Enterprise Reports Record Results for First Quarter 2008

Business Wire, April 28, 2008

HOUSTON -- Enterprise Products Partners L.P. (NYSE:EPD) today announced its financial results for the three months ended March 31, 2008. The partnership reported a 132 percent increase in net income to $260 million, or $0.51 per unit on a fully diluted basis, for the first quarter of 2008 compared to net income of $112 million, or $0.20 per unit on a fully diluted basis, for the first quarter of 2007.

Distributable cash flow increased 73 percent to $383 million in the first quarter of 2008 from $222 million in the same quarter of 2007. On April 15, 2008, the board of directors of Enterprise's general partner approved an increase in the partnership's quarterly cash distribution rate to $0.5075 per unit with respect to the first quarter of 2008. This represents a 6.8 percent increase over the $0.475 per unit rate that was paid with respect to the first quarter of last year. Distributable cash flow for the first quarter of 2008 provided 1.6 times coverage of the cash distribution to be paid by the partnership to its limited partners. The partnership retained approximately $126 million of distributable cash flow to reinvest in growth capital projects and to reduce debt. Distributable cash flow is a non-generally accepted accounting principle ("non-GAAP") financial measure that is defined and reconciled later in this press release to its most directly comparable GAAP financial measure, net cash flows provided by operating activities.

"The first quarter of 2008 was a record quarter for our partnership," said Michael A. Creel, president and chief executive officer of Enterprise. "Demand for NGLs, natural gas and crude oil and our midstream infrastructure services resulted in each of our business segments having an exceptional quarter. Cash flow and volume contributions from new assets such as the Independence project, Meeker and Pioneer as well as solid year-over-year performance from our other assets resulted in a substantial increase in EBITDA and distributable cash flow. Enterprise's pipeline assets transported in excess of 2 million barrels per day of NGLs, crude oil and petrochemicals and 9 trillion Btus per day of natural gas and for the second consecutive quarter, our Mid-America and Seminole pipelines transported in excess of 1 million barrels per day of NGLs."

"We also took steps to insulate Enterprise from disruptions in the capital markets for the remainder of this year as we fund our $1.6 billion growth capital budget for 2008. In addition to retaining one-third of the partnership's distributable cash flow for the first quarter of 2008, we also issued $1.1 billion of five- and ten-year notes at attractive interest rates averaging 6.20 percent. We expect that these actions coupled with EBITDA growth, retained distributable cash flow and proceeds from our distribution reinvestment plan for the rest of the year will provide the partnership with ample financial flexibility for 2008. The first quarter gives Enterprise a great start toward achieving our objective of increasing our year-end 2008 annualized cash distribution rate to partners to at least $2.12 per unit and retaining over $200 million of distributable cash flow despite the expected effects of downtime at Pioneer and Independence," stated Creel.

Revenue for the first quarter of 2008 increased to a record $5.7 billion from $3.3 billion in the first quarter of 2007. Gross operating margin increased 61 percent to a record $522 million for the first quarter of this year from $324 million for the first quarter of 2007. Operating income was $367 million for the first quarter of 2008, a 95 percent increase over the $188 million of operating income for the same quarter of 2007. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the first quarter of 2008 was a record $491 million, a 61 percent increase, compared to $305 million for the first quarter of 2007. Gross operating margin and EBITDA are non-GAAP financial measures that are defined and reconciled later in this press release to their most directly comparable GAAP financial measures.

Review of Segment Performance for the First Quarter of 2008

NGL Pipelines & Services - Gross operating margin for the NGL Pipelines and Services segment increased 52 percent to $290 million for the first quarter of 2008 compared to $191 million for the same quarter of 2007.

Enterprise's natural gas processing business recorded gross operating margin of $178 million for the first quarter of 2008, a 107 percent increase from $86 million in the first quarter of 2007. This business benefited from overall strong demand for NGLs from the petrochemical and motor gasoline refining industries as well as a return to normal winter weather in the Midwestern United States. This demand resulted in higher prices for NGLs and coupled with an increase in equity NGL production generated the record performance for this business. Equity NGL production, the NGLs that Enterprise earns and takes title to as a result of providing processing services, increased 44 percent to 101 thousand barrels per day ("MBPD") for the first quarter of 2008 from 70 MBPD for the same quarter in 2007. Meeker was in operation for the full first quarter in 2008 and accounted for 30 MBPD of this increase, while the Pioneer cryogenic facility began operations in February 2008 and accounted for 8 MBPD of equity NGL production. Natural gas volumes processed under fee-based contracts increased to approximately 2.7 billion cubic feet per day ("Bcfd") this quarter from 2.4 Bcfd in the first quarter of 2007. Enterprise's NGL marketing business benefited from an increase in volumes as a result of the strong demand for NGLs.