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The Pipeline MLP sector, which ended September up 10.28% year-to-date and yielding 6.07%, has fallen 3.58% so far this month [along with other income oriented stocks], and as of 10-28 is up 6.23% year to date and yiedling 6.49%. [I have updated distributions for APL, CPNO, EDP, ETP, HEP, KMP, MMP, MWE, PAA, SXL and XTEX, which raised the sector yield.] Thus far this month, yields rose 42 basis points. The ten year treasury, which ended September at 4.33%, ended 10-28 at 4.57% - a rise of 24 basis points]. The spread of MLPs over the yield of the 10 year stands at 192 basis points after ending September at 174, ending August at 208, ending July at 159, ending June at 211, ending May at 216, ending April at 195, ending March at 156, ending February at 152 and ending January at 178. For 2005 the average spread has been 184. Citi Group keeps stats on a Pipeline composite index consisting of BPL, EEP, ETP, EPD, KMP, MMP, MBP, PPX, PAA, SXL, TCLP, TPP, TLP, VLI and WPZ. Since 1993, the historical yeild spread between their pipeline MLP composite and the 10-year U.S. treasury has averaged roughly 215 basis points. The average yield on 10-28 of the five MLPs I included in my composite that are not in the Citi composit [APL, HEP, MMLP, MWE & XTEX] is 6.38% vs. a 6.49% yield for my total composite. So to make an apples to apples comparison, one would need to adjust downward the historical spread that Citi computes to apply it to the composite yield calculated here - giving a historical average of 204 basis points. Given that today's spread stands at 192 - let's say we are close to the mid point in MLP valuations on this metric. The historical spread between pipelines and the Moody's Baa Corp Bond Yield has averaged 0 basis points. The Pipeline MLP sector, which ended August up 9.90% year-to-date and yielding 6.10%, finished September up 10.28% and yiedling 6.07%. For the month the sector prices rose 0.51% and yields fell 3 basis points. PAA fell 9% after selling 4.5 million new units at a sizable discount to July's ending price. MMLP was the sectors largest gainer rising 9.57% on news of an acquisition. The ten year treasury ended the month at 4.33% [vs 4.02% on 8-31 - a rise of 31 basis points]. Magellan Midstream Partners Enhances Pipeline Flexibility to Texas Markets PRNewswire 10-12 Magellan Midstream Partners announced today the completion of enhancements to the southern portion of its 8,500-mile petroleum products pipeline system that will increase the flexibility of the system in various Texas markets. The partnership has significantly increased its pipeline throughput capacity into the Dallas, Texas market, expanding from approximately 25,000 barrels per day of pipeline capacity to 45,000 barrels per day, which provides additional delivery capabilities for refined petroleum products such as gasoline and diesel fuel from Houston area origins to this growing market. Further, the partnership is positioned to increase its pipeline capability into Dallas to 65,000 barrels per day during 2006. In addition, the partnership has improved refined products access to the Waco and Hearne, Texas markets by reconfiguring a pipeline segment to make it bi-directional. Historically, the partnership's pipeline has delivered supply to these markets with products originating from the Beaumont and Port Arthur, Texas region. This enhancement allows petroleum products originating from the Houston area also to supply Waco and Hearne via the partnership's pipeline system. "These enhancements improve our pipeline system's market flexibility, providing our customers additional alternatives for product delivery," said Don Wellendorf, chief executive officer. "In light of supply disruptions created by the recent hurricanes, access to multiple regions from various origins continues to be a priority for the customers and markets we serve." Crosstex Updates Guidance for 2005; Distributable Cash Flow for 2005 Unaffected PRNewswire 10-06 Crosstex Energy announced that, due to the significant improvement in natural gas liquids prices since the date it had signed its agreement to buy El Paso Corporation's South Louisiana midstream assets, the financial derivatives (puts) the Partnership purchased at the time of signing the agreement have incurred a significant decline in value. As part of the overall risk management plan related to the acquisition of the El Paso assets, the Partnership acquired puts, or rights to sell a portion of the liquids from the plants at a fixed price over a two-year period beginning January 1, 2006. Because the underlying volumes relate to assets which are not yet owned by Crosstex, the puts do not qualify for hedge accounting and will be marked to market through the Partnership's consolidated statement of operations. The amount of the mark to market adjustment to be recorded in the third quarter is currently expected to exceed $11 million. This amount will not affect Distributable Cash Flow for the year ended December 31, 2005. "Based on our acquisition modeling, each $0.10 increase in average liquids prices improves operating cash flow from the South Louisiana assets by approximately $9 million annually," said Barry E. Davis, President and Chief Executive Officer. "Current liquids prices are averaging more than $0.20 per gallon higher than the strike prices of the puts. This rise is what decreases the value of the put option." "This acquisition secures our position as one of the largest midstream providers in the Gulf Coast area and is a great fit with our business strategy," continued Davis. "These assets will provide a solid platform for organic growth as we participate in the growing development of deepwater reserves in the Gulf of Mexico." The Partnership will amortize