8-KEarnings & ResultsExhibits & Filings

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

Filed October 26, 2005For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on October 26, 2005, to report on its financial results for the three and nine month periods ended September 30, 2005, and 2004. The report also notes a webcast conference call held on October 26, 2005, to discuss these results, which are detailed in an accompanying press release filed as Exhibit 99.1. The filing emphasizes the use of non-GAAP financial measures, including gross operating margin, distributable cash flow, and EBITDA, explaining their importance in evaluating segment performance, liquidity, and overall financial health as viewed by management and investors. Investors should pay close attention to the definitions and reconciliations provided for these non-GAAP measures, as they are used to assess core profitability, the ability to sustain cash distributions, and for comparative analysis within the midstream energy industry. The company highlights that these measures, while not replacements for GAAP figures, offer insights into operational performance and cash-generating capabilities that management uses internally and believes are beneficial for investor understanding.

Key Highlights

  • 1EPD announced its financial results for the third quarter and the first nine months of 2005 and 2004.
  • 2The company held a webcast conference call on October 26, 2005, to discuss these financial results.
  • 3The press release containing the detailed financial results is filed as Exhibit 99.1 to this 8-K.
  • 4The filing explicitly defines and discusses the use of key non-GAAP financial measures: gross operating margin, distributable cash flow, and EBITDA.
  • 5Gross operating margin is presented as a measure of core profitability for segment performance, used by management for capital allocation.
  • 6Distributable cash flow is highlighted as a key liquidity metric for assessing the ability to sustain and potentially increase cash distributions to unitholders.
  • 7EBITDA is provided as a supplemental measure for assessing asset performance independent of financing and capital structure.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce and provide access to Enterprise Products Partners L.P.'s financial results for the three and nine month periods ended September 30, 2005, and 2004, along with details on a related conference call.

The key non-GAAP measures discussed are gross operating margin, distributable cash flow, and EBITDA. They are important because management uses them to evaluate segment performance, assess liquidity and the ability to pay distributions, and compare the company's operational performance to peers, and investors can use them for a deeper understanding of the company's financial health beyond standard GAAP reporting.

The detailed financial results are provided in the press release dated October 26, 2005, which is filed as Exhibit 99.1 to this Form 8-K.

Distributable Cash Flow is defined as net income plus depreciation/amortization, certain lease expenses, and other adjustments, minus sustaining capital expenditures, among other items. It's relevant to investors because it's a key metric used to assess the cash flow generated by the partnership to sustain or support cash distributions to unitholders, which is a critical component of partnership unit value.