Northern Border Partners, L.P. Announces First Quarter Net Income

Apr 24, 2001, 01:00 ET from Northern Border Partners, L.P.

    OMAHA, Neb., April 24 /PRNewswire Interactive Press Release/ -- Northern
 Border Partners, L.P. (NYSE:   NBP) reported today first quarter 2001 recurring
 net income of $20.4 million or $0.62 per unit for the first quarter of 2001
 compared to $18.0 million or $0.59 per unit last year.  Cash flows from
 operating activities increased to $39.2 million in the recent quarter from
 $37.4 million a year ago.  The recent acquisitions will begin contributing in
 the second quarter.
     Northern Border Pipeline Company's transportation units averaged
 2,350 million dekatherm miles per day (MMdthm/d) in the first quarter 2001
 compared to 2,319 MMdthm/d in the first quarter of 2000.  Crestone Energy
 Ventures, L.L.C. average daily volumes were 496 million cubic feet per day
 (MMcf/d) during the first quarter 2001 compared to 397 MMcf/d for the fourth
 quarter of 2000.
     Results for the recent quarter included non-recurring charges of
 $2.4 million or $0.08 per unit, primarily attributable to mandated accounting
 treatment of a forward purchase of Canadian dollars to fund the acquisition of
 gathering and processing assets in Alberta.
     "The Partnership's growth strategy gained tremendous momentum with three
 recent strategic acquisitions totaling $517 million.  Bear Paw Energy and
 Border Midstream Services expand our business presence in three important
 North American supply areas," said Bill Cordes, chairman and chief executive
 officer of Northern Border Partners.
     "Completion of the Midwestern Gas Transmission acquisition, expected
 within the next 30 days, will enhance our market reach to and from the Chicago
 hub," Cordes said.  "Construction of our Project 2000, which extends the
 Northern Border Pipeline into northern Indiana, began in March and is expected
 to be in service in November of this year."
     "The recently announced increase in our quarterly distribution is the
 result of the strong performance of our existing businesses and the
 acquisition of complementary businesses to provide for further growth," Cordes
 said.
     Northern Border Partners recently announced an increase in the quarterly
 distributions from $0.70 per unit to $0.7625 payable on May 15, 2001 to
 unitholders of record April 30, 2001.
     Northern Border Partners will host an analyst conference call to review
 first quarter 2001 results on Wednesday, April 25, 2001 at 11:00 a.m. EDT.
 The partnership will also simulcast the call live via the Internet at
 http://www.northernborderpartners.com.
     A replay of the call will be available through Wednesday, May 2, 2001 by
 dialing, toll-free, (888) 203-1112 and entering confirmation code 667761.  The
 call will also be archived on the Northern Border Partners website.
     Northern Border Partners, L.P. owns a 70 percent general partner interest
 in Northern Border Pipeline Company, a 1,214-mile pipeline system that
 transports natural gas from the Montana-Saskatchewan border to markets in the
 Midwestern U. S.  The Partnership also has gathering systems and processing
 plants in the Powder River, Wind River and Williston Basins in the U.S.; owns
 and operates processing plants and gathering pipelines in Alberta, Canada; and
 transports coal-water slurry via a pipeline in the Southwestern U.S.  The
 general partners of NBP are owned by Enron Corp. (NYSE:   ENE), one of the
 world's leading electricity, natural gas and communications companies and by
 Williams (NYSE:   WMB) who, through its subsidiaries, connects businesses to
 energy, delivering innovative, reliable products and services.  Northern
 Border Partners, L.P. information may be found at
 http://www.northernborderpartners.com.
 
     This press release includes forward-looking statements within the meaning
 of Section 27A of the Securities Act and Section 21E of the Securities
 Exchange Act of 1934.  Although Northern Border Partners, L.P. believes that
 its expectations are based on reasonable assumptions, it can give no assurance
 that such expectations will be achieved.  Important factors that could cause
 actual results to differ materially from those in the forward-looking
 statements include competitive conditions in the gathering, processing,
 transportation and distribution of natural gas and natural gas liquids,
 construction delays and actions by the FTC in approving the acquisition.
 
