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SANTA FE PACIFIC PIPELINE ANNOUNCES FOURTH QUARTER RESULTS

 LOS ANGELES, Jan. 19 /PRNewswire/ -- Santa Fe Pacific Pipeline Partners L.P. (NYSE: SFL) (SFPP) announced fourth quarter 1992 net income, excluding an accounting change, of $16.2 million, or $0.83 per unit, 7 percent above net income of $15.1 million, or $0.77 per unit, for the same period last year. For the year ended Dec. 31, 1992, net income excluding the accounting change and an environmental provision was $65.7 million, or $3.36 per unit, an increase of 8 percent compared to $60.6 million, or $3.10 per unit, in 1991.
 In 1992 the partnership adopted Financial Accounting Standards Nos. 106 and 112 for postretirement and postemployment benefits and will restate quarterly results to reflect the $16.4 million cumulative effect of the non-cash accounting change in the first quarter and $1.8 million in related operating expense throughout the year. Fourth quarter operating expense included $0.5 million related to this accounting change. In addition, a $10.0 million provision for environmental costs had been recorded in the third quarter. Including these special charges, fourth quarter net income was $15.7 million, or $0.80 per unit, and net income for the full year was $37.7 million, or $1.93 per unit.
 Irvin Toole Jr., chairman, president and chief executive officer of the general partner, said, "Increased volumes and revenues in the fourth quarter demonstrated slow but steady growth as certain markets served by the partnership continued to emerge from the recession. For the year, higher revenues and effective control of operating expenses contributed to the 8 percent income improvement before special charges."
 Commercial volumes, which accounted for 96 percent of total volumes in the fourth quarter, were 3 percent higher than the same period in 1991. For the year, commercial deliveries improved by 1 percent compared to 1991. Military volumes were lower for both the fourth quarter and the year because of reduced activity at bases served by the partnership.
 Fourth quarter revenues of $51.7 million exceeded the prior year quarter by 5 percent, and full year revenues of $205.0 million were 6 percent higher than 1991. A 9 percent rate increase on all California intrastate movements that became effective in May 1992, new pipeline and terminal services, and increased volumes accounted for the improvement.
 Excluding the accounting change, fourth quarter operating expenses of $26.1 million increased 4 percent over the 1991 quarter as the result of higher insurance, depreciation, and power expenses. Total 1992 operating expenses of $101.8 million, excluding the accounting change and environmental charge, increased 4 percent over 1991, primarily because of increases in depreciation, insurance and field operating expenses.
 Capital expenditures were $7.9 million for the fourth quarter and $30.9 million for the year. Capital expenditures in 1991 totaled $27.7 million.
 Santa Fe Pacific Pipeline Partners L.P. is the largest independent refined products pipeline in the United States in terms of revenue generated. The partnership serves six western states with approximately 3,300 miles of common carrier pipeline and 14 truck loading terminals.
 SANTA FE PACIFIC PIPELINE PARTNERS L.P.
 Consolidated Statement of Income and Operating Highlights
 (In thousands, except per unit and per barrel amounts)
 Three Months Ended Dec. 31,
 1992 1991
 (Unaudited)
 Operating revenues
 Trunk revenues $40,884 $39,024
 Storage and terminaling revenues 8,300 8,604
 Other revenues 2,554 1,757
 Total operating revenues 51,738 49,385
 Operating expenses
 Field operating expenses 8,114 7,998
 General and administrative expenses 4,915 4,283
 Facilities costs 4,519 4,665
 Depreciation and amortization 4,719 4,303
 Power cost 4,512 4,271
 Provision for environmental costs --- ---
 Product (gains) losses (270) (445)
 Total operating expenses 26,509 25,075
 Operating income 25,229 24,310
 Interest expense 9,363 9,318
 Other income, net 197 441
 Net income before minority interest and
