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NORTHERN BORDER PARTNERS, L.P. ANNOUNCES INTENTION TO INCREASE CASH DISTRIBUTION
FOR IMMEDIATE RELEASE: Wednesday, November 19, 1997
HOUSTON - Northern Border Partners, L.P. today announces its intention to increase its annual cash distribution by $0.20 per unit by the fourth quarter, 1998 with half of the increase effected as early as the fourth quarter, 1997 distribution, payable in February 1998. The indicated annual rate would increase from $2.20 to $2.40 per unit.
Larry L. DeRoin, Chairman and Chief Executive Officer of Northern Border Partners, L.P. attributes the intended increase to progress on The Chicago Project, Northern Border Pipeline Company's expansion and extension into the Chicago market area which is under construction.
"There currently are three compressor stations in various stages of construction and it is expected that work will commence very soon at the Mississippi River pipeline crossing," DeRoin said. "All other phases of construction are poised to begin next spring and we anticipate that the November 1998 in-service date will be met."
DeRoin noted that The Chicago Project is expected to have a positive impact on the Partnership's cash flow and earnings. "We are confident that the impact of The Chicago Project will be positive for our unitholders, and we anticipate that they may realize additional benefits from the pipeline system's growth in the future."
Northern Border Pipeline recently initiated an open season to solicit interest from potential shippers for a further expansion of its system to meet the demand for additional export capacity from Canada.
Northern Border Partners, L.P. owns a 70 percent general partner interest in Northern Border Pipeline Company, which owns a 969-mile United States interstate pipeline system that transports approximately 20 percent of all Canadian gas into the U.S. The Partnership also has a 71.75 percent ownership position in Black Mesa Pipeline, a 273-mile coal-water slurry pipeline from Kayenta, Arizona to Laughlin, Nevada. Northern Border Partners, L.P. is listed on the New York Stock Exchange under the symbol "NBP".
This press release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Partnership believes that its expectations are based on reasonable assumptions, it can give no assurance that such assumptions will materialize.
For additional information please contact:
A. H. Davis
(713) 853-6941
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