UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15 (d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
Date
of Report (date of earliest event reported): October 28,
2008
Commission
File No. 1-10403
TEPPCO
Partners, L.P.
(Exact
name of Registrant as specified in its charter)
|
Delaware
|
76-0291058
|
|
(State
of Incorporation
|
(I.R.S.
Employer
|
|
Or
Organization)
|
Identification
Number)
|
1100
Louisiana Street, Suite 1600
Houston,
Texas 77002
(Address
of principal executive offices, including zip code)
(713)
381-3636
(Registrant's
telephone number, including area code)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
|
¨
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
|
¨
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
¨
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
|
|
¨
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
|
Item
2.02 Results of Operations and Financial Condition.
On
October 28, 2008, TEPPCO Partners, L.P. (“TEPPCO”) issued a press release
announcing its financial results for the third quarter 2008, and will hold a
conference call discussing those results. A copy of the earnings
press release is furnished as Exhibit 99.1 to this report, which is hereby
incorporated by reference into this Item 2.02. The webcast conference
call will be available for replay on TEPPCO’s website at www.teppco.com. The
webcast conference call will be archived on its website for 90
days.
Unless the context requires otherwise,
references to “we,” “us,” “our,” or “TEPPCO” within the context of this Current
Report on Form 8-K refer to the consolidated business and operations of
TEPPCO. In addition, as generally used in the energy industry and in
the attached press release and accompanying exhibits, the identified terms have
the following meanings:
|
/d
|
=
per day
|
|
Bcf
|
=
billion cubic feet
|
|
BPD
|
=
barrels per day
|
|
Btu
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=
British Thermal units
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MMBtu
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=
million British Thermal units
|
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MMcf
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=
million cubic feet
|
Use
of Non-GAAP financial measures
Our press
release and/or the webcast conference call discussions include the non-generally
accepted accounting principle (“non-GAAP”) financial measures
of: margin of the Upstream segment, EBITDA and EBITDA excluding gains
from sales of assets and ownership interests. The press release
provides reconciliations of these non-GAAP financial measures to their most
directly comparable financial measures calculated and presented in accordance
with accounting principles generally accepted in the United States of America
(“GAAP”). Our non-GAAP financial measures should not be considered as
alternatives to GAAP measures such as net income, operating income, cash flows
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.
Margin
of the Upstream segment. We evaluate Upstream segment
performance based on the non-GAAP financial measure of margin. Margin
of our Upstream segment is calculated as revenues generated from the sale of
crude oil and lubrication oil, and transportation of crude oil, less the costs
of purchases of crude oil and lubrication oil, in each case prior to the
elimination of intercompany sales, revenues and purchases between wholly owned
subsidiaries. We believe margin is a more meaningful measure of
financial performance than sales and purchases of crude oil and lubrication oil
due to the significant fluctuations in sales and purchases caused by variations
in the level of marketing activity and prices for products
marketed. Additionally, we use margin internally to evaluate the
financial performance of the Upstream segment because it excludes expenses that
are not directly related to the marketing and sales activities being
evaluated. A reconciliation of margin to operating income is provided
in the Operating Data table accompanying the earnings release.
EBITDA
measures. We define EBITDA as net income plus interest expense
– net, income tax expense, depreciation and amortization, and a pro-rata
portion, based on our equity ownership, of the interest expense and depreciation
and amortization of each of our joint ventures. We have included
EBITDA and related adjusted EBITDA measures in our supplemental 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. A reconciliation of
these measures to net income is provided in the Financial Highlights and
Business Segment Data tables accompanying the earnings release.
2
Item
9.01 Financial Statements and Exhibits.
(d) Exhibits (furnished
herewith):
|
Exhibit
|
|
|
Number
|
Description
|
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99.1
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Press
release of TEPPCO Partners, L.P., dated October 28, 2008,
reporting
third
quarter 2008 results.
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SIGNATURE
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.
|
TEPPCO
Partners, L.P.
|
|
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(Registrant)
|
|
|
By:
Texas Eastern Products Pipeline Company, LLC
|
|
|
General
Partner
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Date: October
28, 2008
|
By: /s/ WILLIAM
G. MANIAS
|
|
William
G. Manias
|
|
|
Vice
President and
|
|
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Chief Financial Officer
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3
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Exhibit
99.1
|
|
October
28, 2008
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CONTACTS:
Investor Relations – Mark G. Stockard
|
|
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Phone: (713)
381-4707
|
||
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Toll
Free: (800)
659-0059
|
||
|
Media
Relations – Rick Rainey
|
||
|
Phone: (713)
381-3635
|
||
TEPPCO
PARTNERS, L.P. REPORTS RESULTS
FOR
THIRD QUARTER 2008
HOUSTON –
TEPPCO Partners, L.P. (NYSE:TPP) today reported third quarter net income for
2008 of $47.0 million, or $0.40 per unit, compared with net income
of $47.6 million, or $0.44 per unit, for the third
quarter of 2007. Earnings before interest, taxes, depreciation and
amortization (EBITDA) increased 13 percent to $129.1 million for the third
quarter of 2008, compared with $114.4 million for the third quarter of
2007. Net income and EBITDA for the third quarter of 2008 were
impacted by approximately $3.7 million in estimated lost business revenue from
Hurricanes Gustav and Ike.
“Overall,
we were pleased with TEPPCO’s performance in the third quarter, especially in
light of the recent economic downturn coupled with the impacts of Hurricanes
Gustav and Ike,” said Jerry E. Thompson, president and chief executive officer
of the general partner of TEPPCO. “Physical damage from Hurricane
Ike, which made landfall near Galveston, Texas, was limited and our employees
did an excellent job of responding quickly to resume operations for our pipeline
systems. Our results were driven by a 28 percent increase in EBITDA
at our Upstream segment on increased volumes as well as another strong
performance by the Marine Services segment, which continues to perform in-line
with our expectations. TEPPCO’s Midstream segment also reported a
solid quarter on a 21 percent increase in volumes at Jonah Gas
Gathering. These gains were partially offset by our Downstream
segment, which was impacted by the hurricanes and lower demand for refined
products,” Thompson added.
| TEPPCO 3Q 2008 Earnings |
Page 2
|
“In the
third quarter, we were proactive in strengthening TEPPCO’s financial
flexibility. In July, we increased the borrowing capacity under
TEPPCO’s credit facility, which matures in 2012, by $250 million, bringing the
total commitments under the facility to $950 million. In September,
we were successful in completing one of only four MLP equity offerings brought
to market during the third quarter, raising net proceeds of $264
million. These actions resulted in TEPPCO having approximately $600
million in liquidity at the end of the quarter, providing a solid foundation to
fund our capital investment program,” stated Thompson.
