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EOTT ENERGY PARTNERS, L.P. SIGNS LETTER OF INTENT TO ACQUIRE ASSETS
FOR IMMEDIATE RELEASE: Thursday, February 04, 1999
HOUSTON – EOTT Energy Partners, L.P. (EOTT) announced today that it has signed a letter of intent to purchase crude oil transportation and storage assets in key oil producing regions from Texas-New Mexico Pipe Line Company. EOTT expects to close the transaction on April 1, 1999 and will pay $35 million in cash.
The asset purchase will include approximately 2,000 miles of common carrier crude oil pipeline in Southeast New Mexico and West Texas, bringing EOTT’s crude oil pipeline mileage to a total of approximately 8,500 miles.
"This acquisition will fit extremely well with EOTT’s existing presence in West Texas and New Mexico,” said Michael D. Burke, president and CEO of EOTT. “We are in a unique position to provide enhanced flexibility to shippers on the Texas-New Mexico Pipe Line system and are committed to providing a smooth transition. In addition, the system’s stable revenue base will help strengthen the dependability of EOTT’s cash flow.”
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 New York Stock Exchange 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 the expectations reflected in the forward looking statements herein include, but are not limited to, whether or not the parties successfully negotiate the definitive agreement and close of the asset acquisition occurs, and, if it occurs, EOTT's success in integrating the Texas-New Mexico Pipe Line assets into EOTT's field and administrative operations and prevailing market conditions. All subsequent written or oral forward looking statements attributable to EOTT, or persons acting on its behalf, are expressly qualified in their entirely by the foregoing cautionary statements.
Click here to download this press release in Microsoft Word format.
For additional information please contact:
Elaine Thomas
(713) 853-6814
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