8-KEarnings & ResultsExhibits & Filings

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

Filed April 28, 2008For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on April 28, 2008, to report its financial results for the first quarter ended March 31, 2008. The report focuses on the release of their earnings and the subsequent investor webcast. A key aspect of the filing is its detailed explanation and reconciliation of non-GAAP financial measures, including gross operating margin, distributable cash flow, and EBITDA, which the company uses to assess operational performance and liquidity. These non-GAAP measures are highlighted as crucial for investors to understand management's view of the company's core profitability and its ability to generate cash to support distributions. The filing emphasizes that gross operating margin is used to evaluate segment performance, distributable cash flow is critical for assessing cash generation relative to planned distributions and investor returns, and EBITDA provides a performance view independent of financing and capital structure. Investors are encouraged to review the accompanying press release (Exhibit 99.1) for specific figures and reconciliations.

Key Highlights

  • 1EPD announced its financial results for the three months ended March 31, 2008, via press release and webcast.
  • 2The filing includes detailed definitions and explanations of key non-GAAP financial measures: gross operating margin, distributable cash flow, and EBITDA.
  • 3Gross operating margin is presented as a primary measure of core operational profitability and is used by management for capital allocation.
  • 4Distributable cash flow is highlighted as a key liquidity metric for assessing the company's ability to fund distributions to partners.
  • 5EBITDA is provided as a supplemental measure to assess financial performance, debt service capability, and operational performance without regard to financing structures.
  • 6The report emphasizes the importance of these non-GAAP measures for investors in understanding management's evaluation of segment results and overall financial health.
  • 7The full earnings press release, containing specific financial data and reconciliations, is furnished as Exhibit 99.1.

Frequently Asked Questions

This 8-K primarily discusses Enterprise Products Partners L.P.'s financial results for the first quarter of 2008 and focuses on explaining and utilizing non-GAAP financial measures. These include Gross Operating Margin, Distributable Cash Flow, and EBITDA. These measures are presented as key indicators of operational performance, liquidity, and financial health, used by management and provided for investor insight.

EPD uses these non-GAAP measures because they believe they provide a more insightful view of the company's core profitability and ability to generate cash, which are crucial for evaluating operational performance and supporting distributions to unitholders. Gross Operating Margin helps assess segment profitability, while Distributable Cash Flow is specifically used to compare cash generated against planned cash distributions and as an indicator for investors regarding cash return on investment.

The actual financial results, including the figures for Gross Operating Margin, Distributable Cash Flow, and EBITDA, along with their reconciliations to GAAP measures, are detailed in the press release dated April 28, 2008, which is furnished as Exhibit 99.1 to this 8-K filing. Investors should refer to this exhibit for specific financial data.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is presented as a supplemental financial measure. For EPD investors, it offers a view of the company's operational performance and the cash-generating ability of its assets, independent of its financing structure, capital structure, or historical cost basis. It's commonly used to assess debt service capabilities and compare performance against peers in the midstream energy industry.