Summary
This Form 8-K filing by Enterprise Products Partners L.P. (EPD) on December 8, 2009, primarily concerns amendments to limited partnership agreements related to employee incentive arrangements. Specifically, EPCO, Inc. (EPCO) modified several Employee Partnerships, which hold "profit interests" in either Enterprise GP Holdings L.P. (EPE) or Enterprise Products Partners L.P. (EPD) units. These amendments extend the expected liquidation date of these Employee Partnerships.
Key Highlights
- 1Amendments made to the limited partnership agreements of five "Employee Partnerships" established by EPCO, Inc.
- 2These partnerships provide long-term incentive arrangements for certain EPCO employees through "profit interests" in EPE and/or EPD units.
- 3The core change is the extension of the expected liquidation date for each Employee Partnership.
- 4The new liquidation date is set for the second trading day after the first date as of which distributions related to the fourth quarter of fiscal year 2015 have been fully paid for all outstanding MLP units held by the respective partnership.
- 5This filing details the mechanics of extending employee incentive program timelines rather than announcing new financial results or strategic initiatives.
- 6The amendments are effective as of December 2, 2009.
Frequently Asked Questions
The main purpose of this 8-K filing is to report amendments made to the limited partnership agreements of several "Employee Partnerships" established by EPCO, Inc. These amendments primarily extend the expected liquidation date of these partnerships, which are used for long-term employee incentives.
The "Employee Partnerships" are EPE Unit I L.P., EPE Unit II L.P., EPE Unit III L.P., Enterprise Unit L.P., and EPCO Unit L.P. They were formed by EPCO, Inc. to provide "profit interests" in the limited partnership units of Enterprise GP Holdings L.P. (EPE) and/or Enterprise Products Partners L.P. (EPD) as a long-term incentive for certain employees.
The key change is the extension of the expected liquidation date for each Employee Partnership. The new date is defined as the second trading day immediately following the first date when all distributions related to the fourth quarter of fiscal year 2015 for all outstanding MLP units held by the partnership have been paid.
This filing does not directly report new financial results or announce major strategic business developments for EPD investors. It pertains to the internal structure and modification of employee incentive programs, specifically extending the timeline for profit interest payouts. While it affects the structure of these incentive plans, it's not a direct indicator of EPD's current financial performance or future operational strategy.