NORTHERN BORDER PARTNERS, L.P. REPORTS 8 PERCENT INCREASE IN THIRD QUARTER NET INCOME AND DECLARES THIRD QUARTER DISTRIBUTION
FOR IMMEDIATE RELEASE: Tuesday, October 19, 1999
HOUSTON – Northern Border Partners, L.P. announced today an 8 percent increase in third quarter net income to $19.4 million or $0.65 per unit. The amounts compare to
$18.0 million or $0.60 per unit for the same period in 1998. The increase in net income reflects the strong financial performance of Northern Border Pipeline Company resulting from The Chicago Project placed into service late last winter.
“We are continuing to transport competitively priced supplies of Canadian natural gas to the upper Midwest marketplace with the addition of The Chicago Project facilities,” said Larry DeRoin, chairman and chief executive officer of Northern Border Partners, L.P.
Throughput volumes in the third quarter 1999 increased significantly compared to third quarter 1998, averaging 2,370 versus 1,665 million cubic feet per day, respectively, primarily due to last winter’s pipeline expansion. For the nine months ended September 1999, the pipeline’s capacity utilization was 97 percent.
“Our strong business performance, resulting from the additional long-term contracts on the pipeline, affords Northern Border Partners considerable financial flexibility,” said DeRoin. “Therefore, in light of the current market environment, we have elected to indefinitely defer the Partnership’s issuance of additional units until market conditions improve.”
The Partnership Policy Committee of Northern Border Partners, L.P. declared today the Partnership’s quarterly cash distribution of $0.61 per unit for the third quarter of 1999. The indicated annual rate is $2.44 per unit. The third quarter distribution is payable Nov. 12, 1999 to unitholders of record Oct. 29, 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 United States interstate pipeline system that transports nearly 25 percent of all Canadian natural gas imports into the U.S. The Partnership also owns Black Mesa Pipeline, a 273-mile coal-water slurry pipeline from Kayenta, Ariz. to Laughlin, Nev. 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 Border 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 and equity markets.
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Please see attached tables for additional financial information.
For additional information please contact:
A.H. Davis
713-853-6941
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