DEP Duncan Energy Partners L.P.

Enterprise Products Partners L.P. (“Enterprise”) (NYSE: EPD) today announced its financial results for the three months ending March 31, 2011.

First Quarter 2011 Highlights

• Enterprise reported gross operating margin of $875 million and record net income of $435 million for the first quarter of 2011 compared to gross operating margin of $806 million and net income of $392 million for the first quarter of 2010.

             

1st Quarter

2011       2010 $ in millions, except per unit amounts Gross operating margin $ 875 $ 806 Net income $ 435 $ 392 Diluted earnings per unit $ 0.49 $ 0.33 Adjusted EBITDA $ 890 $ 803 Distributable cash flow         $ 694       $ 580

• Enterprise increased its cash distribution rate with respect to the first quarter of 2011 to $0.5975 per unit, or $2.39 per unit on an annualized basis, which represents a 5.3 percent increase from the distribution rate paid with respect to the first quarter of 2010. This is the 27th consecutive quarterly increase and the 36th increase since the partnership’s initial public offering (“IPO”) in 1998. The distribution with respect to the first quarter of 2011 was paid on May 6, 2011;

• Enterprise reported record distributable cash flow of $694 million for the first quarter of 2011, which provided 1.4 times coverage of the $0.5975 per unit cash distribution paid to common units. Enterprise retained approximately $207 million of distributable cash flow for the first quarter of 2011;
• Enterprise’s NGL, crude oil, refined products and petrochemical pipeline volumes for the first quarter of 2011 were 4.1 million barrels per day (“BPD”), which was slightly higher than volumes in the first quarter of 2010. Total natural gas pipeline volumes increased 6 percent to a record 12.8 trillion British thermal units per day (“TBtud”) for the first quarter of 2011. NGL fractionation volumes for the first quarter of 2011 increased 16 percent to a record 549 thousand barrels per day (“MBPD”). Equity NGL production for the first quarter of 2011 was 119 MBPD compared to 122 MBPD in the first quarter of 2010. Fee-based natural gas processing volumes for the first quarter of 2011 increased 38 percent to a record 3.7 billion cubic feet per day (Bcfd) compared to 2.7 Bcfd for the first quarter of last year;
• Enterprise made capital investments of $718 million during the first quarter of 2011, including $53 million of sustaining capital expenditures; and
• Enterprise had consolidated liquidity (unrestricted cash and available capacity under credit facilities for both Enterprise and Duncan Energy Partners L.P. (“DEP”)) at March 31, 2011 of approximately $2.5 billion.

“Enterprise had a record first quarter to begin 2011,” stated Michael A. Creel, president and CEO of Enterprise. “Our 50,000-mile system of natural gas, NGL, refined products, crude oil and petrochemical pipelines continues to operate at record or near record volumes. We are continuing to benefit from production growth in the shale regions as well as increased demand for NGLs by the U.S. petrochemical industry and international markets. With few exceptions, the partnership’s diversified mix of businesses had another strong quarter.”

“Our commercial and engineering teams are doing an exceptional job in expanding our existing footprint of assets to develop new organic infrastructure projects to support our energy producing customers in developing shale plays and our energy consuming customers in expanding their facilities to take advantage of domestically produced hydrocarbons. Rig counts have increased in shale plays with reserves of NGL-rich natural gas and crude oil, many of which are adjacent to our integrated system. U.S. petrochemical companies, especially ethylene producers, continue to enjoy a global feedstock cost advantage because of domestically produced supplies of ethane and propane, which are displacing more costly crude oil derivatives. Recently, four petrochemical companies have announced plans or studies to build new ethylene production facilities on the U.S. Gulf Coast to take advantage of the expected growth in U.S. ethane and propane supplies from the shale plays. This is a great story for the United States both from an economic and job creation standpoint as well as reducing our country’s reliance on imported energy,” said Creel.

“Enterprise has approximately $5 billion of infrastructure projects currently under construction. Our largest single project is the Haynesville Extension of our Acadian Gas system. This $1.6 billion project is on schedule to begin operations in September 2011 and currently under budget. We have 21 projects totaling more than $2.5 billion in capital under construction to serve producers in the Eagle Ford shale. Most of these NGL, natural gas and crude oil infrastructure projects are scheduled to begin service in 2012. Our commercial teams are also working on opportunities to expand our system to serve expected production growth from non-conventional resources in the Rocky Mountains, West Texas, New Mexico and Oklahoma,” stated Creel.

