8-KRegulation FDExhibits & Filings

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

Filed March 8, 2006For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed a Form 8-K on March 8, 2006, to disclose information presented by its CEO, Robert G. Phillips, at the 2006 Master Limited Partnership Investor Conference. The presentation covered EPD's growth strategies, capital spending program, and recent financial results. Key financial metrics such as gross operating margin, distributable cash flow, and EBITDA were discussed, along with reconciliations to GAAP measures. The filing also provided an update on the company's pro forma capitalization as of December 31, 2005, reflecting the proceeds from a March 2006 equity offering. Approximately $431 million in net proceeds were used to reduce outstanding debt under their revolving credit facility. This equity issuance increased partners' equity and resulted in a decrease in long-term debt.

Key Highlights

  • 1EPD management presented growth strategies, capital spending plans, and recent financial performance at the 2006 MLP Investor Conference.
  • 2The company highlighted its use of non-GAAP financial measures: Gross Operating Margin, Distributable Cash Flow, and EBITDA, with provided reconciliations to GAAP.
  • 3An equity offering in March 2006 raised approximately $431 million in net proceeds.
  • 4The proceeds from the equity offering were used to reduce long-term debt, specifically under the multi-year revolving credit facility.
  • 5Pro forma capitalization as of December 31, 2005, reflects the impact of the equity offering, showing a decrease in debt and an increase in partners' equity.
  • 6The filing includes detailed schedules reconciling non-GAAP financial measures (Gross Operating Margin, Distributable Cash Flow, EBITDA) to their comparable GAAP figures for relevant periods.
  • 7The presentation also touched upon the company's capital project financial forecast data, emphasizing underlying assumptions and associated risks.

Frequently Asked Questions

The primary purpose of this 8-K filing is to provide investors with access to the information presented by EPD's CEO at the 2006 Master Limited Partnership Investor Conference. This includes updates on the company's business strategies, capital investments, and financial results, as well as details about a recent equity offering.

EPD frequently uses Gross Operating Margin, Distributable Cash Flow, and EBITDA. Gross Operating Margin is used to assess the core profitability of operations. Distributable Cash Flow is a key liquidity metric used to evaluate the cash generated relative to distributions paid to partners and is important for assessing the sustainability of distributions. EBITDA is used as a supplemental measure to assess financial performance, debt service capability, and operating performance without regard to financing methods or capital structure.

The equity offering completed on March 8, 2006, raised approximately $431 million in net proceeds. The company used these proceeds to reduce its long-term debt, specifically amounts outstanding under its revolving credit facility. This transaction resulted in a pro forma decrease in debt and a corresponding increase in partners' equity as of December 31, 2005.

A copy of the investor presentation is filed as Exhibit 99.1 to this 8-K. Additionally, the presentation can be viewed on Enterprise Products Partners' website (www.epplp.com) for 90 days following the filing date. The 8-K itself includes several schedules (A, B, C, D) that provide detailed reconciliations of the non-GAAP financial measures discussed in the presentation to their corresponding GAAP figures.