“In light
of the continuing disruption in the capital markets and the higher costs for
incremental capital, we are also reviewing our 2009 capital program to ensure we
are focused only on those projects that provide the partnership with the highest
returns, adjusted for business risk,” Thompson added.
EBITDA is
a non-GAAP (Generally Accepted Accounting Principles) financial measure that is
defined and reconciled to its most directly comparable GAAP financial measure
later in this news release.
OPERATING
RESULTS BY BUSINESS SEGMENT
Upstream
segment
EBITDA
for the Upstream segment, which includes gathering, pipeline transportation,
marketing and storage of crude oil and distribution of lubrication oils and
specialty chemicals, increased $8.0 million, or 28 percent, to $36.8 million for
the third quarter of 2008 from $28.8 million for the third quarter of
2007. The improvement resulted from increased transportation volumes
and rates, increased volumes marketed, increased terminaling volumes at Midland,
Texas, and Cushing, Oklahoma, and revenues associated with the acquisition of an
additional lubricants distributor business during the third quarter of
2008. These increases were partially offset by increased operating
and
| TEPPCO 3Q 2008 Earnings |
Page 3
|
maintenance
expenses, increased general and administrative expenses, and expense items
related to initial project development costs for the Texas offshore port project
that we announced in the third quarter.
TEPPCO’s
share of EBITDA from its equity investment in Seaway Crude Pipeline was $4.7
million for the third quarter of 2008, an increase of 57 percent compared with
$3.0 million of EBITDA for the third quarter of 2007. The improvement
was primarily due to increased long-haul transportation volumes, which averaged
193,000 barrels per day (bpd) in the third quarter of 2008, compared with
103,000 bpd in the same quarter of 2007. The 2007 third quarter was
negatively impacted by operational downtime of Midwest area
refineries. Equity earnings for Seaway totaled $2.7 million for the
third quarter of 2008, compared to $1.1 million in the third quarter of
2007.
Downstream
segment
The
Downstream segment includes the pipeline transportation, marketing and storage
of refined products, liquefied petroleum gases (LPGs) and
petrochemicals.
Downstream
EBITDA was $31.0 million for the third quarter of 2008, compared with $39.8
million for the third quarter of 2007. The decrease was primarily
attributable to a $5.9 million decrease in refined products transportation
revenues caused principally by lower consumer demand in 2008, lower refined
products production in the Gulf Coast region following Hurricane Ike in
September 2008, and higher than usual transportation demand from the Gulf Coast
in the 2007 third quarter due to Midwest refinery downtime in
2007. LPG transportation revenues declined $0.5 million due to lower
isobutane demand by Midwest area refiners during the
quarter. Operating revenues during the third quarter of 2008 included
$11.6 million of gains from the sale of product inventory, which was partially
offset by non-cash expense of $7.7 million to reduce the value of remaining
product inventory to market values at September 30, 2008. Periodic
inventory sales and purchases occur to balance product grades within the
pipeline
| TEPPCO 3Q 2008 Earnings |
Page 4
|
system as
part of routine pipeline operations. Other operating expenses
increased as a result of increased pipeline and tank maintenance costs. EBITDA
for this segment in the third quarter of 2008 was impacted by approximately $3.0
million in estimated lost revenue from the hurricanes, due primarily to pipeline
downtime and limited product availability for shippers as noted
above.
Total
refined products volumes delivered were 447,000 bpd in the 2008 third quarter,
compared to 532,000 bpd in the 2007 period. Total LPGs volumes
delivered were 73,000 bpd in the 2008 third quarter, compared to 77,000 bpd in
the 2007 period.
Thompson
noted, “The supply disruption from the hurricanes, the impact of the Midwest
refinery downtime in 2007 and the demand decrease due to weaker economic
conditions in 2008, each contributed to the overall 16 percent reduction in
refined products deliveries during the quarter. However, a
significant portion of the decrease attributable to lower demand from the weaker
economy was offset by the 5 percent increase in the average tariff over the
prior year.”
TEPPCO’s
share of EBITDA from equity investments was $1.3 million for the third quarter
of 2008, compared with $1.4 million for the third quarter of
2007. Equity investments in the Downstream segment include its 50
percent ownership in Centennial Pipeline, and also reflects a $0.3 million loss
during the 2007 third quarter for post-closing adjustments for the sale of its
ownership interest in Mont Belvieu Storage Partners, which occurred in the first
quarter of 2007. The EBITDA contribution of Centennial was lower in
the 2008 period due to lower transportation volumes partially offset by lower
operating expenses. Volumes on Centennial averaged approximately
105,700 bpd in the third quarter of 2008, compared to 180,800 bpd in the third
quarter of 2007. The volume reduction resulted primarily from lower
Midwest demand and the impact of the Gulf Coast supply disruptions discussed
above. Equity losses from these investments totaled $2.3 million in
the third quarter of 2008, compared with losses of
| TEPPCO 3Q 2008 Earnings |
Page 5
|
$3.1
million in the 2007 period. The loss on equity investments was
partially offset by lower amortization expense in the 2008 third
quarter.
Midstream
segment
The
Midstream segment includes gathering of natural gas, fractionation of natural
gas liquids (NGLs), pipeline transportation of NGLs and ownership interest in
Jonah Gas Gathering Company (Jonah).
EBITDA
for the third quarter of 2008 increased to $46.7 million, from $45.8 million for
the third quarter of 2007. The increase was due primarily to
increased earnings from TEPPCO’s investment in Jonah, and increased NGL
transportation rates, partially offset by lower natural gas gathering volumes on
the Val Verde system, increased power expenses on the Chaparral NGL system and
impact of the hurricanes. Net income and EBITDA for the third quarter
of 2008 were impacted by approximately $0.5 million in estimated lost business
revenue from the hurricanes.
TEPPCO’s
share of EBITDA from its equity investment in Jonah, was $30.8 million for the
third quarter of 2008, compared to $28.1 million for the third quarter of
2007. The increase was primarily attributable to the completion of
the Phase V expansion, resulting in higher volumes on the system, partially
offset by measurement gains in 2007. Total throughput on the
Jonah-Pinedale system averaged 2.0 billion cubic feet per day (Bcf/d) in the
third quarter of 2008, compared with 1.65 Bcf/d in the third quarter of
2007. Equity earnings from Jonah totaled $21.8 million for the third
quarter of 2008, compared with $21.1 million in the third quarter of
2007.
