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NORTHERN BORDER PARTNERS, L.P. REPORTS INCREASE OF 15 PERCENT IN 1998 NET INCOME PER UNIT
FOR IMMEDIATE RELEASE: Monday, January 25, 1999
HOUSTON – Northern Border Partners, L.P. (the Partnership) today reported a 15 percent increase in 1998 net income per unit to $2.27, or $68.0 million in total, compared to $1.97 per unit in 1997, or $53.0 million in total. The increase in 1998 net income is primarily attributable to the Partnership’s investment in Northern Border Pipeline Company’s Chicago Project, a greater than 40 percent expansion of the system’s capacity and a 390-mile extension of the pipeline into the Chicago area. Net income for 1997 included non-recurring earnings of $3.3 million, or $0.12 per unit.
For the fourth quarter 1998, the Partnership reported net income per unit of $0.62, or $18.6 million in total, a 22 percent increase per unit over fourth quarter 1997. Net income for the fourth quarter 1997 was $14.1 million, or $0.51 per unit, including non-recurring earnings of $1.3 million, or $0.05 per unit.
“We finished 1998 on an exciting note by placing The Chicago Project in service on December 22, 1998. From its origin at the Canadian border, Northern Border Pipeline’s new capacity has been fully utilized, averaging 2.4 billion cubic feet per day,” said Larry DeRoin, chairman and chief executive officer of Northern Border Partners, L.P.
The new capacity from the Chicago Project is contracted under firm, long-term agreements, further increasing the Partnership’s cash flow. As a result of this addition to cash flow, the Partnership recently announced a six percent increase in its distribution to $0.61 from $0.575 per unit, or an annual cash distribution of $2.44 from $2.30 per unit, effective with the fourth quarter 1998 distribution. The fourth quarter distribution is payable February 12, 1999, to unitholders of record as of January 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 U.S. interstate pipeline system that transports approximately 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.
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For additional information please contact:
A.H. Davis
(713) 853-6941
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