Enterprise Increases Annual Cash Distribution to $2.35; Fourth Increase in the Last Seven Quarters.
HOUSTON--(BUSINESS WIRE)--May 3, 2001
Enterprise Products Partners L.P. (NYSE:EPD) announced today that the board of directors of its general partner has approved the increase of Enterprise's annual cash distribution rate to partners to $2.35 per unit effective with the second quarter distribution which is payable in August. This is a 6.8 percent increase from the annual rate of $2.20 per unit which had been in effect. On a quarterly basis, the distribution was raised from $0.55 per unit to $0.5875 per unit.
"We are pleased to announce our fourth distribution increase in the past seven quarters. During this period, we have increased the cash distribution rate to our partners by 31 percent. This increase reflects the growth in our fee-based cash flows attributable to investments in new projects and acquisitions. Since our IPO, in July 1998, we have completed over $1.2 billion in new investments," stated O.S. "Dub" Andras, president and chief executive officer.
"Our goal is to invest $400 million annually in acquisitions and new projects in the midstream energy service sector and to increase our cash distribution rate to partners by 10 percent per year. This distribution increase is the first step in accomplishing our annual goal for 2001 of increasing our cash distribution rate by at least 10 percent," continued Andras.
Enterprise Products Partners L.P. is the second largest publicly traded, midstream energy partnership with an enterprise value of approximately $3.8 billion. Enterprise is a leading provider of midstream energy services to producers and consumers of natural gas and natural gas liquids ("NGLs"). The company's services include natural gas transportation, processing and storage and NGL fractionation (or separation), transportation, storage and import/export terminalling. The company's assets are geographically focused on the United States' Gulf Coast, which accounts for approximately 55 percent of both domestic natural gas and NGL production and 75 percent of domestic NGL demand.
This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 based on the beliefs of the company, as well as assumptions made by, and information currently available to, management. Although Enterprise believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Please refer to the company's latest filings with the Securities and Exchange Commission for a list of factors that may cause actual results to differ materially from those in the forward-looking statements contained in this press release.