Enterprise Products Partners L.P.

SEC Filings

S-1/A
ENTERPRISE PRODUCTS PARTNERS L P filed this Form S-1/A on 07/21/1998
Entire Document
 
<PAGE>
 
(1) Consists of the Company's 49% economic interest in Mont Belvieu Associates,
    a general partnership that owns a 50% undivided interest in the NGL
    fractionation facilities operated by the Company at Mont Belvieu. The
    Company directly owns an additional 12.5% undivided interest in such NGL
    fractionation facilities, giving it an effective 37.0% economic interest in
    the facilities. The revenues and costs associated with this 12.5% interest
    are included in the Company's revenues and operating costs and expenses.
(2) Consists of the Company's 33 1/3% economic interest in Belvieu
    Environmental Fuels ("BEF"), a general partnership that owns the MTBE
    facility operated by the Company at Mont Belvieu.
(3) Reflects the General Partner's 1% minority interest in the Operating
    Partnership's net income.
(4) Net income per Unit is computed by dividing the limited partners' 99%
    interest in net income by the number of Units expected to be outstanding at
    the closing of this offering.
          
(5) EBITDA is defined as net income plus depreciation and amortization and
    interest expense less equity in income of unconsolidated affiliates. EBITDA
    should not be considered as an alternative to net income, operating income,
    cash flow from operations or any other measure of financial performance
    presented in accordance with generally accepted accounting principles.
    EBITDA is not intended to represent cash flow and does not represent the
    measure of cash available for distribution, but provides additional
    information for evaluating the Company's ability to make the Minimum
    Quarterly Distribution. Management uses EBITDA to assess the viability of
    projects and to determine overall rate of returns on alternative investment
    opportunities. Because EBITDA excludes some, but not all, items that affect
    net income and this measure may vary among companies, the EBITDA data
    presented above may not be comparable to similarly titled measures of other
    companies.     
   
(6) Represents the Company's pro rata share of net income plus depreciation and
    amortization and interest expense of the unconsolidated affiliates. After
    the purchase of the Company's pro rata share of bank debt of BEF and Mont
    Belvieu Associates, EBITDA of unconsolidated affiliates will closely
    approximate the aggregate cash that the Company will receive from its
    investment in BEF and Mont Belvieu Associates.     
   
(7)  Production volumes represent average daily production in thousands of
     barrels per day. Production volume for fractionation includes gross
     production volumes for the NGL fractionation facilities in which the
     Company owns an effective 37.0% economic interest. Production volume for
     MTBE reflects gross production volumes for the BEF facility in which the
     Company owns an undivided 33 1/3% economic interest. MTBE production at
     the BEF facility began in 1994.     
 
                                       6