Review of First Quarter 2011 Results

Net income for the first quarter of 2011 was a record $435 million, or $0.49 per unit on a fully diluted basis, versus $392 million, or $0.33 per unit on a fully diluted basis, for the first quarter of 2010.

On April 14, 2011, the Board of Directors of Enterprise’s general partner approved an increase in the partnership’s quarterly cash distribution rate with respect to the first quarter of 2011 to $0.5975 per unit, representing a 5.3 percent increase over the $0.5675 per unit rate that was paid with respect to the first quarter of 2010. Enterprise generated record distributable cash flow of $694 million during the first quarter of 2011 compared to $580 million for the first quarter of 2010. Distributable cash flow for the first quarter of 2011 and 2010 included $84 million and $22 million, respectively, of cash proceeds from sale of assets. Enterprise’s distributable cash flow for the first quarter of 2011 provided 1.4 times coverage of the cash distributions that were paid on May 6, 2011. The partnership retained approximately $207 million, or 30 percent, of distributable cash flow in the first quarter of 2011, which is available to reinvest in growth capital projects, reduce debt, and decrease the need to issue additional equity. 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 U.S. GAAP financial measure, net cash flows provided by operating activities.

Certain of Enterprise’s revenues and operating costs and expenses can fluctuate significantly based on the prices of natural gas, NGLs and crude oil without necessarily affecting gross operating margin and operating income to the same degree. Revenue for the first quarter of 2011 increased to $10.2 billion from $8.5 billion in the same quarter of 2010, primarily attributable to higher commodity prices and volumes. Operating income was $625 million for the first quarter of 2011 versus $559 million for the same quarter of 2010. Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) for the first quarter of 2011 was a record $890 million compared to $803 million for the first quarter of 2010.

Review of Segment Performance for the First Quarter of 2011

NGL Pipelines & Services – Gross operating margin for the NGL Pipelines & Services segment was $504 million for the first quarter of 2011, a 15 percent increase, compared to $437 million for the same quarter of 2010.

Enterprise’s natural gas processing and related NGL marketing business recorded gross operating margin of $278 million for the first quarter of 2011 compared to $260 million for the first quarter of 2010. This $18 million increase was largely due to an increase in NGL sales volumes and margins due to greater demand for NGLs. Equity NGL production (the NGLs that Enterprise earns title to as a result of providing processing services) was 119 MBPD for the first quarter of 2011 compared to 122 MBPD for the first quarter of 2010. Enterprise reported a 38 percent increase in fee-based processing volumes to a record 3.7 Bcfd for the first quarter of 2011 compared to 2.7 Bcfd for the first quarter of 2010 on volume growth in the Rocky Mountains and Texas.

Gross operating margin from the partnership’s NGL pipeline and storage business was $180 million in the first quarter of 2011 compared to $150 million in the first quarter of 2010. This increase was primarily attributable to an $11 million increase in gross operating margin on the Mid-America and Seminole pipeline systems from higher long-haul revenues and an 11 MBPD increase in volume; an $8 million increase in gross operating margin from certain of Enterprise’s NGL terminals; and a $6 million increase in gross operating margin from our South Louisiana and Lou-Tex NGL pipeline systems on an aggregate 77 MBPD increase in volume. This business reported total NGL pipeline volumes of 2.4 million BPD in the first quarter of 2011, a 126 MBPD, or 6 percent, increase over the first quarter of last year.

Enterprise’s NGL fractionation business reported record gross operating margin of $46 million for the first quarter of 2011 compared to $27 million reported for the same quarter of 2010. This $19 million increase in gross operating margin was largely due to volumes and revenues associated with the expansion of our Mont Belvieu NGL fractionation facility, the fourth unit of which has a capacity of 75 MBPD and began commercial operations late in the fourth quarter of 2010. Fractionation volumes for the first quarter of 2011 were a record 549 MBPD compared to 473 MBPD in the first quarter of 2010.

Onshore Natural Gas Pipelines & Services – Enterprise’s Onshore Natural Gas Pipelines & Services segment reported an increase in gross operating margin to $159 million for the first quarter of 2011 from $130 million earned in the first quarter of 2010. This $29 million increase in gross operating margin was largely due to $15 million of gross operating margin generated by the State Line and Fairplay natural gas gathering systems that were acquired in the second quarter of 2010; a $9 million increase in gross operating margin from the Texas Intrastate system primarily due to an increase in capacity fee revenues earned in South Texas; and a $6 million increase in gross operating margin from natural gas marketing activities. Total onshore natural gas pipeline volumes increased 1.0 TBtud, or 9 percent, to 11.7 TBtud for the first quarter of 2011.

