8-KRegulation FDExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Regulation FD Disclosure (Apr 5, 2005)

Filed April 5, 2005For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on April 5, 2005, primarily to disclose presentation materials for the Howard Weil's 33rd Annual Energy Conference. The filing is significant for investors as it provides supplementary information and management commentary through slides that will be available to the public and posted on the company's website. Key for investors is the use of non-GAAP financial measures, specifically "gross operating margin" and "EBITDA," which the company utilizes to offer a more focused view of operational performance and financial health beyond standard GAAP reporting. The presentation also includes pro forma balance sheet information reflecting recent debt and equity offerings, offering insight into the company's capital structure post-financing. Investors should review the attached slide presentation (Exhibit 99.1) for detailed discussions on these financial metrics and the company's strategic positioning. Management's rationale for using these non-GAAP measures is to provide investors with additional insights into operational efficiency and financial flexibility. The inclusion of pro forma data is also crucial for understanding the impact of recent capital-raising activities on the partnership's financial standing.

Key Highlights

  • 1EPD is presenting at Howard Weil's 33rd Annual Energy Conference on April 5, 2005.
  • 2Presentation slides are attached as Exhibit 99.1 and will be available on the EPD website.
  • 3The presentation utilizes the non-GAAP financial measure of "gross operating margin" (defined as operating income before D&A, certain lease expenses, asset gains/losses, and SG&A).
  • 4The presentation also uses the non-GAAP financial measure of "EBITDA" (defined as net income plus interest, taxes, and D&A).
  • 5Management believes these non-GAAP measures offer useful insights to investors regarding financial condition and results of operations.
  • 6Reconciliations for gross operating margin to operating income and EBITDA to cash flow from operations are provided in the presentation.
  • 7Selected pro forma unaudited balance sheet information as of December 31, 2004, reflecting proceeds from February 2005 debt and equity offerings, is included.

Frequently Asked Questions

The main purpose of this 8-K filing is to publicly disclose the presentation materials that Enterprise Products Partners L.P. executives will use at Howard Weil's 33rd Annual Energy Conference. This ensures that all investors have access to the same information presented by management.

The filing highlights two non-GAAP financial measures: "gross operating margin" and "EBITDA." Gross operating margin is presented as operating income before depreciation, depletion, amortization, certain lease expenses, asset gains/losses, and SG&A. EBITDA is defined as net income or loss plus interest expense, provision for income taxes, and depreciation, depletion, and amortization expense.

Enterprise Products Partners L.P. management believes that gross operating margin and EBITDA provide useful information to investors by offering insights into the partnership's operational performance and financial flexibility that may not be apparent from GAAP measures alone. These metrics can help investors better understand the underlying operational results and cash-generating capabilities.

The pro forma unaudited balance sheet information as of December 31, 2004, reflects the impact of debt and equity offerings that the company completed in February 2005. This allows investors to see a snapshot of the partnership's financial position after these significant capital-raising activities.