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SANTA FE PACIFIC PIPELINE PARTNERS L.P. ANNOUNCES FOURTH QUARTER 1993 EARNINGS

 LOS ANGELES, Jan. 13 /PRNewswire/ -- Santa Fe Pacific Pipeline Partners L.P. (NYSE: SFL) announced fourth quarter 1993 net income of $16.8 million, or $0.86 per unit, 6.5 percent above net income of $15.7 million, or $0.80 per unit, for the same period last year excluding an accounting change. For the year ended Dec. 31, 1993, net income, excluding litigation and environmental provisions, was $68.1 million, or $3.48 per unit, an increase of 6.5 percent compared to $63.9 million, or $3.27 per unit, excluding the accounting change and an environmental provision, in 1992.
 In the third quarter of 1993 the partnership recorded a $12 million provision for resolution of East Line litigation matters and a $15 million reserve addition for environmental remediation costs. Including these provision, net income for the full year was $41.6 million, or $2.13 per unit.
 Irvin Toole Jr., chairman, president, and chief executive officer of the General Partner, said, "We are pleased with 1993 results in view of the increased expenses incurred during the first part of the year due to flooding in Arizona which undermined two under-water crossings of the Gila River and unusual pipeline inspection and repair costs. The improving volume growth rate is also very encouraging."
 Commercial volumes, which accounted for 95 percent of total volumes in the fourth quarter, were 5.4 percent higher than the same period in 1992. For the year, commercial deliveries increased 3.6 percent compared to 1992. Military volumes during the fourth quarter were 22 percent higher than the prior period; however, full year volumes were 10 percent lower than 1993 due to reduced activity at bases served by the partnership.
 Fourth quarter revenues of $55.8 million exceeded the prior year quarter by 8 percent, and full year revenues of $219.5 million were 7 percent higher than 1992. Higher revenues resulted from increases in total volumes shipped, and pipeline and terminal rate increases.
 Fourth quarter operating expenses of $29.9 million increased $3.4 million, or 13 percent, over the 1992 quarter as a result of higher field operating expenses and increased power consumption. Field operating expenses included $1.5 million for inspection costs associated with preparing an idle pipeline segment for potential conversion to crude oil service.
 Total 1993 operating expenses of $114.1 million, excluding provisions, increased 10 percent over 1992, primarily due to flood and inspection related increases in field operating expenses, increased expenses related to litigation, and increased power consumption.
 Capital expenditures were $4.9 million for the fourth quarter and $21.1 million for the year. Capital expenditures in 1992 totaled $30.9 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 Year ended
 Dec. 31, Dec. 31,
 1993 1992 1993 1992
 (Unaudited) (Unaudited)
 Operating revenues
 Trunk revenues $43,671 $40,884 $171,848 $161,116
 Storage and
 terminaling revenues 9,341 8,300 37,213 34,020
 Other revenues 2,785 2,554 10,410 9,889
 Total operating
 revenues 55,797 51,738 219,471 205,025
 Operating expenses
 Field operating
 expenses 9,765 8,114 36,325 31,331
 General and
 administrative
 expenses 5,425 4,915 22,378 19,420
 Facilities costs 4,804 4,519 19,555 18,876
 Depreciation and
 amortization 4,750 4,719 18,971 18,327
 Power cost 5,049 4,512 18,940 18,116
 Provisions for
 environmental and
 litigation costs --- --- 27,000 10,000
 Product (gains)
 losses 69 (270) (2,020) (2,403)
 Total operating
 expenses 29,862 26,509 141,149 113,667
 Operating income 25,935 25,229 78,322 91,358
 Interest expense 9,375 9,363 37,086 36,937
 Other income, net 546 197 1,262 843
 Net income before
 minority interest and
 cumulative effect of
 accounting change 17,106 16,063 42,498 55,264
 Less minority interest
 in net income before
 cumulative effect of
 accounting change (355) (333) (882) (1,146)
 Net income before
 cumulative effect of
 accounting change 16,751 15,730 41,616 54,118
 Cumulative effect of
 change in accounting for
 postretirement and
 postemployment benefits,
 net of minority interest --- --- --- 16,407
 Net income $16,751 $15,730 $41,616 $37,711
 Net income excluding
 provisions and
 cumulative effect
 of accounting change $16,751 $15,730 $68,056 $63,910
 Per Unit Amounts(a)
 Net income before
 cumulative effect of
 accounting change $0.86 $0.80 $2.13 $2.77
 Cumulative effect of
 accounting change --- --- --- (0.84)
 Net income per unit $0.86 $0.80 $2.13 $1.93
 Net income per unit
 excluding provisions
 and cumulative effect
 of accounting change $0.86 $0.80 $3.48 $3.27
 Cash distributions
 declared per unit $0.70 $0.70 $2.80 $2.80
 Operating Data:
 Barrels delivered 86,844 81,896 332,680 323,388
 Barrel miles (millions) 11,901 11,187 46,300 44,812
 Total revenue
 per barrel $0.64 $0.63 $0.66 $0.63
 (a) Based on 19,148,148 preference and common units outstanding during all periods presented.
 SANTA FE PACIFIC PIPELINE PARTNERS L.P.
 Condensed Consolidated Balance Sheet
 (In thousands)
 Year ended Dec. 31,
 1993 1992
 (Unaudited)
 Assets:
 Current assets $67,750 $58,389
 Property, plant and equipment, net 616,610 618,098
 Other assets 12,620 8,365
 Total assets $696,980 $684,852
 Liabilities and partners' capital:
 Current liabilities $35,638 $21,593
 Long-term debt 355,000 355,000
 Other long-term liabilities 39,283 27,763
 Minority interest 1,208 1,486
 Partners' capital 265,851 279,010
 Total liabilities and partners' capital $696,980 $684,852
 Condensed Consolidated Statement of Cash Flows
 (Unaudited)
 Three months ended Year ended
 December Dec. 31,
 1993 1992 1993 1992
 Cash flows from
 operating activities:
 Net income before
 cumulative effect
 of accounting change $16,751 $15,730 $41,616 $54,118
 Depreciation, working
 capital and other
 adjustments (9,577) (5,249) 40,035 31,149
 Net cash provided by
 operating activities 7,174 10,481 81,651 85,267
 Cash flows from
 investing activities:
 Capital expenditures (4,947) (7,910) (21,084) (30,931)
 Other (69) 695 175 2,312
 Net cash used by
 investing activities (5,016) (7,215) (20,909) (28,619)
 Cash flows from
 financing activities:
 Distributions to
 partners and minority
 interest (13,984) (13,984) (55,936) (55,936)
 Increase (decrease) in
 cash and cash
 equivalents (11,826) (10,718) 4,806 712
 Cash and cash
 equivalents:
 Beginning of period 43,988 38,074 27,356 26,644
 End of period $32,162 $27,356 $32,162 $27,356
 -0- 1/13/94
 /CONTACT: Thomas L. Lambert, manager, Investor Relations, 213-486-7766/
 (SFL)


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

JM-MF -- LA031 -- 1961 01/13/94 18:14 EST
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Date:Jan 13, 1994
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