Summary
Enterprise Products Partners L.P. (EPD) filed an 8-K on October 25, 2007, to announce its financial results for the third quarter and the first nine months of 2007. The report also details the company's use of non-GAAP financial measures, including gross operating margin, distributable cash flow, and EBITDA, providing definitions and their importance for assessing operational performance and liquidity. Investors should note that EPD's press release and webcast are the primary sources of detailed financial performance. The 8-K serves as a notification and incorporates the press release as an exhibit, allowing investors to access the specific operational and financial figures discussed. The company emphasizes these non-GAAP metrics as key indicators used by management and investors to evaluate segment profitability, cash generation capabilities, and comparability within the midstream energy sector.
Key Highlights
- 1EPD announced its financial results for the three and nine months ended September 30, 2007, via a press release filed with this 8-K.
- 2The filing incorporates by reference the full earnings press release (Exhibit 99.1) which contains detailed financial performance data.
- 3EPD utilizes and explains several key non-GAAP financial measures: Gross Operating Margin, Distributable Cash Flow, and EBITDA.
- 4Gross Operating Margin is presented as a measure of core operational profitability and is used by management for capital allocation decisions.
- 5Distributable Cash Flow is highlighted as a significant liquidity metric, used to assess cash generation relative to planned distributions and as an indicator for investors regarding cash return on investment and yield.
- 6EBITDA is provided as a supplemental measure for assessing asset financial performance independent of financing methods and capital structure, and for comparing operational performance within the industry.
- 7The company's webcast conference call discussing these results is available for replay on their website (www.epplp.com) for 90 days.