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LEVIATHAN GAS PIPELINE PARTNERS, L.P. REPORTS RESULTS OF OPERATIONS

 HOUSTON, Aug. 6 /PRNewswire/ -- Leviathan Gas Pipeline Partners, L.P. (NYSE: LEV) announced today that the Partnership's net income for the quarter ended June 30, 1993 totaled $4.6 million, or $.50 per unit, compared with pro forma net income of $5.0 million, or $.53 per unit for the quarter ended June 30, 1992. The decrease in net income was primarily due to lower equity earnings from the Partnership's Joint Venture Pipelines as described below.
 The Partnership's operations primarily consist of the transportation of natural gas through six natural gas pipelines located offshore in the Gulf of Mexico. Tarpon Transmission company, together with the Green Canyon and Louisiana Offshore Gathering Systems (the "Gathering Systems"), are operated by the Partnership as offshore gathering systems. In addition, the Partnership has a 50 percent ownership interest in Stingray Pipeline Company, a 40 percent ownership interest in the High Island Offshore System ("HIOS") and a 33-1/3 percent ownership interest in the U-T Offshore System (the "Joint Venture Pipelines"). The Joint Venture Pipelines are held in partnership form and operated by unaffiliated interstate natural gas pipeline companies.
 Operating revenue for the quarter ended June 30, 1993 totaled $6.6 million compared with pro forma operating revenue of $7.2 million for the quarter ended June 30, 1992. The $.6 million decrease in operating revenue was due primarily from lower equity earnings from the Joint Venture Pipelines. Equity earnings from the Joint Venture Pipelines were impacted by lower throughput volumes from the Shelf areas of the gulf during the second quarter of 1993. In addition, equity earnings from the HIOS joint venture were impacted by the realization of lower revenues from the new HIOS rate settlement which was in effect from Jan. 1, 1993 through June 30, 1993. Effective July 1, 1993, HIOS placed higher transportation rates into effect which are being collected subject to refund pending final approval by the Federal Energy Regulatory Commission.
 On a pro forma basis, operating revenue for the six month period ending June 30, 1993 was $12.9 million compared to $14.0 million for the six month period ending June 30, 1992. The $1.1 million decrease in operating revenue is primarily attributable to a $1.4 million decrease in equity earnings from the Joint Venture Pipelines partially offset by an increase of $.3 million from the wholly owned Gathering Systems. Equity earnings from the Joint Venture Pipelines were impacted by lower throughput from the Shelf areas of the Gulf of Mexico during 1993 as well as the new HIOS rate case which was placed into effect on January 1, 1993.
 Pro forma net income decreased from $10.1 million for the six month period ending June 30, 1992 to $9.4 million for the six months ended June 30, 1993, primarily as a result of the impact of lower pro forma operating revenues from the Joint Venture Pipelines as discussed above.
 On July 20, 1993, the Partnership declared a cash distribution of $0.55 per Preference and Common Unit for the period April 1, 1993 through June 30, 1993. This distribution will be paid on Aug. 13, 1993 to Unitholders of record as of July 30, 1993.
 Leviathan Gas Pipeline Partners, L.P. is a publicly owned partnership which was formed to acquire, own and manage offshore natural gas pipeline systems and related assets. The Partnership has interests in six fully operational natural gas pipelines located offshore Louisiana and Texas and is currently completing its seventh system.
 LEVIATHAN GAS PIPELINE PARTNERS, L.P.
 Financial Highlights
 (Unaudited, in millions, except per unit amounts)
 Pro Forma Pro Forma
 Three months Six months
 Periods ended June 30 1993 1992 1993 1992
 Operating revenue $ 6.6 $ 7.2 $ 12.9 $ 14.0
 Other costs and
 expenses 1.2 1.5 2.4 2.6
 Depreciation and
 amortization .6 .6 1.0 1.0
 Operating income 4.8 5.1 9.5 10.4
 Interest expense and other .2 .1 .1 .3
 Net income $ 4.6 $ 5.0 $ 9.4 $ 10.1
 Net income per unit $ .50 $ .53 $ 1.01 $ 1.09
 Number of units
 Outstanding
 preference units 6.0 6.0 6.0 6.0
 common units 3.2 3.2 3.2 3.2
 Total units 9.2 9.2 9.2 9.2
 -0- 8/6/93
 /CONTACT: Dennis Kunetka of Leviathan Gas Pipeline Partners, L.P., 713-224-7400/
 (LEV)


CO: Leviathan Gas Pipeline Partners, L.P. ST: Texas IN: OIL SU: ERN

WB -- NY057 -- 0448 08/06/93 17:13 EDT
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Publication:PR Newswire
Date:Aug 6, 1993
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