the put cost into Distributable Cash Flow over the two-year period the puts are in effect for calendar years 2006 and 2007. The Partnership expects the net impact of the puts on Distributable Cash Flow will be largely offset by cash flows from the sales of surplus equipment after the close of the acquisition. Due to the unpredictability of the potential fluctuations in the put valuation until closing, when hedge accounting can be applied to the put valuation, the Partnership is withdrawing its guidance on net income for 2005. The Partnership will resume guidance on net income in 2006. The Partnership's Distributable Cash Flow guidance remains in place at $49.1 million to $55.5 million for 2005, and depending on the date of the close of the El Paso acquisition, Distributable Cash Flow is expected to increase for the portion of the year the assets are owned. ETP Announces Increased Pipeline Construction BusinessWire 10-17 Energy Transfer Partners announced today that the Board of Directors of its general partner has approved two new pipeline construction projects. The first project involves the expansion of the Partnership's previously announced 264-mile intrastate pipeline project by increasing the pipeline's size to 42" for a larger portion of the project. The second project involves the construction of a new pipeline which will loop the Partnership's existing 24" pipeline in the Fort Worth Basin production area. Due to the closing of an additional capacity commitment with a large producer in the Barnett Shale for up to 250,000 MMBtu per day, and the interest from several other producers, the Partnership has increased the capacity of its previously announced 264-mile intrastate pipeline project. The expansion will increase the size of the pipeline from the previously announced 36" to 42" for about 131 miles, however, this expansion is not expected to delay the anticipated time for completion of the project. With this increase in size, the 264-mile pipeline will now have approximately 240 miles of 42", along with 24 miles of 30" diameter pipe. The Partnership's Board of Directors has approved an additional $81.5 million in capital expenditures to cover the cost of this expansion, bringing the total expected cost to approximately $535.5 million for this project. In response to additional activity in the Barnett Shale, the Partnership has approved the looping of the first 24 miles of its existing 55-mile, 24" pipeline in the Fort Worth Basin. The Fort Worth Basin Pipeline became commercially operational on May 26, 2005, at nearly full capacity. The looping of the first 24 miles of the system with another 24" pipeline and the addition of up to 12,000 horsepower of incremental compression will provide additional upstream capacities needed to accommodate the increased volumes in the Fort Worth Basin production area. The estimated cost to complete this project is approximately $32.1 million. "The Barnett Shale continues to exceed everyone's expectations," said Roy Patton, Senior Vice President of Energy Transfer Fuel (an ETP subsidiary). "We have been successful in the area because we have been so proactive in building both the upstream and downstream infrastructure to meet our customers' needs. As production levels continue to grow, these two expansion projects will help attract additional customers to our pipeline." ETP Updates Guidance for 06 & Recommends Increase in Distribution BusinessWire 10-19 Energy Transfer Partners announced today that due to the Partnership's improved financial performance, it is increasing its EBITDA guidance for fiscal year 2006 to a minimum of $500 million. As a result of the Partnership's improved financial performance, management will recommend to the Board a $0.10 increase in the Partnership's current distribution to its common unitholders of $2.00 annually to $2.10 annually. If approved by the Board, the increased distribution will result in an increase from the $0.50 quarterly distribution paid for the quarter ended 8-31-05, to a quarterly distribution of $0.525 for the quarter ended 11-30-05. Crosstex Raises $105 Million of Equity & Raises Distribution PRNewswire 10-19 & 10-20 Crosstex announced that it had executed commitments to privately place $105 million of equity to support its $500 million acquisition of the South Louisiana processing and liquids assets from El Paso Corporation. The Partnership has agreed to sell 2,850,165 units of Senior Subordinated Series B Units at a purchase price of $36.84 per unit. The series B units will not participate in the third quarter distribution, and will convert to common units on November 14, 2005. The placement is expected to close concurrently with the closing of the purchase transaction of the El Paso assets, expected later in the fourth quarter. The Crosstex Energy companies (XTEX and XTXI) announced the tenth consecutive increase in quarterly distributions and the sixth consecutive increase in quarterly dividends: Q3 distributions on the Partnership's common and subordinated units will increase from $0.47 per unit to $0.49 per unit, payable November 15 to unitholders of record on November 1. And Q3 dividends on the Corporation's common stock will increase from $0.43 per share to $0.46 per share, payable November 15 to stockholders of record on November 1. The companies have increased distributions and dividends every quarter since the IPO of each company. Kinder Morgan Increases Distribution to $0.79; Reports Record Net Income PRNewswire 10-19 Kinder Morgan Energy Partners announced an increase in its quarterly cash distribution per common unit to $0.79 ($3.16 annualized) from $0.78 per unit. The distribution represents an 8% increase over Q3-04 distribution of $0.73 ($2.92 annualized). This is the 12th consecutive quarter in which