March 30, 2010

USA: Dan Duncan, Billionaire Philanthropist, Dies at 77

. NEW YORK CITY / BusinessWeek / Bloomberg / March 30, 2010 By Joe Carroll and David Wethe Dan L. Duncan, the Texas pipeline billionaire who gave hundreds of millions of dollars to hospitals, museums and wildlife associations, died March 28 at his home in Houston. He was 77. Photo credit: WorldBuzzNow During the past four decades, Duncan parlayed $10,000 and two fuel trucks into a trio of publicly traded entities with a combined market value of $29.2 billion. The biggest of the three, Enterprise Products Partners LP, returned 20 percent a year during the past decade, compared with 1 percent annual losses for the Standard & Poor’s 500 Index. Houston-based Enterprise said the cause of Duncan’s death was unknown. “People like him are irreplaceable,” said Mark Wallace, chief executive officer for Texas Children’s Hospital in Houston. Duncan and his wife made a “transformational gift” to the hospital in late 2007 for $50 million. “He will be remembered as one of the greatest philanthropists in the history of the Texas Medical Center,” Wallace said. Duncan didn’t limit his involvement to writing checks, Wallace said. “I spent so many hours with him one on one talking about the medical center. That was one of the key differences in Dan Duncan. He wasn’t just behind the scenes.” Duncan, who was chairman and the largest investor in Enterprise Products Partners when he died, ranked as the third- richest Texan by Forbes magazine this month, behind Wal-Mart Stores Inc. heir Alice Walton and Dell Inc. founder Michael Dell. Among U.S. billionaires, Duncan was No. 30. Helping Everybody Forbes estimated Duncan’s fortune at $9 billion. Beneficiaries of his generosity included the University of Texas’ M.D. Anderson Cancer Center, the Texas Heart Institute, the Boy Scouts of America, the Houston Zoo and Baylor College of Medicine, where he was diagnosed with and treated for prostate cancer in 1995. Richard Wainerdi, chief executive for the Texas Medical Center, estimated Duncan made $250 million in donations to hospitals and other institutions in the Texas Medical Center system during the past five years. “He really wanted to help everybody,” said Wainerdi, who knew Duncan more than 10 years. The Texas Medical Center, located on the edge of downtown Houston, is made up of 48 institutions and has 5.5 million patient visits a year, according to its Web site. Top 50 Giver “His philanthropy spread over many areas in Houston and beyond,” C. Kent Osborne, director of the Dan L. Duncan Cancer Center at Baylor College of Medicine, said in a telephone interview. “In terms of Baylor, he was very generous, giving $100 million to the cancer center of which I’m the director. I’ll never forget he entrusted me and my colleagues at a very early stage before we had really proven ourselves.” Duncan’s contributions to medical research, orphans and the poor amounted to $259 million from 2004 to 2008, landing him in the 38th spot on BusinessWeek’s Top 50 American Givers list. In addition to membership on university and museum boards, Duncan was an avid hunter and member of the Houston Safari Club. His charitable endeavors included the 5,000-acre Double “D” Ranch in Texas, which introduces children to fishing and hunting, BusinessWeek said in a November 2008 article. After forming Enterprise in 1968 to haul propane, Duncan expanded into crude-oil pipelines, fuel storage and natural-gas processing. Teppco Deal In October, Enterprise purchased another Duncan-controlled partnership, Teppco Partners LP, for about $3.3 billion. The acquisition swelled Enterprise’s asset base to 48,000 miles of pipelines and enough storage space to hold every barrel of oil imported into the U.S. over a three-week period. Enterprise is the majority owner of the Independence Hub, a floating platform in the Gulf of Mexico that gathers gas from 15 wells reaching 8,000 feet (2,438 meters) beneath the sea surface. The company also operates a 4,700-mile pipeline that carries gasoline and diesel from refineries in Texas to markets in the U.S. Northeast. As a master limited partnership, Enterprise relies on assets that generate steady cash flow used to make payouts to unit holders. The executive teams overseeing Houston-based Enterprise Products, Enterprise GP Holdings LP and Duncan Energy Partners LP, will stay in their current roles, the partnership said yesterday in a statement. Enterprise Products is the largest U.S. pipeline partnership by market value. Duncan is survived by his wife, Jan, as well as four children and four grandchildren, Enterprise said in the statement. [rc] With assistance from Jordan Burke in New York. Editors: Susan Warren, Tony Cox. E-Mail: Joe Carroll in Chicago jcarroll8@bloomberg.net E-Mail: David Wethe in Houston dwethe@bloomberg.net ©2010 Bloomberg L.P