Marine
Services segment
The
Marine Services segment, which was added to the partnership effective February
1, 2008, includes marine transportation of refined products, crude oil, asphalt,
condensate, heavy fuel oil and other heated oil products via tow boats and
barges. Revenues
| TEPPCO 3Q 2008 Earnings |
Page 6
|
(including
fuel and other reimbursable pass-through expenses) during the quarter totaled
$46.0 million, partially offset by operating, general and administrative
expenses of $31.4 million, resulting in an EBITDA contribution during the third
quarter of 2008 of $14.6 million. Operating fuel, substantially all
of which is a pass through expense for the segment, totaled $10.2 million during
the quarter.
CAPITALIZATION
AND LIQUIDITY
Total
debt principal outstanding at September 30, 2008 was approximately $2.3
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
September 30, 2008, borrowing liquidity under the revolving credit facility was
approximately $600 million.
During
the nine months ended September 30, 2008, TEPPCO spent $173.2 million on
revenue-generating projects in addition to $94.9 million of investment for its
share of capital expenditures related to the expansions on the Jonah-Pinedale
system, and $41.9 million on capital spending to maintain existing
assets. The partnership expects to spend approximately $425 million
to $450 million for the full-year 2008 on revenue-generating capital
expenditures, including investments of its share of expansion of the
Jonah-Pinedale system, plus approximately $53 million to maintain existing
assets. For 2009, the partnership expects to spend in the range of
$350 million to $400 million related to revenue-generating committed capital
projects.
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): EBITDA, EBITDA
excluding gains from sales of assets and ownership interests and margin of the
Upstream segment. Our non-GAAP financial measures should not be
considered as alternatives to GAAP
| TEPPCO 3Q 2008 Earnings |
Page 7
|
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 and
amortization, and a pro-rata portion, based on our equity ownership, of the
interest expense and depreciation and amortization of each of our joint
ventures. We have included EBITDA and related adjusted EBITDA
measures in our disclosures because we believe they are used by our investors as
supplemental financial measures in the evaluation of our
business. Further, we believe EBITDA and related adjusted EBITDA
measures provide useful information regarding the performance of our assets
without regard to financing methods, capital structures or historical costs
basis. As a result, these measures provide investors with a helpful
tool for comparing the operating performance of our assets with the performance
of other companies that have different financing and capital
structures. EBITDA multiples are also used by our investors in
assisting in the valuation of our limited partners’
equity. Reconciliations of these measures to net income and equity
earnings are provided in the Financial Highlights table and the Business Segment
Data table.
Margin of
our Upstream segment is calculated as revenues generated from the sale of crude
oil and lubrication oil, and transportation of crude oil, less the costs of
purchases of crude oil and lubrication oil, in each case prior to the
elimination of intercompany sales, revenues and purchases between wholly owned
subsidiaries. We believe margin is a more meaningful measure of
financial performance than sales and purchases of crude oil and lubrication oil
due to the significant fluctuations in sales and purchases caused by variations
in the level of marketing activity and prices for products
marketed. Additionally, we use margin internally to evaluate the
financial performance of the
| TEPPCO 3Q 2008 Earnings |
Page 8
|
Upstream
segment because it excludes expenses that are not directly related to the
marketing and sales activities being evaluated. A
reconciliation of margin to operating income is provided in the Operating Data
table.
TEPPCO
will host a conference call related to earnings performance today, Tuesday,
October 28 at 9 a.m. CDT. Interested parties may listen live over the
Internet through the partnership’s Web site 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 888-203-1112, confirmation code 7968264. The replay
and transcript will also be available on the TEPPCO website.
TEPPCO
Partners, L.P., a publicly traded partnership, 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 pipeline 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. Including joint
venture ownership, TEPPCO’s storage assets include 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 business
that transports refined petroleum products, crude oil, asphalt, condensate,
heavy fuel oil and other heated oil products via tow boats and tank
barges. 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).
| TEPPCO 3Q 2008 Earnings |
Page 9
|
