enterprise products partners l.p. ubs energy...

All rights reserved. Enterprise Products Partners L.P.

Enterprise Products Partners L.P.UBS Energy Conference

September 19–20, 2007

All rights reserved. Enterprise Products Partners L.P. 2

This presentation contains forward-looking statements and information that are based on Enterprise’s beliefs and those of its general partner, as well as assumptions made by and information currently available to them. When used in this presentation, words such as “anticipate,” “project,” “expect,” “plan,” “goal,”“forecast,” “intend,” “could,” “believe,” “may,” and similar expressions and statements regarding the contemplated transaction and the plans and objectives of Enterprise for future operations, are intended to identify forward-looking statements. Although Enterprise and its general partner believe that such expectations reflected in such forward looking statements are reasonable, neither it nor its general partner can give assurances that such expectations will prove to be correct. Such statements are subject to a variety of risks, uncertainties and assumptions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those Enterprise anticipated, estimated, projected or expected. Among the key risk factors that may have a direct bearing on Enterprise’s results of operations and financial condition are:

Fluctuations in oil, natural gas and NGL prices and production due to weather and other natural and economic forces;A reduction in demand for its products by the petrochemical, refining or heating industries;The effects of its debt level on its future financial and operating flexibility;A decline in the volumes of NGLs delivered by its facilities;The failure of its credit risk management efforts to adequately protect it against customer non-payment;Actual construction and development costs could exceed forecasted amounts;Operating cash flows from our capital projects may not be immediate;Terrorist attacks aimed at its facilities; andThe failure to successfully integrate its operations with assets or companies, if any, that it may acquire in the future.

Enterprise has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Forward Looking Statements


Non-GAAP Financial Measures

This presentation utilizes the Non-GAAP financial measures of Gross Operating Margin and Consolidated EBITDA. In general, we define Gross Operating Margin as operating income before (i) depreciation, amortization and accretion expense; (ii) operating lease expense for which we do not have the payment obligation; (iii) gains and losses on the sale of assets and (iv) general and administrative expenses. The GAAP measure most directly comparable to Gross Operating Margin is net cash flows provided by operating activities.This presentation includes references to Consolidated EBITDA, which is a term defined in the $1.25 billion revolving credit facility of Enterprise Products Operating LLC, EPD’s operating subsidiary. Consolidated EBITDA is used by certain of our lenders to evaluate our ability to support debt service. The GAAP measure most directly comparable to Consolidated EBITDA is net cash flows provided by operating activities. Please see slides 38 through 40 for our calculations of these Non-GAAP financial measures along with the appropriate reconciliations.


Enterprise Family

77.0% L.P.Interest (2)

Enterprise GP Holdings L.P.(NYSE: EPE)

Enterprise Products

Partners L.P.(NYSE: EPD)

Dan L. Duncan, EPCO Holdings & Other Affiliates (1)

30.2% L.P. Interest

0.01% G.P. Interest

2% G.P. Interest

3.0% L.P. Interest

Energy Transfer Equity, L.P.(NYSE: ETE)

Energy Transfer Partners, L.P.(NYSE: ETP)

Texas Eastern Products Pipeline

Company, LLC

TEPPCO Partners, L.P.(NYSE: TPP)

Duncan Energy Partners L.P.(NYSE: DEP)

2% G.P. Interest

25.8% L.P. Interest

100% Interest

2% G.P. Interest

4.8% L.P. Interest

13.4% L.P. Interest

0.3% G.P. Interest

2% G.P. Interest

44.7% L.P. Interest

17.4% L.P. Interest

LEGP, LLC34.9% Interest

(1) Includes EPCO, Inc., EPE Holdings, LLC, the EPE Unit Partnerships I, II and III, Dan L. Duncan LLC and Mr. Duncan’s family trusts(2) Includes ownership interest in the Class C units, and considers issuance of 20.1 million units in July 2007 in a private placement


EPD Premier Midstream Network

ROCKIES

SAN JUAN

BARNETT SHALE

PERMIAN

MID-CONTINENT

MT. BELVIEU

NGL PipelinesNatural Gas PipelinesCrude Oil PipelinesFractionation FacilitiesNatural Gas Processing PlantsNatural Gas / NGL Storage FacilitiesNGL Terminal / StorageImport / Export TerminalsPlatforms

Asset Overview35,000+ miles of natural gas, NGL, crude oil and petrochemical pipelines162 MMBbls of NGL and petrochemical storage capacity27 Bcf of natural gas storage capacity25 natural gas processing plants

Assets in areas with 90% of production and 85% of reserves in the

lower 48 states (1)

(1) Source U.S. Department of Energy – EIA, September 2005

11 fractionation facilities6 offshore hub platformsNGL import / export terminalsButane isomerization complexOctane enhancement facility


