|TEPPCO Expects No Material Impact as a Result of SemGroup, L.P. Bankruptcy Filing|
|HOUSTON, Jul 23, 2008 (BUSINESS WIRE) -- TEPPCO Partners, L.P. (NYSE:TPP) today confirmed that its subsidiary, TEPPCO Crude Oil, LLC, is listed as one of the unsecured creditors in the bankruptcy filing by SemGroup, L.P. and certain of its North American subsidiaries. Through an existing netting agreement for crude oil sold to and purchased from a subsidiary of SemGroup, TEPPCO's credit exposure has historically been minimal. While a review of the bankruptcy filings is still ongoing, based on historical arrangements TEPPCO does not expect any future material impact as a result of the SemGroup bankruptcy nor does it expect any future material credit exposure to SemGroup. SemGroup has represented less than 3.0 percent of the partnership's current crude oil gathering volumes.
TEPPCO Partners, L.P., a publicly traded partnership with an enterprise value of approximately $5 billion, is a diversified energy logistics company 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, liquefied petroleum gases (LPGs) and natural gas liquids, including one of the largest common carrier pipelines for refined petroleum products and LPGs in the United States. TEPPCO's storage assets include approximately 27 million barrels of capacity for refined petroleum products and LPGs and about 15 million barrels of capacity for crude oil. TEPPCO also owns a marine business that transports refined petroleum products, crude oil and lube products via tow boats and tank barges that operate primarily on the United States inland and Intracoastal Waterway systems, and in the Gulf of Mexico. For more information, visit TEPPCO's website (www.teppco.com). 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 its credit exposure to SemGroup. 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 materializes, 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.
SOURCE: TEPPCO Partners, L.P.
TEPPCO Partners, L.P., Houston