8-KMaterial AgreementsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Material Agreement (Feb 5, 2009)

Filed February 5, 2009For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on February 5, 2009, detailing an amendment to its Administrative Services Agreement (ASA). The Fifth Amended and Restated Administrative Services Agreement (Fifth ASA), executed on January 30, 2009, primarily governs the provision of administrative, management, and operating services by EPCO Inc. to EPD and its related entities, with EPCO being reimbursed for related costs. The key changes in the Fifth ASA include explicit provisions for cash reimbursement from EPD to EPCO for EPD's allocated share of distributions made by EPCO Unit L.P. to its Class B limited partners who provide services to EPD. This relates to an incentive arrangement for executives. Additionally, the term of the agreement has been extended from December 2010 to December 2013. Investors should note that this agreement is with related parties controlled by Dan L. Duncan, and its terms are crucial for understanding the operational and cost structure of the partnership.

Key Highlights

  • 1EPD has entered into the Fifth Amended and Restated Administrative Services Agreement (Fifth ASA) with EPCO Inc., effective January 30, 2009.
  • 2The Fifth ASA governs the provision of administrative, management, and operating services by EPCO to EPD and its affiliates.
  • 3EPCO is to be reimbursed for all direct and indirect costs and expenses related to the partnership's business.
  • 4A significant amendment allows for cash reimbursement to EPCO for EPD's share of distributions from EPCO Unit L.P., which relates to an executive incentive program.
  • 5The term of the Administrative Services Agreement has been extended from December 2010 to December 2013.
  • 6The agreement is with related parties, as EPCO and the Partnership Entities are controlled by Dan L. Duncan.
  • 7The filing also lists the Fifth Amended and Restated Administrative Services Agreement as an exhibit.

Frequently Asked Questions

The Fifth ASA governs the administrative, management, and operating services provided by EPCO Inc. to Enterprise Products Partners L.P. (EPD) and its related entities. It outlines how EPCO will be reimbursed for its costs associated with these services.

The Fifth ASA explicitly provides for EPD to reimburse EPCO for EPD's allocated share of distributions from EPCO Unit L.P. related to an executive incentive program. Additionally, the extended term to 2013 and the reimbursement of EPCO's costs are ongoing financial considerations for EPD.

The key parties are EPCO Inc. and various Enterprise Products Partners entities, including EPD itself. EPCO and the Partnership Entities are controlled by Dan L. Duncan. This indicates a related-party transaction, which is important for investors to understand the governance and financial arrangements.

The extension of the Administrative Services Agreement term from December 2010 to December 2013 provides continuity and stability in the provision of essential administrative, management, and operating services. It also locks in the current terms for a longer period, which could offer predictability regarding these service costs and structures.