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, expenditures, returns on investments and liquidity. 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
|
Nine
Months Ended
|
|||||||||||||||
|
September
30,
|
September
30,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Operating
Revenues:
|
||||||||||||||||
|
Sales
of petroleum products
|
$ | 4,025.6 | $ | 2,455.7 | $ | 10,676.8 | $ | 6,238.9 | ||||||||
|
Transportation
- Refined Products
|
42.2 | 48.1 | 123.6 | 127.0 | ||||||||||||
|
Transportation
- LPGs
|
16.3 | 16.8 | 68.6 | 69.5 | ||||||||||||
|
Transportation
- Crude oil
|
15.8 | 12.3 | 48.5 | 32.7 | ||||||||||||
|
Transportation
- NGLs
|
12.6 | 12.0 | 38.2 | 34.1 | ||||||||||||
|
Transportation
- Marine
|
46.0 | - | 119.6 | - | ||||||||||||
|
Gathering
- Natural Gas
|
14.6 | 15.4 | 42.8 | 46.3 | ||||||||||||
|
Other
|
32.6 | 20.3 | 76.6 | 60.0 | ||||||||||||
|
Total
Operating Revenues
|
4,205.7 | 2,580.6 | 11,194.7 | 6,608.5 | ||||||||||||
|
Costs
and Expenses:
|
||||||||||||||||
|
Purchases
of petroleum products
|
3,989.5 | 2,426.7 | 10,571.8 | 6,141.6 | ||||||||||||
|
Operating
expenses
|
87.5 | 50.3 | 221.0 | 149.6 | ||||||||||||
|
Operating
fuel and power
|
25.9 | 15.1 | 76.4 | 45.2 | ||||||||||||
|
General
and administrative
|
10.8 | 7.4 | 30.6 | 24.2 | ||||||||||||
|
Depreciation
and amortization
|
32.1 | 26.5 | 92.2 | 77.7 | ||||||||||||
|
Gains
on sales of assets
|
- | - | - | (18.7 | ) | |||||||||||
|
Total
Costs and Expenses
|
4,145.8 | 2,526.0 | 10,992.0 | 6,419.6 | ||||||||||||
|
Operating
Income
|
59.9 | 54.6 | 202.7 | 188.9 | ||||||||||||
|
Interest
expense - net
|
(34.3 | ) | (26.9 | ) | (105.9 | ) | (71.9 | ) | ||||||||
|
Equity
earnings
|
22.1 | 19.1 | 63.2 | 54.9 | ||||||||||||
|
Gain
on sale of ownership interest in Mont
|
||||||||||||||||
|
Belvieu
Storage Partners, L.P. (MBSP)
|
- | - | - | 59.6 | ||||||||||||
|
Interest
income
|
0.3 | 0.5 | 0.9 | 1.2 | ||||||||||||
|
Other
income - net
|
0.1 | 0.3 | 0.9 | 1.1 | ||||||||||||
|
Income
before provision for income taxes
|
48.1 | 47.6 | 161.8 | 233.8 | ||||||||||||
|
Provision
for income taxes
|
1.1 | - | 2.9 | 0.2 | ||||||||||||
|
Net
Income
|
$ | 47.0 | $ | 47.6 | $ | 158.9 | $ | 233.6 | ||||||||
|
Net
Income Allocation:
|
||||||||||||||||
|
Limited
Partner Unitholders
|
$ | 39.0 | $ | 39.6 | $ | 132.1 | $ | 195.1 | ||||||||
|
General
Partner
|
8.0 | 8.0 | 26.8 | 38.5 | ||||||||||||
|
Total
Net Income Allocated
|
$ | 47.0 | $ | 47.6 | $ | 158.9 | $ | 233.6 | ||||||||
|
Basic
and Diluted Net Income Per Limited Partner Unit
|
$ | 0.40 | $ | 0.44 | $ | 1.39 | $ | 2.17 | ||||||||
|
Weighted
Average Number of Limited Partner Units
|
97.3 | 89.9 | 95.1 | 89.8 | ||||||||||||
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
|
September
30,
|
September
30,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
EBITDA
|
||||||||||||||||
|
Net
Income
|
$ | 47.0 | $ | 47.6 | $ | 158.9 | $ | 233.6 | ||||||||
|
Provision
for income taxes
|
1.1 | - | 2.9 | 0.2 | ||||||||||||
|
Interest
expense - net
|
34.3 | 26.9 | 105.9 | 71.9 | ||||||||||||
|
Depreciation
and amortization (D&A)
|
32.1 | 26.5 | 92.2 | 77.7 | ||||||||||||
|
Amortization
of excess investment in joint ventures
|
1.3 | 2.1 | 3.8 | 4.1 | ||||||||||||
|
TEPPCO's
pro-rata percentage of joint venture
|
||||||||||||||||
|
interest
expense and D&A
|
13.3 | 11.3 | 38.6 | 33.1 | ||||||||||||
|
EBITDA
|
129.1 | 114.4 | 402.3 | 420.6 | ||||||||||||
|
Less: Gains
on sales of assets and ownership interest
|
||||||||||||||||
|
in
MBSP
|
- | - | - | (78.3 | ) | |||||||||||
|
EBITDA,
excluding gains from sales of assets and
|
||||||||||||||||
|
ownership
interests
|
$ | 129.1 | $ | 114.4 | $ | 402.3 | $ | 342.3 | ||||||||
|
TEPPCO
Partners, L.P.
|
||||||||||||||||||||||||
|
BUSINESS
SEGMENT DATA
|
||||||||||||||||||||||||
|
(Unaudited
- In Millions)
|
||||||||||||||||||||||||
|
Marine
|
Intersegment
|
|||||||||||||||||||||||
|
Three
Months Ended September 30, 2008
|
Downstream
|
Midstream
|
Upstream
|
Services
|
Eliminations
|
Consolidated
|
||||||||||||||||||
|
Operating
revenues
|
$ | 97.1 | $ | 30.3 | $ | 4,032.4 | $ | 46.0 | $ | (0.1 | ) | $ | 4,205.7 | |||||||||||
|
Purchases
of petroleum products
|
12.9 | - | 3,976.8 | - | (0.2 | ) | 3,989.5 | |||||||||||||||||
|
Operating
expenses
|
50.5 | 12.3 | 21.5 | 29.1 | - | 113.4 | ||||||||||||||||||
|
General
and administrative
|
4.2 | 2.2 | 2.1 | 2.3 | - | 10.8 | ||||||||||||||||||
|
Depreciation
and amortization (D&A)
|
10.7 | 10.0 | 5.1 | 6.3 | - | 32.1 | ||||||||||||||||||
|
Operating
Income
|
18.8 | 5.8 | 26.9 | 8.3 | 0.1 | 59.9 | ||||||||||||||||||
| - | - | - | ||||||||||||||||||||||
|
Equity
(losses) earnings
|
(2.3 | ) | 21.8 | 2.7 | - | (0.1 | ) | 22.1 | ||||||||||||||||
|
Interest
income
|
0.2 | 0.1 | - | - | - | 0.3 | ||||||||||||||||||
|
Other
- net
|
- | - | 0.1 | - | - | 0.1 | ||||||||||||||||||
|
Income
before interest
|
16.7 | 27.7 | 29.7 | 8.3 | - | 82.4 | ||||||||||||||||||
|
Depreciation
and amortization
|
