8-KEarnings & ResultsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Financial Results (Apr 27, 2010)

Filed April 27, 2010For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on April 27, 2010, to report its financial and operating results for the first quarter ended March 31, 2010. The filing includes a press release detailing these results, which were also discussed on an investor webcast. A key focus of the filing is the explanation and use of non-GAAP financial measures, including gross operating margin, distributable cash flow, and Adjusted EBITDA. These measures are presented to offer investors insights into the core profitability and cash-generating capabilities of Enterprise's operations, as viewed by management. While the 8-K does not provide the specific Q1 2010 financial numbers directly in the text, it serves as the official notification and vehicle for disseminating these results. Investors are directed to the furnished press release (Exhibit 99.1) for detailed figures. The company emphasizes the importance of these non-GAAP metrics, particularly distributable cash flow, for assessing the sustainability of distributions to partners. The filing also clarifies the definitions and relevance of these metrics for evaluating operational performance and financial health.

Key Highlights

  • 1EPD filed an 8-K on April 27, 2010, to report Q1 2010 financial results.
  • 2The filing incorporates by reference a press release (Exhibit 99.1) containing the detailed Q1 2010 financial and operating results.
  • 3Enterprise Products Partners L.P. held a webcast conference call to discuss the Q1 2010 results.
  • 4The report clarifies the company's use of non-GAAP financial measures: gross operating margin, distributable cash flow, and Adjusted EBITDA.
  • 5Gross operating margin is highlighted as a key performance indicator for core operational profitability, used by management for resource allocation.
  • 6Distributable cash flow is presented as a critical metric for assessing the ability to sustain and potentially increase cash distributions to unitholders.
  • 7Adjusted EBITDA is provided as a supplemental measure for evaluating asset performance and debt-paying capacity.

Frequently Asked Questions

The specific financial and operating results for the three months ended March 31, 2010, are detailed in the press release furnished as Exhibit 99.1 to this 8-K filing. You can also find archived replays of the webcast conference call on Enterprise Products Partners L.P.'s website at www.epplp.com for 90 days.

The key non-GAAP financial measures are Gross Operating Margin, Distributable Cash Flow, and Adjusted EBITDA. Gross Operating Margin is used to assess core operational profitability. Distributable Cash Flow is crucial for investors as it indicates the partnership's ability to generate cash to sustain and potentially increase distributions to unitholders. Adjusted EBITDA is a supplemental measure used to evaluate asset performance and debt servicing capabilities.

Distributable Cash Flow is defined as net income or loss adjusted for several items, including depreciation, amortization, certain lease expenses, equity earnings from affiliates (adjusted for cash distributions received), capital expenditures, asset retirement obligations, and gains/losses from asset sales, among others. It is important for investors because it serves as a primary indicator of the partnership's success in providing a cash return on investment and its capacity to support cash distributions.

Duncan Energy Partners L.P. (DEP) is a consolidated subsidiary of Enterprise Products Partners L.P. The filing notes that net income attributable to noncontrolling interests associated with the public unitholders of Duncan Energy Partners L.P. is factored into the calculation of distributable cash flow.