UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported): April 25, 2006
ENTERPRISE GP HOLDINGS L.P.
(Exact name of registrant as specified in its charter)
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Delaware
(State or Other Jurisdiction of
Incorporation or Organization)
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1-32610
(Commission File Number)
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13-4297064
(I.R.S. Employer
Identification No.) |
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2727 North Loop West, Houston, Texas
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77008-1044 |
(Address of Principal Executive Offices)
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(Zip Code) |
(713) 426-4500
Registrants Telephone Number, including Area Code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
TABLE OF CONTENTS
Item 2.02. Results of Operations and Financial Condition.
On April 25, 2006, Enterprise GP Holdings L.P. issued a press release announcing its
consolidated and parent-only financial results for the three months ended March 31, 2006 and
comparable results for 2005 of its predecessor company (where applicable) and held a webcast
conference call discussing those results. A copy of the earnings press release is filed as Exhibit
99.1 to this report, which is incorporated by reference into this Item 2.02. The webcast
conference call will be available for replay on Enterprise GP Holdings L.P.s website at
www.enterprisegp.com. The conference call will be archived on our website for 90 days.
Unless the context requires otherwise, references to we, us, our, or Enterprise GP
Holdings within the context of this Current Report on Form 8-K refer to the consolidated business
and operations of Enterprise GP Holdings L.P. References to Enterprise Products Partners refer
to Enterprise Products Partners L.P. and its subsidiaries.
Basis of Presentation of Financial Information
In accordance with accounting principles generally accepted in the United States of America
(GAAP), the transfer of net assets to us from affiliates of EPCO, Inc. (EPCO) in August 2005
was accounted for as a reorganization of entities under common control in a manner similar to a
pooling of interests. As a result, the historical consolidated financial information of Enterprise
GP Holdings presented in this press release for periods prior to its receipt of such contributions
from EPCO has been presented using the consolidated financial information of Enterprise Products
GP, LLC (the general partner of Enterprise Products Partners), which has been deemed the
predecessor company of Enterprise GP Holdings. Our consolidated financial information represents
our primary (general purpose) financial information as a publicly-held registrant.
Enterprise GP Holdings L.P. (the parent company) has no separate operating activities apart
from those conducted by Enterprise Products Operating L.P. (the Operating Partnership of Enterprise
Products Partners). The parent companys principal sources of cash flow are its investments in
limited and general partner ownership interests of Enterprise Products Partners. The parent
companys primary cash requirements are for general and administrative expenses, debt service
requirements and distributions to its partners.
In order for our unitholders and others to more fully understand the financial condition and
results of operations of the parent company on a standalone basis, this press release includes
financial information of the parent company apart from that of our consolidated partnership.
The parent-only statement of operations includes earnings from its equity-method investments
in Enterprise Products Partners and Enterprise Products GP, LLC as a component of operating income.
These investments are the primary source of earnings for the parent company on a standalone
basis. In accordance with GAAP, such equity earnings are eliminated in the consolidation of
Enterprise Products Partners and Enterprise Products GP, LLCs financial statements with those of
the parent company.
Use of Non-GAAP Financial Measures
This press release and accompanying schedules include the non-generally accepted accounting
principle (non-GAAP) financial measure of Cash Available for Distribution. The accompanying
schedules provide a reconciliation of this non-GAAP financial measure to its most directly
comparable financial measure calculated and presented in accordance with GAAP. Our non-GAAP
financial measure should not be considered as an alternative to GAAP measures such as net income,
cash flow from operating activities or any other GAAP measure of liquidity or financial
performance.
Cash Available for Distribution. We define Cash Available for Distribution as cash
distributions expected to be received from Enterprise Products Partners in connection with the
parent companys investments in limited and general partner interests of Enterprise Products
Partners minus (i) parent-only expenditures for general and administrative costs and debt service
and (ii) general and administrative costs of Enterprise Products GP, LLC. Cash Available for
Distribution is a significant liquidity metric used by our senior management to compare net cash
flows generated by the parent companys equity investments to the cash distributions the parent
company is expected to pay its unitholders. Using this metric, our management can quickly compute
the coverage ratio of estimated cash flows to planned cash distributions.
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Cash Available for Distribution is an important non-GAAP financial measure for the parent
companys limited partners since it indicates to investors whether or not its investments are
generating cash flows at a level that can sustain or support an increase in quarterly cash
distribution levels. Financial metrics such as Cash Available for Distribution are quantitative
standards used by the investment community with respect to publicly-traded partnerships because the
value of a partnership unit is in part measured by its yield (which in turn is based on the amount
of cash distributions a partnership can pay to a unitholder). The GAAP measure most directly
comparable to Cash Available for Distribution is cash flow from operating activities.
Item 9.01. Financial Statements and Exhibits.
(a) Financial statements of businesses acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits.
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Exhibit No. |
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Description |
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99.1 |
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Enterprise GP Holdings L.P. press release dated April 25, 2006. |
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