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ENRON LIQUIDS PIPELINE, L.P. REPORTS THIRD QUARTER 1996 NET INCOME OF $0.35 PER UNIT
FOR IMMEDIATE RELEASE: Thursday, October 24, 1996
HOUSTON -- Enron Liquids Pipeline, L.P. today reported third quarter 1996 net income of $2.3 million, or $0.35 per unit, compared to third quarter 1995 net income of $1.0 million, or $0.14 per unit. This quarter’s earnings include $2.5 million of other income associated with a payment from Chevron, USA in conjunction with the previously announced termination of its gas processing agreement at the Partnership’s Painter facility. Net revenues were $13.5 million in the third quarter of 1996 as compared to $12.3 million in the same period of 1995.
For the first nine months of 1996, the Partnership reported net income of $6.5 million, or $0.98 per unit, compared to $6.6 million, or $0.99 per unit reported for the comparable period in 1995. Year-to-date net revenues were $43.3 million in 1996 as compared to $39.0 million in 1995.
Cash distributions to unitholders for the third quarter of 1996, totaling $0.63 per unit, were declared on September 19, 1996. The distribution is payable November 14, 1996 to unitholders of record as of October 31, 1996.
"As anticipated, our third quarter operating earnings were negatively impacted by the termination of the Chevron gas processing contract. This was counterbalanced by the $2.5 million cash buyout payment received from Chevron. The Partnership is actively discussing strategic alternatives with several third parties regarding commercial application of the Painter facilities,” said William V. Allison, president of Enron Liquids Pipeline Company, the general partner of Enron Liquids Pipeline, L.P.
“In addition, while throughput at our Cora coal terminal decreased slightly as compared to the third quarter of 1995, earnings from the Central Basin Pipeline increased significantly as volumes grew 72 percent above the third quarter of 1995 due to new enhanced oil recovery projects undertaken by our customers. Also, the North System achieved a 10 percent increase in delivered volumes compared to the third quarter of 1995,” Allison noted.
Enron Liquids Pipeline, L.P. owns and operates two interstate common carrier natural gas liquids (NGL) pipeline systems and one carbon dioxide (CO2) pipeline system. The North System transports, stores and delivers a full range of NGLs and refined products from south central Kansas to markets in the Midwest and has interconnects, using third party pipelines, to the eastern United States. The Cypress Pipeline transports ethane from Mont Belvieu, Texas to the Lake Charles, Louisiana area. The Central Basin Pipeline transports CO2 in West Texas. The Partnership also owns and operates the Cora Terminal, a modern, high-speed, rail-to-barge coal transfer facility and the Painter gas processing plant and related facilities, located in Uinta County, Wyoming and owns an indirect interest in an NGL fractionator. Enron Liquids Pipeline, L.P. trades on the New York Stock Exchange under the symbol, "ENP".
| Enron Liquids Pipeline, L.P. |
| Financial Highlights |
| (Unaudited) |
| (in thousands except net income per unit) |
| Three Mo. Ended Sept. 30 | Nine Mo. Ended Sept. 30 |
| 1996 | 1995 |
1996 | 1995 |
| Net Revenues | $13,507 | $12,259 | $43,340 | $38,963 |
| Net Income | $ 2,346 | $ 978 | $ 6,509 | $ 6,589 |
| Per Unit Net Income | $ 0.35 | $ 0.14 | $ 0.98 | $ 0.99 |
| Consolidated Statement of Income |
| (Unaudited) |
| (in thousands except net income per unit) |
| Three Mo. Ended Sept. 30 | Nine Mo. Ended Sept. 30 |
| 1996 | 1995 |
1996 | 1995 |
| Net Revenues | $13,507 | $12,259 | $43,340 | $38,963 |
| Costs and Expenses |
| Operations & Maintenance | 4,822 | 3,250 | 13,678 | 8,346 |
| Fuel and power | 938 | 907 | 3,134 | 2,886 |
| Depreciation & Amortization | 2,490 | 2,342 | 7,344 | 7,145 |
| General and Administrative | 2,432 | 2,145 | 6,803 | 6,553 |
| Taxes, other than income taxes | 877 | 785 | 2,449 | 2,505 |
| Total Costs and Expenses | 11,559 | 9,429 | 33,408 | 27,435 |
| Operating Income | 1,948 | 2,830 | 9,932 | 11,528 |
| Equity in earnings of partnerships | 1,358 | 1,371 | 3,784 | 4,049 |
| Interest Expense | ( 3,076) | ( 3,122) | ( 9,404) | ( 9,316) |
| Other | 2,496 | 223 | 3,110 | 1,363 |
| Minority Interest | ( 24) | ( 10) | ( 66) | ( 67) |
| Income Before Income Taxes | 2,702 | 1,292 | 7,356 | 7,557 |
| Income Tax Expense | 356 | 314 | 847 | 968 |
| Net Income | $ 2,346 | $ 978 | $ 6,509 | $ 6,589 |
| Per Unit Net Income | $ 0.35 | $ 0.14 | $ 0.98 | $ 0.99 |
| Number of Units Used in Computation | 6,510 | 6,510 | 6,510 | 6,510 |
| Enron Liquids Pipeline, L.P. |
| Operating Highlights |
| Three Mo. Ended Sept. 30 | Nine Mo. Ended Sept. 30 |
| 1996 | 1995 |
1996 | 1995 |
| North System |
| Delivery Volumes (MMBbl) | 6.7 | 6.1 | 22.5 | 21.1 |
| Average Revenues ($/Bbl) | 0.74 | 0.76 | 0.78 | 0.85 |
| Cypress Pipeline |
| Delivery Volumes (MMBbl) | 3.0 | 3.1 | 8.6 | 7.8 |
| Central Basin Pipeline |
| Delivery Volumes (MMcf/d) | 191 | 111 | 163 | 106 |
| Average Revenues ($/Mcf) | 0.16 | 0.16 | 0.16 | 0.15 |
| Cora Terminal |
| Transport (MM Tons) | 1.6 | 1.9 | 4.4 | 4.8 |
| Average Revenues ($/Ton) | 1.29 | 1.19 | 1.31 | 1.29 |
| Painter Gas Processing |
| Processing Volumes (MMcf/d) | 0 | 33.1 | 18.3 | 33.7 |
| Average Revenues ($/Mcf) | N/A | 0.34 | 0.34 | 0.34 |
| Fractionator Volumes (MBbl/d) | 4.0 | 4.0 | 4.6 | 3.7 |
| Average Revenues ($/Bbl) | 0.98 | 1.10 | 0.97 | 1.09 |
For additional information please contact:
A. H. Davis
(713) 853-6941
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