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INTERPROVINCIAL PIPE LINE INC. REPORTS 1991 FINANCIAL RESULTS

 INTERPROVINCIAL PIPE LINE INC. REPORTS 1991 FINANCIAL RESULTS
 EDMONTON, Alberta, Feb. 12 /PRNewswire/ -- Interprovincial Pipe Line Inc. (NASDAQ-NMS: IPPIF, Montreal, Toronto: IPL) (IPL) announced today that earnings before discontinued oil and gas operations for the fiscal year ended Dec. 31, 1991 were $344.7 million ($8.69 per share) compared with $105.1 million ($2.65 per share) in 1990. When the results of discontinued oil and gas operations are included, 1991 earnings were $337.2 million ($8.50 per share) vs. $144.0 million ($3.64 per share) last year.
 The increase in earnings reflects an unusual gain of $365.9 million ($251.5 million after tax) resulting from the transfer, on Dec. 27, 1991, of IPL's United States pipeline business to a master limited partnership. This increase was partially offset by lower earnings from the U.S. pipeline system. Lower U.S. earnings reflected non-recurring items, including reduced volumes due to pressure restrictions and increased costs due to a hydrostatic test program required following the Grand Rapids, Minnesota line break. Excluding the gain and the results of discontinued oil and gas operations, 1991 pipeline earnings decreased to $93.2 million ($2.35 per share) from $105.1 million ($2.65 per share) in 1990.
 Oil and gas operations were discontinued on April 30, 1991. Prior to this date, lower oil and gas prices and volumes, together with higher operating costs and interest charges, resulted in a loss from discontinued operations.
 Cash from operations in 1991 declined to $181.2 million from $200.2 million in 1990. The decline was primarily a result of lower earnings from the United States system.
 Pipeline system deliveries of crude oil and other liquid hydrocarbons averaged 1,443,000 barrels per day in 1991, marginally higher than in the previous year. System utilization totalled
671 billion barrel miles, a 3 percent decline from 1990. Lower crude oil demand in Eastern Canada and the cessation of deliveries to Montreal in mid-1991 resulted in increased crude oil volumes being exported to the United States. As a result, average distance transported declined 3 percent, producing a corresponding decrease in system utilization.
 Operating revenue for the fiscal year ended Dec. 31, 1991, increased slightly to $626.7 million compared with $622.2 million in 1990. The effect of a 6.8 percent increase in annualized tolls on the Canadian main system was partially offset by the decline in overall system utilization and a stronger Canadian dollar.
 Total capital expenditures in 1991 rose to $118.1 million from $97.4 million in 1990. The rise in expenditures is the result of the corporation's increasing effort to improve operating efficiency and reliability while maintaining a safe and environmentally sound pipeline system.
 The corporation's 1991 annual report will be mailed to shareholders April 1, 1992.
 INTERPROVINCIAL PIPE LINE INC.
 Financial Highlights
 Year Ended Dec. 31, 1991 1990
 Financial:
 (Unaudited; dollars in millions,
 except per share amounts)
 Operating Revenue $626.7 $622.2
 Pipeline Earnings $93.2 $105.1
 Earnings $337.2 $144.0
 Cash from Operations $181.2 $200.2
 Capital Expenditures $118.1 $97.4
 Per Share
 Pipeline earnings $2.35 $2.65
 Earnings $8.50 $3.64
 Cash from operations $4.57 $5.05
 Dividends
 Regular $2.00 $2.00
 Special $7.00 ---
 Operating:
 Deliveries (thousands of barrels
 per day) 1,443 1,439
 Average Haul (miles) 1,274 1,315
 Barrel Miles (billions) 671 691
 Segmented earnings:
 (unaudited; dollars in millions)
 Canadian Main System $36.0 $35.5
 Norman Wells Pipeline 14.2 14.1
 United States System 42.9 57.0
 Corporate 0.1 (1.5)
 Pipeline Earnings 93.2 105.1
 After-tax Gain on U.S. Master Limited
 Partnership Transaction 251.5 ---
 Discontinued Oil and Gas Operations (7.5) 38.9
 Earnings $337.2 $144.0
 Segmented cash from operations:
 (unaudited; dollars in millions)
 Canadian Main System $92.3 $92.5
 Norman Wells Pipeline 28.7 28.6
 United States System 56.5 74.6
 Corporate 3.7 4.5
 Total $181.2 $200.2
 -0- 2/12/92
 /CONTACT: L.F. Bradley of Interprovincial Pipe Line Inc., 403-420-8166/
 (IPPIF) CO: Interprovincial Pipe Line Inc. ST: Alberta IN: OIL SU: ERN


EH -- LA026 -- 9496 02/12/92 19:14 EST
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Date:Feb 12, 1992
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