10.7 | 10.0 | 5.1 | 6.3 | - | 32.1 | ||||||||||||||||||
|
Amortization
of excess investment in joint ventures
|
1.1 | - | 0.2 | - | - | 1.3 | ||||||||||||||||||
|
TEPPCO's
pro-rata percentage of joint
|
||||||||||||||||||||||||
|
venture
interest expense and D&A
|
2.5 | 9.0 | 1.8 | - | - | 13.3 | ||||||||||||||||||
|
EBITDA
|
$ | 31.0 | $ | 46.7 | $ | 36.8 | $ | 14.6 | $ | - | $ | 129.1 | ||||||||||||
|
Provision
for income taxes
|
(1.1 | ) | ||||||||||||||||||||||
|
Depreciation
and amortization
|
(32.1 | ) | ||||||||||||||||||||||
|
Interest
expense - net
|
(34.3 | ) | ||||||||||||||||||||||
|
Amortization
of excess investment in joint ventures
|
(1.3 | ) | ||||||||||||||||||||||
|
TEPPCO's
pro-rata percentage of joint
|
||||||||||||||||||||||||
|
venture
interest expense and D&A
|
(13.3 | ) | ||||||||||||||||||||||
|
Net
Income
|
$ | 47.0 | ||||||||||||||||||||||
|
Marine
|
Intersegment
|
|||||||||||||||||||||||
|
Three
Months Ended September 30, 2007
|
Downstream
|
Midstream
|
Upstream
|
Services
|
Eliminations
|
Consolidated
|
||||||||||||||||||
|
Operating
revenues
|
$ | 84.5 | $ | 31.2 | $ | 2,465.0 | $ | - | $ | (0.1 | ) | $ | 2,580.6 | |||||||||||
|
Purchases
of petroleum products
|
5.5 | - | 2,421.3 | - | (0.1 | ) | 2,426.7 | |||||||||||||||||
|
Operating
expenses
|
37.2 | 11.8 | 16.4 | - | - | 65.4 | ||||||||||||||||||
|
General
and administrative
|
3.9 | 1.9 | 1.6 | - | - | 7.4 | ||||||||||||||||||
|
Depreciation
and amortization (D&A)
|
11.3 | 10.1 | 5.1 | - | - | 26.5 | ||||||||||||||||||
|
Operating
Income
|
26.6 | 7.4 | 20.6 | - | - | 54.6 | ||||||||||||||||||
|
Equity
(losses) earnings
|
(3.1 | ) | 21.1 | 1.1 | - | - | 19.1 | |||||||||||||||||
|
Gain
on sale of ownership interest in MBSP
|
- | - | - | - | - | - | ||||||||||||||||||
|
Interest
income
|
0.2 | 0.2 | 0.1 | - | - | 0.5 | ||||||||||||||||||
|
Other
- net
|
0.3 | - | - | - | - | 0.3 | ||||||||||||||||||
|
Income
before interest
|
24.0 | 28.7 | 21.8 | - | - | 74.5 | ||||||||||||||||||
|
Depreciation
and amortization
|
11.3 | 10.1 | 5.1 | - | - | 26.5 | ||||||||||||||||||
|
Amortization
of excess investment in joint ventures
|
1.9 | - | 0.2 | - | - | 2.1 | ||||||||||||||||||
|
TEPPCO's
pro-rata percentage of joint
|
||||||||||||||||||||||||
|
venture
interest expense and D&A
|
2.6 | 7.0 | 1.7 | - | - | 11.3 | ||||||||||||||||||
|
EBITDA
|
$ | 39.8 | $ | 45.8 | $ | 28.8 | $ | - | $ | - | $ | 114.4 | ||||||||||||
|
Provision
for income taxes
|
- | |||||||||||||||||||||||
|
Depreciation
and amortization
|
(26.5 | ) | ||||||||||||||||||||||
|
Interest
expense - net
|
(26.9 | ) | ||||||||||||||||||||||
|
Amortization
of excess investment in joint ventures
|
(2.1 | ) | ||||||||||||||||||||||
|
TEPPCO's
pro-rata percentage of joint
|
||||||||||||||||||||||||
|
venture
interest expense and D&A
|
(11.3 | ) | ||||||||||||||||||||||
|
Net
Income
|
$ | 47.6 | ||||||||||||||||||||||
|
Reconciliation
of Equity (losses) earnings to JV
EBITDA
|
||||||||||||||||||||||||
|
Three
Months Ended September 30, 2008:
|
Marine
|
Intersegment
|
||||||||||||||||||||||
|
Downstream
|
Midstream
|
Upstream
|
Services
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
|
Equity
(losses) earnings
|
$ | (2.3 | ) | $ | 21.8 | $ | 2.7 | $ | - | $ | (0.1 | ) | $ | 22.1 | ||||||||||
|
Amortization
of excess investment in joint ventures
|
1.1 | - | 0.2 | - | - | 1.3 | ||||||||||||||||||
|
TEPPCO's
pro-rata percentage of joint
|
||||||||||||||||||||||||
|
venture
interest expense and D&A
|
2.5 | 9.0 | 1.8 | - | - | 13.3 | ||||||||||||||||||
|
JV
EBITDA
|
$ | 1.3 | $ | 30.8 | $ | 4.7 | $ | - | $ | (0.1 | ) | $ | 36.7 | |||||||||||
|
Three
Months Ended September 30, 2007:
|
Marine
|
Intersegment
|
||||||||||||||||||||||
|
Downstream
|
Midstream
|
Upstream
|
Services
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
|
Equity
(losses) earnings
|
$ | (3.1 | ) | $ | 21.1 | $ | 1.1 | $ | - | $ | - | $ | 19.1 | |||||||||||
|
Amortization
of excess investment in joint ventures
|
1.9 | - | 0.2 | - | - | 2.1 | ||||||||||||||||||
|
TEPPCO's
pro-rata percentage of joint
|
||||||||||||||||||||||||
|
venture
interest expense and D&A
|
2.6 | 7.0 | 1.7 | - | - | 11.3 | ||||||||||||||||||
|
JV
EBITDA
|
$ | 1.4 | $ | 28.1 | $ | 3.0 | $ | - | $ | - | $ | 32.5 | ||||||||||||
|
TEPPCO
Partners, L.P.
|
||||||||||||||||||||||||
|
BUSINESS
SEGMENT DATA
|
||||||||||||||||||||||||
|
(Unaudited
- In Millions)
|
||||||||||||||||||||||||
|
Marine
|
Intersegment
|
|||||||||||||||||||||||
|
Nine
Months Ended September 30, 2008
|
Downstream
|
Midstream
|
Upstream
|
Services
|
Eliminations
|
Consolidated
|
||||||||||||||||||
|
Operating
revenues
|
$ | 271.2 | $ | 91.0 | $ | 10,713.0 | $ | 119.6 | $ | (0.1 | ) | $ | 11,194.7 | |||||||||||
|
Purchases
of petroleum products
|
21.1 | - | 10,554.9 | - | (4.2 | ) | 10,571.8 | |||||||||||||||||
|
Operating
expenses
|
135.6 | 31.4 | 54.8 | 75.6 | - | 297.4 | ||||||||||||||||||
|
General
and administrative
|
12.4 | 7.5 | 6.6 | 4.1 | - | 30.6 | ||||||||||||||||||
|
Depreciation
