8-KEarnings & ResultsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Financial Results (Feb 1, 2010)

Filed February 1, 2010For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on February 1, 2010, to report its fourth quarter and full-year 2009 financial and operating results, which were released on January 28, 2010. The report highlights the company's use of non-GAAP financial measures, including gross operating margin, distributable cash flow, and Adjusted EBITDA, to provide a clearer view of core operational profitability and cash generation capabilities. Investors should note that EPD emphasizes these non-GAAP metrics for assessing segment performance, capital allocation decisions, and the ability to sustain or increase unitholder distributions. The company also provides context for these measures, explaining how they are calculated and their importance to management and the investment community in evaluating EPD's financial health and operational success beyond standard GAAP reporting.

Key Highlights

  • 1EPD announced its fourth quarter and full-year 2009 financial and operating results via an 8-K filing on February 1, 2010.
  • 2The company furnished its earnings press release dated January 28, 2010, as an exhibit.
  • 3EPD utilizes and explains several non-GAAP financial measures: gross operating margin, distributable cash flow, and Adjusted EBITDA.
  • 4Gross operating margin is presented as a key measure of core profitability for segment performance and capital allocation.
  • 5Distributable cash flow is highlighted as a critical metric for assessing the company's ability to generate cash to cover and potentially increase unitholder distributions.
  • 6Adjusted EBITDA is provided as a supplemental measure to evaluate asset performance independent of financing methods and capital structure.
  • 7The filing incorporates by reference the detailed press release containing these financial results and definitions of the non-GAAP measures.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Enterprise Products Partners L.P.'s financial and operating results for the three and twelve months ended December 31, 2009. It also formally incorporates the earnings press release announcing these results and provides definitions and explanations of key non-GAAP financial measures used by the company.

The key non-GAAP financial measures discussed are gross operating margin, distributable cash flow, and Adjusted EBITDA. These measures are used to provide investors with insights into core operational profitability, cash generation capacity, and performance metrics that management uses internally.

EPD emphasizes non-GAAP financial measures because management believes they offer a more relevant and insightful view of the company's operational performance and ability to generate cash for distributions, which are crucial for unitholders. These measures are used for internal decision-making, such as capital allocation, and provide investors with the same performance indicators that management uses.

Investors can find more detailed financial information in the press release furnished as Exhibit 99.1 to this 8-K filing. Additionally, the webcast conference call discussing these results will be archived and available for replay on Enterprise's website at www.epplp.com for 90 days.