KMP has increased the distribution and the 25th increase out of 34 quarters since current management took over in February of 1997. KMP reported record net income in Q3 of $245.4 million, or $0.57 per limited partner unit, up 13% from $217.3 million, or $0.59 per unit, in Q3-04. Chairman and CEO Richard Kinder said, "KMP's success in the third quarter was attributable to both internal growth and contributions from acquisitions, as all four of our business segments reported increased earnings before DD&A compared to Q3-04. These strong results were realized even after taking into account the impact of hurricanes Katrina and Rita." KMP is on target to meet or exceed the published annual budget of $1.74 billion in total segment earnings before DD&A, which represents 16 percent cumulative growth across all four business segments compared to 2004. Additionally, this quarter KMP made great strides towards the realization of two substantial natural gas pipeline projects -- the Rockies Express Pipeline that will deliver Rocky Mountain gas to upper Midwest and Eastern markets and the Louisiana Pipeline that will deliver gas out of LNG facilities along the Gulf Coast. Excluding legal and environmental settlements, KMP has generated distributable cash flow in excess of distributions of approximately $49 million through the first nine months of 2005 (which exceeds the company's published annual budget of $39 million). Including legal and environmental settlements, KMP generated distributable cash flow in excess of distributions of approximately $16 million through the first three quarters. The Products Pipelines segment delivered a 6% increase in Q3 earnings before DD&A to $127.2 million, up from $120.4 million in Q3-04. "Our increase in earnings was led by strong performances on Pacific, Central Florida and the Southeast terminals, but earnings were affected by Hurricane Katrina's impact on Plantation and a $5 million inventory reconciliation reserve taken by the North System," Kinder said. "Other than at Plantation, our refined products volumes were strong, even with high commodity prices. Plantation's pipeline operations [which serves the southeastern United States] were disrupted by power outages caused by the storm, along with damage to some of the refineries that transport refined products on Plantation." Total refined products revenues increased by 9.4% and volumes increased by 3.4% compared to Q3-04, excluding Plantation. Including Plantation, total refined products revenues were up 6.4% and volumes decreased almost 1%. Excluding Plantation, gasoline volumes were up 4.2%, diesel volumes were up 3.6% and commercial jet fuel volumes were up 2.2%. On Plantation, gasoline volumes (which comprise about 65% of the total fuel transported on the pipeline) were down about 10% due to the hurricane. NGL volumes (including the Cochin Pipeline) were down about 13% due to low demand for propane on the North System and Cochin, and the hurricane-related closure of a petrochemical plant in Lake Charles, La., served by the Cypress Pipeline. NGL revenues for the quarter were up over 2% due to higher tariffs primarily on Cochin. The Products Pipelines is expected to fall short of its budget of over 12% growth. Pipeline inspections and repairs on Pacific and Cochin, weak NGL volumes, lower than anticipated revenues from transmix operations and Hurricane Katrina are the principal contributing factors. The Natural Gas Pipelines segment produced Q3 earnings before DD&A of approximately $122 million, up 16% from $105.2 million in Q3-04 and on track to exceed its annual budget of 7% growth. "Growth in this segment was driven by strong performances from the Texas Intrastate Pipeline Group and Red Cedar, along with contributions from the acquired TransColorado pipeline," Kinder said. The Texas Intrastate pipelines generated approximately half of this segment's Q3 earnings. TransColorado, which KMP acquired in Q4-04, contributed approximately $10.5 million in earnings before DD&A. Overall intrastate throughput was down, but margins were improved. The Texas Intrastate pipelines operated throughout Hurricane Rita and experienced only minor damage and some temporary service interruptions. The CO2 segment delivered Q3 earnings before DD&A of $119.9 million, up 39% from almost $86.1 million in Q3-04 and on track to meet or exceed its published annual budget of 34% growth. "The significant growth in this segment was driven by increased oil production at both the SACROC and Yates fields," Kinder said. "We also realized our first full quarter of benefits from the completion of a power plant at the SACROC site that will provide the majority of SACROC's electricity needs moving forward and is being operated by Kinder Morgan, Inc.'s Power segment." Average oil production for Q3 at SACROC was 30.8 thousand barrels per day (MBbl/d), an 11% increase over the same period last year, but down from 32.5 MBbl/d in Q2. Daily production is currently 33 MBbl/d, but SACROC volumes are expected to be below plan for the full year. Average oil production at Yates increased about 19% quarter over quarter to 24.1 MBbl/d. Yates volumes are expected to be above plan for the full year. Overall CO2 pipeline delivery volumes increased 3% compared to Q3-04, and production at the McElmo Dome source field was up 9%, signifying increased third-party sales. NGL sales volumes also increased significantly for the quarter. The CO2 segment is one of the only areas where KMP is exposed to commodity price risk, but that risk is mitigated by a long-term hedging strategy. The Terminals segment reported a 22% increase in Q3 earnings before DD&A to $81.7 million, compared to $67.2 million in the comparable period last year and on track to exceed its published annual budget of about 