Enterprise Reports Record Results for First Quarter 2008

Business Wire, April 28, 2008

The partnership's propylene fractionation and petrochemical pipeline business earned $15 million of gross operating margin during the first quarter of 2008 versus $18 million in the same quarter of 2007. This decrease was primarily due to lower volumes and sales margins in the first quarter of 2008. Propylene fractionation volumes were 58 MBPD for the first quarter of 2008 compared to 61 MBPD for the first quarter of last year. Petrochemical pipeline transportation volumes were 115 MBPD during the first quarter of 2008 compared to 102 MBPD in the same quarter of 2007.

Enterprise's octane enhancement business reported a gross operating margin loss of $2 million in the first quarter of 2008 compared to a loss of $1 million in the first quarter of 2007. This facility was out of service for part of the first quarter of 2008 for scheduled maintenance as it was during the first quarter of last year. Octane enhancement production was 7 MBPD for the first quarter of 2008 and the first quarter of 2007.

Capitalization - Total debt principal outstanding at March 31, 2008 was approximately $7.5 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 $188 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 $500 million at March 31, 2008, which included availability under its $1.75 billion, five-year credit facility and unrestricted cash. On April 3, 2008, Enterprise issued $400 million of 5.65% senior notes due 2013 and $700 million of 6.50% senior notes due 2019. After adjusting for the net proceeds from this note offering, the partnership's liquidity at March 31, 2008 was approximately $1.6 billion.

Total capital spending in the first quarter of 2008, net of contributions in aid of construction, was approximately $625 million. This includes $25 million of sustaining capital expenditures and $7 million of investments in unconsolidated affiliates.

Interest expense for the first quarter of 2008 was $92 million on an average debt balance of $7.2 billion compared to interest expense of $63 million in the first quarter of 2007 which had an average debt balance of $5.4 billion. The increase in the average debt balance between the two periods is principally due to funding the partnership's capital investment program.

Today, Enterprise will host a conference call to discuss first quarter earnings. The call will be broadcast live over the Internet at 9 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

This press release and the accompanying schedules include the non-GAAP financial measures of gross operating margin, EBITDA and distributable cash flow. The accompanying schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable financial measure calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP"). Our non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flows provided by operating activities or any other GAAP measure of liquidity or financial performance.