8-KEarnings & ResultsOther Events

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Financial Results (Oct 28, 2009)

Filed October 28, 2009For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on October 28, 2009, to announce its financial and operating results for the third quarter and first nine months of 2009. The report primarily references a furnished press release and webcast, which provide detailed financial performance metrics. A key focus for investors will be EPD's discussion of non-GAAP financial measures, including gross operating margin, distributable cash flow, and Adjusted EBITDA, which are used by management to assess operational profitability and cash generation potential. These non-GAAP measures are presented as important indicators of the company's ability to sustain and potentially grow cash distributions to unitholders, a critical factor for investors in master limited partnerships. The filing also includes details on how these measures are calculated, emphasizing their role in evaluating segment performance and overall financial health, especially in comparison to GAAP measures. Investors should review the accompanying press release for the specific figures related to these performance indicators.

Key Highlights

  • 1EPD announced its Q3 and year-to-date 2009 financial results via an 8-K filing, referencing an accompanying press release (Exhibit 99.1).
  • 2The filing highlights the use of non-GAAP financial measures: gross operating margin, distributable cash flow, and Adjusted EBITDA, which are key for investor analysis.
  • 3Gross operating margin is presented as a measure of core operational profitability and is used for capital allocation decisions by management.
  • 4Distributable cash flow is defined as a key metric for assessing the company's ability to generate cash to sustain and grow distributions to unitholders.
  • 5Adjusted EBITDA is provided as a supplemental measure to assess financial performance, debt-paying ability, and project viability, independent of financing methods.
  • 6The company emphasizes that its non-GAAP measures may not be comparable to those of other companies and provides reconciliations to GAAP measures in the referenced press release.
  • 7The filing incorporates by reference the earnings press release dated October 28, 2009, which contains the specific financial and operating results.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce Enterprise Products Partners L.P.'s (EPD) financial and operating results for the three and nine months ended September 30, 2009, and to furnish the accompanying earnings press release as an exhibit.

The key non-GAAP measures are gross operating margin, distributable cash flow, and Adjusted EBITDA. These are important because management uses them to evaluate segment performance, core profitability, capital allocation, and the ability to generate cash to support distributions to unitholders. Investors often look to these measures for a clearer view of operational health and cash-generating capabilities.

Distributable cash flow is defined as net income adjusted for items such as depreciation, amortization, non-cash charges, and certain capital expenditures, among others. It is significant for investors because it serves as an indicator of the partnership's success in generating cash flows that can sustain or support quarterly cash distributions, a primary return for MLP unitholders.

The specific financial and operating results, including reconciliations of the non-GAAP measures to GAAP measures, are detailed in the Enterprise Products Partners L.P. press release dated October 28, 2009, which is furnished as Exhibit 99.1 to this 8-K filing. The webcast conference call discussing these results will also be archived on EPD's website.