Onshore Crude Oil Pipelines & Services – Gross operating margin from the partnership’s onshore crude oil pipelines and services business increased to $32 million for the first quarter of 2011 from $27 million for the first quarter of 2010. This $5 million increase in gross operating margin was primarily attributable to crude oil marketing and volume growth on the Red River, South Texas and West Texas crude oil pipelines. Total onshore crude oil pipeline volumes were 666 MBPD for the first quarter of 2011 compared to 672 MBPD for the first quarter of 2010. All of Enterprise’s crude oil pipelines reported increases in volume with the exception of the Seaway pipeline, which reported a 49 MBPD decrease in volume net to our ownership interest.

Offshore Pipelines & Services – Gross operating margin for the Offshore Pipelines & Services segment was $61 million in the first quarter of 2011 compared to $81 million in the same quarter of 2010. Gross operating margin for the first quarter of 2010 included a $9 million benefit related to insurance recoveries. This segment continues to be impacted by lower exploration and development activity in the Gulf of Mexico due to federal regulatory issues.

The Independence Hub platform and Trail pipeline reported a $10 million decline in aggregate gross operating margin to $37 million for the first quarter of 2011 compared to $47 million for the first quarter of 2010. Natural gas volumes on the Independence system were 511 billion British thermal units per day (“BBtud”) for the first quarter of 2011 compared to 717 BBtud reported for the first quarter of 2010. Total offshore natural gas pipeline volumes (including those for Independence Trail) were 1.2 TBtud for the first quarter of 2011 compared to 1.4 TBtud for the first quarter of 2010.

Gross operating margin from Enterprise’s offshore crude oil pipeline business was $21 million for the first quarter of 2011 compared to $25 million for the first quarter of 2010 on a 55 MBPD decrease in volumes between the periods. Total offshore crude oil pipeline volumes were 299 MBPD in the first quarter of 2011 versus 354 MBPD in the same quarter of 2010.

Petrochemical & Refined Products Services – Gross operating margin for the Petrochemical & Refined Products Services segment was $112 million in the first quarter of 2011 compared to $120 million in the first quarter of 2010.

The partnership’s propylene business reported a $6 million increase in gross operating margin to $49 million for the first quarter of 2011 from $43 million in the first quarter of 2010 primarily due to lower operating expenses, which more than offset the effect of lower fractionation and pipeline volumes due to refinery outages. Propylene fractionation volumes were 73 MBPD in the first quarter of 2011 compared to 80 MBPD for the same quarter of 2010. Related propylene pipeline volumes were 78 MBPD during the first quarter of 2011 compared to 112 MBPD in the first quarter of 2010.

Enterprise’s refined products pipelines and related services business reported gross operating margin of $18 million for the first quarter of 2011 compared to $49 million in the first quarter of 2010. This $31 million decrease in gross operating margin was largely due to an estimated $14 million decline in gross operating margin associated with lower revenues and higher expenses related to repairs of a segment of the Products Pipeline System in New York State; approximately $10 million decrease in gross operating margin primarily due to lower transportation volumes originating on the Gulf Coast for delivery to Midwest markets; and $5 million from higher maintenance and pipeline integrity expenses. Pipeline volumes for the refined products pipeline and related services business were 642 MBPD for the first quarter of 2011 compared to 682 MPBD for the first quarter of 2010.

Enterprise’s butane isomerization business reported gross operating margin of $26 million in the first quarter of 2011 versus $15 million in the first quarter of 2010 due to higher revenues from the sales of by-products and an increase in isomerization volumes. Isomerization volumes during the first quarter of 2011 were 88 MBPD compared to 73 MBPD in the first quarter of 2010.

Gross operating margin for Enterprise’s octane enhancement business increased to $6 million in the first quarter of 2011 from $4 million in the first quarter of 2010 largely due to higher margins and a 1 MBPD increase in volume to 12 MBPD in the first quarter of 2011.

Enterprise’s marine transportation and other service businesses reported gross operating margin of $13 million for the first quarter of 2011 compared to $9 million for the first quarter of 2010.

