Enterprise Reports Record Results for First Quarter 2008

Business Wire, April 28, 2008

The offshore platform services business reported gross operating margin of $44 million for the first quarter of 2008, an increase of $30 million from $14 million reported in the same quarter of 2007. The Independence Hub platform, which was installed and began earning demand fees in mid-March 2007, generated $29 million of this increase from a full quarter of demand and volumetric revenues in 2008. Enterprise's offshore platform natural gas and crude oil processing volumes for the first quarter of 2008 increased by 412 percent and 5 percent, respectively, over the same quarter in 2007.

Gross operating margin from Enterprise's offshore natural gas pipeline business increased to $26 million in the first quarter of 2008 from $2 million in the first quarter of 2007. This increase in gross operating margin was principally due to a $22 million increase from the Independence Trail pipeline, which began operations in July 2007, and a $7 million increase from the High Island/East Breaks system due to higher tariffs. These increases more than offset the effect of volume declines on the Viosca Knoll, Phoenix and Falcon pipeline systems. Transportation volumes for the offshore natural gas pipeline business were 1.9 TBtud in the first quarter of 2008 compared to 1.4 TBtud in the same quarter of 2007.

Enterprise's offshore oil pipeline business recorded gross operating margin of $12 million for the first quarter of 2008 compared to $4 million for the first quarter of 2007. This $8 million increase was attributable to an increase in equity earnings from Enterprise's 50 percent ownership interest in the Cameron Highway Oil Pipeline system due to higher volumes and lower interest expense. Cameron Highway reported net transportation volumes of 95 MBPD for the first quarter of 2008 compared to 34 MBPD for the first quarter of last year. Overall, offshore oil pipeline transportation volumes for the first quarter of 2008 increased 35 percent to 206 MBPD from 153 MBPD for the same quarter of 2007.

Operations at the Independence Hub platform and Trail pipeline were suspended on April 8, 2008 due to a leak in a flex joint, which is in approximately 85 feet of water and connects the pipeline to the platform. Repairs to the flex joint are ongoing. It is still our expectation that Independence will resume operations during the first half of May. While the Independence platform and pipeline do not earn volumetric fees during this period of suspended operations, the Independence Hub still continues to earn its fixed demand revenues of approximately $5 million per month. The estimated impact to gross operating margin from downtime at Independence is approximately $400,000 per day.

Petrochemical Services - Gross operating margin for the Petrochemical Services segment was $41 million in the first quarter of 2008, an 8 percent increase, compared to $38 million in the same quarter of 2007.

Enterprise's butane isomerization business reported a 33 percent increase in gross operating margin to $28 million in the first quarter of 2008 compared to $21 million in the first quarter of 2007 on continuing strong demand for high-purity isobutane and higher revenues from sales of NGL by-products. Butane isomerization volumes for the first quarter of 2008 were 96 MBPD compared to 95 MBPD in the same quarter of 2007.