8-KRegulation FDExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Regulation FD Disclosure (May 18, 2006)

Filed May 18, 2006For Securities:EPDEPDU

Summary

This Form 8-K filing by Enterprise Products Partners L.P. (EPD) on May 18, 2006, details information presented to investors and analysts regarding the company's growth strategies, capital projects, and recent financial performance. The presentation, attached as an exhibit, covers EPD's position as a North American midstream energy company involved in natural gas, NGLs, and crude oil services, with leadership in pipeline and midstream asset development across the continental U.S. and the Gulf of Mexico. The report also provides definitions and reconciliations for non-GAAP financial measures, specifically 'gross operating margin' and 'EBITDA,' which are used by management for evaluating performance and making capital allocation decisions. Investors are encouraged to review the attached presentation for further details on these financial metrics and the company's strategic initiatives.

Key Highlights

  • 1EPD presented its growth strategies, capital projects, and financial performance to investors and analysts on May 17, 2006.
  • 2The company is a North American midstream energy provider for natural gas, NGLs, and crude oil.
  • 3EPD is an industry leader in developing pipeline and midstream assets in the continental U.S. and the Gulf of Mexico.
  • 4The filing includes definitions and reconciliations for non-GAAP financial measures: gross operating margin and EBITDA.
  • 5Gross operating margin is presented as a key measure of core profitability and is used internally for capital allocation.
  • 6EBITDA is provided as a measure of financial performance, asset generation capability, and comparability within the midstream energy industry.
  • 7A copy of the investor presentation is filed as Exhibit 99.1 and available on the company's website.

Frequently Asked Questions

The primary purpose of this 8-K filing is to publicly disclose information presented by EPD's CEO to investors and analysts regarding the company's growth strategies, capital projects, and recent financial performance. This includes making the investor presentation available.

The key non-GAAP financial measures discussed are 'gross operating margin' and 'EBITDA'. Gross operating margin is used to assess the core profitability of EPD's operations and for internal capital allocation. EBITDA is used as a supplemental measure to evaluate financial performance, the ability of assets to generate cash for debt servicing, and for industry comparisons, without regard to financing methods or capital structure.

Investors can find more detailed information in the Enterprise Products Partners L.P. Investor Presentation dated May 18, 2006, which is filed as Exhibit 99.1 to this Form 8-K. The presentation is also available on the company's website, www.epplp.com, and will be archived there for 90 days.

The filing warns that forecasts of annual gross operating margin from capital projects are subject to various risks and uncertainties. These include potential variations in throughput and processing volumes, delays in construction or operation due to weather or other forces, deviations in construction and operating costs, and challenges in timely revenue realization. If these risks materialize or underlying assumptions prove incorrect, actual results could differ materially from forecasts.