and amortization (D&A)
|
31.5 | 29.6 | 14.8 | 16.3 | - | 92.2 | ||||||||||||||||||
|
Operating
Income
|
70.6 | 22.5 | 81.9 | 23.6 | 4.1 | 202.7 | ||||||||||||||||||
| - | ||||||||||||||||||||||||
|
Equity
(losses) earnings
|
(10.1 | ) | 67.5 | 9.9 | - | (4.1 | ) | 63.2 | ||||||||||||||||
|
Interest
income
|
0.5 | 0.3 | 0.1 | - | - | 0.9 | ||||||||||||||||||
|
Other
- net
|
0.2 | - | 0.7 | - | - | 0.9 | ||||||||||||||||||
|
Income
before interest
|
61.2 | 90.3 | 92.6 | 23.6 | - | 267.7 | ||||||||||||||||||
|
Depreciation
and amortization
|
31.5 | 29.6 | 14.8 | 16.3 | - | 92.2 | ||||||||||||||||||
|
Amortization
of excess investment in joint ventures
|
3.2 | 0.1 | 0.5 | - | - | 3.8 | ||||||||||||||||||
|
TEPPCO's
pro-rata percentage of joint
|
||||||||||||||||||||||||
|
venture
interest expense and D&A
|
7.8 | 25.5 | 5.3 | - | - | 38.6 | ||||||||||||||||||
|
EBITDA
|
$ | 103.7 | $ | 145.5 | $ | 113.2 | $ | 39.9 | $ | - | $ | 402.3 | ||||||||||||
|
Provision
for income taxes
|
(2.9 | ) | ||||||||||||||||||||||
|
Depreciation
and amortization
|
(92.2 | ) | ||||||||||||||||||||||
|
Interest
expense - net
|
(105.9 | ) | ||||||||||||||||||||||
|
Amortization
of excess investment in joint ventures
|
(3.8 | ) | ||||||||||||||||||||||
|
TEPPCO's
pro-rata percentage of joint
|
||||||||||||||||||||||||
|
venture
interest expense and D&A
|
(38.6 | ) | ||||||||||||||||||||||
|
Net
Income
|
$ | 158.9 | ||||||||||||||||||||||
|
Marine
|
Intersegment
|
|||||||||||||||||||||||
|
Nine
Months Ended September 30, 2007
|
Downstream
|
Midstream
|
Upstream
|
Services
|
Eliminations
|
Consolidated
|
||||||||||||||||||
|
Operating
revenues
|
$ | 262.6 | $ | 91.0 | $ | 6,255.4 | $ | - | $ | (0.5 | ) | $ | 6,608.5 | |||||||||||
|
Purchases
of petroleum products
|
24.2 | - | 6,121.3 | - | (3.9 | ) | 6,141.6 | |||||||||||||||||
|
Operating
expenses
|
109.2 | 33.8 | 51.9 | - | (0.1 | ) | 194.8 | |||||||||||||||||
|
General
and administrative
|
12.3 | 6.7 | 5.2 | - | - | 24.2 | ||||||||||||||||||
|
Depreciation
and amortization (D&A)
|
34.1 | 30.2 | 13.4 | - | - | 77.7 | ||||||||||||||||||
|
Gains
on sales of assets
|
(18.7 | ) | - | - | - | - | (18.7 | ) | ||||||||||||||||
|
Operating
Income
|
101.5 | 20.3 | 63.6 | - | 3.5 | 188.9 | ||||||||||||||||||
|
Equity
(losses) earnings
|
(8.4 | ) | 62.4 | 4.4 | - | (3.5 | ) | 54.9 | ||||||||||||||||
|
Gain
on sale of ownership interest in MBSP
|
59.6 | - | - | - | - | 59.6 | ||||||||||||||||||
|
Interest
income
|
0.7 | 0.4 | 0.1 | - | - | 1.2 | ||||||||||||||||||
|
Other
- net
|
1.1 | - | - | - | - | 1.1 | ||||||||||||||||||
|
Income
before interest
|
154.5 | 83.1 | 68.1 | - | - | 305.7 | ||||||||||||||||||
|
Depreciation
and amortization
|
34.1 | 30.2 | 13.4 | - | - | 77.7 | ||||||||||||||||||
|
Amortization
of excess investment in joint ventures
|
3.5 | 0.1 | 0.5 | - | - | 4.1 | ||||||||||||||||||
|
TEPPCO's
pro-rata percentage of joint
|
- | |||||||||||||||||||||||
|
venture
interest expense and D&A
|
8.8 | 18.9 | 5.4 | - | - | 33.1 | ||||||||||||||||||
|
EBITDA
|
$ | 200.9 | $ | 132.3 | $ | 87.4 | $ | - | $ | - | $ | 420.6 | ||||||||||||
|
Provision
for income taxes
|
(0.2 | ) | ||||||||||||||||||||||
|
Depreciation
and amortization
|
(77.7 | ) | ||||||||||||||||||||||
|
Interest
expense - net
|
(71.9 | ) | ||||||||||||||||||||||
|
Amortization
of excess investment in joint ventures
|
(4.1 | ) | ||||||||||||||||||||||
|
TEPPCO's
pro-rata percentage of joint
|
||||||||||||||||||||||||
|
venture
interest expense and D&A
|
(33.1 | ) | ||||||||||||||||||||||
|
Net
Income
|
$ | 233.6 | ||||||||||||||||||||||
|
Reconciliation
of Equity (losses) earnings to JV
EBITDA
|
||||||||||||||||||||||||
|
Nine
Months Ended September 30, 2008:
|
Marine
|
Intersegment
|
||||||||||||||||||||||
|
Downstream
|
Midstream
|
Upstream
|
Services
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
|
Equity
(losses) earnings
|
$ | (10.1 | ) | $ | 67.5 | $ | 9.9 | $ | - | $ | (4.1 | ) | $ | 63.2 | ||||||||||
|
Amortization
of excess investment in joint ventures
|
3.2 | 0.1 | 0.5 | - | - | 3.8 | ||||||||||||||||||
|
TEPPCO's
pro-rata percentage of joint
|
||||||||||||||||||||||||
|
venture
interest expense and D&A
|
7.8 | 25.5 | 5.3 | - | - | 38.6 | ||||||||||||||||||
|
JV
EBITDA
|
$ | 0.9 | $ | 93.1 | $ | 15.7 | $ | - | $ | (4.1 | ) | $ | 105.6 | |||||||||||
|
Nine
Months Ended September 30, 2007:
|
Marine
|
Intersegment
|
||||||||||||||||||||||
|
Downstream
|
Midstream
|
Upstream
|
Services
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
|
Equity
(losses) earnings
|
$ | (8.4 | ) | $ | 62.4 | $ | 4.4 | $ | - | $ | (3.5 | ) | $ | 54.9 | ||||||||||
|
Amortization
of excess investment in joint ventures
|
3.5 | 0.1 | 0.5 | - | - | 4.1 | ||||||||||||||||||
|
TEPPCO's
pro-rata percentage of joint
|
||||||||||||||||||||||||
|
venture
interest expense and D&A
|
8.8 | 18.9 | 5.4 | - | - | 33.1 | ||||||||||||||||||
|
JV
EBITDA
|
$ | 3.9 | $ | 81.4 | $ | 10.3 | $ | - | $ | (3.5 | ) | $ | 92.1 | |||||||||||
|
TEPPCO
Partners, L. P.
