8-KEarnings & ResultsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Financial Results (May 3, 2005)

Filed May 3, 2005For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on May 3, 2005, announcing its financial and operational results for the three months ended March 31, 2005, and also detailing its use of non-GAAP financial measures. The report primarily serves to incorporate by reference a press release discussing these results and a conference call held on the same day. Investors are directed to this press release for the specific financial figures. The company also provided detailed definitions and rationales for its use of key non-GAAP financial metrics: gross operating margin, distributable cash flow, and EBITDA. EPD emphasizes that these measures are used internally for performance evaluation and capital allocation and are considered important by investors for assessing operational profitability, liquidity, and comparability within the midstream energy sector. The filing highlights that these non-GAAP measures should be considered alongside, not as substitutes for, GAAP-based financial reporting.

Key Highlights

  • 1EPD filed an 8-K on May 3, 2005, reporting results for the first quarter of 2005.
  • 2The primary purpose of the filing is to include a press release detailing Q1 2005 financial results and a webcast conference call discussing these results.
  • 3The company detailed its use of non-GAAP financial measures: gross operating margin, distributable cash flow, and EBITDA.
  • 4Gross operating margin is presented as a key measure of core operational profitability, evaluated on a segment basis.
  • 5Distributable cash flow is highlighted as a significant liquidity metric used to assess cash generation relative to planned distributions to partners.
  • 6EBITDA is defined and presented as a supplemental measure for assessing financial performance, debt servicing ability, and return on capital.
  • 7Investors are encouraged to review the incorporated press release (Exhibit 99.1) for specific financial data and reconciliations of non-GAAP measures to GAAP equivalents.

Frequently Asked Questions

The main purpose of this 8-K filing is to officially report Enterprise Products Partners L.P.'s financial results for the first quarter ended March 31, 2005, and to incorporate by reference the press release and information from a conference call that discussed these results. It also serves to explain the company's use of key non-GAAP financial measures.

The key non-GAAP financial measures discussed are gross operating margin, distributable cash flow, and EBITDA. The filing provides detailed explanations of how each measure is calculated and why the company believes it is important for investors to consider them.

The specific financial results for the first quarter of 2005 are detailed in the press release filed as Exhibit 99.1 to this 8-K report. The company also indicates that a replay of the conference call discussing these results will be available on their website, www.epplp.com, for 90 days.

Distributable cash flow is significant for investors because it serves as an indicator of the partnership's success in generating cash to support distributions to its unitholders. Management uses it to calculate coverage ratios for planned distributions, and it is a key metric for assessing the partnership's ability to sustain or increase quarterly cash distribution rates, which is crucial for yield-based valuations of publicly traded partnerships.