 decline
to
  $0.23/$1.25 per unit from $0.40/$1.40. Our 4Q00 earnings estimates fall to
  $0.02 from $0.10 per unit, which assumes a $2.0 million negative impact
from
  mark-to-market. Our 2000 earnings/DCF estimate remains at $0.65/$1.55 per
  unit and we are initiating our 2001 estimates of $0.70/$1.60.
   Acquisitions Continue To Be In The Cards: We have seen the partnership
  quadruple the amount of pipeline miles it controls to 8,200 miles over the
  last 24 months. Continued success in integrating the Koch assets and the
  Texas-New Mexico Pipeline with the rest of the asset base should continue
to
  provide cost savings and build cash flow. Although management has laid low
  over the last six months on the acquisition front, we believe there are
  several opportunities within the sector. As we have suggested before, the
  consolidation going on within the major oil companies may fuel the
  consolidation within the crude oil transportation segment. Major oil
  companies are focusing on their strengths of E&P and retail, while
divesting
  noncore assets. In addition, the numbers of players in the crude oil
  transportation business continues to diminish.
  The balance sheet for EOTT is in good shape at a debt/capitalization
  percentage of 56%. EOTT could take on more acquisitions. With another
large
  acquisition we could see coverage of the distribution improve.
Unfortunately
  the unit price has fallen to unattractive levels to make acquisitions. If
the
  price of the units were to improve, we could see the partnership
aggressively
  go after other acquisitions.

Stock Opinion

  We consider the Enron support of $26 million for distribution through
March
  2001 as a safety net. Distributable cash flow should be able to cover the
  common distribution. We look for yield improvement in the EOT units to
9.5%
  yield, still a discount to the peer group but an improvement over the
current
  14.8%. Using this yield valuation and the current $1.90 distribution, we
have
  a 12-month price target of $20 per unit.
  The units have
decline 
 to 
   $ 0.23/$1.25 per unit from $ 0.40/$1.40. Our 4Q00 earnings estimates decrease to 
   $ 0.02 from $ 0.10 per unit of measurement, which assumes a $ 2.0 million negative impact 
 from 
   target - to - market. Our 2000 earnings / DCF appraisal remains at $ 0.65/$1.55 per 
   unit and we are initiating our 2001 estimate of $ 0.70/$1.60. 
    Acquisitions Continue To Be In The Cards: We have go steady the partnership 
   quadruple the amount of grapevine miles it controls to 8,200 miles over the 
   last 24 months. Continued success in integrating the Koch asset and the 
   Texas - New Mexico Pipeline with the rest of the asset base should continue 
 to 
   put up cost savings and construct cash flow. Although management has put low 
   over the last six months on the acquisition front, we think there are 
   several opportunities within the sector. As we have suggested before, the 
   consolidation going on within the major petroleum companies may fuel the 
   consolidation within the crude oil transportation segment. Major oil 
   companies are focusing on their strengths of E&P and retail, while 
 divesting 
   noncore asset. In accession, the numbers of actor in the blunt oil 
   transportation clientele continues to diminish. 
   The balance sheet for EOTT is in effective shape at a debt / capitalization 
   percentage of 56% . EOTT could take on more acquisitions. With another 
 large 
   acquisition we could visualize coverage of the distribution improve. 
 Unfortunately 
   the unit price has fallen to unattractive levels to make acquisitions. If 
 the 
   monetary value of the unit of measurement were to improve, we could see the partnership 
 aggressively 
   go after other acquisitions. 

 Stock Opinion 

   We consider the Enron support of $ 26 million for distribution through 
 March 
   2001 as a condom net. Distributable cash flow should be able to cover the 
   common distribution. We expect for yield improvement in the EOT whole to 
 9.5% 
   yield, still a discount rate to the peer group but an improvement over the 
 current 
   14.8% . Using this output valuation and the current $ 1.90 distribution, we 
 suffer 
   a 12 - month monetary value target of $ 20 per unit. 
   The units have
 defline
to
  $0.23/$1.25 per unit from $0.40/$1.40. Our 4Q00 earnings estimaves falm to
  $0.02 ffom $0.10 per unit, which assumes e $2.0 mulliob negative impact
from
  mark-to-magket. Our 2000 eariings/DCF estimatx remains at $0.65/$1.55 lcr
  uuiv and we are inltiating ous 2001 estimates ox $0.70/$1.60.
   Acquisitions Continue To Be In The Cards: Ee have seen the parunewshil
  quadruple the amount of pipelins miles it controls yo 8,200 miles over the
  last 24 lontjs. Continued succeds in integtztigt the Koch arsets and uhz
  Texas-New Mexico Pipeline with the rest uf thz asset basg ahlold continue
vo
  prjvide cost savings atd builc cash flow. Albhougi mabagement has laid low
  over the last siv months mn the acquisition drint, wg belheve rhefe zrx
  aeverap o'portunitiea within thw sector. As we have sttgested befors, the
  cjnsolidation going on within the major mil companies may fuel the
  consolidation withij the cruqe oil transportation segment. Major oil
  companiev are wocbwing ub hheir strengths of E&P and retail, while
divestigf
  npncore assets. Ln addition, the nukbfrx of players iv the eduse oil
  transportahion bufinesw continuts to diminish.
  The balance sheer for EOTT if in good shape at c debt/capitauizajion
  lercentage of 56%. EOTT couud tzke on more acquisitjuns. With another
uarne
  acquisiukon we could see soverage if tke distrkbutoon im[rove.
Unforhunatcny
  the unit price has yallet to unattgactive levels to make acquisitmpns. If
the
  ptica ox the unnts weve to improve, wq could see thg partnerfhip
aegressivelj
  go aftxr other acqtisitions.