 
                           Northern Border Partners, L.P.
 
                                Financial Highlights
                              (Unaudited: In Millions)
 
                                                             First Quarter
                                                       2001               2000
     Operating Revenue                                $88.0              $81.5
     Recurring Net Income                             $20.4              $18.0
     Per Unit Recurring Net Income                    $0.62              $0.59
     Cash Flows From Operating Activities             $39.2              $37.4
     EBITDA*                                          $67.5              $61.0
 
 
 
                         Consolidated Statement of Income
                (Unaudited: In Millions Except Net Income Per Unit)
 
                                                            First Quarter
                                                       2001              2000
     Operating Revenue                                $88.0             $81.5
     Operating Expenses
         Operations and Maintenance                    16.0              12.8
         Depreciation and Amortization                 15.7              15.5
         Taxes Other Than Income                        4.1               7.9
         Total Operating Expenses                      35.8              36.2
 
     Operating Income                                  52.2              45.3
 
     Interest Expense, Net                            (21.7)            (18.7)
     Other Income (Expense)                            (1.5)              0.4
     Equity Earnings (Losses) from
      Investments                                      (0.2)             (0.4)
     Minority Interest                                (10.8)             (8.6)
 
     Net Income                                       $18.0             $18.0
 
     Non-Recurring Items                               (2.4)              0.0
 
     Recurring Net Income                             $20.4             $18.0
 
     EBITDA*                                          $67.5             $61.0
 
     Per Unit Net Income                              $0.54             $0.59
 
     Per Unit Recurring Net Income                    $0.62             $0.59
 
     Average Units Outstanding                         31.6              29.3
 
     Capital Expenditures and Equity
      Investments
         Maintenance -
             Northern Border Pipeline                  $0.6              $0.0
             Black Mesa                                 0.1               0.0
         Growth -
             Northern Border Pipeline                   2.7               0.3
             Crestone/Bear Paw                        405.6               2.1
                                                     $409.0              $2.4
 
     *Represents net income plus minority interest, interest expense, net and
      depreciation and amortization less equity AFUDC.
 
 
                               Operating Highlights
                                    (Unaudited)
 
                                                            First Quarter
                                                       2001              2000
     Northern Border Pipeline Company
 
     Operating Results:
         Gas Delivered (MMcf)                       214,312           212,647
         Average Throughput (MMcf/d)                  2,456             2,410
         Transportation Units (million
         dekatherm miles per day):
              Firm Service                            2,277             2,311
              Interruptible Service                      73                 8
 
     Financial Results  (In Millions):
     Operating Revenue                                $77.0             $76.2
     Operating Expenses
         Operations and Maintenance                     8.5               9.1
         Depreciation and Amortization                 14.5              14.8
         Taxes Other Than Income                        3.7               7.7
         Total Operating Expenses                      26.7              31.6
 
     Operating Income                                  50.3              44.6
 
     Interest Expense, Net                            (15.0)            (16.3)
     Other Income                                       0.6               0.4
 
     Net Income                                        35.9              28.7
     Net income to Minority Interest                  (10.8)             (8.6)
 
     Net Income to Northern Border
      Partners                                        $25.1             $20.1
 
     EBITDA*                                          $65.2             $59.8
 
     Distributions paid to Northern Border
      Partners                                        $22.0             $21.6
     Distributions paid to Minority
      Interest                                         $9.4              $9.3
         Total Distributions                          $31.4             $30.9
 
     *Represents net income plus minority interest, interest expense, net and
      depreciation and amortization less equity AFUDC.
 
 
                               Operating Highlights
                                    (Unaudited)
 
                                                            First Quarter
                                                      2001               2000
     Crestone Energy Ventures, L.L.C.
 
