8-KEarnings & ResultsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Financial Results (Apr 25, 2006)

Filed April 25, 2006For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on April 25, 2006, announcing its financial results for the first quarter ended March 31, 2006, compared to the same period in 2005. The filing primarily serves to attach the earnings press release and details the company's use of non-GAAP financial measures. Investors should note that the press release itself contains the substantive financial performance information. The company emphasizes its use of "gross operating margin," "distributable cash flow," and "EBITDA" as key performance indicators, providing definitions and reconciliations to GAAP measures. These non-GAAP measures are presented as they are used internally by management to assess operational profitability, liquidity, and overall financial health, and are intended to provide investors with comparable insights. While the specific financial figures are not detailed within the 8-K itself, the report indicates a conference call and webcast were held to discuss these results, with replay available on their website. Investors interested in EPD's performance for Q1 2006 should refer to the press release (Exhibit 99.1) for detailed financial data and management's commentary on operational achievements and outlook. The definitions provided for non-GAAP measures are crucial for understanding how management evaluates the business and its ability to generate cash for distributions.

Key Highlights

  • 1EPD announced its Q1 2006 financial results via a press release filed as Exhibit 99.1.
  • 2The filing highlights the company's use of non-GAAP financial measures: Gross Operating Margin, Distributable Cash Flow, and EBITDA.
  • 3Detailed definitions and reconciliations to GAAP measures are provided for these non-GAAP metrics.
  • 4Gross Operating Margin is presented as a key measure of core operational profitability, used by management for capital allocation.
  • 5Distributable Cash Flow is emphasized as a crucial liquidity metric for assessing cash flow generation and its ability to support partner distributions.
  • 6EBITDA is provided as a supplemental measure to assess financial performance independent of financing methods and capital structure.
  • 7A conference call and webcast were held to discuss the Q1 2006 results, with replay information available.

Frequently Asked Questions

The 8-K filing itself does not contain the specific financial figures for Q1 2006. These details are provided in the press release (Exhibit 99.1) attached to this filing. Investors should refer to that press release for information on revenue, net income, and other performance indicators for the quarter.

EPD uses these non-GAAP measures because management believes they provide a more insightful view of the company's core operational profitability, liquidity, and financial performance. Gross Operating Margin helps assess segment profitability, Distributable Cash Flow indicates the cash available for distributions to partners, and EBITDA is used for performance comparison and assessment of debt-paying ability, without the impact of financing or capital structure.

A press release dated April 25, 2006, containing the detailed financial results and commentary, is filed as Exhibit 99.1. The company also held a webcast conference call to discuss these results, and a replay is available on Enterprise Products Partners L.P.'s website (www.epplp.com) for 90 days following the call.

Distributable Cash Flow is defined as net income plus depreciation, amortization, and accretion, less sustaining capital expenditures, among other adjustments, to reflect cash available for distributions. Gross Operating Margin is defined as operating income before depreciation, amortization, accretion, certain lease expenses, gains/losses on asset sales, and G&A expenses, designed to measure core operating profitability.