An extension of Northern Border Pipeline into Indiana from the Joliet Hub near Chicago and the acquisition of Midwestern Gas Transmission helped Northern Border Partners LP boost earnings during the fourth quarter and the full year.

The company reported a 25% increase for the quarter with net income of $25.6 million ($0.57 per unit), compared to $20.4 million ($0.65 per unit) in the fourth quarter 2000. Cash flow increased 16%, from $70.1 million in the fourth quarter of 2000 to $81.4 million in the fourth quarter of 2001. For full year 2001, net income was $97.9 million ($2.38 per unit), compared to $76.7 million ($2.50 per unit) for 2000. Cash flow increased 19% to $308.3 million.

During the fourth quarter, volumes on Northern Border and Midwestern increased to 231,876 MMcf from 226,125 MMcf for the third quarter of 2001. Average gathering volumes increased to 905 MMcf/d during the fourth quarter 2001 compared to 823 MMcf/d for the third quarter 2001, led by increases in the Powder River Basin. Processing volumes were flat from quarter to quarter at 120 MMcf/d.

“Our interstate pipeline segment continued its efficient and safe operation and we grew that business through the expansion of Northern Border Pipeline into Indiana and the strategic acquisition of [Midwestern],” said Bill Cordes, CEO of Northern Border Partners. “In addition, in just a little over a year, we have created a substantial gathering and processing segment through the completion of three major acquisitions. And most importantly to our investors, we have continued to provide strong cash distributions and periodic distribution increases.”

Due to continued weakness in commodity prices, the partnership said it expects EBITDA of between $325 million to $345 million and recurring earnings per unit of between $2.50 to $2.60 for 2002, marking a reduction of $5 million in EBITDA and $0.10 in recurring earnings per unit.

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