8-KEarnings & ResultsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Financial Results (Jul 27, 2009)

Filed July 27, 2009For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on July 27, 2009, to furnish its earnings press release for the three and six months ended June 30, 2009, and announce a webcast conference call. The filing's primary purpose is to disclose financial and operating results. Investors should note that the company utilizes and discusses non-GAAP financial measures such as gross operating margin, distributable cash flow, and Adjusted EBITDA. EPD emphasizes that these measures are used by management for evaluating segment performance and capital allocation, and they believe these provide valuable insights to investors, though they are not direct substitutes for GAAP measures like net income or operating income. Reconciliations to GAAP are provided in the accompanying press release.

Key Highlights

  • 1EPD released its financial and operating results for the second quarter and first half of 2009 via a press release furnished with the 8-K.
  • 2The company held a webcast conference call to discuss these results, which will be archived on its website.
  • 3The filing defines and explains the company's use of key non-GAAP financial measures: gross operating margin, distributable cash flow, and Adjusted EBITDA.
  • 4Gross operating margin is presented as a core profitability measure for segment performance and capital allocation decisions.
  • 5Distributable cash flow is highlighted as a key metric for assessing the partnership's ability to generate cash for distributions to unitholders and for evaluating investment returns.
  • 6Adjusted EBITDA is presented as a supplemental measure for assessing asset performance, debt servicing ability, and investment viability, independent of financing and capital structure.

Frequently Asked Questions

The main purpose of this 8-K filing is to officially disclose Enterprise Products Partners L.P.'s financial and operating results for the second quarter and the first half of 2009, as announced in their earnings press release dated July 27, 2009. It also serves to inform investors about the accompanying webcast conference call.

The key non-GAAP financial measures discussed are gross operating margin, distributable cash flow, and Adjusted EBITDA. EPD uses these measures to provide insights into the core profitability of its operations (gross operating margin), its ability to generate cash for distributions and sustain investor returns (distributable cash flow), and the operational performance of its assets independent of financing (Adjusted EBITDA). The company believes these metrics are valuable for management decision-making and for investors to understand segment performance and financial health.

EPD states that their non-GAAP financial measures may not be comparable to similarly titled measures of other companies. This is because other companies may not calculate these measures in the same manner. Investors should consult the reconciliations provided in the earnings press release to understand how EPD derives these figures from GAAP measures.

The detailed financial and operating results are provided in the earnings press release furnished as Exhibit 99.1 to this 8-K. The webcast conference call discussing these results will be archived and available for replay on Enterprise Products Partners L.P.'s website at www.epplp.com for 90 days.