Other Investments – Gross operating margin for the Other Investments segment was $6 million for the first quarter of 2011 compared to $11 million for the first quarter of 2010. This business segment consists of our noncontrolling ownership interests in Energy Transfer Equity, L.P. (NYSE: ETE), which is accounted for using the equity method.

Review of Other Items for the First Quarter 2011

General and administrative costs for the first quarter of 2011 were $38 million compared to $40 million in the first quarter of 2010 primarily due to lower public company expenses and payroll costs associated with merger synergies.

Interest expense for the first quarter of 2011 was $184 million compared to $158 million for the first quarter of 2010. The average debt balances for the first quarters of 2011 and 2010 were $14.1 billion and $12.3 billion, respectively. The increase in the average debt balance between the two periods was primarily due to debt incurred to partially fund Enterprise’s capital investments, the Holdings Merger (as defined below “Basis of Presentation”) and for working capital needs.

Capitalization

Total debt principal outstanding at March 31, 2011 was approximately $14.0 billion, including $1.5 billion of junior subordinated notes to which the nationally recognized debt rating agencies ascribe, on average, approximately 50 percent equity content. Enterprise’s consolidated debt at March 31, 2011 also included $898 million of debt of DEP for which Enterprise does not have the payment obligation. At March 31, 2011, Enterprise had consolidated liquidity of approximately $2.5 billion, which included availability under Enterprise’s and DEP’s revolving credit facilities and unrestricted cash.

Total capital spending in the first quarter of 2011, net of contributions in aid of construction costs, was approximately $718 million, which includes $53 million of sustaining capital expenditures.

Conference Call to Discuss First Quarter 2011 Earnings

Today, Enterprise will host a conference call to discuss first quarter 2011 earnings. The call will be broadcast live over the Internet beginning at 9:00 a.m. CDT and may be accessed by visiting the company’s website at www.epplp.com.

Basis of Presentation

Results presented for 2010 reflect the recent merger of Enterprise GP Holdings L.P. (“Holdings”) with a wholly-owned subsidiary of Enterprise, which was completed on November 22, 2010 (the “Holdings Merger”). Holdings is the surviving consolidated entity for accounting purposes, and as a result, Enterprise’s consolidated financial and operating results prior to the Holdings Merger have been presented as if Enterprise were Holdings from an accounting perspective. Enterprise is the surviving consolidated entity for legal and reporting purposes. The primary differences between Holdings’ and Enterprise’s consolidated results of operations were (i) general and administrative costs incurred by Holdings and our former general partner; (ii) equity in income of Holdings’ noncontrolling ownership interests in Energy Transfer Equity, L.P.; and (iii) interest expense associated with Holdings’ debt. For periods prior to November 22, 2010, the consolidated net income attributable to Enterprise’s limited partner interests that were owned by parties other than Holdings is reflected as a component of net income attributable to noncontrolling interest. Furthermore, Enterprise’s earnings per unit amounts for periods prior to November 22, 2010 are based on net income attributable to the former owners of Holdings divided by the applicable weighted-average number of Holdings’ units outstanding for the period adjusted for the merger exchange ratio of 1.5 Enterprise common units for each Holdings unit. Following the Holdings Merger, earnings per unit is determined by dividing net income attributable to Enterprise by the applicable weighted-average number of Enterprise limited partner units outstanding for the period.

Use of Non-GAAP Financial Measures

This press release and accompanying schedules include the non-GAAP financial measures of gross operating margin, distributable cash flow and Adjusted EBITDA. The accompanying schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable financial measure calculated and presented in accordance with 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 measure of financial performance calculated and presented in accordance with GAAP. Our non-GAAP financial measures may not be comparable to similarly-titled measures of other companies because they may not calculate such measures in the same manner as we do.

Gross operating margin. We evaluate segment performance based on the non-GAAP financial measure of gross operating margin. Gross operating margin (either in total or by individual segment) is an important performance measure of the core profitability of our operations. This measure forms the basis of our internal financial reporting and is used by management in deciding how to allocate capital resources among business segments. We believe that investors benefit from having access to the same financial measures that management uses in evaluating segment results. The GAAP financial measure most directly comparable to total segment gross operating margin is operating income.

