enbridge buys koch east texas midstream assets 231 ngi daily gas price index published october 26 2001 enbridge buys koch east texas midstream assets 231 enbridge energy partners lp buying gas gathering treating processing transmission assets east texas koch midstream services 230 5 million package includes east texas system gathers 400 mmcf delivery carthage hub enbridge energy company president dan c tutcher said assets natural fit enbridge existing texas assets significantly expand company geographic footprint region well energy commodity mix expect acquisition immediately accretive partnership distributable cash flow excellent prospects exist organic growth east texas system enbridge partners acquire 1 880 miles various diameter gathering lines 37 compressor stations four gas treating plants capacity 595 mmcf three gas processing plants combined capacity 375 mmcf transaction anticipated close december intrastate system derives revenues purchase transportation resale natural gas additionally natural gas liquids fractionation spreads positive option exists extract ngls purchased gas thus leveraging income incremental processing revenue company noted partnership expects direct commodity price exposures inherent gas purchase resale activities gas processing suitably mitigated hedging strategy forecasts gas supply available system 400 420 mmcf 2002 based estimate acquisition would contribute incremental ebitda 26 million 32 million year distributable cash flow would increase 0 10 0 15 per unit improvements anticipated 2003 forecasts assume acquisition financing consist 50 debt 50 equity line enbridge partners target long term capital structure enbridge partners also reported third quarter net income 6 6 million 0 13 per common unit compared net income 14 2 million 0 42 per unit third quarter 2000 decline attributed mainly adjustment oil inventory due shippers 5 4 million adjustment result enbridge said refinements oil loss estimation process well improvements accuracy measuring oil losses developing new software applications third quarter deliveries 1 208 million b compared 1 272 mmb period prior year partnership expects deliveries increase remainder year average 1 30 1 33 mmb however delivery estimates 2001 2002 prior expectations lower production forecasts conventional heavy crude oil stem current wide price differential heavy light crude 2002 growing oil sands production anticipated boost full year average deliveries 1 35 1 43 mmb partnership forecast indicates crude oil delivery volumes languished past several quarters start improve modestly near term significant increases occurring latter half 2002 said tutcher major contributing factor increased production immense oil sands reserves western canada also anticipate successes acquisition strategy increase earnings diversify sources income partnership primary objective next two three years accelerate growth cash distributions unitholders end confident acquisition east texas facilities combined improvement liquid hydrocarbon deliveries position partnership consider distribution increase 2002