PIPELINES - EARNINGS / Northern Border Partners, L.P. Reports First
Quarter Net Income of $14.9 Million and Declares Quarterly Dividend
HOUSTON, April 20 /PRNewswire/ -- Northern Border Partners, L.P.
(NYSE: NBP - news) today reported first quarter 1998 net income of
$14.9 million, or $0.50 per unit, compared to net income of $13.5
million, or $0.50 per unit, for the same period in 1997. In the first
quarter 1998, earnings related to the Partnership's investment in
Northern Border Pipeline Company's 700 million cubic feet per day
(MMcf/d) expansion and extension into the Chicago area (The Chicago
Project) more than offset the additional units issued to fund the
investment. Additionally, the first quarter 1997 includes non-recurring
net income of $1.4 million, or $0.05 per unit. The Partnership will
continue to benefit from The Chicago Project during the remainder of
the construction phase, as well as during commercial operation.
''We remain on track for a November 1998 in-service date for The
Chicago Project,'' said Larry L. DeRoin, chairman and chief executive
officer of Northern Border Partners, L.P. ''Construction work is
progressing, with three new compressor stations complete, three more
in progress and retrofit work commencing on existing stations. In
addition, contractors for the five pipeline spreads are being released
to begin construction of the 390 miles of new mainline,'' DeRoin
added.
First quarter throughput volumes averaged 1,808 MMcf/d versus 1,816
MMcf/d for the first quarter of 1997.
The Partnership Policy Committee of Northern Border Partners, L.P.
today declared the Partnership's quarterly cash distribution of $0.575
per unit for the first quarter of 1998. The indicated annual rate is
$2.30 per unit. The first quarter distribution is payable on May 15,
1998, to unitholders of record as of April 30, 1998, out of the
available cash flow from operations of the Partnership from January 1
to March 31, 1998.
Northern Border Partners, L.P. owns a 70 percent general partner
interest in Northern Border Pipeline Company, which owns a 969-mile
U.S. interstate pipeline system that transports approximately 20
percent of all Canadian natural gas into the U.S. Northern Border
Pipeline is currently expanding its capacity by 700 MMcf/d and
extending the pipeline into the Chicago, Illinois area. The Partnership
also owns the Black Mesa Pipeline, a 273-mile, coal-water slurry
pipeline from Kayenta, Arizona to the Mohave Power Station in
Laughlin, Nevada. The common units of Northern Border Partners, L.P.
are listed on the New York Stock Exchange and trade under the symbol
''NBP''.
Northern Border Partners, L.P.
Financial Highlights
(Unaudited: in millions except net income per unit)
First Quarter
1998 1997
Operating Revenue $52.8 $46.6
Net Income $14.9 $13.5
Per Unit Net Income $0.50 $0.50
Average Units Outstanding 29.3 26.2
Consolidated Statement of Income (A)
(Unaudited: in millions)
First Quarter
1998 1997
Operating Revenue $52.8 $46.6
Operating Expenses
Operations and maintenance 10.6 7.1
Depreciation and amortization 10.4 9.6
Taxes other than income 6.2 6.1
Total Operating Expenses 27.2 22.8
Operating Income 25.6 23.8
Interest expense ( 9.8) ( 7.8)
Other income 5.2 3.1
Minority interest ( 6.1) ( 5.6)
Net Income $14.9 $13.5 (B)
(A) As of December 31, 1997, the Partnership owns 100% of Black Mesa
Pipeline and Williams Technologies, Inc., which for the First Quarter
1998 are included on a consolidated basis. The Partnership owned 60.5
percent of Black Mesa Pipeline in the First Quarter 1997 and was
accounted for on the equity method and included in Other income.
(B) Net income for the 1997 period includes $1.4 million, or $0.05 per
unit, related to amounts received by Northern Border Pipeline for
vacating certain microwave frequency bands.
Northern Border Partners, L.P.
Operating Highlights
(Unaudited)
First Quarter
1998 1997
Northern Border Pipeline Company:
Gas Delivered (MMcf) 159,252 159,707
Average throughput (MMcf/d) 1,808 1,816
Financial Results (in millions):
Operating Revenue $47.5 $46.6
Depreciation & Amortization $ 9.8 $ 9.6
Interest Expense $ 9.1 $ 7.9
AFUDC Debt $ 2.8 $ 0.3
AFUDC Equity $ 1.6 $ 0.1
Minority Interest $ 6.1 $ 5.6
Net Income $14.2 $13.1 |