We define total segment gross operating margin as operating income before: (1) depreciation, amortization and accretion expenses; (2) non-cash asset impairment charges; (3) operating lease expenses for which we do not have the payment obligation; (4) gains and losses from asset sales and related transactions; and (5) general and administrative costs. Gross operating margin by segment is calculated by subtracting segment operating costs and expenses (net of the adjustments noted above) from segment revenues, with both segment totals before the elimination of intercompany transactions. In accordance with GAAP, intercompany accounts and transactions are eliminated in consolidation. Gross operating margin is exclusive of other income and expense transactions, provision for income taxes, the cumulative effect of changes in accounting principles and extraordinary charges. Gross operating margin is presented on a 100 percent basis before the allocation of earnings to noncontrolling interests.

We include equity earnings from unconsolidated affiliates in our measurement of segment gross operating margin. Our equity investments with industry partners are a vital component of our business strategy. They are a means by which we conduct our operations to align our interests with those of our customers and/or suppliers. This method of operation also enables us to achieve favorable economies of scale relative to the level of investment and business risk assumed versus what we could accomplish on a standalone basis. Many of these businesses perform supporting or complementary roles to our other business operations.

Distributable cash flow. We define distributable cash flow as net income or loss attributable to partners adjusted for: (1) the addition of depreciation, amortization and accretion expense; (2) the addition of operating lease expenses for which we do not have the payment obligation; (3) the addition of cash distributions received from unconsolidated affiliates less equity earnings from unconsolidated affiliates; (4) the subtraction of sustaining capital expenditures and cash payments to settle asset retirement obligations; (5) the addition of losses or subtraction of gains from asset sales and related transactions; (6) the addition of cash proceeds from asset sales or related transactions; (7) the return of an investment in an unconsolidated affiliate or related transactions (if any); (8) the addition of losses or subtraction of gains on the monetization of derivative instruments recorded in accumulated other comprehensive income (loss), if any, less related amortization of such amounts to earnings; (9) the addition of net income attributable to the noncontrolling interest associated with the public unitholders of DEP, less related cash distributions to be paid to such unitholders with respect to the period of calculation; and (10) the addition or subtraction of other miscellaneous non-cash amounts (as applicable) that affect net income or loss for the period.

Sustaining capital expenditures are capital expenditures (as defined by GAAP) resulting from improvements to and major renewals of existing assets. Such expenditures serve to maintain existing operations but do not generate additional revenues.

Management compares the distributable cash flow we generate to the cash distributions we expect to pay our partners. Using this metric, management computes our distribution coverage ratio. Distributable cash flow is an important non-GAAP financial measure for our limited partners since it serves as an indicator of our success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not we are generating cash flows at a level that can sustain or support an increase in our quarterly cash distributions. Distributable cash flow is also a quantitative standard used by the investment community with respect to publicly traded partnerships because the value of a partnership unit is, in part, measured by its yield, which is based on the amount of cash distributions a partnership can pay to a unitholder. The GAAP measure most directly comparable to distributable cash flow is net cash flows provided by operating activities.

Adjusted EBITDA. We define Adjusted EBITDA as net income or loss minus equity earnings from unconsolidated affiliates; plus distributions received from unconsolidated affiliates, interest expense, provision for income taxes and depreciation, amortization and accretion expense. Adjusted EBITDA is commonly used as a supplemental financial measure by management and external users of our financial statements, such as investors, commercial banks, research analysts and rating agencies, to assess: (1) the financial performance of our assets without regard to financing methods, capital structures or historical cost basis; (2) the ability of our assets to generate cash sufficient to pay interest and support our indebtedness; and (3) the viability of projects and the overall rates of return on alternative investment opportunities. Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies. The GAAP measure most directly comparable to Adjusted EBITDA is net cash flows provided by operating activities.

Company Information and Use of Forward-Looking Statements

Enterprise Products Partners L.P. is the largest publicly traded partnership and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. The partnership’s assets include approximately 50,200 miles of onshore and offshore pipelines; 192 million barrels of storage capacity for NGLs, refined products and crude oil; and 27 billion cubic feet of natural gas storage capacity. Services include: natural gas transportation, gathering, processing and storage; NGL fractionation (or separation), transportation, storage, and import and export terminaling; crude oil and refined products storage, transportation and terminaling; offshore production platform services; petrochemical transportation and storage; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems and in the Gulf of Mexico. For additional information, visit www.epplp.com.

This press release includes forward-looking statements. Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve certain risks and uncertainties, such as the partnership’s expectations regarding future results, capital expenditures, project completions, liquidity and financial market conditions. These risks and uncertainties include, among other things, insufficient cash from operations, adverse market conditions, governmental regulations and other factors discussed in Enterprise’s filings with the U.S. Securities and Exchange Commission. If any of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. The partnership disclaims any intention or obligation to update publicly or reverse such statements, whether as a result of new information, future events or otherwise.

