8-KEarnings & ResultsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Financial Results (Jul 26, 2005)

Filed July 26, 2005For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on July 26, 2005, reporting its financial results for the three and six-month periods ended June 30, 2005, and 2004. The report primarily incorporates by reference a press release detailing these results and mentions a webcast conference call held to discuss them. The filing also clarifies the use of several non-GAAP financial measures, including gross operating margin, distributable cash flow, and EBITDA, providing detailed definitions and their importance for evaluating operational performance and liquidity. Investors should note that the core of the financial update is within the referenced press release. The 8-K itself serves as a notification mechanism. The emphasis on non-GAAP measures like distributable cash flow indicates management's focus on cash generation capabilities for distributions to partners, a key metric for investors in master limited partnerships. The definitions provided are crucial for understanding how EPD internally assesses and reports its financial health and operational success.

Key Highlights

  • 1EPD reported financial results for the three and six-month periods ending June 30, 2005, compared to the same periods in 2004.
  • 2The 8-K filing incorporates by reference a press release (Exhibit 99.1) containing the detailed financial results.
  • 3A webcast conference call was held to discuss the financial results, with replays available on the EPD website.
  • 4The filing explicitly defines and discusses the use of non-GAAP financial measures: Gross Operating Margin, Distributable Cash Flow, and EBITDA.
  • 5Gross Operating Margin is presented as a key performance indicator for core operational profitability, used by management for capital allocation.
  • 6Distributable Cash Flow is highlighted as a significant liquidity metric used to assess cash generation relative to planned partner distributions and is important for investors evaluating yield.
  • 7EBITDA is defined and discussed as a supplemental measure for assessing financial performance irrespective of financing and capital structure.

Frequently Asked Questions

The main purpose of this 8-K filing is to report Enterprise Products Partners L.P.'s financial results for the second quarter and first half of 2005 and to incorporate by reference the press release that details these results. It also serves to inform investors about the company's use and definition of key non-GAAP financial metrics.

The detailed financial results are contained within the press release dated July 26, 2005, which is filed as Exhibit 99.1 to this 8-K report. The press release is incorporated by reference into the filing.

The non-GAAP financial measures discussed are Gross Operating Margin, Distributable Cash Flow, and EBITDA. Gross Operating Margin measures core operational profitability. Distributable Cash Flow is a key liquidity metric for assessing cash available for distributions to partners, which is crucial for investors in partnerships. EBITDA is used to assess financial performance and asset generation capability without regard to financing methods.

Distributable Cash Flow is defined as net income or loss plus non-cash charges (like depreciation and amortization), adjusted for items such as cash distributions from unconsolidated affiliates, sustaining capital expenditures, gains/losses on asset sales, and other specific adjustments. Management uses it to compare cash generated to expected partner distributions and to calculate coverage ratios.