NORTHERN BORDER PARTNERS, L. P. REPORTS THIRD QUARTER
NET INCOME PER UNIT
FOR IMMEDIATE RELEASE: Tuesday, October 24, 2000
OMAHA -- Northern Border Partners, L. P. (NYSE: NBP) reported today third quarter 2000 net income per unit of $0.66, or $20.3 million compared to $0.65 per unit or $19.4 million in third quarter 1999. Cash flows from operating activities increased from $50.6 million for the third quarter of 1999 to $51.7 million for the third quarter 2000.
Firm and interruptible transportation units averaged 2,291 million dekatherm miles per day (MMdthm/d) in the third quarter 2000 compared to 2,290 MMdthm/d in third quarter 1999 and to system capacity of 2,286 MMdthm/d.
“We continued to demonstrate our commitment to develop growth opportunities in the third quarter, ” said William R. Cordes, chairman and chief executive officer of Northern Border Partners, L. P. “In September, we completed a strategic acquisition from Enron North America of interests in gas gathering businesses in the rapidly developing Powder and Wind River Basins in Wyoming. We expect to expand our business in the region in 2001 with an additional $60 to $70 million of capital investment through our wholly owned subsidiary Crestone Energy Ventures, L.L.C,” Cordes said.
“Also in September,” Cordes continued, “Northern Border Pipeline Company filed a Stipulation and Agreement which documents the settlement in its pending rate case with the Federal Energy Regulatory Commission. A major element of the settlement, which will provide rate certainty to our customers, is the conversion from a cost of service form of tariff to a form of tariff based on stated rates. Finally, progress continues at a steady pace on Project 2000, which will provide additional revenues late next year when the pipeline extension to North Hayden, Indiana is expected to be completed.”
As previously announced, the Partnership Policy Committee of Northern Border Partners, L. P. increased the partnership’s quarterly cash distribution to $0.70 per unit from $0.65 per unit beginning with the third quarter of 2000. The indicated annual rate is now $2.80 per unit. The third quarter distribution is payable Nov. 14, 2000 to unitholders of record as of Oct. 31, 2000.
Northern Border Partners will host an analyst conference call to review third quarter 2000 results. The conference call will be held on Wednesday, Oct. 25, 2000 at 3:00 p.m. EDT. Interested parties may listen by dialing (800) 210-9006 before the start of the call and entering confirmation code 663594. The partnership will also simulcast the call live via the Internet at http://www.northernborderpartners.com.
A replay of the call will be available through Wednesday, Nov. 1, 2000 by dialing, toll free, (888) 203-1113 and entering the confirmation code 663594. The call will also be archived on the Northern Border Partners website.
Northern Border Partners, L. P. owns a 70 percent general partner interest in Northern Border Pipeline Company, which owns a 1,214-mile interstate pipeline system that transports approximately 23 percent of all Canadian natural gas imports into the United States. In addition, the partnership owns the Black Mesa Pipeline, a 273-mile, coal-water slurry pipeline extending from Kayenta, Arizona to the Mohave Power Station in Laughlin, Nevada. Through Crestone Energy Ventures L.L.C., the partnership owns interests in Crestone Gathering Services (100 percent), Bighorn Gas Gathering (49 percent), Fort Union Gas Gathering (33 percent), and Lost Creek Gathering (35 percent) in the Powder River and Wind River Basins in Wyoming. Northern Border Partners, L. P. information may be found at http://www.northernborderpartners.com.
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 include timely approval of the rate case settlement by the FERC; timely approval of the permits, acquisition of the rights-of-way, and construction delays; competition for gathering services in the Powder River and Wind River Basins; and competitive conditions in the marketplace. Please reference the Partnership’s Securities and Exchange Commission filings for additional important factors that may affect actual results.
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Please see attached tables for additional financial information.
For additional information please contact:
Public Relations Contact:
Beth Jensen
(402) 398-7806
Investor Relations Contact:
Ellen Konsdorf
(402) 398-7840
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