10% growth. "Growth was driven primarily by contributions from acquisitions, including terminals purchased along the Mississippi and Delaware rivers in the fourth quarter of 2004, and benefits from the recently purchased petroleum coke terminals in Texas," Kinder said. "Results in this segment would have been even stronger without the effects of the two Gulf Coast hurricanes. The Texas pet coke facilities temporarily ceased operations as a result of refineries being shut down prior to Hurricane Rita, our large liquids terminal on the Houston Ship Channel was out of service for four days due to the storm and its impact on refineries, and four facilities in Louisiana and Mississippi were shut down for various lengths of time due to damage from Hurricane Katrina." Led by the Carteret and Staten Island terminals, segment liquids throughput for the quarter was up 1%, while bulk handling tonnage was down 6%, primarily due to the hurricanes. The Terminals segment results recognize essentially all of the expected losses related to both hurricanes. In January, KMP published its budget showing that it expects to declare cash distributions of $3.13 per limited partner unit for 2005, and management remains comfortable the company will meet or exceed that amount. Enterprise Products Partners Increases Distribution BusinessWire 10-20 Enterprise Products Partners today announced that the Board of Directors of its general partner declared an increase in its quarterly cash distribution rate to partners to $0.43 per common unit, or $1.72 per unit on an annual basis. The payment of the quarterly distribution will be paid on November 8, 2005, to unitholders of record at the close of business on October 31, 2005. This distribution represents a 2.4% increase over the $0.42 per unit quarterly distribution paid with respect to Q2-05 and an 8.9% increase over the $0.395 per unit quarterly distribution paid with respect to Q3-04. Magellan Increases Distribution PRNewswire 10-20 The board of directors for the general partner of Magellan Midstream Partners has increased the partnership's quarterly cash distribution to 53.125 cents per unit for the period July 1 through Sept. 30, 2005. The third-quarter distribution represents a 19.4% increase over the third- quarter 2004 distribution of 44.5 cents per unit and a 6.8% increase over the second-quarter 2005 distribution of 49.75 cents. MMLP Increase Distribution PRNewswire 10-24 Martin Midstream announced that it has declared a cash distribution of $0.57 per unit, payable on November 14, 2005 to common and subordinated unitholders of record as of the close of business on November 3, 2005. This distribution reflects a 4% increase of $0.02 per unit over the quarterly distributions previously paid by MMLP and is based on the current operating performance of, and the current general economic, industry and market conditions impacting MMLP. MMLP also announced that 850,672 subordinated units will convert on a one-for-one basis to common units on November 14, 2005. The conversion of subordinated units does not impact the amount of cash distributions paid or the total number of limited partnership units outstanding. Sunoco Logistics Partners Net Income Up 21.8% PRNewswire 10-24 Sunoco Logistics Partners announced net income for Q3 ended 9-30-05 of $15.1 million, or $0.57 per limited partner unit on a diluted basis, a 21.8% increase over the $12.4 million earned for Q3-04, or $0.48 per limited partner unit on a diluted basis. Higher pipeline volumes in the Western pipeline system, including the Texas crude oil pipeline system acquired in August 2005, higher refined product terminal volumes and lease acquisition results were partially offset by a reduction of approximately $4.2 million related to unusual events - $2.1 million from Hurricane Rita on the Nederland Terminal and Western Pipeline System, higher insurance costs related to a $1.5 million special assessment by one of the SXL's insurers as a result of Hurricane Katrina, and $0.6 million of costs related to relocation of the Western area headquarters from Tulsa to Houston, which management expects to be completed in Q1-06. For the nine months ended 9-30-05, net income was $48.2 million, a 13.7% increase over the $42.4 million of net income for the nine months ended 9-30-04. On August 1, 2005, Sunoco Partners LLC, the GP of SXL, declared an increased cash distribution for Q3-05 of $0.0125 per common and subordinated partnership unit ($0.05 annualized). On October 23, 2005, an additional increase of $0.025 per common and subordinated partnership unit on a quarterly basis ($0.10 annualized) was declared by SXL. Combined with the August 1 declaration, the total quarterly increase over Q2-05 is $0.0375 per common and subordinated partnership unit on a quarterly basis ($0.15 annualized) to $0.675 per common and subordinated partnership unit ($2.70 annualized), payable November 14, 2005 to unitholders of record on November 7, 2005. Operating income for the Eastern Pipeline System decreased slightly to $7.7 million for Q3-05 from $7.8 million for Q3-04. This decrease was primarily the result of a $0.3 million decrease in other income, and a $0.5 million increase in selling, general and administrative expenses, partially offset by a $0.7 million decrease in operating expenses. Sales and other operating revenue was relatively unchanged. Other income decreased to $3.3 million for Q3-05 from $3.6 million for the prior year's quarter due to a decrease in joint venture equity income. Operating expenses decreased from $13.3 million in the third quarter 2004, to $12.6 million for Q3-05 due mainly to the timing of scheduled maintenance activity. Selling, general and administrative expenses increased due mainly to the allocation of the $1.5 million special insurance