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 HOUSTON, Jan. 17 /PRNewswire/ -- TEPPCO Partners, L.P., (NYSE: TPP) today reported record net income for the fourth quarter and the year ended December 31, 1993. Fourth-quarter net income was $15.2 million, or $1.05 per unit, compared with 1992 fourth-quarter net income of $13.4 million, or $0.92 per unit.
 Net income for the year ended December 31, 1993, increased 45 percent to $36.2 million, or $2.47 per unit, compared with $24.9 million, or $1.70 per unit, for the year ended December 31, 1992.
 "1993 was an outstanding year for TEPPCO," said Clifford W. Rackley, chairman of the board. "A combination of strategic capital projects, cost containment initiatives, favorable weather and advantageous pricing of Gulf Coast liquefied petroleum gases (LPGs) contributed to record results for the fourth quarter and the year."
 "The annual results, coupled with the increase in the quarterly distribution to unitholders, effective in the fourth quarter, met the partnership's goal of enhancing unitholder value established for 1993," Rackley said.
 Operating revenues of $57.0 million for the quarter were 10 percent more than the $51.8 million for the 1992 period due to increased long- haul deliveries of refined products and LPGs. Refined products throughput increased due to strong demand for jet fuel, gasoline and distillate in the Midwest. LPGs deliveries increased due to favorable pricing of Gulf Coast LPGs and a return of normal weather.
 Operating expenses for the quarter were $27.2 million, including a $1.5 million provision relating to an environmental remediation program, compared with $23.7 million for the 1992 fourth quarter. The increase in expenses, excluding the provision, was attributable primarily to higher power costs due to increased mainline volumes and acceleration of planned maintenance work at field locations.
 The record earnings for 1993 were the result of a 10 percent increase in revenues to $183.6 million due to income-producing projects placed in service during the year, a return of normal winter weather, low propane inventories in the Midwest during the first part of the year and increased refined products deliveries due to supply disruptions caused by Midwest summer flooding.
 Operating expenses of $88.3 million for the year increased 6 percent from $83.7 million for 1992. The increase was primarily due to throughput-related power costs and higher ad valorem taxes which more than offset savings from staff and overhead reductions implemented in 1992.
 In the fourth quarter, the partnership elected to adopt Statement of Financial Accounting Standards No. 112 for postemployment benefits effective as of January 1, 1993, which resulted in a non-cash charge of $0.9 million for the year, or $0.07 per unit.
 TEPPCO Partners, L.P. is a publicly owned master limited partnership. TE Products Pipeline Company, Limited Partnership, the operating partnership, is one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States.
 -0- 1/17/94
 /CONTACT: Eric W. Thode, 713-759-3635, or Brenda J. Peters, 713-759-3954, both of TEPPCO Partners, L.P./

CO: TEPPCO Partners, L.P. ST: Texas IN: OIL SU: ERN

WB -- NY075 -- 1389 01/17/94 14:40 EST
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Publication:PR Newswire
Date:Jan 17, 1994

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