 |
EOTT ENERGY PARTNERS, L.P. REPORTS FIRST QUARTER 1999 RESULTS
FOR IMMEDIATE RELEASE: Wednesday, May 12, 1999
HOUSTON - EOTT Energy Partners, L.P. (EOTT) announced today first quarter net income of $0.10 per diluted unit, or $2.5 million in total, before the cumulative effect of an accounting change, compared to $(0.09) per diluted unit, or a loss of $1.7 million, in the first quarter of 1998.
In the first quarter of 1999, EOTT was required to adopt mark-to-market accounting for certain energy contracts as a result of a change in an accounting rule. Under mark-to-market accounting, the unrealized gain or loss associated with the market value of a contract is recognized in the current period. The cumulative effect of this accounting change was a positive $1.7 million, or $0.07 per unit.
Operating income improved to $8.5 million for the most recent quarter from a loss of $0.4 million in the same quarter last year. Results for the first quarter 1999 include a favorable impact of $2.1 million related to mark-to-market accounting for certain energy contracts. Mark-to-market accounting for these types of contracts was not used in the first quarter of 1998. Operating income in the current quarter also benefited from additional margin contributed by assets acquired in 1998. Crude oil lease volumes from the North America – East of Rockies operating segment increased 50 percent over last year.
“Our primary goal over the past year has been to expand EOTT’s scale and scope through strategic acquisitions. Including the asset purchase completed this month, EOTT has acquired nearly 6,000 miles of pipelines since June 1, 1998, bringing our ownership of active pipelines to approximately 8,200 miles,” said Michael D. Burke, president and CEO of EOTT. “Our priority now is to swiftly integrate these new assets with our existing base to achieve important cost synergies and continue the improvement of our operating and financial results.”
Cash distributions of $0.475 for the first quarter of 1999 were declared April 20, 1999 and will be paid May 14, 1999 to common unitholders of record as of April 30, 1999. The first quarter distribution will be paid using cash available from the partnership and support provided by Enron Corp., the indirect parent of EOTT’s general partner, pursuant to Enron’s distribution support agreement. As a result of certain unitholder approvals in the first quarter of 1999, Enron agreed to provide up to $29.0 million of distribution support through year end 2001.
EOTT Energy Partners, L.P. is a major independent marketer of crude oil in the United States and Canada. Together with its predecessors, the Partnership has been serving the petroleum industry since 1946. Both EOTT Energy Partners, L.P. and EOTT Energy Corp., the general partner, are headquartered in Houston, Texas. The common units of EOTT Energy Partners, L.P. trade on the NYSE under the symbol “EOT.”
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 EOTT Energy Partners, L.P. believes that its expectations are based on reasonable assumptions, it can give no assurance that such expectations will be achieved. Important factors that could cause actual results to differ materially from those in the forward looking statements herein include, but are not limited to, demand for various grades of crude oil and the resulting changes in pricing conditions, the success of the Partnership’s risk management activities, conditions of the capital markets and equity markets during the periods covered by the forward looking statements, and the Partnership’s success in integrating recently acquired assets.
Click here to download this press release in Microsoft Word format.
Please see attached tables for additional financial information.
For additional information please contact:
Hardie Davis
(713) 853-6941
|
