Strong natural gas prices and an asset sale helped double the quarterly income and revenue at Houston-based GulfTerra Energy Partners LP, the company said Monday.

The partnership, until a few months ago known as El Paso Energy Partners, reported quarterly net income of $60.2 million (62 cents/unit), up 152% from $23.9 million (21 cents/unit) from the same period last year.

Measured by earnings before interest, taxes, depreciation, and amortization (EBITDA), cash flow increased 78% to $122.8 million, compared with $68.9 million in 3Q02. Net income and cash flow included the recognition of $19.0 million related to the sale of a 50% interest in Cameron Highway Oil Pipeline.

CEO Robert G. Phillips noted that it was the twelfth consecutive quarter of record earnings and cash flow. “In addition, we improved the partnership’s financial flexibility by upsizing our revolving credit facility to $700 million and extending the maturity to September 2006. We also completed a $186 million public offering of common equity in October, achieving our goal to reduce the partnership’s debt to total capital ratio to a level below 60%. These recent achievements, along with the continued strong performance of our midstream businesses, create an excellent platform for future growth,” said Phillips.

The natural gas pipelines and plants segment reported an 80% increase in EBITDA to $80 million from $44.5 million a year ago. Pipeline gathering and transportation volumes averaged 6.956 MM Dth/d, compared with 5,225 a year ago. Processing plant volumes averaged 794,000 Dth/d, compared with 746,000 in the third quarter of 2002.

The oil and NGL Logistics segment, which includes the partnership’s oil pipeline and natural gas liquids (NGL) assets, generated EBITDA of $26.8 million, compared with $11.2 million in 3Q02. Offsetting segment increases was a reduction in base business performance from lower volumes on the 36% owned Poseidon Oil Pipeline, as well as the partnership’s Texas NGL fractionation assets, “associated with poor processing economics,” the company said in a statement.

The natural gas storage segment reported a 39% increase over a year ago, resulting from the September expansion of the Petal natural gas storage facilities in Mississippi. The segment also gained on an increase in interruptible storage services at the Wilson storage facility in Texas.

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