8-KMaterial AgreementsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Material Agreement (Jun 2, 2005)

Filed June 2, 2005For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on June 2, 2005, primarily to disclose an amendment to its Administrative Services Agreement with EPCO, Inc. The amendment, effective February 24, 2005, excludes the recently acquired Texas Eastern Products Pipeline Company, LLC (TEPPCO GP) and its affiliates from the definition of the "EPCO Group" within the agreement. This exclusion means that business opportunities pursued by the TEPPCO Group will no longer be subject to the requirement of being first offered to Enterprise Products Partners L.P. under the existing Section 5.4 of the agreement. This amendment is significant for investors as it clarifies the scope of business opportunities that Enterprise Products Partners L.P. has a preferential right to pursue. By carving out the TEPPCO Group, the amendment potentially limits future growth avenues for EPD through this specific right of first refusal. Investors should consider the strategic implications of this exclusion on EPD's future acquisition pipeline and potential conflicts of interest, particularly given EPCO's significant ownership stake in both entities.

Key Highlights

  • 1Enterprise Products Partners L.P. amended its Administrative Services Agreement with EPCO, Inc.
  • 2The amendment excludes TEPPCO GP and its affiliates (the 'TEPPCO Group') from the definition of 'EPCO Group'.
  • 3This exclusion is effective retroactively as of February 24, 2005.
  • 4Prior to the amendment, the 'EPCO Group' was restricted from acquiring similar or related businesses without first offering them to Enterprise Products Partners L.P.
  • 5The TEPPCO Group's acquisition of Texas Eastern Products Pipeline Company, LLC prompted this amendment.
  • 6The amendment means TEPPCO Group business opportunities will not be offered to EPD under the agreement's right of first refusal clause.
  • 7The filing was made on June 2, 2005, regarding an event on May 31, 2005.

Frequently Asked Questions

The primary purpose of this filing is to announce an amendment to the Administrative Services Agreement between Enterprise Products Partners L.P. and EPCO, Inc. This amendment excludes a specific group of entities, the TEPPCO Group, from certain provisions of the agreement.

The amendment was necessary because an affiliate of EPCO acquired Texas Eastern Products Pipeline Company, LLC (TEPPCO GP) on February 24, 2005. This acquisition created a need to exclude the TEPPCO Group from the definition of 'EPCO Group' in the agreement, thereby removing the requirement for them to offer their business opportunities to Enterprise Products Partners L.P.

By excluding the TEPPCO Group, Enterprise Products Partners L.P. will no longer have a right of first refusal on business opportunities pursued by the TEPPCO Group. This potentially limits the future acquisition or growth opportunities that EPD would have been able to consider under the original agreement.

The key parties are Enterprise Products Partners L.P. (EPD), its general partner Enterprise Products GP, LLC, Enterprise Products Operating L.P., EPCO, Inc., and Enterprise Products OLPGP, Inc. The excluded entities are TEPPCO GP, TEPPCO Partners, L.P., and their controlled affiliates.