assessment described above. The Terminal Facilities business segment had operating income of $8.0 million for Q3-05, a decrease of $0.4 million from $8.4 million for Q3-04. Higher volumes at the Partnership's refined product and refinery terminals were offset by the adverse impact of Hurricane Rita at the Nederland Terminal. Increased operating expenses of $0.7 million from Q3-04 to $13.2 million for Q3-05 were due principally to Hurricane Rita. Operating income for the Western Pipeline System increased $3.1 million to $4.4 million for Q3-05 from $1.3 million for Q3-04. The increase was primarily the result of higher pipeline volumes, including the results from the August 2005 Texas crude oil pipeline system acquisition, higher throughput on the Nederland to Longview, Texas pipeline, and higher lease acquisition results. Total revenues and cost of products sold and operating expenses increased in Q3-05 compared with Q3-04 due principally to an increase in the price of crude oil. The average price of West Texas Intermediate crude oil at Cushing, Oklahoma, increased to an average price of $63.17 per barrel for Q3-05 from $43.85 per barrel for Q3-04. Depreciation and amortization increased by $0.8 million due in part to the August 2005 Texas crude oil pipeline acquisition. Selling, general and administrative expenses increased due mainly to the allocation of the $1.5 million special insurance assessment described above and $0.6 million of costs related to the Western area headquarters' relocation from Tulsa to Houston. Plains All American Pipeline Increases Distribution PRNewswire 10-25 Plains All American Pipeline announced a cash distribution of $0.675 per unit ($2.70 per unit on an annualized basis) on all of its outstanding limited partner units. The distribution will be payable on 11-14-05, to holders of record of such units at the close of business on 11-4-05. The quarterly distribution to be paid in November 2005 represents an increase of 12.5% over the quarterly distribution of $0.60 paid in November 2004 and approximately 3.85% over the August 2005 distribution. This represents the 13th distribution increase for the Partnership in the last 19 quarters. Buckeye Partners Reports Q3 Earnings and Increases Quarterly Distribution PRNewswire 10-27 Buckeye Partners had revenue in Q3-05 increased to $102.4 million from revenue of $82.0 million in Q3-04. Operating income increased 36.1% in Q3-05 to $40.7 million from $29.9 million in Q3-04. BPL's Q3-05 net income was $24.7 million or $0.65 per unit compared with net income of $20.6 million or $0.71 per unit in Q3-04. Net income per unit results in Q3 reflect an increase in the average number of units outstanding to 38.2 million from an average of 29.0 million units outstanding in Q3-04. Pipeline volume for the third quarter of 2005 was 1,411,000 barrels per day compared to volumes of 1,151,000 barrels per day in the third quarter of 2004. Costs and expenses for the third quarter of 2005 were $61.7 million compared to $52.1 million for the third quarter of 2004. All of the foregoing financial and operating results for 2005 reflect the Partnership's acquisition of pipelines and terminals from an affiliate of Shell in October 2004, and the acquisition of pipelines and terminals from affiliates of Exxon in May 2005. The Board of Directors also declared a regular quarterly partnership cash distribution of $0.7250 per limited partnership unit payable November 30, 2005, to unitholders of record on 11-7-05. This cash distribution represents a quarterly increase in the distribution of $0.0125 per limited partnership unit to an indicated annual cash distribution level of $2.90. Atlas Pipeline Reports Record Quarter Results & Raises Distribution to $0.81 Business Wire 10-27 Atlas Pipeline Partners reported "EBITDA" of $13.7 million for Q3-05 compared with $4.1 million for Q3-04, an increase of $9.6 million or 235%. Net income for Q3-05 was $7.1 million, or $0.48 per limited partner unit, compared with $2.0 million for Q3-04, or $0.09 per limited partner unit. The period over period increase in EBITDA was principally related to contribution from the ETC Oklahoma Pipeline acquisition, which was acquired in April 2005, and continued growth in the Partnership's Mid-Continent and Appalachian operations. The increase in quarterly net income was also attributable to $3.0 million of costs incurred in Q3-04 in connection with APL's terminated attempt to acquire Alaska Pipeline Company and subsequent legal action. APL settled the matter in Q4-04 and received $5.5 million. Total revenues for Q3-05 were a record $102.6 million compared with $34.9 million for Q3-04. On October 27, 2005, APL declared a record quarterly cash distribution for Q3-05 of $0.81 per limited partner unit. Distributions declared for the first nine months of 2005 of $2.33 per limited partner unit represent a 19% increase compared with distributions declared per limited partner unit for the first nine months of 2004. The Mid-Continent segment, which was initiated upon the acquisition of the Velma system assets in July 2004 and further expanded with the acquisition of the Elk City system assets in April 2005, recognized natural gas and liquids revenues of $96.2 million for Q3-05, an increase of $66.2 million from Q3-04. This increase reflects the contribution from the Elk City system acquisition, higher volumes from the Velma system, and an increase in commodity prices. Velma's gross natural gas gathered volume averaged 68.5 mmcfd for Q3-05, an increase of 23% from Q3-04. For Q3-05, the Velma system connected 15 new wells to its gas gathering system. Overall, 112 new wells were connected to the Velma system for the twelve months ended September 30, 2005. For the Elk City system, gross natural gas gathered volume averaged 