253,000 barrels per day in 1999.
Transportation volumes of crude oil and natural gas liquids (NGLs) were
approximately 110,000 barrels per day in the 2000 quarter, compared with
approximately 105,000 barrels per day in the 1999 quarter. Additionally, crude
oil transportation volumes from the assets acquired in July were 55,000 barrels
per day for the period owned. Lube oil volumes were approximately 654,000
gallons per month, compared with approximately 763,000 gallons per month in the
1999 quarter.
Operating expenses, including fuel and power, were $39.3 million for the third
quarter of 2000, compared with $35.2 million in the 1999 third quarter. $3.1
million of the increase was for expenses associated with the assets acquired in
July, plus higher labor costs, legal fees and associated start-up costs for
projects in development, electric power costs, field maintenance costs and
outside services.
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Interest expense -- net was $14.4 million for third quarter 2000, compared with
$7.4 million for the comparable 1999 quarter. Interest expense increased $7.9
million due to additional borrowings to fund the July asset acquisition and for
other small crude pipeline acquisitions completed in the quarter at the crude
oil segment. The increase was offset somewhat by higher interest capitalized on
projects.
Net income for the nine months ended Sept. 30, 2000, was $54.6 million, or $1.36
per unit, compared with $50.8 million, or $1.34 per unit for the same period in
1999.
Products transportation revenues for the 2000 nine-month period were $138.2
million, compared with $138.6 million for the nine months ended Sept. 30, 1999.
Lower deliveries of refined products, primarily gasoline, due to the previously
mentioned price volatility that occurred in the spring and summer were offset by
increased deliveries of LPGs, primarily propane.
Mont Belvieu operations and Other revenues for the products segment were $33.0
million for the first nine months of 2000, compared with $30.4 million for the
first nine months of 1999. The increase was due to $1.0 million from sales of
product inventory, $0.8 million from Mont Belvieu operations and $0.8 million of
other revenues.
The crude oil gathering and marketing gross margin was $31.7 million for the
first nine months of 2000, compared with $28.2 million for the comparable 1999
period. Additionally, the 2000 year-to-date results include $9.3 million of
equity in earnings from Seaway Crude Pipeline and $5.7 million of crude pipeline
transportation and terminal services revenues from the assets acquired in July.
Crude oil marketing volumes were approximately 277,000 barrels per day in the
first nine months of 2000, compared with 1999 nine month volumes of
approximately 250,000 barrels per day. Transportation volumes of crude oil and
NGLs were approximately 111,000 barrels per day in the nine months of 2000
compared with approximately 105,000 barrels per day in the 1999 nine months.
Additionally, crude transportation volumes from the assets acquired in July were
55,000 barrels per day for the period owned. Lube oil volumes were approximately
795,000 gallons per month in the 2000 period, compared with approximately
714,000 gallons per month in the 1999 period.
Operating expenses, including fuel and power, for the nine months ended Sept.
30, 2000, totaled $110.0 million, compared with $100.8 million for the same
period in 1999. The increase was due to higher labor costs, electric power
costs, expenses for projects in development, field maintenance expenditures and
outside service costs. The costs associated with the July asset acquisition were
$3.1 million.
Interest expense -- net was $29.1 million during the first nine months of 2000,
compared with $22.2 million during the first nine months of 1999. The increase
was due primarily to higher borrowings to fund the acquisition of assets in July
and crude oil segment projects, offset somewhat by higher interest capitalized
on projects.
TEPPCO will be hosting a conference call related to third quarter 2000 on
Friday, Oct., 13, 2000, at 3:15 p.m. Central Daylight Time. Interested parties
may listen via the Internet, on either a live or replay basis at
www.streetevents.com.
Except for the historical information contained herein, the matters discussed in
this news release are
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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.
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; is engaged in crude
oil gathering, transportation, storage and marketing; and owns a 50 percent
interest in Seaway Crude Pipeline Company 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, is the general
partner of TEPPCO Partners, L.P. For more information, access TEPPCO's website
at www.teppco.com.
TEPPCO Partners, L. P.
FINANCIAL HIGHLIGHTS
(Unaudited - In Millions, Except Per Unit Amounts)
<TABLE>
<CAPTION>
Three Months Nine Months
Ended Ended
September 30, September 30,
2000 (A) 1999 2000 (A) 1999
<S> <C> <C> <C> <C>
Operating Revenues:
Sales of crude oil
and petroleum products $ 686.7 $ 497.8 $ 2,059.2 $ 1,118.3
Transportation - Refined
Products 29.5 33.5 90.2 92.4
Transportation - LPGs 14.5 9.5 48.0 46.2
Transportation - Crude oil
and NGLs 7.9 3.0 15.8 8.5
Equity in earnings of Seaway
Crude Pipeline Co. 9.3 -- 9.3 --
Mont Belvieu operations 3.0 3.3 10.4 9.6
Other 8.3 7.3 24.7 20.8
Total Operating Revenues 759.2 554.4 2,257.6 1,295.8
Purchases of crude oil and
petroleum products 679.5 490.6 2,039.8 1,098.6
Operating, general and
administrative 30.5 27.0 85.3 77.6
Operating fuel and power 8.8 8.2 24.7 23.2
Depreciation and
amortization 9.2 8.2 25.7 24.5
Total costs and expenses 728.0 534.0 2,175.5 1,223.9
Operating income 31.2 20.4 82.1 71.9
Interest expense - net (14.4) (7.4) (29.1) (22.2)
Other income - net 0.4 0.4 1.6 1.1
Net income $ 17.2 $ 13.4 $ 54.6 $ 50.8
Net Income Allocation:
Limited Partner
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C>
Unitholders $ 12.0 $ 9.4 $ 39.5 $ 39.0
Class B Unitholder 1.6 1.3 5.3 5.3
General Partner 3.6 2.7 9.8 6.5
Total net income
allocated $ 17.2 $ 13.4 $ 54.6 $ 50.8
Basic and Diluted Net Income
Per Limited Partner and
Class B Unit $ 0.41 $ 0.32 $ 1.36 $ 1.34
Number of Limited Partner
and Class B Units 32.9 32.9 32.9 32.9
</TABLE>
(A) Results for 2000 include the acquisition of crude pipeline and terminal
assets acquired July 21, 2000.
