8-K/AEarnings & ResultsExhibits & Filings

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

Filed October 28, 2009For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K/A on October 27, 2009, to furnish a press release from October 28, 2009, detailing its financial and operating results for the three and nine months ended September 30, 2009. The filing also announced a webcast conference call to discuss these results. Investors should note the company's use of non-GAAP financial measures, including gross operating margin, distributable cash flow, and Adjusted EBITDA, which are provided as supplementary information to GAAP measures to offer insights into operational performance and cash generation capabilities. The company emphasized the importance of these non-GAAP measures for internal reporting and investor understanding. Gross operating margin is presented as a key indicator of core operational profitability, while distributable cash flow is highlighted as a measure of the company's ability to sustain and potentially increase cash distributions to its partners. Adjusted EBITDA is offered as a metric to assess asset performance independent of financing and capital structure. Investors are advised to review the reconciliations provided in the press release to understand how these non-GAAP figures are derived from GAAP financials.

Key Highlights

  • 1EPD released its Q3 2009 financial and operating results on October 28, 2009, via an 8-K filing.
  • 2The company held a webcast conference call to discuss the Q3 2009 results.
  • 3The filing highlights the use of non-GAAP financial measures: gross operating margin, distributable cash flow, and Adjusted EBITDA.
  • 4Gross operating margin is presented as a key performance indicator for core operational profitability.
  • 5Distributable cash flow is emphasized as a measure of the company's ability to generate cash for distributions to partners.
  • 6Adjusted EBITDA is provided to assess asset performance irrespective of financing and capital structure.
  • 7Investors are encouraged to refer to the press release (Exhibit 99.1) for detailed reconciliations of non-GAAP to GAAP measures.

Frequently Asked Questions

This 8-K filing serves primarily to furnish a press release announcing Enterprise Products Partners L.P.'s financial and operating results for the third quarter and first nine months of 2009. It also provides information about a webcast conference call held to discuss these results.

The key non-GAAP financial measures highlighted are gross operating margin, distributable cash flow, and Adjusted EBITDA. Enterprise Products Partners L.P. uses these measures to provide additional insights into operational performance and cash generation beyond traditional GAAP reporting.

EPD uses non-GAAP financial measures to offer a more detailed view of its core operational profitability (gross operating margin), its ability to generate cash for distributions (distributable cash flow), and the financial performance of its assets without regard to financing methods (Adjusted EBITDA). The company believes these measures are used by its management and are beneficial for investors to evaluate segment results and overall performance.

The detailed financial and operating results for the three and nine months ended September 30, 2009, along with the reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures, are available in the press release furnished as Exhibit 99.1 to this 8-K filing. The webcast conference call discussing these results will also be archived on Enterprise's website at www.epplp.com for 90 days.