8-KMaterial AgreementsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Material Agreement (May 31, 2012)

Filed May 31, 2012For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) announced on May 31, 2012, that it has entered into an equity distribution agreement allowing for the potential issuance and sale of up to $1 billion in common units. This facility enables EPD to raise capital opportunistically through various channels, including ordinary broker transactions on the NYSE, block trades, or direct sales to the managers. This filing indicates that the partnership is proactively managing its capital structure and may be seeking to fund growth initiatives, acquisitions, or reduce debt. Investors should monitor how and when these units are sold, as it could impact earnings per unit and overall dilution. The agreement is effective under a previously filed S-3 registration statement, suggesting regulatory readiness for capital raises.

Key Highlights

  • 1EPD entered into an Equity Distribution Agreement on May 31, 2012.
  • 2The agreement allows for the sale of up to $1 billion in common units.
  • 3Sales can occur through brokers on the NYSE, block transactions, or as agreed with managers.
  • 4The partnership can also sell units directly to managers as principal.
  • 5The issuance is under a Form S-3 registration statement (No. 333-179934).
  • 6The filing lists eleven financial institutions as Managers for the offering.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report the entry into a material definitive agreement: an equity distribution agreement that allows Enterprise Products Partners L.P. to issue and sell up to $1 billion of its common units.

EPD can raise up to an aggregate offering price of $1,000,000,000 (one billion dollars) through the sale of common units under this agreement.

Sales can be made from time to time through ordinary brokers' transactions on the New York Stock Exchange at market prices, in block transactions, or through other agreed-upon methods with the Managers. EPD also has the option to sell units directly to any Manager as principal.

No, this agreement establishes a framework for EPD to sell units opportunistically. The actual issuance and sale of units will depend on market conditions, the partnership's capital needs, and decisions made by EPD and the Managers. It grants EPD the flexibility to raise capital, but does not obligate them to do so immediately or for the full amount.