TEPPCO Partners, L. P.
Condensed Balance Sheets (Unaudited)
(In Millions)
<TABLE>
<CAPTION>
September 30, December 31,
2000 (A) 1999
<S> <C> <C>
Assets
Current assets
Cash and cash equivalents $ 25.0 $ 32.6
Short-term investments 1.0 1.5
Other 273.3 229.0
Total current assets 299.3 263.1
Property, plant and equipment - net 852.2 720.9
Investments - Other 6.2 5.2
Equity investments 237.6 --
Other assets 67.6 52.2
Total assets $ 1,462.9 $ 1,041.4
Liabilities and Partners' Capital
Current liabilities and maturities of debt $ 300.6 $ 243.5
Senior Notes 389.7 389.7
Other long-term debt 433.0 66.0
Other non-current liabilities and minority
interest 7.1 6.5
Class B Units 105.5 105.9
Partners' capital
General partner's interest 0.7 0.7
Limited partners' interests 226.3 229.1
Total partners' capital 227.0 229.8
Total liabilities and partners' capital $ 1,462.9 $ 1,041.4
</TABLE>
(A) Includes the acquisition of crude pipeline and terminal assets acquired
July 21, 2000.
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TEPPCO Partners, L. P.
Condensed Statements of Cash Flow (Unaudited) (In Millions)
<TABLE>
<CAPTION>
Nine Months
Ended
September 30,
2000 (A) 1999
<S> <C> <C>
Cash Flows from Operating Activities
Net income $ 54.6 $ 50.8
Depreciation, working capital and other 23.3 18.3
Net Cash Provided by Operating Activities 77.9 69.1
Cash Flows from Investing Activities:
Proceeds from cash investments 1.5 3.8
Purchases of cash investments (2.0) (3.2)
Purchase of Seaway Crude Pipeline interest and
other assets (322.6) --
Investment in Centennial Pipeline (3.0) --
Purchase of crude oil assets (7.8) (2.2)
Capital expenditures (53.3) (60.4)
Net Cash Used in Investing Activities (387.2) (62.0)
Cash Flows from Financing Activities:
Issuance of term loan and revolving credit
facility 367.0 33.0
Debt issuance costs (7.1) --
Payment on revolving credit facility -- (5.0)
Distributions paid (58.2) (51.0)
Net Cash Used in Financing Activities 301.7 (23.0)
Net Decrease in Cash and Cash Equivalents (7.6) (15.9)
Cash and Cash Equivalents -- beginning of period 32.6 47.4
Cash and Cash Equivalents -- end of period $ 25.0 $ 31.5
Supplemental Cash Information:
Interest paid during the year (net of
capitalized interest) $ 27.7 $ 28.5
Non-cash Financing Activities:
Refinancing of term loan and revolving credit
facility $ 86.0 --
</TABLE>
(A) Includes the acquisition of crude pipeline and terminal assets acquired
July 21, 2000.
TEPPCO Partners, L. P.
OPERATING DATA (Unaudited - In Millions, Except Per Barrel, Per Gallon and
MBbl/day Amounts)
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<TABLE>
<CAPTION>
Three Months Nine Months
Ended Ended
September 30, September 30,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Products System:
Barrels Delivered
Refined Products 32.5 35.9 97.2 99.8
LPGs 9.1 6.4 27.4 25.9
Mont Belvieu Operations 5.5 8.0 19.2 20.8
TOTAL 47.1 50.3 143.8 146.5
Average Rate Per Barrel
Refined Products $ 0.91 $ 0.93 $ 0.93 $ 0.93
LPGs 1.60 1.48 1.75 1.78
Mont Belvieu Operations 0.16 0.15 0.15 0.16
Average System Rate Per
Barrel $ 0.95 $ 0.88 $ 0.98 $ 0.97
Crude Oil System (A)
Margins:
Crude oil
transportation $ 5.1 $ 4.5 $ 14.8 $ 13.4
Crude oil marketing 3.9 3.5 9.5 8.5
NGL transportation 1.8 1.6 5.1 4.6
LSI 0.9 0.6 2.3 1.7
Total Margin $ 11.7 $ 10.2 $ 31.7 $ 28.2
Volumes: (MBbl/day)
Crude oil transportation 94.9 90.8 97.3 92.1
Crude oil marketing 254.6 253.3 276.8 250.1
NGL transportation 15.5 14.3 14.1 12.8
LSI Volume (Total Gallons) 2.0 2.3 7.2 6.4
Margin (Per Barrel)
Crude oil
transportation $ 0.581 $ 0.533 $ 0.555 $ 0.533
Crude oil marketing $ 0.165 $ 0.149 $ 0.125 $ 0.124
NGL transportation $ 1.267 $ 1.206 $ 1.332 $ 1.301
LSI Margin (Per Gallon) $ 0.470 $ 0.265 $ 0.321 $ 0.271
</TABLE>
Note (A) Above excludes data associated with crude pipeline and terminal
assets acquired in July 21, 2000.
Data related to the acquired assets for the above periods is to be posted by
October 31, 2000 on TEPPCO's website at www.teppco.com.
