Williams Energy Partners LP. Monday announced fourth-quarter 2002 operating profit of $37.3 million compared with $24.6 million in 2001, representing a 52% increase, due partially to significantly higher oil transportation and terminals revenues on its Williams Pipe Line.

These higher revenues grew due to higher rates resulting from longer haul shipments, higher tariff and ancillary service rates and increased volumes. Decreased operating expenses due to lower maintenance costs also contributed to the bottom line.

Although the Williams Pipe Line system was acquired April 11, 2002, the acquisition is treated similar to a pooling of interest under accounting rules requiring that historical financial statements be restated to include the results from Williams Pipe Line for all periods.

Net income for the fourth-quarter 2002 was $27.6 million compared with $13.8 million for 2001. This increase was attributable to higher operating profit and the elimination of income taxes due to the partnership structure, partially offset by debt placement fees and increased interest expense associated with the Williams Pipe Line acquisition.

Diluted earnings per unit increased to 95 cents for the fourth-quarter 2002 compared with 42 cents in the 2001 fourth quarter. Per unit numbers are not restated to include Williams Pipe Line results prior to the partnership’s ownership.

For the year ended Dec. 31, 2002, operating profit was $137.1 million compared with $109.3 million for the same period in 2001, representing an increase of 25%. Net income for the 2002 period was $99.2 million compared with $67.9 million for the 2001 period. Diluted earnings per unit for 2002 increased to $3.67 compared with $1.87 in 2001.

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