|
|||||||||
|
Condensed
Statements of Cash Flows (Unaudited) (In Millions)
|
|||||||||
|
Nine
Months Ended
|
|||||||||
|
September
30,
|
|||||||||
|
2008
|
2007
|
||||||||
|
Cash
Flows from Operating Activities
|
|||||||||
|
Net
income
|
$ | 158.9 | $ | 233.6 | |||||
|
Deferred
income taxes
|
- | (0.7 | ) | ||||||
|
Gains
on sales of assets and ownership interests
|
- | (78.3 | ) | ||||||
|
Loss
on early extinguishment of debt
|
8.7 | - | |||||||
|
Depreciation,
working capital and other
|
127.4 | 64.6 | |||||||
|
Net
Cash Provided by Operating Activities
|
295.0 | 219.2 | |||||||
|
Cash
Flows from Investing Activities:
|
|||||||||
|
Proceeds
from sales of assets
|
- | 27.8 | |||||||
|
Proceeds
from sale of ownership interest
|
- | 137.3 | |||||||
|
Cash
used for business combinations
|
(351.9 | ) | - | ||||||
|
Purchase
of assets
|
- | (12.7 | ) | ||||||
|
Increase
in restricted cash
|
- | (2.9 | ) | ||||||
|
Cash
paid for linefill on assets owned
|
(11.5 | ) | (26.6 | ) | |||||
|
Acquisition
of intangible assets
|
(0.3 | ) | (2.5 | ) | |||||
|
Investment
in Centennial Pipeline LLC
|
- | (11.1 | ) | ||||||
|
Investment
in Jonah Gas Gathering Company
|
(94.9 | ) | (127.8 | ) | |||||
|
Capital expenditures (1)
|
(215.1 | ) | (164.2 | ) | |||||
|
Net
Cash Used in Investing Activities
|
(673.7 | ) | (182.7 | ) | |||||
|
Cash
Flows from Financing Activities:
|
|||||||||
|
Proceeds
from revolving credit facilities
|
1,852.6 | 805.3 | |||||||
|
Repayments
on revolving credit facilities
|
(2,017.9 | ) | (918.3 | ) | |||||
|
Proceeds
from term credit agreement
|
1,000.0 | - | |||||||
|
Repayment
of term credit agreement
|
(1,000.0 | ) | - | ||||||
|
Proceeds
from issuance of senior notes
|
996.3 | - | |||||||
|
Issuance
of Junior Subordinated Notes
|
- | 299.5 | |||||||
|
Redemption
of 7.51% Senior Notes
|
(181.6 | ) | - | ||||||
|
Repayment
of 6.45% Senior Notes
|
(180.0 | ) | - | ||||||
|
Repayment
of debt assumed in Cenac acquisition
|
(63.2 | ) | - | ||||||
|
Issuance
of LP Units, net
|
271.3 | 0.1 | |||||||
|
Settlement
of treasury rate lock agreements
|
(52.1 | ) | 1.4 | ||||||
|
Payment
for termination of interest rate swap
|
- | (1.2 | ) | ||||||
|
Debt
issuance costs
|
(9.8 | ) | (3.8 | ) | |||||
|
Distributions
paid
|
(236.8 | ) | (219.6 | ) | |||||
|
Net
Cash Provided by (used in) Financing Activities
|
378.8 | (36.6 | ) | ||||||
|
Net
Change in Cash and Cash Equivalents
|
0.1 | (0.1 | ) | ||||||
|
Cash
and Cash Equivalents -- January 1
|
- | 0.1 | |||||||
|
Cash
and Cash Equivalents -- September 30
|
$ | 0.1 | $ | - | |||||
|
Non-cash
investing activities:
|
|||||||||
|
Payable
to Enterprise Gas Processing, LLC for spending
|
|||||||||
|
for
Phase V expansion of Jonah Gas Gathering Company
|
$ | 1.3 | $ | 13.0 | |||||
|
Non-cash
financing activities:
|
|||||||||
|
Issuance
of Units in Cenac acquisition
|
$ | 186.6 | $ | - | |||||
|
Supplemental
Information:
|
|||||||||
|
Interest
paid (net of capitalized interest)
|
$ | 81.9 | $ | 73.1 | |||||
|
(1)
|
Includes
capital expenditures for maintaining existing operations of $41.9 million
in 2008,
|
||||||||
|
and
$41.9 million in 2007.
|
|||||||||
|
TEPPCO
Partners, L. P.
|
|||||||||
|
Condensed
Balance Sheets (Unaudited)
|
|||||||||
|
(In
Millions)
|
|||||||||
|
September
30,
|
December
31,
|
||||||||
|
2008
|
2007
|
||||||||
|
Assets
|
|||||||||
|
Current
assets
|
|||||||||
|
Cash
and cash equivalents
|
$ | 0.1 | $ | - | |||||
|
Other
|
1,970.7 | 1,516.0 | |||||||
|
Total
current assets
|
1,970.8 | 1,516.0 | |||||||
|
Property,
plant and equipment - net
|
2,372.7 | 1,793.6 | |||||||
|
Intangible assets (1)
|
214.4 | 164.7 | |||||||
|
Equity
investments
|
1,191.4 | 1,147.0 | |||||||
|
Goodwill
|
106.4 | 15.5 | |||||||
|
Other
assets
|
129.9 | 113.3 | |||||||
|
Total
assets
|
$ | 5,985.6 | $ | 4,750.1 | |||||
|
Liabilities
and Partners' Capital
|
|||||||||
|
Current
liabilities
|
|||||||||
|
Senior
Notes
|
$ | - | $ | 354.0 | |||||
|
Other
|
1,978.6 | 1,593.3 | |||||||
|
Total
current liabilities
|
1,978.6 | 1,947.3 | |||||||
|
Senior Notes (2)
|
1,714.5 | 721.5 | |||||||
|
Junior
Subordinated Notes
|
299.6 | 299.5 | |||||||
|
Other
long-term debt
|
324.7 | 490.0 | |||||||
|
Other
non-current liabilities
|
30.0 | 27.2 | |||||||
|
Partners'
capital
|
|||||||||
|
Accumulated
other comprehensive income (loss)
|
(50.3 | ) | (42.6 | ) | |||||
|
General partner's interest
(3)
|
(100.7 | ) | (88.0 | ) | |||||
|
Limited
partners' interests
|
1,789.2 | 1,395.2 | |||||||
|
Total
partners' capital
|
1,638.2 | 1,264.6 | |||||||
|
Total
liabilities and partners' capital
|
$ | 5,985.6 | $ | 4,750.1 | |||||
|
(1)
|
Includes
the value of long-term service agreements between TEPPCO and its
customers.
