TEPPCO Partners, L.P. (NYSE:TPP) today reported first quarter
net income for 2009 of $78.2 million, or $0.62 per unit, compared
with net income of $64.1 million, or $0.57 per unit, for the first
quarter of 2008. Earnings before interest, taxes, depreciation and
amortization (EBITDA) increased 10 percent to $159.0 million for
the first quarter of 2009, compared with $145.1 million for the
first quarter of 2008. EBITDA is a non-GAAP (Generally Accepted
Accounting Principles) financial measure and is defined and
reconciled to its most directly comparable GAAP financial measure
later in this news release. The weighted average number of limited
partner units outstanding totaled 104.7 million units for the first
quarter of 2009, compared with 93.2 million units for the first
quarter of 2008, reflecting the additional 9.4 million units issued
in September 2008 and 4.9 million units issued in February
2008.
�We were very pleased with our results in the first quarter of
2009, as our diversified portfolio of assets again provided the
foundation for a solid performance, despite the overall
recessionary economic conditions,� said Jerry E. Thompson,
president and chief executive officer of the general partner of
TEPPCO. �Our Upstream business segment delivered record EBITDA,
reflecting the increased utilization of our strategic pipeline and
storage assets throughout Texas and Oklahoma. EBITDA reported by
our Downstream business segment also exceeded first quarter 2008
results, with increased long-haul transportation demand for propane
and butane offsetting demand declines for refined products
transportation. Quarter-over-quarter volume increases on the Jonah
system, which is part of our Midstream business segment, also
contributed to the improved results. These increases were partially
offset by lower fleet utilization of the Marine Services business
segment, which declined 4 percent over the prior year level,
reflecting softening barge demand. However, our fleet is well
positioned to benefit from market opportunities as they arise and
we remain optimistic about the performance of this segment, which
was formed in the first quarter of 2008.�
Thompson continued, �We are pleased with our cash flow this
quarter, which solidly supported the $0.725 per unit quarterly
distribution rate, or $2.90 on an annualized basis, announced
earlier this month. We also remain focused on maintaining an
adequate level of liquidity, which was $357 million at March 31,
2009,� stated Thompson.
OPERATING RESULTS BY BUSINESS SEGMENT
Upstream segment
EBITDA for the Upstream segment, which includes gathering,
pipeline transportation, marketing and storage of crude oil,
distribution of lubrication oils and specialty chemicals and fuel
transportation services, increased 33 percent to $51.9 million for
the first quarter of 2009, from $39.1 million for the first quarter
of 2008. The improvement was primarily due to favorable marketing
margins, increased revenues earned at the Cushing and Midland
storage terminals as a result of the contango pricing environment
during the first quarter of 2009, and increased volumes and
revenues at the partnership�s lubrication services subsidiary,
resulting from the acquisition of an additional distributorship
during the third quarter of 2008. These increases were partially
offset by a $1.3 million increase in operating expenses primarily
due to that acquisition in 2008 and lower transportation volumes on
the South Texas gathering system.
TEPPCO�s share of EBITDA from its equity investment in Seaway
Crude Pipeline was $5.4 million for the first quarter of 2009,
compared with EBITDA of $5.0 million for the first quarter of 2008.
This increase reflects higher long-haul transportation volumes,
which averaged 174,000 barrels per day (bpd) in the first quarter
of 2009, compared with 166,000 bpd in the first quarter of 2008.
Equity earnings for Seaway totaled $3.3 million for the first
quarter of 2009, compared with $3.0 million in the first quarter of
2008.
Downstream segment
EBITDA for the Downstream segment, which includes pipeline
transportation, marketing and storage of refined products,
liquefied petroleum gases (LPGs) and petrochemicals, was $46.9
million for the first quarter of 2009, compared with $46.1 million
for the first quarter of 2008. LPGs transportation revenues
increased $2.1 million from the first quarter of 2008 to $38.3
million in the first quarter of 2009. The improved results were
driven by increased deliveries of propane, attributable to colder
winter weather in the Northeast, higher throughput volumes of
butane to meet higher gasoline blending demand, and increased
average tariff rates that went into effect in the latter half of
2008. Total LPG transportation volumes averaged 140,000 bpd in the
first quarter of 2009, a decrease of 1 percent compared with
volumes of 142,000 bpd in the first quarter of 2008. The decrease
in LPG volumes was due primarily to downtime at a Midwest area
petrochemical facility served by the TEPPCO system and warmer
winter weather in the Midwest market area. Refined products
transportation revenues decreased $1.4 million, or 4 percent, from
the first quarter of 2008 primarily due to lower volumes caused by
recessionary economic conditions during the first quarter of 2009,
partially offset by average tariff rate increases. Total refined
products transportation volumes averaged 407,000 bpd in the first
quarter of 2009, compared with 423,000 bpd in the first quarter of
2008. Other operating revenues decreased $2.6 million as a result
of lower excess product storage revenues and lower gains on the
sale of product inventory. Operating expenses decreased $2.0
million, primarily due to lower product measurement expense in the
first quarter of 2009.
