8-KEarnings & ResultsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Financial Results (Jan 28, 2008)

Filed January 28, 2008For Securities:EPDEPDU

Summary

This 8-K filing by Enterprise Products Partners L.P. (EPD) on January 28, 2008, serves to report the company's financial results for the fourth quarter and full year ended December 31, 2007. The report primarily incorporates by reference a press release (Exhibit 99.1) that details these results and was issued on the same date. Investors should note that the filing also provides detailed definitions and explanations of the non-GAAP financial measures the company uses, including gross operating margin, distributable cash flow, and EBITDA, highlighting their importance in evaluating segment performance, liquidity, and overall financial health. The primary purpose of this filing is to officially disseminate the company's financial performance. While the specific financial figures are within the referenced press release, the 8-K ensures compliance and provides context for investors. The emphasis on non-GAAP measures indicates management's focus on operational profitability and cash generation potential, key metrics for understanding the partnership's ability to sustain and grow distributions to unitholders.

Key Highlights

  • 1Enterprise Products Partners L.P. (EPD) filed an 8-K on January 28, 2008, to report Q4 and full-year 2007 financial results.
  • 2The press release containing the detailed financial results is incorporated by reference as Exhibit 99.1.
  • 3The filing provides definitions and explanations of 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 the company's ability to cover cash distributions to partners.
  • 6EBITDA is defined as a supplemental measure for assessing financial performance, debt service capabilities, and operational returns, excluding financing and capital structure impacts.
  • 7The company emphasizes that its non-GAAP measures should not be substituted for GAAP measures like net income or operating income.

Frequently Asked Questions

The main purpose of this 8-K filing is to officially report Enterprise Products Partners L.P.'s financial results for the three and twelve months ended December 31, 2007. It incorporates by reference the press release issued on January 28, 2008, which contains the detailed financial performance information.

The filing explicitly defines and discusses three key non-GAAP financial measures: gross operating margin, distributable cash flow, and EBITDA. These measures are used by management to evaluate operational profitability, liquidity, and financial performance.

Gross operating margin is defined as operating income before depreciation, amortization, accretion expense, certain operating lease expenses, gains/losses on asset sales, and general and administrative costs. The company uses it as a key performance measure for core operational profitability and for allocating capital resources among business segments, believing it provides investors with the same insights as senior management.

Distributable cash flow is a critical liquidity metric for investors. It is used by management to compare the cash generated by the company against planned cash distributions to partners, helping to assess the coverage ratio. For limited partners, it serves as an indicator of the company's success in generating cash flows sufficient to sustain or increase quarterly cash distribution rates, which is a key factor in valuing partnership units.