8-KRegulation FDExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Regulation FD Disclosure (Jan 17, 2006)

Filed January 17, 2006For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on January 17, 2006, to disclose that its representatives would be presenting to investors and analysts from January 17-24, 2006. The presentation, filed as an exhibit, details the company's growth strategies and capital projects. EPD is a North American midstream energy company providing services for natural gas, NGLs, and crude oil, operating primarily through its subsidiary Enterprise Products Operating L.P. The filing also includes detailed explanations and reconciliations for non-GAAP financial measures such as gross operating margin, distributable cash flow, and EBITDA. These metrics are presented as key performance indicators used by management and important for investors to understand the company's profitability and cash flow generation capabilities, particularly in relation to capital projects and distributions. Investors are cautioned that these non-GAAP measures should be considered alongside, and not as substitutes for, GAAP-based financial measures.

Key Highlights

  • 1EPD is conducting investor and analyst presentations from January 17-24, 2006, to discuss growth strategies and capital projects.
  • 2A detailed investor presentation (Exhibit 99.1) is filed with the 8-K, outlining the company's strategic initiatives.
  • 3The filing clarifies EPD's business as a North American midstream energy provider for natural gas, NGLs, and crude oil.
  • 4Extensive definitions and reconciliations of non-GAAP financial measures (gross operating margin, distributable cash flow, EBITDA) are provided.
  • 5The company emphasizes that these non-GAAP measures are used internally by management and are crucial for investor understanding of project profitability and cash flow.
  • 6A reconciliation for distributable cash flow to GAAP operating activities cash flows for the four quarters post-GulfTerra merger (4Q04-3Q05) is included, showing significant reinvestment of cash flow.
  • 7Investors are advised to consider the forward-looking nature of capital project forecasts and the associated risks and assumptions.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose that Enterprise Products Partners L.P. (EPD) representatives will be making presentations to investors and analysts regarding the company's growth strategies and capital projects. A copy of the presentation is filed as an exhibit.

The key non-GAAP financial measures discussed are gross operating margin, distributable cash flow, and EBITDA. The filing provides detailed explanations, definitions, and reconciliations of these measures to their comparable GAAP financial measures.

EPD uses non-GAAP measures because management believes they provide valuable insights into the company's core profitability, project profitability, and cash flow generation that are essential for evaluating projects and distributions. These measures are also used by management in decision-making and capital allocation, and they offer investors a perspective similar to management's.

The filing provides a calculation of distributable cash flow and reconciles it to GAAP operating activities cash flows for the period after the GulfTerra merger. It also shows the amount of distributable cash flow reinvested for future growth, indicating the company's ability to generate cash beyond distributions.