8-KRegulation FDExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Regulation FD Disclosure (Jun 21, 2006)

Filed June 21, 2006For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on June 21, 2006, to disclose information presented in an investor and analyst presentation by its Chief Financial Officer. The presentation focused on the company's growth strategies, capital spending program, and recent financial performance. EPD highlighted its position as a North American midstream energy company involved in natural gas, NGLs, and crude oil services, with a significant presence in pipeline development across the continental U.S. and the Gulf of Mexico. Key to investors is EPD's emphasis on its non-GAAP financial measures, including Gross Operating Margin, Distributable Cash Flow (DCF), and EBITDA. These metrics are used internally for performance evaluation and capital allocation, and EPD believes they provide valuable insights to investors for assessing operational profitability, liquidity, and the ability to support distributions. The filing also provides reconciliations of these non-GAAP measures to their GAAP equivalents, offering transparency into the company's financial health and growth prospects. Investors should pay attention to the definitions and reconciliations provided for these metrics as they are central to understanding EPD's financial reporting.

Key Highlights

  • 1Enterprise Products Partners L.P. (EPD) filed an 8-K on June 21, 2006, disseminating an investor presentation.
  • 2The presentation covers EPD's growth strategies, capital spending, and financial performance.
  • 3EPD is a North American midstream energy company focused on natural gas, NGLs, and crude oil services.
  • 4The company detailed its use of non-GAAP financial measures: Gross Operating Margin, Distributable Cash Flow (DCF), and EBITDA, providing definitions and reconciliations.
  • 5These non-GAAP measures are used for internal performance assessment and capital allocation, and are presented to investors for evaluating profitability and liquidity.
  • 6EPD provided details on its segment gross operating margins, showing significant growth in NGL Pipelines & Services and Onshore Natural Gas Pipelines & Services.
  • 7Reconciliations for DCF and EBITDA to GAAP figures were included, along with calculations for reinvested DCF and Leverage Ratio.

Frequently Asked Questions

This 8-K filing's primary purpose is to publicly disclose information presented by EPD's CFO to investors and analysts. It serves to disseminate details about the company's growth strategies, capital spending plans, and recent financial performance, ensuring broad investor access to key business updates.

EPD highlights Gross Operating Margin, Distributable Cash Flow (DCF), and EBITDA. These measures are important because management uses them for internal performance evaluation and capital allocation. For investors, they provide insights into the core profitability of operations, the company's ability to generate cash for distributions and debt service, and its overall financial health, often offering a clearer view than GAAP measures alone.

EPD provides reconciliations for its non-GAAP measures (Gross Operating Margin, Distributable Cash Flow, and EBITDA) to their most directly comparable GAAP financial measures (Operating Income or Net Cash Provided by Operating Activities) in attached Schedules A, B, and D. This offers transparency and allows investors to understand the adjustments made.

The attached schedules provide detailed breakdowns of segment gross operating margins, reconciliations of Distributable Cash Flow to Net Income and Net Cash from Operations, calculations of reinvested Distributable Cash Flow since specific dates, reconciliations of EBITDA to Net Income and Net Cash from Operations, and calculations for the Leverage Ratio, including Leverage Ratio Cash Flow and its reconciliation to GAAP.