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NORTHERN BORDER PARTNERS, L.P. REPORTS INCREASE OF 44 PERCENT IN FIRST QUARTER NET INCOME PER UNIT AND DECLARES FIRST QUARTER DISTRIBUTION
FOR IMMEDIATE RELEASE: Monday, April 19, 1999
HOUSTON – Northern Border Partners, L.P. (the Partnership) announced today a 44 percent increase in first quarter 1999 net income to $0.72 per unit, or $21.6 million in total, compared to $0.50 per unit in the first quarter of 1998, or $14.9 million in total. The primary source of earnings growth was The Chicago Project, an expansion and extension of Northern Border Pipeline Company’s system that added capacity of 700 million cubic feet per day (MMcf/d) and was placed in service in December 1998.
“The strong financial and operating results reflect the first full quarter of operation for The Chicago Project, which increased capacity 42 percent and extended the system’s reach to the important Chicago market,” said Larry DeRoin, chairman and chief executive officer of Northern Border Partners, L.P. “The Chicago Project solidifies our position as the low-cost link between extensive natural gas reserves in Western Canada and the growing Midwest market.”
Throughput volumes in the first quarter 1999 increased significantly compared to first quarter 1998, averaging 2,327 MMcf/d versus 1,774 MMcf/d, respectively. The pipeline operated at an average utilization rate of 98 percent during the first quarter 1999.
The Partnership Policy Committee of Northern Border Partners, L.P. today declared the Partnership’s quarterly cash distribution of $0.61 per unit for the first quarter of 1999. The indicated annual rate is $2.44 per unit. The first quarter distribution is payable May 14, 1999, to unitholders of record as of April 30, 1999.
Northern Border Partners, L.P. owns a 70 percent general partner interest in Northern Border Pipeline Company, which owns and operates a 1,214-mile U.S. interstate pipeline system that transports nearly 25 percent of all Canadian natural gas imports into the United States. The Partnership also owns 100 percent of Black Mesa Pipeline, a 273-mile coal-water slurry pipeline from Kayenta, Arizona to Laughlin, Nevada. Common units of Northern Border Partners, L.P. are listed on the New York Stock Exchange and trade under the symbol “NBP.” Northern Border Pipeline Company information may be found on the Internet at www.nbp.enron.com.
Please see attached tables for additional financial information
This press release includes forward looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. Although Northern Borders 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 changes in the regulatory environment, particularly with regard to regulation by the Federal Energy Regulatory Commission; and the conditions of the capital markets and equity markets.
Click here to download this press release in Microsoft Word format.
Please see attached tables for additional financial information.
For additional information please contact:
A.H. Davis
(713) 853-6941
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