8-KRegulation FDExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Regulation FD Disclosure (Aug 17, 2006)

Filed August 17, 2006For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) has filed an 8-K report on August 17, 2006, to disclose the expected receipt of approximately $50 million in cash during the third quarter of 2006 from partial recovery of business interruption insurance claims. These claims are related to damages incurred from Hurricanes Katrina, Rita, and Ivan. As of August 16, 2006, the company had already collected approximately $42 million of this estimated total. This financial recovery is a positive development for EPD, as it provides a significant cash inflow that can bolster its financial position. Investors should note that this recovery is a partial settlement and relates to business interruptions, implying that the underlying business operations were impacted by these natural disasters. The timely collection of a substantial portion of the expected insurance payout indicates effective claims management by the company.

Key Highlights

  • 1EPD expects to receive approximately $50 million in cash in Q3 2006 from business interruption insurance claims.
  • 2The insurance claims are related to Hurricanes Katrina, Rita, and Ivan.
  • 3As of August 16, 2006, EPD had already collected $42 million of the estimated $50 million recovery.
  • 4This filing is a Regulation FD Disclosure, meaning the information is publicly disseminated.
  • 5The press release detailing this information is included as an exhibit to the 8-K.
  • 6The event date reported is August 16, 2006, and the filing date is August 17, 2006.

Frequently Asked Questions

This 8-K filing is to publicly disclose that Enterprise Products Partners L.P. expects to receive approximately $50 million in cash during the third quarter of 2006 as a partial recovery from business interruption insurance claims related to Hurricanes Katrina, Rita, and Ivan.

As of August 16, 2006, Enterprise Products Partners had already collected approximately $42 million out of the estimated total $50 million in insurance recoveries.

The insurance recovery provides a significant cash inflow to the company, which can strengthen its financial position and liquidity. It helps to offset some of the financial impact of the business interruptions caused by the hurricanes.

The filing states this is a 'partial recovery' of business interruption insurance claims. Therefore, it is unlikely to fully cover all losses incurred due to the hurricanes; it represents a settlement for a portion of the business interruption impact.