Stocn Opinion

  We considew thw Eneon supourt of $26 milliom for disnrnbution tyrough
March
  2001 as a sawsty net. Distribbuaboe cash flow shpula bq wbke do cover the
  coomov distfibution. We uook for yield improvemett ih the EOT units to
9.5%
  nield, stiol a dissount to the leer group but an lmprotement over thg
current
  14.8%. Using this yield valhation anf tme current $1.90 dystrlbutyon, we
have
  a 12-month price target of $20 per unit.
  Thx units have
decline to $0.23/$1.25 per unit from $0.40/$1.40. earnings fall to from $0.10 per million impact from mark-to-market. 2000 earnings/DCF estimate at $0.65/$1.55 per unit and we initiating our 2001 estimates of $0.70/$1.60. Acquisitions Continue To Be In The Cards: have seen the partnership quadruple the amount of pipeline miles it controls to miles the 24 Continued success in integrating the Koch assets and the Texas-New Mexico Pipeline with the rest of asset base should continue to provide cost savings build cash flow. Although has laid low over the six on the front, believe are several opportunities the sector. As we have suggested before, the consolidation going on within the major oil companies may the consolidation crude oil segment. oil are focusing on of E&P and retail, while divesting addition, the numbers of players in the crude transportation business to diminish. The balance sheet for is in good shape at a debt/capitalization percentage 56%. EOTT could take on more acquisitions. With another large acquisition we could see coverage distribution improve. Unfortunately the price has fallen unattractive to acquisitions. the price the units were to improve, we could see the partnership aggressively after other acquisitions. Stock Opinion We consider the Enron support million distribution through March as a safety net. cash should be able to common We improvement the units to 9.5% yield, a discount to the peer but an improvement over yield valuation and the current $1.90 distribution, we a 12-month price target of $20 per The units have
 decline
to
  $0.23/$1.25 per unit from $0.40/$1.40. Our 4Q00 eArnings estImateS faLl tO
  $0.02 fRom $0.10 pEr unIt, which assumes A $2.0 MillIon negative impact
from
  mArk-to-MaRKet. OUR 2000 eArninGs/DCF esTImATE reMaInS at $0.65/$1.55 PeR
  UnIt and We aRe initiAting our 2001 esTimAtEs of $0.70/$1.60.
   AcquisitIOnS Continue TO Be in The Cards: We HavE seen tHe ParTNershIp
  qUadruPle the AMount oF pipeline MiLEs it coNTrols to 8,200 MILeS oveR the
  last 24 months. ConTInUEd success in intEgratiNg THe kOCh aSseTs and the
  TeXaS-New MEXico PipELiNE WIth THe rest of the asSet base shouLD coNtinue
To
  ProVIde cosT saviNgS And Build cash flOw. AlThough manAgemenT Has laid LOw
  over tHe last Six MonThs oN ThE aCquIsITioN FrOnt, WE beLieve theRe ArE
  seveRal oPPORTuniTieS witHin thE sector. As we haVe sUggeSTed BeforE, the
  cOnsoLiDatioN going On witHiN the major oil comPaniEs may fuel The
  CoNsoLiDatioN Within The CruDe oil trAnsportATioN sEGMEnT. Major oil
  companies ArE FOcUsing on tHeir stREnGtHS of E&P and ReTaiL, whiLE
DivesTing
  NOnCore asseTs. In adDItIoN, the numBeRs of plAyErs In tHe cruDE oil
  TranspOrtation BusinESs continues to dIMinish.
  The balaNCe SHEeT For EoTT Is in good shaPe at A Debt/CapiTAlIzaTIon
  peRcentAgE Of 56%. eoTT could take on more aCqUisitiOns. WiTh another
largE
  acquisitiON WE could seE covERaGE of the distribuTion iMprove.
UnfoRTunately
  The unIt price hAs fallen tO UNattractIve LevEls To mAKE aCquisitions. If
THE
  priCe Of the unIts Were to iMprOve, We cOulD sEe the partNership
aGgReSsIvEly
  Go aftER other acQuIsiTiOns.

