8-KEarnings & ResultsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Financial Results (Oct 24, 2006)

Filed October 24, 2006For Securities:EPDEPDU

Summary

This Form 8-K filing by Enterprise Products Partners L.P. (EPD) on October 24, 2006, primarily serves to announce the company's financial results for the three and nine months ended September 30, 2006, and 2005. The report details the issuance of a press release and the holding of a webcast conference call to discuss these results. Investors should note that EPD utilizes and discusses non-GAAP financial measures such as gross operating margin, distributable cash flow, and EBITDA. The filing provides definitions and reconciliations for these measures, emphasizing their importance for evaluating segment performance, liquidity, and overall financial health from management's perspective. The company highlights the significance of these non-GAAP metrics for investors in understanding operational profitability, cash flow generation relative to distributions, and financial performance compared to industry peers. The inclusion of equity method affiliates in segment gross operating margin and the focus on distributable cash flow as a key liquidity metric for partners underscore the partnership structure and its capital allocation strategy.

Key Highlights

  • 1EPD announced financial results for the three and nine months ended September 30, 2006 and 2005.
  • 2The company held a webcast conference call to discuss these financial results.
  • 3The filing includes definitions and explanations of non-GAAP financial measures: gross operating margin, distributable cash flow, and EBITDA.
  • 4Gross operating margin is presented as a key performance measure for evaluating segment profitability and capital allocation decisions.
  • 5Distributable cash flow is highlighted as a significant liquidity metric used to assess cash flows available for partner distributions.
  • 6EBITDA is provided as a supplemental measure for assessing financial performance, debt service ability, and comparability across the midstream energy industry.
  • 7The press release containing these results is filed as Exhibit 99.1 to this Form 8-K.

Frequently Asked Questions

This Form 8-K filing announces Enterprise Products Partners L.P.'s financial results for the three and nine months ended September 30, 2006, and 2005. These results were detailed in a press release and discussed during a webcast conference call.

EPD utilizes gross operating margin, distributable cash flow, and EBITDA. Gross operating margin is used to evaluate segment performance and core profitability. Distributable cash flow is a key liquidity metric for assessing cash available for distributions to partners. EBITDA is used as a supplemental measure to assess financial performance, debt service ability, and compare operational performance to peers without regard to financing.

The detailed financial results and the explanations/reconciliations of the non-GAAP measures are provided in the press release filed as Exhibit 99.1 to this Form 8-K. The webcast conference call discussing these results was also made available on EPD's website for a period of 90 days.

EPD includes earnings from equity method unconsolidated affiliates in its measurement of segment gross operating margin. The company views these equity investments as a vital part of its business strategy, allowing for favorable economies of scale and aligning interests with customers.