     Operating Results:
         Volumes (MMcf/d):
              Powder River                             385                  0
              Wind River                               111                  0
 
     Financial Results  (In Millions):
     Operating Revenue                                $5.5               $0.0
     Operating Expenses
         Operations and Maintenance                    4.1                0.0
         Depreciation and Amortization                 0.5                0.0
         Taxes Other Than Income                       0.2                0.0
         Total Operating Expenses                      4.8                0.0
 
     Operating Income                                  0.7                0.0
 
     Equity Earnings (Losses) from
      Investments                                     (0.2)              (0.4)
 
     Net Income                                       $0.5              ($0.4)
 
     EBITDA*                                          $2.6              ($0.2)
 
     Distributions Received from
      Investments                                     $1.0               $0.0
 
     Note:  There are no operating results reported in first quarter 2000 for
            Crestone Energy Ventures, L.L.C. since a majority of the assets
            were acquired in September 2000.
 
     *Represents net income plus minority interest, interest expense, net and
      depreciation and amortization less equity AFUDC.
 
 
                                Operating Highlights
                                    (Unaudited)
 
                                                            First Quarter
                                                       2001               2000
     Black Mesa
 
     Operating Results:
         Tons of Coal Shipped (In
          Thousands)                                  1,367              1,273
 
 
     Financial Results  (In Millions):
     Operating Revenue                                 $5.4               $5.3
     Operating Expenses
         Operations and Maintenance                     3.1                3.4
         Depreciation and Amortization                  0.7                0.7
         Taxes Other Than Income                        0.2                0.2
         Total Operating Expenses                       4.0                4.3
 
     Operating Income                                   1.4                1.0
 
     Interest Expense, Net                             (0.4)              (0.5)
 
     Net Income                                        $1.0               $0.5
 
     EBITDA*                                           $2.1               $1.7
 
     *Represents net income plus minority interest, interest expense, net and
      depreciation and amortization less equity AFUDC.
 
 
      Public Relations Contact:
      Beth Jensen
      Northern Border Partners, L.P.
      (402) 398-7806
 
      Investor Relations Contact:
      Ellen Konsdorf
      Northern Border Partners, L.P.
      (402) 398-7840
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X36681545
 
 

SOURCE Northern Border Partners, L.P.
    OMAHA, Neb., April 24 /PRNewswire Interactive Press Release/ -- Northern
 Border Partners, L.P. (NYSE:   NBP) reported today first quarter 2001 recurring
 net income of $20.4 million or $0.62 per unit for the first quarter of 2001
 compared to $18.0 million or $0.59 per unit last year.  Cash flows from
 operating activities increased to $39.2 million in the recent quarter from
 $37.4 million a year ago.  The recent acquisitions will begin contributing in
 the second quarter.
     Northern Border Pipeline Company's transportation units averaged
 2,350 million dekatherm miles per day (MMdthm/d) in the first quarter 2001
 compared to 2,319 MMdthm/d in the first quarter of 2000.  Crestone Energy
 Ventures, L.L.C. average daily volumes were 496 million cubic feet per day
 (MMcf/d) during the first quarter 2001 compared to 397 MMcf/d for the fourth
 quarter of 2000.
     Results for the recent quarter included non-recurring charges of
 $2.4 million or $0.08 per unit, primarily attributable to mandated accounting
 treatment of a forward purchase of Canadian dollars to fund the acquisition of
 gathering and processing assets in Alberta.
     "The Partnership's growth strategy gained tremendous momentum with three
 recent strategic acquisitions totaling $517 million.  Bear Paw Energy and
 Border Midstream Services expand our business presence in three important
 North American supply areas," said Bill Cordes, chairman and chief executive
 officer of Northern Border Partners.
     "Completion of the Midwestern Gas Transmission acquisition, expected
 within the next 30 days, will enhance our market reach to and from the Chicago
 hub," Cordes said.  "Construction of our Project 2000, which extends the
 Northern Border Pipeline into northern Indiana, began in March and is expected
 to be in service in November of this year."
     "The recently announced increase in our quarterly distribution is the
 result of the strong performance of our existing businesses and the
 acquisition of complementary businesses to provide for further growth," Cordes
 said.
     Northern Border Partners recently announced an increase in the quarterly
 distributions from $0.70 per unit to $0.7625 payable on May 15, 2001 to
 unitholders of record April 30, 2001.
     Northern Border Partners will host an analyst conference call to review
 first quarter 2001 results on Wednesday, April 25, 2001 at 11:00 a.m. EDT.
 The partnership will also simulcast the call live via the Internet at
 http://www.northernborderpartners.com.
     A replay of the call will be available through Wednesday, May 2, 2001 by
 dialing, toll-free, (888) 203-1112 and entering confirmation code 667761.  The
 call will also be archived on the Northern Border Partners website.
     Northern Border Partners, L.P. owns a 70 percent general partner interest
 in Northern Border Pipeline Company, a 1,214-mile pipeline system that
 transports natural gas from the Montana-Saskatchewan border to markets in the
 Midwestern U. S.  The Partnership also has gathering systems and processing
 plants in the Powder River, Wind River and Williston Basins in the U.S.; owns
 and operates processing plants and gathering pipelines in Alberta, Canada; and
 transports coal-water slurry via a pipeline in the Southwestern U.S.  The
 general partners of NBP are owned by Enron Corp. (NYSE:   ENE), one of the
 world's leading electricity, natural gas and communications companies and by
 Williams (NYSE:   WMB) who, through its subsidiaries, connects businesses to
 energy, delivering innovative, reliable products and services.  Northern
 Border Partners, L.P. information may be found at
 http://www.northernborderpartners.com.
 
