Summary
Enterprise Products Partners L.P. (EPD) filed an 8-K on July 9, 2019, primarily announcing its second-quarter 2019 cash distribution to limited partners. A key operational change disclosed is the partnership's decision to utilize common units purchased on the open market to satisfy its Distribution Reinvestment Plan (DRIP) and Employee Unit Purchase Plan obligations, rather than issuing new common units. This shift is effective immediately with the upcoming quarterly distribution and will remain in place until further notice, though it is subject to change based on future equity capital needs.
Key Highlights
- 1EPD announced its second-quarter 2019 cash distribution for limited partners.
- 2Effective with the Q2 2019 distribution, EPD will use treasury units (common units bought on the open market) instead of issuing new units for its DRIP and Employee Unit Purchase Plan.
- 3This change aims to potentially reduce unit dilution and manage equity capital needs.
- 4The decision to use treasury units is subject to change based on EPD's future need for equity capital.
- 5The filing incorporates by reference a press release detailing these announcements.
Frequently Asked Questions
The main financial event announced is the declaration of EPD's quarterly cash distribution for the second quarter of 2019.
EPD has elected to use common units purchased on the open market (treasury units) to satisfy its Distribution Reinvestment Plan and Employee Unit Purchase Plan, instead of issuing new common units. This change is effective immediately.
This change is likely intended to avoid diluting existing shareholders by not issuing new units and to manage the partnership's equity capital structure more flexibly. The partnership stated the election is subject to change depending on its need for equity capital in the future.
The change takes effect immediately, starting with the payment of the second-quarter 2019 quarterly distribution.