Summary
Enterprise Products Partners L.P. (EPD) filed an 8-K on August 25, 2014, reporting on two key events that occurred around August 20-21, 2014. The primary event was an amendment to the Partnership's Sixth Amended and Restated Agreement of Limited Partnership to adjust the definitions of "Available Cash" and "Minimum Quarterly Distribution." These changes were made in conjunction with a previously announced two-for-one common unit split, effective August 21, 2014. Notably, the General Partner determined that this amendment did not require limited partner approval. Additionally, the filing disclosed a new compensation package for non-management directors of the General Partner's Board, effective January 1, 2015. This new package will provide non-management directors with an annual retainer consisting of $85,000 in cash and $85,000 in EPD common units. Special additional retainers will be provided to the Chairmen of the Audit and Conflicts Committee ($20,000 cash) and the Governance Committee ($15,000 cash). This indicates a shift towards a more equity-based compensation structure for directors.
Key Highlights
- 1Amendment to Partnership Agreement: EPD amended its governing agreement to reflect a two-for-one common unit split, altering definitions of 'Available Cash' and 'Minimum Quarterly Distribution'.
- 2Unit Split Effective: The two-for-one common unit split was officially effected on August 21, 2014.
- 3No Limited Partner Approval Needed: The General Partner determined that the amendment to the Partnership Agreement did not require a vote from limited partners.
- 4New Director Compensation Package: A revised compensation structure for non-management directors will be effective January 1, 2015.
- 5Director Compensation Details: Non-management directors will receive $85,000 cash and $85,000 in EPD common units annually.
- 6Committee Chair Incentives: Additional cash retainers will be provided to the Chairmen of the Audit and Conflicts Committee ($20,000) and the Governance Committee ($15,000).