        Enterprise Products Partners L.P. Exhibit A Condensed Statements of Consolidated Operations - UNAUDITED ($ in millions, except per unit amounts) Three Months Ended March 31, 2011     2010

Revenues

$ 10,183.7 $ 8,544.5

Costs and expenses:

Operating costs and expenses 9,537.1 7,971.9 General and administrative costs   37.9         40.3   Total costs and expenses   9,575.0         8,012.2  

Equity in income of unconsolidated affiliates

  16.2         26.6  

Operating income

624.9 558.9

Other income (expense):

Interest expense (183.8 ) (157.9 ) Other, net   0.5         0.1   Total other expense   (183.3 )       (157.8 )

Income before provision for income taxes

441.6 401.1 Provision for income taxes   (7.1 )       (8.7 )

Net income

434.5 392.4 Net income attributable to noncontrolling interests – Enterprise -- (306.5 ) Net income attributable to noncontrolling interests – other   (13.8 )       (16.0 ) Total net income attributable to noncontrolling interests   (13.8 )       (322.5 )

Net income attributable to partners

$ 420.7       $ 69.9    

Net income allocated to:

Limited partners $ 420.7 $ 69.9 General partner

$

--

$

*

Per unit data (fully diluted):

Earnings per unit $ 0.49 $ 0.33 Average limited partner units outstanding (in millions) 850.3 208.8

Other financial data:

Net cash flows provided by operating activities $ 802.7 $ 696.4 Cash used in investing activities $ 726.4 $ 370.5 Cash provided by (used in) financing activities $ 8.6 $ (246.4 ) Distributable cash flow $ 693.7 $ 580.4 Adjusted EBITDA $ 890.4 $ 802.5 Depreciation, amortization and accretion $ 241.1 $ 218.6 Distributions received from unconsolidated affiliates $ 42.5 $ 51.4 Total debt principal outstanding at end of period $ 14,038.0 $ 12,140.7

Capital spending:

Capital expenditures, net of contributions in aid of construction costs, for property, plant and equipment $ 710.3 $ 344.2 Cash used for business combinations, net of cash received -- 2.2 Acquisition of intangible assets 3.6 -- Investments in unconsolidated affiliates   3.8         7.7   Total capital spending $ 717.7       $ 354.1     * Amount is negligible.        

Enterprise Products Partners L.P.

Exhibit B Condensed Operating Data – UNAUDITED ($ in millions) Three Months Ended March 31, 2011     2010

Gross operating margin by segment:

NGL Pipelines & Services $ 504.4 $ 437.3 Onshore Natural Gas Pipelines & Services 159.2 130.3 Onshore Crude Oil Pipelines & Services 31.8 26.7 Offshore Pipelines & Services 61.3 81.1 Petrochemical & Refined Products Services 112.4 120.0 Other Investments   6.3         10.6   Total gross operating margin 875.4 806.0 Adjustments to reconcile non-GAAP gross operating margin to GAAP operating income: Amounts included in operating costs and expenses: Depreciation, amortization and accretion (230.8 ) (212.4 ) Non-cash asset impairment charges -- (1.5 ) Operating lease expenses paid by EPCO (0.2 ) (0.2 ) Gain from asset sales and related transactions 18.4 7.3 General and administrative costs   (37.9 )       (40.3 ) Operating income $ 624.9       $ 558.9    

Selected operating data: (1)

NGL Pipelines & Services, net: NGL transportation volumes (MBPD) 2,366 2,240 NGL fractionation volumes (MBPD) 549 473 Equity NGL production (MBPD) 119 122 Fee-based natural gas processing (MMcf/d) 3,698 2,679 Onshore Natural Gas Pipelines & Services, net: Natural gas transportation volumes (BBtus/d) 11,678 10,706 Onshore Crude Oil Pipelines & Services, net: Crude oil transportation volumes (MBPD) 666 672 Offshore Pipelines & Services, net: Natural gas transportation volumes (BBtus/d) 1,155 1,406 Crude oil transportation volumes (MBPD) 299 354 Platform natural gas processing (MMcf/d) 445 632 Platform crude oil processing (MBPD) 16 18 Petrochemical & Refined Products Services, net: Butane isomerization volumes (MBPD) 88 73 Propylene fractionation volumes (MBPD) 73 80 Octane additive production volumes (MBPD) 12 11 Transportation volumes, primarily refined products and petrochemicals (MBPD) 743 804 Total, net: NGL, crude oil, refined products and petrochemical transportation volumes (MBPD) 4,074 4,070 Natural gas transportation volumes (BBtus/d) 12,833 12,112 Equivalent transportation volumes (MBPD) (2) 7,451 7,257                      

(1)

 

Operating rates are reported on a net basis, taking into account our ownership interests in certain joint ventures, and include volumes for newly constructed assets from the related in-service dates and for recently purchased assets from the related acquisition dates.