TEPPCO�s share of EBITDA from its equity investment in
Centennial Pipeline was $0.7 million for the first quarter of 2009,
compared with a loss of $0.6 million for the first quarter of 2008.
The improved performance was primarily due to lower operating
expenses in the first quarter of 2009, partially offset by lower
transportation volumes. Volumes on Centennial averaged
approximately 118,000 bpd in the first quarter of 2009, compared
with 122,000 bpd in the first quarter of 2008.
Midstream segment
The Midstream segment includes gathering of natural gas,
fractionation of natural gas liquids (NGLs), pipeline
transportation of NGLs and TEPPCO�s ownership interest in Jonah Gas
Gathering Company (Jonah).
EBITDA for the first quarter of 2009 was $48.6 million compared
to $49.6 million for the first quarter of 2008. The decrease was
primarily due to higher product measurement expenses, partially
offset by lower power expense on the NGL pipelines and increased
EBITDA from the partnership�s investment in Jonah. NGL
transportation revenues decreased $0.5 million, or 4 percent, from
the first quarter of 2008, primarily from reduced throughput on the
Panola and San Jacinto pipelines resulting from a fire in February
2009 at an adjacent third-party owned site near Carthage in East
Texas.
TEPPCO�s share of EBITDA from its equity investment in Jonah was
$34.6 million for the first quarter of 2009, compared with $31.5
million for the first quarter of 2008. The increase was primarily
attributable to higher volumes on the Jonah-Pinedale system which
averaged 2.2 billion cubic feet per day (Bcf/d) in the first
quarter of 2009, compared with 1.8 Bcf/d in the first quarter of
2008, partially offset by decreased condensate sales. Equity
earnings for Jonah totaled $25.6 million for the first quarter of
2009, compared with equity earnings of $23.7 million in the first
quarter of 2008.
Marine Services segment
EBITDA for the Marine Services segment, which includes marine
transportation of refined products, crude oil, asphalt, condensate,
heavy fuel oil and other heated oil products via tow boats and tank
barges, was $11.6 million for the first quarter of 2009, compared
with $10.3 million for the two-month period beginning from the date
of acquisition on February 1, 2008, when TEPPCO acquired assets
from Cenac Towing, and continuing through March 31, 2008. TEPPCO�s
fleet operated at an 89 percent utilization rate in the first
quarter of 2009, compared with a utilization rate of 93 percent
during the partnership�s first quarter 2008 ownership period. The
lower utilization rate in the 2009 period reflects reduced demand
for barging services as a result of recessionary economic
conditions in the industry.
CAPITALIZATION AND LIQUIDITY
Total debt principal outstanding at March 31, 2009 was
approximately $2.6 billion. This amount includes $300 million of
junior subordinated notes for which the nationally recognized debt
rating agencies ascribe equity credit to approximately 58 percent
of the principal amount. At March 31, 2009, TEPPCO had liquidity of
approximately $357 million, which is comprised of cash and
available borrowing capacity under the partnership�s revolving
credit facility.
Interest expense for the first quarter of 2009 was $32.1
million, compared with interest expense of $38.6 million for the
first quarter of 2008. The decrease was primarily due to $8.7
million of expense in the first quarter of 2008 for the early
redemption of debt at the TE Products Pipeline Company, LLC
subsidiary, partially offset by higher debt balances outstanding
during the first quarter of 2009.
For the quarter ended March 31, 2009, TEPPCO spent $92.6 million
on revenue-generating and system upgrade projects, in addition to
$12.3 million of investment for its share of capital expenditures
related to the expansions on the Jonah-Pinedale system.
