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 SUPERIOR, Wisc., Oct. 17 /PRNewswire/ -- Lakehead Pipe Line Partners, L.P. today announced net income of $39.1 million, or $1.78 per unit, for the nine months ended Sept. 30, 1993, compared with $33.8 million, or $1.53 per unit, for the same period last year. For the three-month period ended Sept. 30, 1993, net income was $13.2 million, or $0.60 per unit, compared with net income of $11.3 million, or $0.51 per unit, in the third quarter of 1992. These increases resulted from higher operating revenue due to tariff increases, partially offset by higher operating expenses.
 Operating revenue for the first nine months of 1993 increased to $178.8 million, compared with $163.8 million in 1992, reflecting higher tariffs. The 1993 operating revenue reflects tariffs agreed upon with Federal Energy Regulatory Commission staff, although they await confirmation by the Administrative Law Judge assigned to the rate case. In addition, operating revenue reflects the new tariffs which came into effect July 6, 1993. These new tariffs represent a 2 percent increase over the agreed-upon rates, and are also being reviewed by FERC.
 Total operating expenses for the nine months ended Sept. 30, 1993, increased $8.3 million to $118.4 million compared with the same period in 1992, due primarily to increased power charges, higher oil degradation costs, and increased expenditures on repair and maintenance.
 Pipeline deliveries of crude oil and other liquid hydrocarbons averaged 1,270,000 barrels per day during the first nine months of 1993, compared with 1,249,000 barrels per day during the same period last year. The increase resulted from higher volumes of medium and heavy oils and natural gas liquids. System utilization was 264 billion barrel miles, unchanged from last year.
 Cash provided from operating activities amounted to $77.9 million, which was more than sufficient to fund capital expenditures and the quarterly distributions to unitholders. Capital expenditures during the first nine months of 1993 amounted to $20.7 million, with $14.2 million related to system enhancements and the balance to core maintenance. To date in 1993, the partnership has paid three quarterly distributions of $0.59 per unit totalling $39.0 million.
 A cash distribution of $0.59 per unit was declared today for the fiscal quarter ended Sept. 30, 1993. This distribution will be paid Nov. 15, 1993, to unitholders of record Oct. 29, 1993.
 The Preference Units of the partnership are traded on the New York Stock Exchange under the symbol "LHP."
 Consolidated Statement of Income
 (Unaudited; dollars in millions, except per unit amounts)
 Three months ended Nine months ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Operating Revenue(a) $62.8 $57.3 $178.8 $163.8
 Power 15.8 15.7 43.7 42.0
 Operating and
 administrative 19.5 17.0 53.3 48.0
 Depreciation 7.1 6.7 21.4 20.1
 Total 42.4 39.4 118.4 110.1
 Operating Income 20.4 17.9 60.4 53.7
 Investment and Other
 Income 0.7 0.8 2.2 2.6
 Interest Expense (7.7) (7.3) (23.0) (22.1)
 Minority Interest (0.2) (0.1) (0.5) (0.4)
 Net Income $13.2 $11.3 $39.1 $33.8
 Net Income Per Unit $0.60 $0.51 $1.78 $1.53
 (a) On April 1, 1992, the partnership filed for new tariffs with the Federal Energy Regulatory Commission reflecting an average rate increase of 18 percent, effective May 3, 1992. A May 14, 1993, agreement with FERC staff provided an approximate 9 percent tariff increase for the period May 3 to Dec. 31, 1992, and an additional 4 percent effective Jan. 1, 1993. Based on the regulatory assumptions and methodology specified in the agreement, the Partnership filed for new tariffs June 4, 1993, which became effective on July 6, 1993. These tariffs represent an increase of 2 percent over the rates previously agreed upon with FERC staff for 1993. FERC has consolidated its review of the June 4, 1993, and the April 1, 1992, filings. The financial results reflect the agreement reached with FERC staff and the June 4, 1993, filing. Accordingly, a contingent rate refund of $6.8 million for the nine months ended Sept. 30, 1993, has been provided (1992: nine months - $6.4 million; full year - $11.2 million).
 Other Financial and Operating Highlights
 (Unaudited; dollars in millions)
 Nine months ended Sept. 30, 1993 1992
 Cash Provided from Operating Activities $77.9 $50.1
 Capital Expenditures $20.7 $22.3
 Cash Distributions to Partners $39.0 $26.6
 Deliveries (thousands of barrels per day) 1,270 1,249
 Barrel Miles (billions) 264 264
 -0- 10/18/93
 /CONTACT: Jon Staudohar, Investor Relations, 715-394-1404/

CO: Lakehead Pipe Line Partners, L.P. ST: Wisconsin IN: OIL SU: ERN

EH-JB -- LA030 -- 3485 10/18/93 15:05 EDT
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Publication:PR Newswire
Date:Oct 18, 1993

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