Summary
Enterprise Products Partners L.P. (EPD) announced a significant increase in its quarterly cash distribution rate, signaling confidence in its financial performance and commitment to returning value to unitholders. The board of directors approved a hike to $0.5525 per common unit, equating to an annualized rate of $2.21 per unit. This distribution, payable on November 5, 2009, to unitholders of record on October 30, 2009, reflects a positive outlook for the partnership. The filing also addresses the potential impact of the proposed merger with TEPPCO Partners, L.P. Investors should note that if the TEPPCO merger closes before the distribution record date, newly issued Enterprise common units received in exchange for TEPPCO units will also be eligible for this increased quarterly distribution, provided the holders remain Enterprise unitholders by the record date. This move is a key indicator for income-focused investors monitoring EPD's distribution policy.
Key Highlights
- 1EPD declared an increased quarterly cash distribution rate of $0.5525 per common unit.
- 2The annualized cash distribution rate is now $2.21 per common unit.
- 3The increased distribution will be paid on November 5, 2009.
- 4The record date for the distribution is October 30, 2009.
- 5Holders of Enterprise common units issued in the TEPPCO merger may receive this increased distribution if the merger closes before the record date and they remain unitholders.