 cumulative effect of accounting change 16,063 15,433
 Less minority interest in net income before
 cumulative effect of accounting change (333) (320)
 Net income before cumulative effect of
 accounting change 15,730 15,113
 Cumulative effect of change in accounting
 for postretirement benefit costs,
 net of minority interest --- ---
 Net income $15,730 $15,113
 Per unit amounts(a)
 Net income before cumulative effect
 of accounting change $0.80 $0.77
 Cumulative effect of accounting change --- ---
 Net income per unit $0.80 $0.77
 Cash distributions declared per unit $0.70 $0.70
 Operating data
 Barrels delivered 81,896 80,352
 Barrel miles (millions) 11,187 11,072
 Total revenue per barrel $0.63 $0.60
 Year ended Dec. 31,
 1992 1991
 (Unaudited)
 Operating revenues
 Trunk revenues $161,116 $154,800
 Storage and terminaling revenues 34,020 33,314
 Other revenues 9,889 5,324
 Total operating revenues 205,025 193,438
 Operating expenses
 Field operating expenses 31,331 29,680
 General and administrative expenses 19,420 18,178
 Facilities costs 18,876 18,000
 Depreciation and amortization 18,327 16,834
 Power cost 18,116 17,975
 Provision for environmental costs 10,000 ---
 Product (gains) losses (2,403) (3,058)
 Total operating expenses 113,667 97,609
 Operating income 91,358 95,829
 Interest expense 36,937 36,924
 Other income, net 843 2,899
 Net income before minority interest and
 cumulative effect of accounting change 55,264 61,804
 Less minority interest in net income before
 cumulative effect of accounting change (1,146) (1,200)
 Net income before cumulative effect of
 accounting change 54,118 60,604
 Cumulative effect of change in accounting
 for postretirement benefit costs,
 net of minority interest 16,407 ---
 Net income $37,711 $60,604
 Per unit amounts(a)
 Net income before cumulative effect
 of accounting change $2.77 $3.10
 Cumulative effect of accounting change (0.84) ---
 Net income per unit $1.93 $3.10
 Cash distributions declared per unit $2.80 $2.75
 Operating data
 Barrels delivered 323,388 321,086
 Barrel miles (millions) 44,812 43,711
 Total revenue per barrel $0.63 $0.60
 (a) Based on 19,148,148 preference and common units outstanding during all periods presented.
 SANTA FE PACIFIC PIPELINE PARTNERS L.P.
 Condensed Consolidated Statements
 (In thousands)
 Balance Sheet:
 Year ended
 Dec. 31, Dec. 31,
 1992 1991
 (Unaudited)
 Assets:
 Current assets $58,389 $62,317
 Property, plant and equipment, net 618,098 605,461
 Other assets 8,365 9,702
 Total assets $684,852 $677,480
 Liabilities and partners' capital:
 Current liabilities $21,593 $24,557
 Long-term debt 355,000 355,000
 Other long-term liabilities 27,763 0
 Minority interest 1,486 1,848
 Partners' capital 279,010 296,075
 Total liabilities and partners' capital $684,852 $677,480
 Statement of Cash Flows
 Three months ended Year ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 (Unaudited) (Unaudited)
 Cash flows from
 operating activities:
 Net income $15,730 $15,113 $37,711 $60,604
 Provision for
 environmental costs --- --- 10,000 ---
 Cumulative effect of
 accounting change --- --- 16,407 ---
 Depreciation, working
 capital and other
 adjustments (5,249) (5,711) 21,149 24,269
 Net cash provided by
 operating activities 10,481 9,402 85,267 84,873
 Cash flows from
 investing activities:
 Capital expenditures (7,910) (12,051) (30,931) (27,715)
 Other 695 529 2,312 1,041
 Net cash provided by
 investing activities (7,215) (11,522) (28,619) (26,674)
 Cash flows from
 financing activities:
 Distributions to
 partners and minority
 interest (13,984) (13,984) (55,936) (53,542)
 Increase (decrease) in
 cash and cash
 equivalents (10,718) (16,104) 712 4,657
 Cash and cash
 equivalents:
 Beginning of period 38,074 42,748 26,644 21,987
 End of period $27,356 $26,644 $27,356 $26,644
 -0- 1/19/93
 /CONTACT: Thomas L. Lambert, manager of investor relations of Santa Fe Pacific Pipeline Partners, 213-486-7766/
 (SFL)


CO: Santa Fe Pacific Pipeline Partners L.P. ST: California IN: OIL SU: ERN

MS-LS -- LA015 -- 6648 01/19/93 20:38 EST
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