Teppco conference call!

Highlights

Non cash adjustments did not effect financials
Net income up 19%
Net income per unti 45 cents vs 42 cents
Record EBITA
Record EBITA for Q4...downstream segment + 25 %M
Midstream up for Q4 but down slightly for the year

Hurricane damage from Rita was minimal reducing net income by 3 million dollars due to insurance and minor damage.

Upstream Segment q4 income 11 million + 22% Increase transportation and terminal volumes.
1 million dollar charge to settle an indemnity.

24.1 million in Midstream Segment down 9 percent due to transaction expenses and the Jonas startup. Also a large inventory gain.
EBITA 156.9 MILLION + 12% over 2004.

Downstream...income 27 million up 48% from 2004. Record propane deliveries in the northeast.

2006 OUTLOOK...ebita 400-420 million 1.70-1.90 per share...Cap spending will rise to 210 million.

Q &A

8882031112 CODE 2353714 for replay at 11am

Q from Wachovia...
reviewing cap spending numbers and the breakdown for 06.

returns from growth cap ex?
15% rates or higher predicted.

John Freeman Raymond James.
Question about sale of Pioneer Nat gas...response is that the facility was not material to Teppco's operation.

Another analist from Wachovia..
Teppco/Seaway issues.....also analist surprised by midstream decline in Q4. Company says there were some unusual items in Q4 that impacted midstream.

Kevin Gallagher from RBC Capital Markets.....distribution growth...outlook...we will not pre announce distribution growth!!!! He then mentioned projects going foward but made no indication about future payouts.