     This press release includes forward-looking statements within the meaning
 of Section 27A of the Securities Act and Section 21E of the Securities
 Exchange Act of 1934.  Although Northern Border Partners, L.P. believes that
 its expectations are based on reasonable assumptions, it can give no assurance
 that such expectations will be achieved.  Important factors that could cause
 actual results to differ materially from those in the forward-looking
 statements include competitive conditions in the gathering, processing,
 transportation and distribution of natural gas and natural gas liquids,
 construction delays and actions by the FTC in approving the acquisition.
 
 
                           Northern Border Partners, L.P.
 
                                Financial Highlights
                              (Unaudited: In Millions)
 
                                                             First Quarter
                                                       2001               2000
     Operating Revenue                                $88.0              $81.5
     Recurring Net Income                             $20.4              $18.0
     Per Unit Recurring Net Income                    $0.62              $0.59
     Cash Flows From Operating Activities             $39.2              $37.4
     EBITDA*                                          $67.5              $61.0
 
 
 
                         Consolidated Statement of Income
                (Unaudited: In Millions Except Net Income Per Unit)
 
                                                            First Quarter
                                                       2001              2000
     Operating Revenue                                $88.0             $81.5
     Operating Expenses
         Operations and Maintenance                    16.0              12.8
         Depreciation and Amortization                 15.7              15.5
         Taxes Other Than Income                        4.1               7.9
         Total Operating Expenses                      35.8              36.2
 
     Operating Income                                  52.2              45.3
 
     Interest Expense, Net                            (21.7)            (18.7)
     Other Income (Expense)                            (1.5)              0.4
     Equity Earnings (Losses) from
      Investments                                      (0.2)             (0.4)
     Minority Interest                                (10.8)             (8.6)
 
     Net Income                                       $18.0             $18.0
 
     Non-Recurring Items                               (2.4)              0.0
 
     Recurring Net Income                             $20.4             $18.0
 
     EBITDA*                                          $67.5             $61.0
 
     Per Unit Net Income                              $0.54             $0.59
 
     Per Unit Recurring Net Income                    $0.62             $0.59
 
     Average Units Outstanding                         31.6              29.3
 
     Capital Expenditures and Equity
      Investments
         Maintenance -
             Northern Border Pipeline                  $0.6              $0.0
             Black Mesa                                 0.1               0.0
         Growth -
             Northern Border Pipeline                   2.7               0.3
             Crestone/Bear Paw                        405.6               2.1
                                                     $409.0              $2.4
 
     *Represents net income plus minority interest, interest expense, net and
      depreciation and amortization less equity AFUDC.
 
