8-KLeadership ChangesRegulation FDExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Executive Changes (Jun 5, 2007)

Filed June 5, 2007For Securities:EPDEPDU

Summary

This 8-K filing from Enterprise Products Partners L.P. (EPD) reports the resignation of Robert G. Phillips as Director, President, and Chief Executive Officer of its general partner, effective June 30, 2007. Mr. Phillips will remain in his roles until his departure. The company has initiated a search for his replacement and has appointed Dr. Ralph S. Cunningham as acting Chief Executive Officer, effective July 1, 2007. Dr. Cunningham brings extensive experience in the energy sector, including prior leadership roles within EPD's general partner and other energy companies. In connection with his resignation, Mr. Phillips has entered into a Separation Agreement with EPCO, an affiliate of the general partner. This agreement outlines a separation payment of $12,000,000, payment for accrued unused paid time off, and continued COBRA payments until November 30, 2008, or until he becomes eligible for subsequent employer-provided medical benefits. As part of the agreement, Mr. Phillips will forfeit all unvested restricted units, options, and unit appreciation rights, and has released EPCO and its affiliates from potential claims, while agreeing to confidentiality and non-solicitation provisions.

Key Highlights

  • 1Robert G. Phillips resigns as Director, President, and CEO of Enterprise Products GP, LLC, effective June 30, 2007.
  • 2Dr. Ralph S. Cunningham appointed as acting Chief Executive Officer, effective July 1, 2007.
  • 3A search is underway to find a permanent replacement for Mr. Phillips.
  • 4Mr. Phillips will receive a separation payment of $12,000,000.
  • 5The Separation Agreement includes payments for unused paid time off and COBRA continuation coverage.
  • 6Mr. Phillips will forfeit all unvested equity awards (restricted units, options, unit appreciation rights).
  • 7Mr. Phillips has released EPCO and affiliates from claims and agreed to confidentiality and non-solicitation terms.

Frequently Asked Questions

The primary reason for this 8-K filing is to announce the resignation of Robert G. Phillips from his executive and director positions at Enterprise Products Partners L.P.'s general partner and to detail the terms of his departure and interim leadership.

Dr. Ralph S. Cunningham will serve as the acting Chief Executive Officer beginning July 1, 2007, following Mr. Phillips's resignation. The company is initiating a search for a permanent CEO.

Mr. Phillips will receive a separation payment of $12,000,000, payment for accrued unused paid time off, and COBRA continuation payments until November 30, 2008, or until he obtains new employer-sponsored medical coverage.

Upon the effective date of his resignation, all of Mr. Phillips's unvested restricted units, options, and unit appreciation rights in Enterprise Products Partners L.P. or its affiliate Enterprise GP Holdings L.P. will be forfeited.