Taylor NGL Limited Partnership
TSX : TAY.UN
TSX : TAY.DB

Taylor NGL Limited Partnership

July 28, 2006 17:10 ET

Taylor NGL Limited Partnership Announces Increase in Distribution and Release Date for Second Quarter Results

CALGARY, ALBERTA--(CCNMatthews - July 28, 2006) - Taylor Gas Liquids Ltd., general partner of Taylor NGL Limited Partnership (TSX:TAY.UN) (TSX:TAY.DB), today announced that monthly cash distributions will be increased by 0.25 cents, to 6.25 cents per limited partnership unit, beginning with the August 15th payment to unitholders of record on August 10th, 2006.

The increase in distribution per unit is supported by sustainable operations and strong financial performance being achieved by the Partnership's assets, specifically the Harmattan Complex. Taylor is benefiting from strong organic growth; the Partnership's NGL production is up 14% from the 2005 exit rate.

Taylor also announces that it has entered into a series of financial swap arrangements that have the effect of fixing NGL margin, also known as frac spread, at approximately $20.50 per barrel for the period September through December 2006 on 15,900 barrels of propane-plus per month. The hedged volume is equal to approximately 70% of the Partnership's share of production from the Joffre Extraction Plant. The actual instruments are Mt. Belvieu priced propane and butane, WTI oil and AECO natural gas, all in U.S. dollars, with the entire package converted to Canadian dollars using a fixed rate swap. These swap arrangements fix commodity-based revenue, on a portion of the Partnership's production, at a level that is significantly above the long-term average.

Taylor will release second quarter 2006 results after the market closes on Wednesday, August 2. A conference call to discuss these results will be held on Thursday, August 3 at 9:30 a.m. MT / 11:30 a.m. ET. To participate in the conference call, please dial 416-695-9712 in the Toronto area and 1-800-772-8997 from all other areas of Canada. A recording of the call will be available for replay until August 9, 2006 by dialing 416-695-5275 or 1-800-509-0081 (passcode 627892) or by following the links on Taylor's website, www.taylorngl.com.

The Partnership owns and operates the RET Complex, the Harmattan Complex and the Joffre Extraction Plant, all in Alberta, and the Younger Extraction Plant in British Columbia. The Partnership also owns two natural gas liquids pipelines, the Ethylene Delivery System and the Joffre Feedstock Pipeline, both of which move products between Joffre, Alberta and Fort Saskatchewan, Alberta. The Joffre and Younger plants are natural gas liquids extraction facilities that produce ethane, propane, butane and condensate. The RET Complex and the Harmattan Complex are natural gas processing facilities that provide services to oil and gas producers.

Taylor NGL Limited Partnership units and convertible debentures trade on the Toronto Stock Exchange under the symbol TAY.UN and TAY.DB, respectively.


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