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EOTT ENERGY PARTNERS, L.P. REPORTS THIRD QUARTER RESULTS
FOR IMMEDIATE RELEASE: Monday, November 13, 2000
HOUSTON -- EOTT Energy Partners, L.P. (EOTT) announced today third quarter recurring net income of $3.9 million, or $0.14 per unit, compared to $550,000, or $0.02 per unit, in the same period last year. Including a nonrecurring loss of $900,000 related to the closing of the only remaining mid-continent natural gas liquids contract, third quarter net income in 2000 was $3.0 million, or $0.11 per unit.
Recurring results in the third quarter of 2000 and 1999 included noncash gross margin reductions of $600,000 and $2.8 million, respectively, related to the required mark-to-market accounting of certain energy contracts. Excluding the nonrecurring item and the recurring mark-to-market impact, net income in the third quarter was $4.5 million, or $0.16 per unit, in the current year, an increase from $3.4 million, or $0.14 per unit, last year.
The earnings increase in the recent quarter reflects both higher gross margin in EOTT’s pipeline operations due to improved market conditions, as well as reductions in company-wide operating and financing costs. As a result of the earnings and cash flow improvement, a cash distribution of $0.20 per unit was declared on the subordinated units for the third quarter.
As previously announced, the cash distribution on common units of $0.475 was declared for the third quarter on Oct. 20, 2000 and is payable Nov. 14, 2000 to common unitholders of record as of October 31, 2000.
EOTT Energy Partners will host a conference call to discuss third quarter results on Nov. 14, 2000 at 10:00 EST. The call may be accessed through the Internet at www.eott.com.
EOTT Energy Partners, L.P. is a major independent marketer and transporter of crude oil in North America. EOTT transports most of the lease crude oil it purchases via pipeline which includes 8,300 miles of active intrastate and interstate pipeline and gathering systems and a fleet of 260 owned or leased trucks. EOTT Energy Corp, a wholly-owned subsidiary of Enron Corp., is the general partner of EOTT Energy Partners, L.P. with headquarters in Houston. The Partnership’s Common Units are traded on the New York Stock Exchange under the ticker symbol "EOT."
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 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, and conditions of the capital markets and equity markets during the periods covered by the forward looking statements.
Click here to download this press release in Microsoft Word format.
Please see attached tables for additional financial information.
Please see attached tables for additional financial information.
For additional information please contact:
Media Relations Contact:
Kimberly Nelson
(713) 853-3580
Investor Relations Contact:
Scott Vonderheide
(713) 853-4863
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