|
||||||||
|
(2)
|
Includes
$19.4 million and $23.2 million at Sep. 30, 2008 and Dec. 31, 2007,
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
|
Nine
Months Ended
|
|||||||||||||||
|
September
30,
|
September
30,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Downstream
Segment:
|
||||||||||||||||
|
Barrels
Delivered
|
||||||||||||||||
|
Refined
Products
|
41.2 | 48.9 | 121.6 | 129.6 | ||||||||||||
|
LPGs
|
6.7 | 7.1 | 26.3 | 29.6 | ||||||||||||
|
Total
|
47.9 | 56.0 | 147.9 | 159.2 | ||||||||||||
|
Average
Tariff Per Barrel
|
||||||||||||||||
|
Refined
Products
|
$ | 1.03 | $ | 0.98 | $ | 1.02 | $ | 0.98 | ||||||||
|
LPGs
|
2.43 | 2.36 | 2.61 | 2.27 | ||||||||||||
|
Average
System Tariff Per Barrel
|
$ | 1.22 | $ | 1.16 | $ | 1.30 | $ | 1.23 | ||||||||
|
Upstream
Segment:
|
||||||||||||||||
|
Margins/Revenues:
|
||||||||||||||||
|
Crude
oil transportation revenue
|
$ | 25.6 | $ | 20.1 | $ | 73.1 | $ | 53.9 | ||||||||
|
Crude
oil marketing margin
|
17.2 | 15.3 | 53.1 | 55.7 | ||||||||||||
|
Crude
oil terminaling revenue
|
4.7 | 3.5 | 13.1 | 10.3 | ||||||||||||
|
Lubrication
Services, LLC (LSI) margin
|
4.2 | 2.2 | 9.9 | 6.5 | ||||||||||||
|
Total
Margins/Revenues
|
$ | 51.7 | $ | 41.1 | $ | 149.2 | $ | 126.4 | ||||||||
|
Reconciliation
of Margins/Revenues to Operating Income:
|
||||||||||||||||
|
Sales
of petroleum products
|
$ | 4,012.7 | $ | 2,450.1 | $ | 10,655.6 | $ | 6,215.0 | ||||||||
|
Transportation
- Crude oil
|
15.8 | 12.3 | 48.5 | 32.7 | ||||||||||||
|
Purchases
of petroleum products
|
(3,976.8 | ) | (2,421.3 | ) | (10,554.9 | ) | (6,121.3 | ) | ||||||||
|
Total
Margins/Revenues
|
51.7 | 41.1 | 149.2 | 126.4 | ||||||||||||
|
Other
operating revenues
|
3.9 | 2.6 | 8.9 | 7.7 | ||||||||||||
|
Operating
expenses
|
(21.5 | ) | (16.4 | ) | (54.8 | ) | (51.9 | ) | ||||||||
|
General
and administrative
|
(2.1 | ) | (1.6 | ) | (6.6 | ) | (5.2 | ) | ||||||||
|
Depreciation
and amortization
|
(5.1 | ) | (5.1 | ) | (14.8 | ) | (13.4 | ) | ||||||||
|
Operating
income
|
$ | 26.9 | $ | 20.6 | $ | 81.9 | $ | 63.6 | ||||||||
|
Total
barrels
|
||||||||||||||||
|
Crude
oil transportation
|
26.5 | 24.9 | 83.7 | 71.2 | ||||||||||||
|
Crude
oil marketing
|
67.1 | 59.8 | 186.3 | 173.8 | ||||||||||||
|
Crude
oil terminaling
|
41.7 | 31.8 | 114.6 | 103.0 | ||||||||||||
|
Lubrication
oil volume (total gallons):
|
6.3 | 4.0 | 14.1 | 11.3 | ||||||||||||
|
Margin/average
tariff per barrel:
|
||||||||||||||||
|
Crude
oil transportation
|
$ | 0.967 | $ | 0.806 | $ | 0.873 | $ | 0.757 | ||||||||
|
Crude
oil marketing
|
0.256 | 0.256 | 0.285 | 0.320 | ||||||||||||
|
Crude
oil terminaling
|
0.114 | 0.112 | 0.115 | 0.100 | ||||||||||||
|
Lubrication
oil margin (per gallon):
|
$ | 0.669 | $ | 0.571 | $ | 0.707 | $ | 0.574 | ||||||||
|
Midstream
Segment:
|
||||||||||||||||
|
Gathering
- Natural Gas - Jonah
|
||||||||||||||||
|
Bcf
|
184.1 | 151.8 | 524.7 | 424.3 | ||||||||||||
|
Btu
(in trillions)
|
202.5 | 167.5 | 579.7 | 467.8 | ||||||||||||
|
Average
fee per MMBtu
|
$ | 0.228 | $ | 0.216 | $ | 0.231 | $ | 0.209 | ||||||||
|
Gathering
- Natural Gas - Val Verde
|
||||||||||||||||
|
Bcf
|
43.9 | 44.2 | 123.7 | 131.3 | ||||||||||||
|
Btu
(in trillions)
|
39.4 | 39.3 | 110.4 | 116.4 | ||||||||||||
|
Average
fee per MMBtu
|
$ | 0.371 | $ | 0.392 | $ | 0.388 | $ | 0.398 | ||||||||
|
Transportation
- NGLs
|
||||||||||||||||
|
Total
barrels (includes lease barrels)
|
17.1 | 20.3 | 55.5 | 56.8 | ||||||||||||
|
Average
rate per barrel
|
$ | 0.810 | $ | 0.683 | $ | 0.763 | $ | 0.683 | ||||||||
|
Fractionation
- NGLs
|
||||||||||||||||
|
Total
barrels
|
1.0 | 1.0 | 3.2 | 3.1 | ||||||||||||
|
Average
rate per barrel
|
$ | 1.785 | $ | 1.781 | $ | 1.742 | $ | 1.776 | ||||||||
|
Natural
Gas Sales
|
||||||||||||||||
|
Btu
(in trillions)
|
1.1 | 3.9 | 3.9 | 12.0 | ||||||||||||
|
Average
fee per MMBtu
|
$ | 5.88 | $ | 3.01 | $ | 7.06 | $ | 4.28 | ||||||||
|
Sales
- Condensate
|
||||||||||||||||
|
Total
barrels (thousands)
|
1.9 | 0.9 | 62.3 | 70.6 | ||||||||||||
|
Average
rate per barrel
|
$ | 105.56 | $ | 67.34 | $ | 84.07 | $ | 54.76 | ||||||||