Expenditures for maintenance capital projects totaled $9.0 million
for the first quarter of 2009. For the full-year of 2009, the
partnership expects to spend in the range of $275 million to $325
million for revenue-generating capital projects, including its
investments in the Jonah joint venture, as well as approximately
$50 million for maintenance capital expenditures. Expected capital
expenditures for 2009 have been revised downward to reflect
TEPPCO�s withdrawal from the TOPS joint venture. Contributions for
the TOPS joint venture were previously estimated at $70 million for
the full year 2009 and were expected to be made in the latter half
of the year.
NON-GAAP FINANCIAL MEASURES
The Financial Highlights table accompanying this earnings
release and other disclosures herein include the following non-GAAP
measures under the rules of the Securities and Exchange Commission
(SEC): (i) EBITDA, (ii) margin of the Upstream segment, and (iii)
gross margin and average daily rate of the Marine Services segment.
Our non-GAAP financial measures should not be considered as
alternatives to GAAP measures such as net income, operating income,
cash flow from operating activities or any other measure of
financial performance calculated and presented in accordance with
GAAP. Our non-GAAP financial measures may not be comparable to
similarly-titled measures of other entities because other entities
may not calculate such measures in the same manner as we do.
We define EBITDA as net income plus interest expense �
net,�income tax expense, depreciation, amortization and accretion,
and a pro-rata portion (based on our equity ownership) of the
interest expense and depreciation, amortization and accretion of
each of our joint ventures. We have included EBITDA measures in our
disclosures because we believe they are used by our investors as
supplemental financial measures to assess the financial performance
of our assets without regard to financing methods, capital
structures or historical costs basis; to compare the operating
performance of our assets with the performance of other companies
that have different financing and capital structures; and to value
our limited partners� equity using EBITDA multiples.
Reconciliations of our non-GAAP EBITDA measures to GAAP net income
and equity earnings are provided in the Financial Highlights table
and the Business Segment Data table.
Margin of our Upstream segment represents revenues generated
from the sale of crude and lubrication oils and transportation of
crude oil, less the related cost of sales of crude and lubrication
oils, in each case prior to the elimination of intercompany
amounts. We believe margin is a more meaningful measure of
financial performance than sales and costs of sales of crude and
lubrication oils due to significant fluctuations in the
period-to-period level of our marketing activities for these
products and the underlying commodity prices. Additionally, our
management uses the non-GAAP measure of margin to evaluate the
financial performance of the Upstream segment because it excludes
expenses that are not directly related to the marketing activities
being evaluated. A reconciliation of non-GAAP margin to GAAP
segment operating income is provided in the Operating Data
table.
Gross margin of our Marine Services segment is calculated as
marine transportation revenues less related operating expenses and
operating fuel and power. Average daily rate is calculated as gross
margin for the Marine Services segment divided by fleet operating
days. We believe these non-GAAP measures of gross margin and
average daily rate are meaningful measures of the financial
performance of our Marine Services business, in which we provide
services under different types of contracts with varying
arrangements for the payment of fuel costs and other operational
fees. These non-GAAP measures allow for comparability of results
across different contracts within a given period, as well as
between periods. Furthermore, our management uses these non-GAAP
measures to assist them in evaluating results of the Marine
Services segment and making decisions regarding the use and
deployment of our marine vessels. A reconciliation of non-GAAP
gross margin�to GAAP segment operating income and the calculation
of average daily rate are provided in the Operating Data table.
TEPPCO will host a conference call related to earnings
performance today, Tuesday, April 28, 2009 at 9 a.m. CDT.
Interested parties may listen live over the Internet through the
partnership�s website at www.teppco.com. Those interested in
listening to the webcast should log in at least ten minutes prior
to the start of the conference call to download and install any
necessary audio software. An audio replay of the conference call
will be accessible for seven days at 877-660-6853, account code
345, replay code 319948. The replay and transcript will also be
available on the TEPPCO website.
TEPPCO Partners, L.P., is a publicly traded energy logistics
partnership with operations that span much of the continental
United States. TEPPCO owns and operates an extensive network of
assets that facilitate the movement, marketing, gathering and
storage of various commodities and energy-related products. The
partnership�s midstream network is comprised of approximately
12,500 miles of pipelines that gather and transport refined
petroleum products, crude oil, natural gas, LPGs and NGLs, and
includes one of the largest common carrier pipelines for refined
petroleum products and LPGs in the United States. TEPPCO�s storage
assets include interests in approximately 27 million barrels of
capacity for refined petroleum products and LPGs and about 14
million barrels of capacity for crude oil. TEPPCO also owns a
marine transportation business that operates primarily on the
United States inland and Intracoastal Waterway systems and in the
Gulf of Mexico. For more information, visit TEPPCO�s website. Texas
Eastern Products Pipeline Company, LLC, the general partner of
TEPPCO Partners, L.P., is owned by Enterprise GP Holdings
(NYSE:EPE).