240.8 mmcfd, and 17 new wells were connected to the system for Q3-05, or 26 new wells since its date of acquisition. Transmission and compression revenues for the Appalachia system increased to $6.3 million for Q3-05, a 34% increase from $4.7 million for Q3-04. For the third quarter 2005, Appalachia segment profit was $4.0 million, or 36% of total segment operating profit for the period, compared with $3.3 million, or 50% of total segment operating profit, for Q3-04. Average transportation rate per thousand cubic feet ("mcf") rose to $1.19 for Q3-05 from $0.93 for Q3-04 due mainly to the rise in natural gas prices. Throughput volumes increased to 57.3 mmcfd for Q3-05, an increase of 5.4% from Q3-04. These increases were principally due to an increase in wells connected to the pipeline system and the completion of a capacity expansion project on certain sections of our pipeline system during the period. For Q3-05, 151 new wells were connected to the gathering system. Overall, 442 new wells were connected to the system for the twelve months ended 9-30-05 compared with 340 wells connected for the twelve months ended 9-30-04. Plains All American Pipeline Net Income Up 65%; Net Income Per Unit Up 34% PRNewswire 10-27 Plains All American Pipeline reported net income of $69.0 million, or $0.79 per diluted limited partner unit, for Q3-05. These financial results represent an increase of 65% and 34%, respectively, over net income of $41.7 million, or $0.59 per diluted limited partner unit, for Q3-04. For the first nine months of 2005, the Partnership reported net income of $164.1 million, or $2.07 per diluted limited partner unit, an increase of 56% and 31%, respectively, over net income of $105.3 million, or $1.58 per diluted limited partner unit, for the first nine months of 2004. Segment profit from pipeline operations in Q3-05 was $49.4 million versus $44.0 million for Q3-04 on average daily pipeline volumes of 1.8 million barrels per day versus 1.6 million barrels per day. Q3-05 pipeline segment profit was reduced by approximately $3.0 million due to market rate adjustments made by the Partnership to tariffs on certain pipelines formerly owned by Link Energy. As a result of these lower tariffs on barrels shipped by PAA in connection with its gathering and marketing activities, segment profit from gathering, marketing, terminalling and storage was increased by a comparable amount. Excluding selected items impacting comparability in both periods, segment profit from gathering, marketing, terminalling and storage operations was up approximately 144% over the corresponding period in 2004 as a result of favorable market conditions, including the continuation of a prolonged contango price curve with volatility, as well as the tariff adjustments noted above. Enbridge Energy Partners Reports 2005 Third Quarter Loss Primezone 10-26 The Partnership also reported a net loss for the three months ended September 30, 2005 of $(14.4) million, or $(0.32) per unit, compared with net income of $27.6 million, or $0.39 per unit, for the third quarter of the prior year. Eliminating the impact of noncash mark-to-market charges, the Partnership's adjusted net income for Q3-05 was $38.2 million, or $0.52 per unit, increased from $27.3 million, or $0.39 per unit, in Q3-04. Adjusted EBITDA increased to $103.1 million in Q3-05 from $81.2 million in the same quarter last year. The noncash charges arise from valuing, on a mark-to-market basis, certain of the Partnership's hedging transactions that do not qualify for hedge accounting treatment under Statement of Financial Accounting Standard No. 133. Operating income from the Liquids segment was $30.7 million for Q3, a decrease of $7.1 million over the same period in 2004. Deliveries on the Lakehead system were 104,000 barrels per day, or 7.5 percent, lower than in third quarter 2004. This was attributable to the partial outage of a major oil sands plant damaged by a fire in early January, lower bitumen supply due to the cyclical nature of thermal recovery techniques and additional takeaway capacity from western Canada available on a third-party pipeline. The damaged oil sands plant returned to full production and started up a 35,000 barrel per day expansion in September. As a result, we expect deliveries on the Lakehead system to increase in the fourth quarter. The Natural Gas segment contributed $31.1 million to adjusted operating income in the third quarter of 2005, an increase of $7.7 million over the same period in 2004. Holly Energy Partners Increases Quarterly Distribution 4.3% to $0.60 Per Unit PRNewswire 10-28 Holly Energy Partners announced declaration of its cash distribution for Q3-05 of $0.60 per unit, to be paid November 14, 2005 to unit holders of record November 7, 2005. This distribution represents an increase of $0.025 per unit, or 4.3%, over the partnership's previous quarterly distribution, and is at a per unit rate that is 20% above the partnership's distribution for the fourth quarter of 2004 ($0.50 per unit distributed in February 2005). HEP's earning release is due 9-30-05. Copano Increases Distribution PRNewswire 10-17 Copano Energy announced today a cash distribution for Q3-05 of $0.50 per unit, or $2.00 per unit on an annualized basis, for all of its outstanding Common and Subordinated Units. This distribution is $0.05 above Copano Energy's distribution for the second quarter of 2005 and $0.10 above the minimum quarterly distribution of $0.40 per unit. MarkWest Energy Partners Increases Cash Distribution PRNewswire 10-26 The Board of the General Partner of MarkWest Energy Partners has declared the partnership's quarterly cash distribution of $0.82 per unit for the third quarter of 2005. This is an increase of $0.02 per unit over the previous quarter distribution. The