8-KLeadership ChangesOther EventsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Executive Changes (Jan 4, 2016)

Filed January 4, 2016For Securities:EPDEPDU

Summary

This 8-K filing from Enterprise Products Partners L.P. (EPD) on January 4, 2016, primarily details a leadership transition and a positive outlook on distributions and unit repurchases. A. James Teague has officially succeeded Michael A. Creel as Chief Executive Officer of the General Partner, effective December 31, 2015. Mr. Creel's retirement triggers the vesting of his previously unvested equity awards, with certain post-employment restrictions in place. This leadership change appears to be a planned succession, with Mr. Teague having extensive experience within the company. More significantly for investors, EPD announced its management's intention to recommend a total distribution of $1.61 per unit for 2016, representing a 5.2% increase over 2015. Furthermore, affiliates of the General Partner have committed to purchasing approximately $200 million of common units in the first quarter of 2016, signaling strong confidence in the partnership's value and future performance. A portion of this commitment, $100 million for 3,830,256 units at $26.11 per unit, has already been agreed upon.

Key Highlights

  • 1A. James Teague officially assumed the role of Chief Executive Officer of the General Partner on December 31, 2015, succeeding Michael A. Creel who retired.
  • 2Michael A. Creel resigned from the Board of Directors of the General Partner concurrent with his retirement.
  • 3Mr. Creel's retirement qualifies for the vesting of his previously unvested restricted unit and phantom unit awards, subject to a 24-month non-compete and non-solicitation agreement.
  • 4Management plans to recommend a total distribution of $1.61 per unit for 2016, a 5.2% increase from the $1.53 per unit distributed in 2015.
  • 5Affiliates of the General Partner intend to purchase a total of $200 million of EPD common units during Q1 2016.
  • 6An immediate purchase of 3,830,256 common units for approximately $100 million at $26.11 per unit by affiliates of the General Partner was announced.

Frequently Asked Questions

A. James Teague has officially become the Chief Executive Officer of the Partnership's general partner, succeeding Michael A. Creel who retired on December 31, 2015.

Management plans to recommend a total distribution of $1.61 per unit for 2016, which represents a 5.2% increase compared to the total distributions declared for 2015 ($1.53 per unit).

Yes, affiliates of the General Partner have indicated their intention to purchase a total of $200 million of Partnership common units during the first quarter of 2016. A specific purchase of approximately $100 million worth of units has already been agreed upon.

In connection with his retirement, Michael Creel's previously unvested restricted unit and phantom unit awards are considered 'Qualifying Terminations' and have vested. This is subject to his agreement not to disclose confidential information, not to solicit employees or customers, and not to engage in competition for a period of twenty-four months following his retirement.