8-KRegulation FDExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Regulation FD Disclosure (Mar 8, 2007)

Filed March 8, 2007For Securities:EPDEPDU

Summary

This 8-K filing from Enterprise Products Partners L.P. (EPD) on March 8, 2007, announces the release of an investor presentation given at the National Association of Publicly Traded Partnerships Annual Conference. The presentation covered EPD's businesses, growth strategies, and recent financial performance. EPD is a North American midstream energy company involved in natural gas, NGLs, and crude oil services, with a significant presence in pipeline development. The filing also provides definitions and reconciliations for several non-GAAP financial measures, including Gross Operating Margin, Distributable Cash Flow, and EBITDA, which are crucial for investors to understand the company's operational profitability and cash-generating capabilities. The report clarifies EPD's relationship with Duncan Energy Partners L.P. (DEP), noting that DEP's financial statements will be consolidated with EPD's, with public owners of DEP units presented as a noncontrolling interest starting Q1 2007. This consolidation is expected to impact how EPD's financial performance is viewed by investors. The use of non-GAAP measures like distributable cash flow is highlighted as a key indicator for investors to assess the company's ability to sustain and potentially increase cash distributions.

Key Highlights

  • 1Enterprise Products Partners L.P. (EPD) filed an 8-K on March 8, 2007, to disclose an investor presentation given at the National Association of Publicly Traded Partnerships Annual Conference.
  • 2The presentation focused on EPD's business operations, growth strategies, and recent financial performance.
  • 3EPD is identified as a North American midstream energy company providing services for natural gas, NGLs, and crude oil, and a leader in pipeline development.
  • 4The filing provides detailed explanations and reconciliations for non-GAAP financial measures, including Gross Operating Margin, Distributable Cash Flow, and EBITDA.
  • 5The company detailed its relationship with Duncan Energy Partners L.P. (DEP), stating DEP's financial results will be consolidated into EPD's reporting.
  • 6Public unitholders of DEP will be recognized as a noncontrolling interest in EPD's consolidated financial statements beginning in the first quarter of 2007.
  • 7The presentation includes forward-looking statements, and investors are advised to refer to the associated presentation slides for details.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose an investor presentation given by Enterprise Products Partners L.P. (EPD) at the National Association of Publicly Traded Partnerships Annual Conference. This presentation provided an overview of the company's business, growth strategies, and financial performance to investors and analysts.

The key non-GAAP financial measures discussed are Gross Operating Margin, Distributable Cash Flow, and EBITDA. Gross Operating Margin measures core operational profitability. Distributable Cash Flow is a critical metric for investors to assess the company's ability to generate cash to pay and potentially increase distributions. EBITDA is used to evaluate financial performance and debt-paying ability, independent of financing and capital structure. EPD provides reconciliations to their GAAP counterparts for transparency.

Beginning in the first quarter of 2007, DEP's financial statements are consolidated into EPD's. While EPD will consolidate DEP's operations and debt, the public owners of DEP's common units will be presented as a noncontrolling interest in EPD's consolidated financial statements. This means a portion of EPD's reported net income or loss will be attributable to these noncontrolling interests.

A copy of the investor presentation is filed as Exhibit 99.1 to this Current Report on Form 8-K. Additionally, it was made available on Enterprise Products Partners' website at www.epplp.com and was archived there for 90 days.