TEPPCO and Enterprise to increase Jonah gas gathering capacity
Following completion of first portion of Phase V expansion
by TEPPCO and Enterprise joint media release
July 26, 2007
Editor's Note: Below is the entire text of a joint media release by TEPPCO and Enterprise from Wednesday, July 25, 2007.
TEPPCO Partners, L.P. (NYSE:TPP) and Enterprise Products Partners L.P. (NYSE:EPD), through their Jonah Gas Gathering Company joint venture, today announced that the installation of 67,500 horsepower of compression at the Bridger Station in Sublette County, Wyoming is now mechanically complete and the final stages of commissioning are under way. The additional compression, along with an 87-mile pipeline looping project that became operational in December of 2006, represents the first portion of the Jonah Phase V expansion program and will increase the capacity of the Jonah Gas Gathering system to 2 billion cubic feet per day (Bcf/d). The second and final phase, which involves the installation of another 102,000 horsepower at the Bridger compressor station, is targeted for completion in the first quarter of 2008 and is expected to increase capacity on the Jonah Gas Gathering system to 2.3 Bcf/d.
Located in the Greater Green River Basin of southwestern Wyoming, the Jonah Gas Gathering system is comprised of more than 700 miles of pipelines which serve approximately 1,200 producing wells in the prolific Jonah and Pinedale fields. Based on the latest federal government data, Pinedale and Jonah are the second- and sixth-largest domestic natural gas fields, respectively, based on proven reserves.
“Increased demand for natural gas gathering and service opportunities, such as those provided through our Jonah system, is one of the six key trends we have identified as driving TEPPCO’s strategic initiatives,” said Jerry Thompson, president and chief executive officer of the general partner of TEPPCO Partners, L.P. “Completion of the Bridger compression project further enhances our ability to meet the projected growth in drilling in the basin.” Thompson added that the increased capacity on the Jonah Gas Gathering system resulting from the additional compression will further reduce wellhead pressures, thereby increasing production rates, which will maximize recovery of reserves and generate incremental gathering fees for the joint venture.
Annual volume growth in the Jonah and Pinedale fields has averaged more than (30) percent during the past five years and more than (40) drilling rigs are currently active in the play. In addition, the Jonah system is currently gathering approximately 1.75 Bcf/d of natural gas, which represents more than 85 percent of current production from the Jonah and Pinedale fields.
“Ongoing expansion of the Jonah Gas Gathering System plays an important role in our Rocky Mountain growth initiative by providing us with access to additional natural gas reserves that can create more opportunities for us to utilize the partnership’s integrated value chain,” said Dr. Ralph S. Cunningham, president and chief executive officer for Enterprise Products Partners. “The incremental volumes resulting from additional compression on the system will feed Enterprise’s existing Pioneer silica gel processing plant, as well as our nearby state-of-the-art cryogenic facility, which is under construction and expected to be completed in the fourth quarter of 2007.”
Upon completion of the expansion, TEPPCO is expected to have an approximate 80 percent interest in Jonah Gas Gathering Company, with Enterprise owning the remaining 20 percent and serving as operator.
TEPPCO Partners, L.P. is a publicly traded partnership with an enterprise value of approximately $5 billion, which conducts business through various subsidiary operating companies. TEPPCO owns and operates one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States; owns and operates petrochemical and natural gas liquid pipelines; is engaged in transportation, storage, gathering and marketing of crude oil; owns and operates natural gas gathering systems; and has ownership interests in Jonah Gas Gathering Company, Seaway Crude Pipeline Company, Centennial Pipeline LLC, and an undivided ownership interest in the Basin Pipeline. Texas Eastern Products Pipeline Company, LLC, the general partner of TEPPCO Partners, L.P., is owned by Enterprise GP Holdings L.P. For more information, visit TEPPCO’s web site at www.teppco.com.
Enterprise Products Partners L.P. is a publicly traded partnership with an enterprise value of more than $19 billion that provides midstream energy services to producers and consumers of natural gas, natural gas liquids and crude oil in North America. Enterprise transports natural gas, NGLs and crude oil through more than 35,000 miles of onshore and offshore pipelines. Services include natural gas transportation, gathering, processing and storage; NGL fractionation (or separation), transportation, storage, and import and export terminaling; crude oil transportation and offshore production platform services. Additional information about the partnership is available at www.epplp.com. Enterprise Products Partners L.P. is managed by its general partner, Enterprise Products GP, LLC, which is wholly owned by Enterprise GP Holdings L.P., a publicly traded GP partnership with an enterprise value of more than $6 billion. For more information on Enterprise GP Holdings L.P., visit its website at www.enterprisegp.com.
TEPPCO PARTNERS, L.P.
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Except for the historical information contained herein, the matters discussed in this news release, including, without limitation, those related to the cost, timing and completion of and prospects for the Jonah expansion, are forward-looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, market conditions, governmental regulations and factors discussed in TEPPCO Partners, L.P. filings with the Securities and Exchange Commission.
ENTERPRISE PRODUCTS PARTNERS L.P.
This press release contains various forward-looking statements and information that are based on Enterprise’s beliefs and those of its general partner, as well as assumptions made by and information currently available to Enterprise. When used in this press release, words such as “anticipate,” “project,” “expect,” “plan,” “goal,” “forecast,” “intend,” “could,” “believe,” “may,” and similar expressions and statements regarding the plans and objectives of Enterprise for future operations, are intended to identify forward-looking statements. Although Enterprise and its general partner believe that such expectations reflected in such forward-looking statements are reasonable, neither Enterprise nor its general partner can give assurances that such expectations will prove to be correct. Such statements are subject to a variety of risks, uncertainties and assumptions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, Enterprise’s actual results may vary materially from those Enterprise anticipated, estimated, projected or expected. Among the key risk factors that may have a direct bearing on Enterprise’s results of operations and financial condition are:
- fluctuations in oil, natural gas and NGL prices and production due to weather and other natural and economic forces;
- a reduction in demand for its products by the petrochemical, refining or heating industries;
the effects of its debt level on its future financial and operating flexibility;
- a decline in the volumes of NGLs delivered by its facilities;
- the failure of its credit risk management efforts to adequately protect it against customer non-payment;
terrorist attacks aimed at its facilities; and,
- the failure to successfully integrate its operations with assets or companies, if any that it may acquire in the future.
Enterprise has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Company contact information:
Enterprise Products Partners L.P., Houston
Randy Burkhalter, 713-381-6812 or 866-230-0745
Rick Rainey, 713-381-3635
TEPPCO Partners, L.P., Houston
Mark Stockard, 713-381-4707 or 800-659-0059