8-KRegulation FDExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Regulation FD Disclosure (May 31, 2006)

Filed May 31, 2006For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on May 31, 2006, detailing a presentation given to investors and analysts by company executives. The presentation focused on the company's growth strategies, capital spending plans, and recent financial performance. EPD highlighted its position as a North American midstream energy company providing essential services for natural gas, natural gas liquids (NGLs), and crude oil. The filing also provided detailed definitions and reconciliations for key non-GAAP financial measures used by the company, including Gross Operating Margin, Distributable Cash Flow, EBITDA, and Leverage Ratio Cash Flow, emphasizing their importance in evaluating operational performance and liquidity. Investors should note that the presentation, and thus the information within this 8-K, is forward-looking and subject to various risks and uncertainties. The company explicitly stated it does not intend to update these forward-looking statements. The accompanying schedules provide reconciliations of non-GAAP measures to their closest GAAP counterparts, offering transparency into how EPD assesses its financial health and project viability.

Key Highlights

  • 1EPD held an investor and analyst presentation on May 31, 2006, covering growth strategies, capital spending, and financial performance.
  • 2The presentation is incorporated by reference as Exhibit 99.1 and available on the EPD website.
  • 3EPD defines and reconciles key non-GAAP financial measures: Gross Operating Margin, Distributable Cash Flow, EBITDA, and Leverage Ratio.
  • 4Gross Operating Margin is used to evaluate core profitability of operations and segment performance.
  • 5Distributable Cash Flow is highlighted as a key liquidity metric for assessing cash generation relative to distributions and a measure of success in providing cash returns to partners.
  • 6EBITDA is presented as a measure of financial performance independent of financing and capital structure.
  • 7The company cautioned that financial forecasts, including project gross operating margin, are forward-looking statements subject to risks and uncertainties, and EPD has no obligation to update them.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose the contents of a presentation made by Enterprise Products Partners L.P. (EPD) executives to investors and analysts. This presentation covered the company's growth strategies, capital expenditure program, and recent financial results.

The key non-GAAP financial measures discussed are Gross Operating Margin, Distributable Cash Flow, EBITDA, and Leverage Ratio Cash Flow. These measures are important because EPD uses them internally and believes they provide investors with valuable insights into the company's core profitability, liquidity, and ability to generate cash flows for distributions, beyond traditional GAAP measures.

Yes, the filing includes several schedules (A, B, C, and D) that provide reconciliations of the non-GAAP financial measures (Gross Operating Margin, Distributable Cash Flow, EBITDA, and Leverage Ratio Cash Flow) to their most directly comparable GAAP measures, such as operating income or cash flow from operating activities.

The company explicitly states that forecasts, particularly those related to the gross operating margin of capital projects, are based on assumptions that may not prove correct. Risks include variations in throughput volumes, construction/operational challenges (weather, economic forces), cost overruns, and timely realization of revenues. EPD emphasizes that actual results could differ materially and states they have no obligation to update these forward-looking statements.