This news release includes forward-looking statements. Except
for the historical information contained herein, the matters
discussed in this news release are forward-looking statements that
involve certain risks and uncertainties, such as the partnership�s
expectations regarding future results, capital expenditures,
project completions, liquidity and financial market conditions.
These risks and uncertainties include, among other things,
insufficient cash from operations, market conditions, governmental
regulations and factors discussed in TEPPCO Partners, L.P.�s
filings with the Securities and Exchange Commission. If any of
these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results or outcomes may vary
materially from those expected. The partnership disclaims any
intention or obligation to update publicly or reverse such
statements, whether as a result of new information, future events
or otherwise.
TEPPCO Partners, L.P.
FINANCIAL HIGHLIGHTS (Unaudited - In Millions) � �
Three
Months Ended March 31, 2009 2008 Operating
Revenues: Sales of petroleum products $ 1,277.9 $ 2,644.6
Transportation - Refined Products 35.9 37.3 Transportation - LPGs
38.3 36.2 Transportation - Crude oil 21.9 15.3 Transportation -
NGLs 12.5 13.0 Transportation - Marine 36.9 25.5 Gathering -
Natural Gas 13.6 13.4 Other � 20.6 � � 23.2 � Total operating
revenues � 1,457.6 � � 2,808.5 � Costs and Expenses: Purchases of
petroleum products 1,235.5 2,606.6 Operating expenses 66.8 53.8
Operating fuel and power 19.7 21.4 General and administrative 10.0
8.8 Depreciation and amortization 33.0 28.3 Taxes - other than
income taxes � 6.9 � � 6.1 � Total costs and expenses � 1,371.9 � �
2,725.0 � Operating income � 85.7 � � 83.5 � Interest expense (32.1
) (38.6 ) Equity in earnings of unconsolidated affiliates 25.1 19.7
Other, net � 0.3 � � 0.3 � Income before provision for income taxes
79.0 64.9 Provision for income taxes � 0.8 � � 0.8 � Net income $
78.2 � $ 64.1 � �
Net
Income Allocation:
Limited Partner Unitholders $ 65.0 $ 53.4 General Partner � 13.2 �
� 10.7 � Total Net Income Allocated $ 78.2 � $ 64.1 � � Basic and
Diluted Net Income Per Limited Partner Unit $ 0.62 � $ 0.57 � �
Weighted Average Number of Limited Partner Units � 104.7 � � 93.2 �
�
Three Months Ended March 31, 2009
2008 EBITDA Net income $ 78.2 $ 64.1 Provision for income
taxes 0.8 0.8 Interest expense 32.1 38.6 Depreciation and
amortization (D&A) 33.0 28.3 Amortization of excess investment
in joint ventures 1.6 1.2
TEPPCO's pro-rata percentage of
joint venture interest expense and D&A
� 13.3 � � 12.1 � EBITDA $ 159.0 � $ 145.1 � �
TEPPCO Partners,
L.P. BUSINESS SEGMENT DATA (Unaudited - In Millions) � �
� � � � � � � �
Marine Intersegment Three Months
Ended March 31, 2009 Downstream Midstream
Upstream Services Eliminations
Consolidated � Operating revenues $ 95.5 $ 29.0 $ 1,296.2 $
36.9 $ - $ 1,457.6 Purchases of petroleum products 6.6 - 1,229.6 -
(0.7 ) 1,235.5 Operating expenses 24.9 8.6 14.6 18.7 - 66.8
Operating fuel and power 11.0 2.6 1.8 4.3 - 19.7 General and
administrative 3.7 3.0 1.9 1.4 - 10.0 Depreciation and amortization
(D&A) 11.5 9.5 5.6 6.4 - 33.0 Taxes - other than income taxes �
3.4 � � 0.8 � 1.8 � 0.9 � - � � 6.9 � � Operating income 34.4 4.5
40.9 5.2 0.7 85.7 - - - Equity in earnings (losses) of
unconsolidated affiliates (3.1 ) 25.6 3.3 - (0.7 ) 25.1 Other - net
� 0.3 � � - � - � - � - � � 0.3 � � Income before interest � 31.6 �
� 30.1 � 44.2 � 5.2 � - � � 111.1 � � Depreciation and amortization
11.5 9.5 5.6 6.4 - 33.0 Amortization of excess investment in joint
ventures 1.2 0.2 0.2 - - 1.6
TEPPCO's pro-rata percentage of
joint venture interest expense and D&A
2.6 8.8 1.9 - - 13.3 � EBITDA $ 46.9 � $ 48.6 $ 51.9 $ 11.6 $ - � $
159.0 � � Provision for income taxes (0.8 ) Depreciation and
amortization (33.0 ) Interest expense (32.1 ) Amortization of
excess investment in joint ventures (1.6 )
TEPPCO's pro-rata percentage of
joint venture interest expense and D&A
� (13.3 ) � Net income $ 78.2 � �
Marine Intersegment
Three Months Ended March 31, 2008 Downstream
Midstream Upstream Services
Eliminations Consolidated � Operating revenues $ 97.7
$ 30.1 $ 2,655.3 $ 25.5 $ (0.1 ) $ 2,808.5 Purchases of petroleum
products 6.9 - 2,602.7 - (3.0 ) 2,606.6 Operating expenses 26.9 5.0
13.3 8.6 - 53.8 Operating fuel and power 10.5 3.7 1.7 5.5 - 21.4
General and administrative 3.7 2.6 1.8 0.7 - 8.8 Depreciation and
amortization (D&A) 10.2 9.6 4.8 3.7 - 28.3 Taxes - other than
income taxes � 3.2 � � 0.8 � 1.7 � 0.4 � - � � 6.1 � � Operating
income 36.3 8.4 29.3 6.6 2.9 83.5 - - - Equity in earnings (losses)
of unconsolidated affiliates (4.1 ) 23.7 3.0 - (2.9 ) 19.7 Other -
net � 0.2 � � 0.1 � - � - � - � � 0.3 � � Income before interest �
32.4 � � 32.2 � 32.3 � 6.6 � - � � 103.5 � � Depreciation and
amortization 10.2 9.6 4.8 3.7 - 28.3 Amortization of excess
investment in joint ventures 0.9 0.1 0.2 - - 1.2
TEPPCO's pro-rata percentage of
joint venture interest expense and D&A
� 2.6 � � 7.7 � 1.8 � - � - � � 12.1 � � EBITDA $ 46.1 � $ 49.6 $
39.1 $ 10.3 $ - � $ 145.1 � � Provision for income taxes (0.8 )
Depreciation and amortization (28.3 ) Interest expense (38.6 )
Amortization of excess investment in joint ventures (1.2 )
TEPPCO's pro-rata percentage of
joint venture interest expense and D&A
� (12.1 ) � Net income $ 64.1 � �
Reconciliation of Equity in earnings (losses)
of unconsolidated affiliates to JV EBITDA
Three Months Ended March 31, 2009: Marine
Intersegment Downstream Midstream
Upstream Services Eliminations
Consolidated Equity in earnings (losses) of unconsolidated
affiliates $ (3.1 ) $ 25.6 $ 3.3 $ - $ (0.7 ) $ 25.1 Amortization
of excess investment in joint ventures 1.2 0.2 0.2 - - 1.6
TEPPCO's pro-rata percentage of
joint venture interest expense and D&A
� 2.6 � � 8.8 � 1.9 � - � - � � 13.3 � JV EBITDA $ 0.7 � $ 34.6 $
5.4 $ - $ (0.7 ) $ 40.0 � �
Three Months Ended March 31,
2008: Marine Intersegment Downstream
Midstream Upstream Services
Eliminations Consolidated Equity in earnings (losses)
of unconsolidated affiliates $ (4.1 ) $ 23.7 $ 3.0 $ - $ (2.9 ) $
19.7 Amortization of excess investment in joint ventures 0.9 0.1
0.2 - - 1.2
TEPPCO's pro-rata percentage of
joint venture interest expense and D&A
� 2.6 � � 7.7 � 1.8 � - � - � � 12.1 � JV EBITDA $ (0.6 ) $ 31.5 $
5.0 $ - $ (2.9 ) $ 33.0 � �
TEPPCO Partners, L.P.
