8-KCorporate ChangesRegulation FDOther Events+1

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Change in Control (Apr 1, 2010)

Filed April 1, 2010For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on April 1, 2010, reporting a significant change in control related to the death of founder Dan L. Duncan. Voting control of the entities that hold a substantial interest in EPD has transferred to a voting trust established for estate planning purposes. The trust is managed by three voting trustees, including Randa Duncan Williams (daughter of the founder), Ralph Cunningham (CEO of the general partner of Enterprise GP Holdings), and Richard H. Bachmann (Executive Vice President and Chief Legal Officer of EPD's general partner). While the trust's primary purpose is estate management, investors should note that there is no current intent to sell units of Enterprise GP Holdings or Enterprise Products Partners. In addition to the control change, EPD also announced on April 1, 2010, its definitive agreement to acquire two natural gas gathering and treating systems from M2 Midstream LLC for approximately $1.2 billion. These systems are strategically located in Northwest Louisiana and East Texas, targeting production from key shale formations like Haynesville/Bossier and the Cotton Valley/Taylor Sands. This acquisition represents a significant expansion of EPD's midstream infrastructure and exposure to prolific natural gas producing regions.

Key Highlights

  • 1Voting control of entities owning significant stakes in EPD has transferred to a voting trust following the death of founder Dan L. Duncan.
  • 2The voting trust is managed by three trustees: Randa Duncan Williams, Ralph Cunningham, and Richard H. Bachmann.
  • 3There is no stated current intent by the estate or trust to sell units of Enterprise GP Holdings or Enterprise Products Partners.
  • 4EPD has agreed to purchase two natural gas gathering and treating systems for approximately $1.2 billion.
  • 5The acquired systems are located in Northwest Louisiana and East Texas, targeting Haynesville/Bossier Shales and Cotton Valley/Taylor Sands.
  • 6This acquisition expands EPD's midstream footprint in key natural gas producing areas.

Frequently Asked Questions

The voting trust was established for estate planning purposes following the death of Dan L. Duncan. It ensures that voting control of the membership interests of Duncan LLC, which holds significant stakes in Enterprise Products Partners, is managed by designated trustees.

According to the filing, neither the estate of Mr. Duncan nor the trust has any current intent or need to sell units of Enterprise GP Holdings or Enterprise Products Partners.

The acquisition of the two natural gas gathering and treating systems provides EPD with expanded midstream infrastructure in highly productive natural gas regions. The systems are strategically located to gather gas from the Haynesville/Bossier Shales and the Cotton Valley and Taylor Sands formations, which are significant U.S. natural gas sources.

The voting trustees are Randa Duncan Williams, Ralph Cunningham, and Richard H. Bachmann. They are responsible for exercising voting rights and ownership powers over the membership interests of Duncan LLC, subject to the terms of the trust agreement, for the benefit of the members.