 
                               Operating Highlights
                                    (Unaudited)
 
                                                            First Quarter
                                                       2001              2000
     Northern Border Pipeline Company
 
     Operating Results:
         Gas Delivered (MMcf)                       214,312           212,647
         Average Throughput (MMcf/d)                  2,456             2,410
         Transportation Units (million
         dekatherm miles per day):
              Firm Service                            2,277             2,311
              Interruptible Service                      73                 8
 
     Financial Results  (In Millions):
     Operating Revenue                                $77.0             $76.2
     Operating Expenses
         Operations and Maintenance                     8.5               9.1
         Depreciation and Amortization                 14.5              14.8
         Taxes Other Than Income                        3.7               7.7
         Total Operating Expenses                      26.7              31.6
 
     Operating Income                                  50.3              44.6
 
     Interest Expense, Net                            (15.0)            (16.3)
     Other Income                                       0.6               0.4
 
     Net Income                                        35.9              28.7
     Net income to Minority Interest                  (10.8)             (8.6)
 
     Net Income to Northern Border
      Partners                                        $25.1             $20.1
 
     EBITDA*                                          $65.2             $59.8
 
     Distributions paid to Northern Border
      Partners                                        $22.0             $21.6
     Distributions paid to Minority
      Interest                                         $9.4              $9.3
         Total Distributions                          $31.4             $30.9
 
     *Represents net income plus minority interest, interest expense, net and
      depreciation and amortization less equity AFUDC.
 
 
                               Operating Highlights
                                    (Unaudited)
 
                                                            First Quarter
                                                      2001               2000
     Crestone Energy Ventures, L.L.C.
 
     Operating Results:
         Volumes (MMcf/d):
              Powder River                             385                  0
              Wind River                               111                  0
 
     Financial Results  (In Millions):
     Operating Revenue                                $5.5               $0.0
     Operating Expenses
         Operations and Maintenance                    4.1                0.0
         Depreciation and Amortization                 0.5                0.0
         Taxes Other Than Income                       0.2                0.0
         Total Operating Expenses                      4.8                0.0
 
     Operating Income                                  0.7                0.0
 
     Equity Earnings (Losses) from
      Investments                                     (0.2)              (0.4)
 
     Net Income                                       $0.5              ($0.4)
 
     EBITDA*                                          $2.6              ($0.2)
 
     Distributions Received from
      Investments                                     $1.0               $0.0
 
     Note:  There are no operating results reported in first quarter 2000 for
            Crestone Energy Ventures, L.L.C. since a majority of the assets
            were acquired in September 2000.
 
     *Represents net income plus minority interest, interest expense, net and
      depreciation and amortization less equity AFUDC.
 
 
                                Operating Highlights
                                    (Unaudited)
 
                                                            First Quarter
                                                       2001               2000
     Black Mesa
 
     Operating Results:
         Tons of Coal Shipped (In
          Thousands)                                  1,367              1,273
 
 
     Financial Results  (In Millions):
     Operating Revenue                                 $5.4               $5.3
     Operating Expenses
         Operations and Maintenance                     3.1                3.4
         Depreciation and Amortization                  0.7                0.7
         Taxes Other Than Income                        0.2                0.2
         Total Operating Expenses                       4.0                4.3
 
     Operating Income                                   1.4                1.0
 
     Interest Expense, Net                             (0.4)              (0.5)
 
     Net Income                                        $1.0               $0.5
 
     EBITDA*                                           $2.1               $1.7
 
     *Represents net income plus minority interest, interest expense, net and
      depreciation and amortization less equity AFUDC.
 
 
      Public Relations Contact:
      Beth Jensen
      Northern Border Partners, L.P.
      (402) 398-7806
 
      Investor Relations Contact:
      Ellen Konsdorf
      Northern Border Partners, L.P.
      (402) 398-7840
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X36681545
 
 SOURCE  Northern Border Partners, L.P.