Enterprise Reports Results for Third Quarter 2007

Business Wire, Oct 25, 2007

Petrochemical Services - Gross operating margin for the Petrochemical Services segment was $51 million in the third quarter of 2007 compared to $52 million in the third quarter of 2006.

Enterprise's butane isomerization business reported a 53 percent, or $10 million, increase in gross operating margin to $29 million in the third quarter of 2007 from $19 million in the third quarter of 2006. This improvement was primarily attributable to a 17 percent increase in volumes to 96 MBPD in the third quarter of this year versus 82 MBPD in the third quarter of 2006.

The partnership's propylene fractionation and petrochemical pipeline business earned $14 million of gross operating margin during the third quarter of 2007 versus $15 million in the same quarter of 2006. Propylene fractionation volumes increased to 59 MBPD for the third quarter of 2007 from 57 MBPD in the third quarter of 2006. Petrochemical pipeline transportation volumes increased 7 percent to 108 MBPD during the third quarter of this year compared to 101 MBPD in the third quarter of 2006.

Enterprise's octane enhancement business reported gross operating margin of $9 million in the third quarter of 2007 compared to $18 million in the third quarter of 2006. The decrease in gross operating margin was due primarily to a decrease in sales margins for isooctane and an increase in repair and maintenance expenses associated with turnaround costs. Octane enhancement production was 11 MBPD for the third quarters of both 2007 and 2006.

Capitalization - Total debt principal outstanding at September 30, 2007 was approximately $6.8 billion, including $1.25 billion of junior subordinated notes to which the debt rating agencies ascribe, on average, approximately 58 percent equity content. Enterprise's consolidated debt also included $215 million of debt of Duncan Energy Partners L.P. ("DEP") for which Enterprise does not have the payment obligation. Enterprise had total liquidity of approximately $1.2 billion at September 30, 2007, which includes availability under the partnership's $1.25 billion credit facility and unrestricted cash.

Total capital spending in the third quarter of 2007, net of contributions in aid of construction, was approximately $575 million. This includes $47 million of sustaining capital expenditures and $24 million of investments in unconsolidated affiliates.

Interest expense for the third quarter of 2007 was $85 million on an average debt balance of $6.6 billion compared to interest expense of $63 million in the third quarter of last year which had an average debt balance of $5.0 billion. The increase in the average debt balance for the two periods is principally due to funding the partnership's capital investment program over the past year.

Today, Enterprise will host a conference call to discuss third quarter earnings. The call will be broadcast live over the Internet at 8:30 a.m. Central Daylight Time and may be accessed by visiting the company's website at www.epplp.com.

Use of Non-GAAP Financial Measures