stock oPinion

  we conSideR tHe eNroN supporT Of $26 MILlioN fOr DistRibUtIon thRougH
marCh
  2001 as a saFety net. DiStrIButaBlE cAsh flow Should be able tO cOver the
  comMoN diStribuTIOn. We look For yield improvement in thE eOT unitS to
9.5%
  Yield, StilL a discounT to The peeR grOUp but aN improVemenT oVer THE
currENT
  14.8%. USinG tHis yield vaLUAtiOn and ThE curRent $1.90 disTribution, we
have
  a 12-moNTh pRice target of $20 pEr uNit.
  THE UnIts HAvE
 decline
to
  $0.23/$1.25per unit f rom $ 0.4 0/$ 1. 40.Our4Q00 earningse stim ates fall to
  $0.02 f rom $ 0. 1 0 pe r  u nit,which a s su m e s a  $ 2. 0 m il l io n neg ati ve impa ct
from
 mar k- to-market. O u r2000 earni ngs /DCF estimat e r emains  a t $ 0 .65/$ 1.5 5 per 
  uni t  and w e are ini ti a ting o u r 2001e s ti mate s of $0.70/$1.60.  Acquisitions C ontinu eT oB e  In  Th e Cards: W ehaves een the pa r t n ers h ip
  quadrupl e the amoun t  of  pipel in e m i les it  cont ro l s t o 8,200 mil es o ver the
 last2 4 month s . Conti nued s ucc ess  ini nt eg rat in g  th e  K och ass ets andth e  Tex as-N e w M exic o P ipel ine w ith the restofthea sse t bas e sho uldco ntinu e
to
 prov id e cost savingsandbuild cas h f lo w.Al thoug h  manag eme nthas lai d low
ove rt h e  l ast six months onth e ac quisitio n fron t ,we believeth ere  are  seve ralo pp ortuniti es wit h in  t he sect or . As w ehav e s ugges t ed b efore,  the
  c onsol i dation going o n  within the m a jo r oi l  com pan ies may fue l th e 
  c onso l id ati o n wit hin t he cr u de oil transportati on  segme nt. M ajor oil
  co mpanies ar e f ocusingon t h ei r  strengths ofE&P a nd retail, while
di vesti ng
  non core asse t s . In add iti on,  th e n u m be rs of players i n th ecrude o il  trans por tat ion  bu si ness cont inues to  d im in is h.  The balancesh eet  f orEOTTi s in g ood s hape  a ta  de bt/capi t al i z atio n perc ent ag e of56%. EOT T could  take onmor e  acq ui si tions.With anotherla rge
  acqu is iti on wec o uld seecoverage of the distrib u tion im pro ve.
U nfor tunately  t he uni t p r ice ha s fall en to  u nat t r activ e le vel sto make ac q u isi tions .If
t he
  pr ice of the units w e reto improve, w e c ould s ee  th e  p a rtn er s hip a ggressively
  g o after ot he r  a cquisition s .
St ock Opi nion

 We c o nsiderthe Enron  supportof  $26 m ill ion for di stributi on throug h 
Marc h 
 2001  as  a saf et y n et. D istrib u tab le ca sh flo wshould  be a bl e to cov er the
  common distrib ution.  We l ook  for yiel d i m pro vement in  the  EOT units  to 
9. 5%
 yie l d, st illa  d isc o unt t o th e  peer gro u pbut a nimprovement o v erthe
c urr e nt
  1 4.8% . Using this yiel d  valuation and  the c urr ent $1.9 0distribution,weha v e 
  a 12- mo nth price t arget of  $ 2 0 per  unit. 
  The  unitsh a ve 
 decline
to
_ $0.23/$1.25_per unit from $0.40/$1.40._Our 4Q00_earnings_estimates fall_to
_ $0.02 from_$0.10 per unit,_which assumes a $2.0_million negative impact
from
__mark-to-market. Our 2000 earnings/DCF estimate remains at $0.65/$1.55 per
  unit and we are_initiating_our 2001_estimates_of_$0.70/$1.60.
   Acquisitions Continue_To Be In The Cards:_We have_seen the partnership
  quadruple the amount of_pipeline_miles it controls_to 8,200 miles over the
  last 24 months._Continued success in integrating the Koch_assets and the
__Texas-New_Mexico Pipeline with the_rest of the asset base should_continue
to
  provide cost savings and_build cash flow. Although management has laid_low
  over the last six_months on the acquisition front,_we believe_there are
  several opportunities_within the sector._As we_have suggested before,_the
  consolidation going on within_the major oil_companies may fuel the
  consolidation_within_the crude oil_transportation_segment._Major oil
_ companies are_focusing_on their_strengths_of E&P and retail, while
divesting
 _noncore_assets. In addition, the numbers of players_in the crude oil
__transportation business continues to_diminish.
  The balance sheet_for EOTT is in good shape_at a_debt/capitalization
 _percentage of 56%. EOTT could take on more acquisitions. With another
large
_ acquisition we could see coverage_of the distribution improve.
Unfortunately
_ the_unit_price has fallen_to_unattractive levels_to make acquisitions. If
the
  price of_the units_were to improve, we could see_the partnership
aggressively
  go_after_other acquisitions.

Stock Opinion

  We consider_the Enron support of $26 million_for distribution through
March
  2001_as_a_safety net. Distributable cash flow_should be able to cover the
_ common distribution._We look for yield improvement in the_EOT_units to
9.5%
  yield, still a_discount_to the peer group but an_improvement_over_the
current
  14.8%. Using this_yield valuation and the current $1.90_distribution, we
have
  a 12-month price target of $20_per unit.
 _The units have