8-KEarnings & ResultsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Financial Results (Oct 23, 2008)

Filed October 23, 2008For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on October 23, 2008, to report its financial and operating results for the third quarter and the first nine months of 2008. The report primarily serves to incorporate by reference a press release containing these results and to provide definitions and reconciliations for key non-GAAP financial measures used by the company. Investors should note that the company uses "gross operating margin," "distributable cash flow," and "EBITDA" to assess performance and liquidity, and these measures are explained in detail within the filing. The core of the investor information lies within the referenced press release (Exhibit 99.1), which is not fully detailed in this 8-K itself. The 8-K emphasizes the importance of these non-GAAP metrics for internal management evaluation and investor understanding, particularly "distributable cash flow" which is directly tied to the partnership's ability to make cash distributions to unitholders. Investors are encouraged to review the actual press release for the specific financial figures and operational performance details for the period.

Key Highlights

  • 1EPD filed an 8-K on October 23, 2008, to announce Q3 and year-to-date 2008 financial results.
  • 2The filing incorporates by reference a press release (Exhibit 99.1) containing the detailed financial and operating results.
  • 3EPD utilizes and defines 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, excluding certain expenses and gains/losses.
  • 5Distributable Cash Flow is highlighted as a key liquidity metric for assessing the partnership's ability to pay cash distributions to unitholders.
  • 6EBITDA is provided as a supplemental measure to assess financial performance independent of financing methods and capital structure.
  • 7Investors are directed to the referenced press release for the actual financial performance data and operational details.

Frequently Asked Questions

The main purpose of this 8-K filing is to officially report Enterprise Products Partners L.P.'s financial and operating results for the three and nine months ended September 30, 2008. It incorporates by reference a press release (Exhibit 99.1) that contains the detailed results and provides definitions for key non-GAAP financial measures the company uses.

The key non-GAAP financial measures discussed are Gross Operating Margin (used to evaluate segment performance and core profitability), Distributable Cash Flow (viewed as a measure of liquidity and ability to make cash distributions), and EBITDA (used to assess financial performance without regard to financing methods or capital structure).

The actual financial and operating results for the three and nine months ended September 30, 2008, are detailed in the press release filed as Exhibit 99.1 to this 8-K. Investors should refer to that exhibit for specific figures and performance data.

Enterprise Products Partners defines Distributable Cash Flow as net income or loss adjusted for various items including depreciation, amortization, cash distributions from unconsolidated affiliates, capital expenditures, gains/losses on asset sales, and other non-cash items. It is important because it's viewed as a key measure of liquidity and is used to assess the partnership's ability to generate cash to pay distributions to its unitholders, a key factor for investors in publicly traded partnerships.