8-KEarnings & ResultsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Financial Results (Jan 24, 2007)

Filed January 24, 2007For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on January 24, 2007, to report its financial results for the fourth quarter and full year ended December 31, 2006. The filing primarily references a press release announcing these results and a webcast conference call, both of which provide detailed financial performance information. Investors should note that the company utilizes and discusses several non-GAAP financial measures, including gross operating margin, distributable cash flow, and EBITDA, in its reporting. These measures are explained in detail, with reconciliations to GAAP equivalents provided in the press release, to offer a more granular view of operational profitability and cash flow generation. The company emphasizes the importance of these non-GAAP metrics for evaluating segment performance, assessing liquidity, and comparing financial performance within the midstream energy industry. Gross operating margin is presented as a key measure of core operational profitability, distributable cash flow is highlighted as a significant liquidity metric for assessing cash flow available for distributions, and EBITDA is used to evaluate asset performance independent of financing methods. Investors are encouraged to review the referenced press release for specific financial figures and detailed reconciliations.

Key Highlights

  • 1EPD filed an 8-K on January 24, 2007, reporting financial results for the period ending December 31, 2006.
  • 2The primary purpose of the filing was to announce the release of Q4 and full-year 2006 financial results via press release and webcast.
  • 3The company utilizes and explains several non-GAAP financial measures: gross operating margin, distributable cash flow, and EBITDA.
  • 4Gross operating margin is highlighted as a key measure of core profitability for segment performance.
  • 5Distributable cash flow is presented as a critical metric for assessing liquidity and the ability to support cash distributions to partners.
  • 6EBITDA is provided as a supplemental measure for assessing financial performance and debt-paying ability, independent of financing.
  • 7The press release containing the financial results and reconciliations to GAAP is filed as an exhibit (Exhibit 99.1).

Frequently Asked Questions

The main purpose of this 8-K filing is to report Enterprise Products Partners L.P.'s financial results for the three and twelve months ended December 31, 2006, which were announced on January 24, 2007, via a press release and a webcast conference call.

The key non-GAAP financial measures discussed are gross operating margin, distributable cash flow, and EBITDA. These measures are used to provide additional insights into the company's operational profitability, liquidity, and financial performance.

EPD uses non-GAAP financial measures because they believe these metrics provide a more accurate reflection of core operational profitability and liquidity. Senior management uses them for internal reporting, capital allocation, and assessing performance, and they believe investors also benefit from access to these same measures for evaluating segment results, cash flow generation, and overall financial health.

The detailed financial results and reconciliations of the non-GAAP measures to GAAP are available in the press release dated January 24, 2007, which is filed as Exhibit 99.1 to this Form 8-K. The webcast conference call replay will also be available on Enterprise's website (www.epplp.com) for 90 days.