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NORTHERN BORDER PARTNERS, L.P. REPORTS 1996 NET INCOME OF $50.3 MILLION, OR $1.88 PER UNIT
FOR IMMEDIATE RELEASE: Thursday, January 30, 1997
HOUSTON -- Northern Border Partners, L.P. today reported 1996 net income of $50.3 million, or $1.88 per unit. The amounts compare to 1995 net income of $51.8 million, or $1.94 per unit.
Operating revenues were $201.9 million for 1996 and $206.5 million for 1995.
For the fourth quarter of 1996, Northern Border Partners, L.P. reported net income of $11.8 million, or $0.44 per unit. This compares to $13.1 million, or $0.49 per unit, for the fourth quarter of 1995. Fourth quarter net income for 1996 reflects a lower allowed return on equity resulting from Northern Border Pipeline Company's rate case settlement, which is pending Federal Energy Regulatory Commission (FERC) approval.
Throughput volumes for 1996 averaged 1,764 million cubic feet per day (MMcf/d) versus 1,720 MMcf/d for 1995.
"1996 was a pivotal and strategically significant year," said Larry L. DeRoin, Chief Executive Officer of Northern Border Partners, L.P. "During the third quarter of 1996, Northern Border Pipeline received a favorable "preliminary determination" from the FERC, approving all non-environmental, business related aspects of The Chicago Project, a proposed $800 million expansion of the existing system and a 243-mile extension from Harper, Iowa into the Chicago area. In addition, we concluded a rate case settlement with our customers. Late in the fourth quarter, we received notice of a positive draft environmental impact statement from the FERC staff which reviewed the environmental aspects of The Chicago Project."
Final FERC certification for The Chicago Project and approval of the rate case settlement are anticipated in the first half of 1997. Subject to such regulatory approvals, the project has a targeted in-service date of November 1, 1998, and is fully subscribed for long-term firm service.
The Partnership's regular quarterly cash distribution of $0.55 per unit for the fourth quarter of 1996 is payable on February 14, 1997, to unitholders of record as of January 31, 1997.
Northern Border Partners, L.P. owns a 70 percent general partner interest in Northern Border Pipeline Company, which owns a 1.7 billion cubic feet per day (Bcf/d) capacity, 969-mile U.S. interstate pipeline system that transports natural gas produced in Western Canada and the Williston Basin to major gas consuming markets in the U.S.
Northern Border Partners, L.P. is listed on the New York Stock Exchange under the symbol "NBP".
For additional information please contact:
A. H. Davis
(713) 853-6941
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