HOUSTON, Oct. 22, 2001 – El Paso Energy Partners, L.P. today reported record cash flow, as measured by adjusted earnings before interest, depreciation, and taxes (adjusted EBITDA), of $39.7 million for the third quarter of 2001, up 63 percent from $24.4 million in the third quarter of 2000.
The improvement was driven by the first contribution from the Prince Platform, which began generating revenues in September, as well as significant contributions from EPN Texas’ natural gas liquids (NGL) transportation and fractionation assets and Crystal Gas Storage, which were acquired from El Paso Corporation in March 2001 and September 2000, respectively.
EPN’s third quarter 2001 net income before non-recurring items was $13.4 million compared with $4.8 million reported for the 2000 third quarter. Earnings after income allocated to the General Partner and Series B Preference unitholders were $0.09 per unit, excluding non-recurring items, versus a loss of $0.02 per unit in the third quarter of 2000. The 2001 results include a non-recurring charge of $1.4 million to write off historical receivables of Deepwater Holdings’ HIOS system. Earnings per unit for the 2000 quarter included only one month of allocation to the Series B Preference Units and were based on fewer common units outstanding.
Reported net income and earnings per unit, which include the non-recurring item, were $12.0 million and $0.05, respectively.
On October 18, 2001, EPN announced that it had acquired the Chaco cryogenic natural gas processing facility located in the San Juan Basin of northern New Mexico and the additional 50-percent interest in Deepwater Holdings, which owns natural gas pipelines in the western Gulf of Mexico, for $284 million. These assets are expected to generate EBITDA of at least $40 million in 2002.
“We are pleased to report another quarter of record cash flow, reflecting the solid performance of each of our businesses,” said Robert G. Phillips, chief executive officer of El Paso Energy Partners. “Through the third quarter and including our recent acquisitions, we have completed capital expenditures of $520 million, exceeding our targeted 2001 investment goal for EPN. As a result of these successes we have increased cash flow, net income and distributions to unitholders pursuant to our growth strategy.”
“We have also recently announced agreements that will bring additional Deepwater Trend production into our existing pipeline assets in the Gulf of Mexico,” Phillips continued. “Deepwater development activities are creating numerous opportunities for EPN to provide the platform and oil and gas transportation services in which we specialize. These organic growth projects, in combination with our aggressive acquisition strategy, further solidify EPN’s diversified asset base and position the partnership to continue its strong cash flow and earnings growth.”
On October 15, 2001, El Paso Energy Partners declared a cash distribution of $0.6125 per common unit for the period from July 1, 2001 through September 30, 2001. The distribution is payable November 15, 2001 to unitholders of record at the close of business on October 31, 2001. This represents an annualized distribution of $2.45 per year and an increase of more than 11 percent over the third quarter 2000 distribution of $0.55 per unit.
For more information, visit http://www.elpasopartners.com.