8-KRegulation FDExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Regulation FD Disclosure (May 31, 2007)

Filed May 31, 2007For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on May 31, 2007, to disclose its participation in the Annual Wachovia Investor Tour. The primary purpose of this filing is to furnish an investor presentation that details the company's businesses, growth strategies, and financial performance. The presentation, available as Exhibit 99.1, offers insights into EPD's position as a North American midstream energy company involved in natural gas, NGLs, and crude oil services, as well as its leadership in developing midstream assets. The report also clarifies the relationship and financial reporting consolidation of Duncan Energy Partners L.P. (DEP) with EPD, noting DEP's recent IPO and its impact on EPD's consolidated financial statements. Furthermore, the filing emphasizes the use and definitions of key non-GAAP financial measures, including Gross Operating Margin, Distributable Cash Flow, EBITDA, and Consolidated EBITDA, which are crucial for investors to understand the company's operational profitability, liquidity, and ability to generate cash for distributions.

Key Highlights

  • 1EPD presented at the Annual Wachovia Investor Tour on May 31, 2007, sharing business, growth, and financial performance details.
  • 2The investor presentation (Exhibit 99.1) provides a comprehensive overview of EPD's midstream energy services and asset development.
  • 3The report clarifies the consolidation of Duncan Energy Partners L.P. (DEP) into EPD's financial statements, including DEP's public unitholder information.
  • 4EPD utilizes and defines several key non-GAAP financial measures: Gross Operating Margin, Distributable Cash Flow, EBITDA, and Consolidated EBITDA.
  • 5Gross Operating Margin is presented as a measure of core operational profitability, excluding certain expenses.
  • 6Distributable Cash Flow is highlighted as a key liquidity metric for assessing cash flow generation relative to distributions.
  • 7EBITDA and Consolidated EBITDA are provided as supplemental measures for assessing financial performance, debt serviceability, and operational comparability.
  • 8The filing includes detailed tables reconciling non-GAAP measures to GAAP figures for historical periods, offering transparency to investors.

Frequently Asked Questions

The main purpose of this Form 8-K filing is to provide investors and analysts with information presented at the Annual Wachovia Investor Tour on May 31, 2007. It includes an investor presentation that details the company's businesses, growth strategies, and financial performance.

Duncan Energy Partners L.P. (DEP) is consolidated into EPD's financial statements. While EPD consolidates DEP's operations, the public unitholders of DEP are presented as a noncontrolling interest in EPD's consolidated financial statements. DEP completed its initial public offering on February 5, 2007.

The key non-GAAP financial measures discussed are Gross Operating Margin, Distributable Cash Flow, EBITDA, and Consolidated EBITDA. Gross Operating Margin measures core profitability. Distributable Cash Flow is a key liquidity metric indicating cash generation for distributions. EBITDA and Consolidated EBITDA are used to assess operational performance and debt capacity, independent of financing and capital structure. These measures are important because management uses them internally for decision-making and they are commonly used by investors to evaluate the company's financial health and performance.

The filing states that detailed reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures (such as operating income, net income, and cash flow from operating activities) are presented within the accompanying investor presentation (Exhibit 99.1), specifically referenced on slides 63, 64, 65, and 66. The presentation is archived on EPD's website for 90 days.