indicated annual rate is $3.28 per unit. MarkWest Hydrocarbon Reports 2004 Fourth Quarter Results PRNewswire 10-26 MarkWest Hydrocarbon on October 21 reported net income for the three months ended December 31, 2004 of $6.7 million, or $0.62 per diluted share, compared to a restated net loss of $12.6 million, or $1.21 per diluted share, for the fourth quarter of 2003. For the year ended December 31, 2004, MarkWest Hydrocarbon reported a net loss of $0.9 million, or $0.08 per diluted share, compared to a restated net loss of $11.0 million, or $1.07 per diluted share, for the year ended December 31, 2003. MWE reported income from continuing operations of $6.7 million, or $0.62 per diluted share, for the three months ended December 30, 2004, compared to a restated loss from continuing operations of $6.6 million, or $0.63 per diluted share, for the fourth quarter of 2003. For the year ended December 31, 2004, the Company reported a net loss from continuing operations of $0.9 million, or $0.08 per diluted share, compared to a restated net loss from continuing operations of $22.4 million, or $2.17 per diluted share, for the corresponding year 2003. The improved results for the fourth quarter of 2004, as compared to the corresponding quarter of 2003, was attributed to the impact of better NGL product margins, the non-recurrence of approximately $5.2 million of crude oil hedging losses and higher NGL product sales volumes. The reduction in net loss from continuing operations for the calendar year 2004 as compared to the corresponding period of 2003 was also attributed to the factors impacting the fourth quarter comparisons. Approximately $15.9 million of the change was attributable to a reduction in the Company's crude oil hedging losses. The remainder of the change was primarily due to better NGL product margins and due to acquisitions made by the Company's subsidiary, MarkWest Energy Partners, L.P., late in 2003 and in the third quarter of 2004. Finally, in September 2004, the Company entered into several new and amended agreements with one of the largest Appalachia producers, which allow the Company to significantly reduce its exposure to commodity price risk for approximately 25% of its keep-whole gas volumes. TEPPCO Reports Q3 Net Income of $0.31 per unit vs. $0.29 per unit for Q3-04 Business Wire 10-26 TEPPCO Partners reported net income for Q3-05 of $30.9 million, or $0.31 per unit, compared with net income of $25.9 million, or $0.29 per unit, for Q3-04. Net income for the nine months ended Sept. 30, 2005, was $121.7 million, or $1.29 per unit, compared with $104.1 million, or $1.18 per unit, for the nine months ended Sept. 30, 2004. The three month and nine month periods ended Sept. 30, 2005 and 2004, include non-cash asset impairment charges of $2.6 million and $4.4 million, respectively. Net income per unit for the 2005 periods reflects 7 million units issued during Q2-05. EBITDA was $87.4 million for Q3-05, compared with $78.9 million for Q3-04. EBITDA was $282.8 million for the nine months ended Sept. 30, 2005, compared with $257.9 million in the prior year period. "TEPPCO's third quarter results benefited from strong performance of our midstream and upstream business segments," said Barry R. Pearl, president and chief executive officer of the general partner of TEPPCO. "However, our overall results were impacted by lower downstream segment revenues largely due to Hurricane Rita and a product release and fire at our Todhunter, Ohio, facility, some non-cash asset impairments in our upstream segment and costs related to the purchase of our general partner. The strong midstream segment performance was due to increased volumes on the Jonah Gas Gathering system and on the Panola and Chaparral natural gas liquids systems," said Pearl. "The primary factor contributing to our upstream performance was increased marketing margins resulting from our recently acquired storage facility at Cushing, Okla. Our current forecast for the full year 2005 calls for EBITDA to be in the range of $370 million to $385 million and earnings between $1.65 per unit and $1.80 per unit." Operating income for the upstream segment was $5.2 million for Q3-05, compared with $4.8 million for Q3-04. The increase in operating income resulted primarily from increased marketing margins related to asset acquisitions, $1.5 million in lower pipeline integrity costs and increased transportation revenues on the South Texas and West Texas systems. These increases to operating income were partially offset by a $2.6 million non-cash impairment charge for two crude oil systems in East Texas and Oklahoma, increased operating expenses of acquired assets and $1.2 million of unrealized losses related to mark-to-market treatment on contracts that will expire in fourth quarter 2005. The upstream segment includes crude oil transportation, storage, gathering and marketing activities; and distribution of lubrication oils and specialty chemicals. The midstream segment includes natural gas gathering services, and storage, transportation and fractionation of natural gas liquids (NGLs). Operating income for the midstream segment was $24.2 million for Q3-05, compared with $19.5 million for Q3-04. The increase resulted from higher natural gas gathering volumes on the Jonah and Val Verde systems, higher NGL transportation volumes on the Panola and Chaparral systems and a $0.5 million decrease in operating expenses primarily due to lower gas settlement expenses and lower operating fuel and power. These increases to operating income were partially offset by increased labor expenses, increased property taxes and transition expenses related to the change in control of the general partner. The downstream segment includes the transportation and storage of refined products, liquefied