Condensed Statements of Cash Flows (Unaudited) (In Millions)
� � � �
Three Months Ended March 31, � � � �
2009 �
2008 Cash Flows from Operating Activities Net
income $ 78.2 $ 64.1 Equity in earnings of unconsolidated
affiliates (25.1 ) (19.7 ) Distributions received from
unconsolidated affiliates 47.7 37.2 Loss on early extinguishment of
debt - 8.7 � Depreciation, working capital and other � � 55.8 � � �
(31.6 ) � Net Cash Provided by Operating Activities � � 156.6 � � �
58.7 � � Cash Flows from Investing Activities: Cash used for
business combinations - (338.5 ) Cash paid for linefill on assets
owned - (14.3 ) Acquisition of intangible assets (1.4 ) (0.3 )
Investment in Jonah Gas Gathering Company (12.3 ) (31.8 )
Investment in Texas Offshore Port System 1.7 - � Capital
expenditures
(1) � � (101.6 ) � � (51.6 ) � Net Cash Used in
Investing Activities � � (113.6 ) � � (436.5 ) � Cash Flows from
Financing Activities: Borrowings under debt agreements 301.8
2,512.6 Repayments of debt (252.8 ) (2,001.8 ) Net proceeds from
issuance of limited partner units 1.6 2.7 Settlement of interest
rate derivative instruments - treasury locks - (52.1 ) Debt
issuance costs - (8.7 ) � Distributions paid to partners � � (91.4
) � � (74.9 ) � Net Cash Provided by (used in) Financing Activities
� � (40.8 ) � � 377.8 � � Net Change in Cash and Cash Equivalents
2.2 - Cash and Cash Equivalents -- January 1 � � - � � � - � � Cash
and Cash Equivalents -- March 31 � $ 2.2 � � $ - � � Non-cash
investing activities:
Payable to Enterprise Gas
Processing, LLC for spending for Phase V expansion of Jonah Gas
Gathering Company
$ 0.2 $ 7.4 Liabilities for construction work in progress $ 18.2 $
16.6 Non-cash financing activities: Issuance of Units in Cenac
acquisition $ - $ 186.6 Supplemental Information: � Interest paid
(net of capitalized interest) � $ 22.1 � � $ 47.4 �
(1) Includes capital
expenditures for maintaining existing operations of $9.0 million in
2009, and $6.6 million in 2008.
�
TEPPCO Partners, L.P.
Condensed Balance Sheets (Unaudited) (In Millions) � �
March 31, December 31, � �
2009 �
2008
�
Assets Current assets Cash and cash equivalents $ 2.2 $ -
� Other � 838.3 � � � 907.6 � � Total current assets 840.5 907.6 �
Property, plant and equipment - net 2,517.2 2,439.9
Intangible assets (1)
202.3 207.7 Equity investments 1,244.8 1,255.9 Goodwill 106.6 106.6
Other assets � 131.3 � � � 132.1 � � Total assets $ 5,042.7 � � $
5,049.8 � � �
Liabilities and Partners' Capital � Total
current liabilities $ 854.4 � � $ 900.0 � � Total current
liabilities 854.4 900.0 � Senior Notes
(2) 1,712.1 1,713.3
Junior Subordinated Notes 299.6 299.6 Other long-term debt 565.6
516.7 Other non-current liabilities 28.5 28.7 Partners' capital
Accumulated other comprehensive loss (44.4 ) (45.8 ) General
partner's interest
(3) (112.5 ) (110.3 ) � Limited partners'
interests � 1,739.4 � � � 1,747.6 � � Total partners' capital �
1,582.5 � � � 1,591.5 � � Total liabilities and partners' capital $
5,042.7 � � $ 5,049.8 � �
(1)
�
Includes the value of long-term service agreements between
TEPPCO and its customers.
(2)
�
Includes $16.8 million and
$18.1 million at Mar. 31, 2009 and Dec. 31, 2008, respectively,
related to fair value hedges.
(3)
�
Amount does not represent a
future financial commitment by the General Partner to make a
contribution to TEPPCO.
�
TEPPCO Partners, L.P.