(2)

Reflects equivalent energy volumes where 3.8 MMBtus of natural gas are equivalent to one barrel of NGLs.

        Enterprise Products Partners L.P. Exhibit C Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures Distributable Cash Flow ($ in millions) Three Months Ended March 31, 2011     2010 (1) Net income attributable to partners $ 420.7 $ 377.8 Adjustments to GAAP net income attributable to partners to derive non-GAAP distributable cash flow: Depreciation, amortization and accretion 241.1 217.6 Operating lease expenses paid by EPCO 0.2 0.2 Distributions received from unconsolidated affiliates 42.5 30.2 Equity in income of unconsolidated affiliates (16.2 ) (16.0 ) Sustaining capital expenditures (52.7 ) (32.6 ) Cash payments to settle asset retirement obligations (0.2 ) (2.0 ) Gain from asset sales and related transactions (18.4 ) (7.5 ) Proceeds from asset sales and related transactions 84.2 21.7 Monetization of derivative instruments (5.7 ) -- Amortization of net losses related to monetization of derivative instruments 1.5 1.4 Net income attributable to noncontrolling interest – DEP public unitholders 7.9 8.7 Distribution to be paid to DEP public unitholders with respect to period (10.7 ) (10.7 ) Other miscellaneous adjustments to derive distributable cash flow   (0.5 )       (8.4 ) Distributable cash flow 693.7 580.4 Adjustments to non-GAAP distributable cash flow to derive GAAP net cash flows provided by operating activities: Sustaining capital expenditures 52.7 32.6 Cash payments to settle asset retirement obligations 0.2 2.0 Proceeds from asset sales and related transactions (84.2 ) (21.7 ) Monetization of derivative instruments 5.7 -- Amortization of net losses related to monetization of derivative instruments (1.5 ) (1.4 ) Net income attributable to noncontrolling interests 13.8 16.0 Net income attributable to noncontrolling interest – DEP public unitholders (7.9 ) (8.7 ) Distribution to be paid to DEP public unitholders with respect to period 10.7 10.7 Miscellaneous non-cash and other amounts to reconcile distributable cash flow with net cash flows provided by operating activities (0.5 ) 2.9 Net effect of changes in operating accounts 120.0 74.1 Operating cash flows for the periods prior to the effective date of the Holdings merger attributable to standalone amounts of Holdings and EPGP   --         9.5   Net cash flows provided by operating activities $ 802.7       $ 696.4                        

(1)

 

Distributable cash flow for periods prior to the Holdings Merger is calculated based on historical results of Enterprise.

         

Enterprise Products Partners L.P.

Exhibit D

Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures Adjusted EBITDA ($ in millions) Three Months Ended March 31, 2011     2010 Net income $ 434.5 $ 392.4 Adjustments to GAAP net income to derive non-GAAP Adjusted EBITDA: Equity in income of unconsolidated affiliates (16.2 ) (26.6 ) Distributions received from unconsolidated affiliates 42.5 51.4 Interest expense (including related amortization) 183.8 157.9 Provision for income taxes 7.1 8.7 Depreciation, amortization and accretion in costs and expenses   238.7         218.7   Adjusted EBITDA 890.4 802.5 Adjustments to non-GAAP Adjusted EBITDA to derive GAAP net cash flows provided by operating activities: Interest expense (183.8 ) (157.9 ) Provision for income taxes (7.1 ) (8.7 ) Operating lease expenses paid by EPCO 0.2 0.2 Gain from asset sales and related transactions (18.4 ) (7.5 )

Miscellaneous non-cash and other amounts to reconcile Adjusted

EBITDA and net cash flows provided by operating activities

1.4 (5.6 ) Net effect of changes in operating accounts   120.0         73.4   Net cash flows provided by operating activities $ 802.7       $ 696.4