petroleum gases (LPGs) and petrochemicals. Downstream operating income was $14.6 million for Q3-05, compared with $12.8 million for Q3-04. The increase in operating income resulted primarily from lower depreciation expense attributable to a $4.4 million asset impairment charge related to our Beaumont, Texas, marine terminal in 2004, a $4 million decrease in pipeline integrity costs, increased margins on product inventory sales in the 2005 period and decreased product measurement losses. These increases to operating income were partially offset by reduced revenues resulting from Hurricanes Katrina and Rita in third quarter 2005, the recognition in 2004 of $4.1 million of deferred revenue related to the expiration of two customer transportation agreements, $1.3 million in regulatory penalties for past incidents, increased pipeline operating expense, higher property taxes and depreciation expense primarily due to asset acquisitions, higher product downgrade expense, increased environmental remediation and assessment costs and transition expenses related to the change in control of the general partner. Holly Energy Partners, L.P. Reports Third Quarter Earnings PRNewswire 10-31 Holly Energy Partners reported Q3 net income of $7.3 million ($0.44 per basic and diluted limited partner unit). Revenues of $21.5 million for the three months ended September 30, 2005 were $7.0 million greater than the $14.5 million in the comparable period of 2004, principally due to $5.0 million of revenues from the pipeline and terminal assets acquired from Alon following the February 28, 2005 acquisition and $2.2 million of revenues from the intermediate pipeline assets acquired from Holly on July 8, 2005. Also, we experienced additional revenues from our existing pipelines and terminals of $1.0 million and a reduction in revenues from the Rio Grande Pipeline of $0.8 million. Distributable cash flow for Q3-05 was $11.424 million for 16,018 units vs. Q3-04's $6.274 milion for 14,000 units. MLPs: Strong Total-Return Performance Brian A. Toal, Oil and Gas Investor September 2005 Master limited partnerships through early summer continued to perform relatively well in a seesaw market, with second-quarter earnings not only generally in line with, or better than, market expectations, but accompanied by numerous distribution increases. Ronald F. Londe, an A.G. Edwards analyst who covers 27 MLPs -- 16 of them in the pipeline/midstream space -- says his coverage universe followed up a 2.2% total-return performance in June with a solid gain of 6.7% in July. "This positive performance was mainly the result of [total-return] gains of 12% within the coal group and 7.2% within the pipeline/midstream group." Through July, the MLPs under the analyst's coverage, on a total-return basis, were up more than 18%; comparatively, the S&P 500 during this time was down 2.8%. The leading sector thus far this year, on a total-return basis, has been the pipeline/midstream group, generating an average 24.7% return. Tops in this group have been Teekay LNG, with a 50.7% total return; Crosstex Energy, 37.2%; Energy Transfer Partners, 33.2%; Holly Energy, 31.9%; TransMontaigne Partners, 30.4%; and Plains All American Pipeline, 29.7%. Londe stresses that during the past two years, MLPs have significantly outperformed the overall market with "acquisitions and internal growth projects generating meaningful distribution (dividend) increases well above inflation rates." Offering a longer-term perspective on the performance of MLPs, he points out that during the last five years, the distribution growth of these investment vehicles has averaged 6% annually, significantly outstripping inflation. "For 2005, we estimate that our universe of MLPs should be able to raise distributions by about 10% while inflation is generally expected to be in the area of 2.5% to 3%." Londe adds that the stable cash-generating nature of MLPs, augmented by periodic acquisitions, should allow these entities to keep distributions growing, "which is a unique feature among high-yield income investments." Year to date, an estimated $3.3 billion worth of acquisitions have closed within the MLP space; another $1.1 billion are pending. During 2004, $6.4 billion of acquisitions were made. The analyst adds that the advent of closed-end funds and growing mutual-fund interest in MLPs should benefit the relative performance of the sector over the intermediate term. On 10-28 Wachovia Downgraded TPP from Outperform to Market Perform. On 10-24 Wachovia Downgraded EEP from Market Perform to Underperform. On 10-11 CSFB initiated coverage of PAA at neutral, TPP at neutral, NBP at neutral, KMP at outperform and EPD at outperform. On 10-18 Deutsche Securities initiated BPL at hold, ETP at buy, MMP at buy, PAA at buy, and VLI at hold. On 10-18 UBS upgraded PAA from neutral to buy. On 9-05 KeyBanc Capital Mkts / McDonald Upgraded MMLP from Hold to Buy. On 9-05 AG Edwards Upgraded MMLP from Hold to Buy. On 9-06 Stifel Nicolaus initiated KMP at Outperform/Buy. On 9-09 KeyBanc Capital Mkts / McDonald upgraded MMLP from Hold to Buy. On 9-09 AG Edwards upgraded MMLP from Hold to Buy. On 9-21 Oppenheimer Initiated coverage of HEP at Neutral. On 9-21 Oppenheimer Initiated coverage of PAA at Buy. On 7-28 RBC Capital Mkts Downgradee MMP from Outperform to Sector Perform. On 7-26 Harris Nesbitt Initiated EPD at Neutral. On 7-21 RBC Capital Mkts Downgraded KMP from Outperform to Sector Perform. On 7-19 Goldman Sachs Downgraded NBP from Outperform to In-Line. On 7-18 Raymond James Upgraded MMP to Outperform from Strong Buy. On 7-08 Deutsche Securities initiated EPD and KMP at Hold. On 7-20 Wachovia Initiated APL at Outperform. On 7-08 Deutsche Securities Initiated KMP at Hold. 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