OPERATING DATA (Unaudited - In Millions, Except as Noted) �
� � �
Three Months Ended March 31, 2009
2008 Downstream Segment: Barrels Delivered Refined
Products 36.6 38.5 LPGs � 12.6 � � 12.9 � Total � 49.2 � � 51.4 �
Average Tariff Per Barrel Refined Products $ 0.98 $ 0.97 LPGs 3.05
2.81 � Average System Tariff Per Barrel $ 1.51 $ 1.43 �
Upstream
Segment: Margins/Revenues: Crude oil transportation revenue $
20.5 $ 23.4 Crude oil marketing margin 32.2 20.3 Crude oil
terminaling revenue 7.6 3.9 Lubrication Services, LLC (LSI) margin
� 3.2 � � 2.7 � Total Margins/Revenues $ 63.5 � $ 50.3 � �
Reconciliation of Margins/Revenues
to Operating Income:
� Sales of petroleum products $ 1,271.2 $ 2,637.7 Transportation -
Crude oil 21.9 15.3 Purchases of petroleum products � (1,229.6 ) �
(2,602.7 ) Total Margins/Revenues 63.5 50.3 Other operating
revenues 3.1 2.3 Operating expenses (14.6 ) (13.3 ) Operating fuel
and power (1.8 ) (1.7 ) General and administrative (1.9 ) (1.8 )
Depreciation and amortization (5.6 ) (4.8 ) Taxes - other than
income taxes � (1.8 ) � (1.7 ) Operating income $ 40.9 � $ 29.3 � �
Total barrels Crude oil transportation 29.2 27.8 Crude oil
marketing
(1) 45.4 43.0 Crude oil terminaling 46.8 33.1 �
Lubrication oil volume (total gallons): 5.4 3.9 � Margin/average
tariff per barrel: Crude oil transportation $ 0.702 $ 0.842 Crude
oil terminaling 0.163 0.116
�
Lubrication oil margin (per gallon): $ 0.603 $ 0.695 � �
(1)
The 2008 amount, previously
disclosed as 57.6 million, has been adjusted to exclude
inter-region transfers, which are transfers among TEPPCO Crude Oil,
LLC's various geographically managed regions.
�
TEPPCO Partners, L.P.
OPERATING DATA (Unaudited - In Millions, Except as Noted) �
� � �
Three Months Ended March 31, 2009
2008 Midstream Segment: Gathering - Natural Gas -
Jonah Bcf 194.9 167.1 Btu (in trillions) 215.1 184.6 Average fee
per MMBtu $ 0.236 $ 0.234 � Gathering - Natural Gas - Val Verde Bcf
42.8 38.2 Btu (in trillions) 38.6 34.2 Average fee per MMBtu $
0.352 $ 0.392 � Transportation - NGLs Total barrels (includes lease
barrels) 16.9 19.6 Average rate per barrel $ 0.824 $ 0.736 �
Fractionation - NGLs Total barrels 0.8 1.1 Average rate per barrel
$ 1.785 $ 1.661 � Natural Gas Sales Btu (in trillions) 0.8 1.7
Average fee per MMBtu $ 3.38 $ 6.81 � Sales - Condensate Total
barrels (thousands) 34.2 47.9 Average rate per barrel $ 26.20 $
76.72 �
Marine Services Segment: Number of tow boats (inland
/ offshore) 51 49 Number of tank barges (inland / offshore) 113 106
Fleet available days (in thousands)
(1) 13.9 7.4 Fleet
operating days (in thousands)
(2) 12.4 6.9 Fleet utilization
(3) 89 % 93 % Gross margin $ 13.9 $ 11.4 Average daily rate
(in thousands) $ 1.12 $ 1.66 � Reconciliation of Marine Gross
Margin to Operating Income: � Transportation - Marine $ 36.9 $ 25.5
Operating expense (18.7 ) (8.6 ) Operating fuel and power � (4.3 )
� (5.5 ) Gross margin 13.9
�
11.4 General and administrative (1.4 ) (0.7 ) Depreciation and
amortization (6.4 ) (3.7 ) Taxes - other than income taxes � (0.9 )
� (0.4 ) Operating Income $ 5.2 � $ 6.6 � � Average daily rate:
Gross margin $ 13.9
�
$ 11.4 Fleet operating days (in thousands) � 12.4 �
�
� 6.9 � Average daily rate (in thousands) $ 1.12 � $ 1.66 � �
(1)
�
The aggregate number of
calendar days in a period during which each vessel in our fleet has
been owned by us less the aggregate number of days in a period that
our vessels are not operating due to scheduled or unscheduled
maintenance and repairs.
(2)
�
Fleet available days less the aggregate number of days that our
vessels are off-hire in a period.
(3)
�
Fleet operating days divided by fleet available days.
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