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ENRON LIQUIDS PIPELINE, L.P. REPORTS FOURTH QUARTER 1996 EARNINGS INCREASE OF 14 PERCENT
FOR IMMEDIATE RELEASE: Thursday, February 13, 1997
HOUSTON -- Enron Liquids Pipeline, L.P. today reported a 14
percent increase in fourth quarter 1996 net income to $5.39 million, or $0.82 per unit, compared to 1995 net income of $4.73 million, or $0.71 per unit. Fourth quarter net revenues were $20.0 million in 1996 compared to $17.3 million in 1995.
"The fourth quarter of 1996 was strong in every respect for
Enron Liquids Pipeline, L.P. (the partnership), with higher earnings from its three pipelines: the North System, the Cypress Pipeline, and the Central Basin Pipeline," said William V. Allison, president of Enron Liquids Pipeline Company, the general partner of Enron Liquids Pipeline, L.P. "Substantial earnings increases from the North System and the Central Basin Pipeline, with volume increases of 25 percent and 19 percent, respectively, compared to fourth quarter 1995, bolstered by higher average revenues at the Cora Terminal, more than offset the shut-in of the Painter Gas Processing facility. We have recently executed a letter of intent to lease the Painter facility to a third party and expect this arrangement to become effective in the first quarter of 1997," said Allison. "Late in the fourth quarter, a 20 percent capacity expansion was completed at the Mt. Belvieu Fractionator, in which the partnership owns a 25 percent equity interest."
The partnership reported 1996 net income of $11.9 million,
or $1.79 per unit, compared to 1995 net income of $11.3 million, or $1.71 per unit. 1996 earnings include $2.5 million of income associated with a payment from Chevron, USA in conjunction with the previously announced termination of its gas processing agreement with the Partnership's Painter facility. Net revenues were $63.4 million in 1996 compared to $56.3 million in 1995.
"Central Basin Pipeline achieved significantly stronger
earnings, with volumes increasing more than 40 percent in 1996, due to enhanced oil recovery projects by our customers," said Allison. "The North System had a record volume year, exceeding our goal of replacing volumes lost due to the 1995 closing of a major customer's synthetic natural gas facility, by increasing volumes on the system by 12 percent in 1996."
A cash distribution for the fourth quarter of 1996, totaling
$0.63 per unit, was declared on December 19, 1996. The distribution will be paid on February 14, 1997 to unitholders of record as of January 31, 1997.
In January 1997, Kinder Morgan Inc., formerly KC Liquids
Holding Corporation, signed a definitive agreement for the purchase from Enron Corp. of all the stock of Enron Liquids Pipeline Company (ELPC). ELPC, an indirect wholly owned subsidiary of Enron Corp., is the general partner and 15 percent owner and operator of Enron Liquids Pipeline, L.P. The sale is expected to close in the next few days. The units will continue to trade under the symbol "ENP" and upon closing the partnership will be renamed Kinder Morgan Energy Partners, L.P.
The partnership, which has assets in excess of $300 million,
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".
For additional information please contact:
A. H. Davis
(713) 853-6941
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