NGL Products

Ethane IsobutanePropane

Normal Butane

Natural Gasoline

Production

Natural Gas& Crude Oil Pipelines

Gas Processing(Removes Mixed NGLs)

NGLPipelines

NGL Fractionation

(or separation)Storage

Distribution

Midstream Infrastructure (Value Chain)


Multiple Value Chain Corridors

BARNETT SHALE

MID-CONTINENT

MT. BELVIEU

ROCKIES

SAN JUAN

PERMIANNGL PipelinesNatural Gas PipelinesCrude Oil PipelinesFractionation FacilitiesNatural Gas Processing PlantsNatural Gas / NGL Storage FacilitiesNGL Terminal / StorageImport / Export TerminalsPlatforms

Connects growing supplies to multiple marketsUpstream investments drive volume growth through the value chainInvestment returns benefit from downstream economicsSubstantial basis differential arbitrage opportunities


Western Value Chain


Expanding Our Rocky Mountain Franchise

Acquired the Mid-America / Seminole pipelines in 2002Only NGL pipeline out of the Rocky MountainsWaited for appropriate time and market conditions to expand into natural gas gathering and processing supported by growth in Piceance and Jonah / Pinedale basins

Committing approximately $1.9 billion in growth capital in the Rockies Attractive long-term fundamentals (long-lived reserves, low F&D costs) in Piceance, Jonah / Pinedale and San Juan producing areasRecently announced completion of Phase I of the Meeker gas processing complex in the Piceance basin (expected 3Q 2007, new NGL fractionator at Hobbs and the last of the 50 MBPD expansion of MAPL’s Rocky Mountain legSupported by firm commitments by major producers

ExxonMobil announced that it plans to drill 200 new wells and they are reported to have 35 Tcf of gas reserves in the Piceance Basin by the end of 2008The Piceance Basin is ExxonMobil’s only planned land-based drilling operation in North America


1

2

34

5

67

8

9

1011

12

Western Value Chain: Downstream Economics

1) Jonah Gas Gathering2) Pioneer Processing Plant3) Piceance Creek Gathering4) Meeker Processing Plant5) San Juan Gathering6) Chaco Processing Plant7) Mid-America Pipeline Expansion8) Hobbs NGL Fractionator & Storage9) Seminole Pipeline10) Mont Belvieu – Fractionator11) Mont Belvieu – Storage12) Mont Belvieu – Distribution P/Ls


Rockies – Jonah / Pinedale RegionJonah Gas Gathering

Gathers natural gas from the prolific Jonah and Pinedale fields for delivery to processing facilities and interstate pipelines

TPP 80% / EPD 20% JV Completed 1st part of a two-phase expansion that increased capacity from 1.75 to 2 Bcf/d

– Currently gathering 1.7 Bcf/d– 34 rigs running

Expansion underway to increase capacity to 2.3 Bcf/d and reduce field pressures – expected completion in 1Q 2008


Rockies – Jonah / Pinedale RegionPioneer Processing Plant

Constructing new state-of-the-art cryogenic processing plant to process up to 750 MMcf/d of natural gas, extract up to 30 MBPD of NGLs – expected to be in service late 4Q 2007

Capable of full liquids extraction or dew point only recovery Natural gas connections – Kern River, NWPL, CIG, Overthrust/RexNGL connection – MAPLTwo silica gel conditioning plants with 600 MMcf/d capacity; current volume – 525 MMcf/d


Rockies – Piceance Basin Growth

1,250

1,087

870

687

530439

0

200

400

600

800

1,000

1,200

1,400

1,600

2002 2003 2004 2005 2006 2007E

MM

cf/d

Source: IHS Energy

23% CAGR


Rockies – Piceance BasinMeeker Processing Facility

Completion of new 750 MMcf/d cryogenic gas processing plant expected by end of 3Q 2007

Expect 400–500 MMcf/d at start-upConstruction underway on Phase II, a second 750 MMcf/d train scheduled for July 2008 completionCapable of full NGL extraction of 35 MBPD or dew point only recovery15-yr agreement with EnCana to process up to 1.3 Bcf/d of their gas productionNatural gas connections to REX, TransColorado, CIG, WIC & QuestarNGL connection to MAPL via new 50-mile lateral; future connection to Overland Pass


Acquired 48-mile, 36”gathering pipeline from EnCanaCapacity of 1.6 Bcf/d; currently gathering 400 MMcf/dConnects EnCana’s Great Divide Gathering System to the Meeker ComplexAccess to production in the Piceance Basin

Rockies – Piceance Creek Gathering System

Great Divide Gathering System

PiceanceCreek Gathering

System


Treating, deydration and compression at XOM site approximately 8 miles south of Meeker complex

200 MMcf/d capacity42,000 HP of electric compressionAmine treating

New 24” pipeline to Meeker Complex200 MMcf/d refrigeration plant at Meeker for dewpointcontrolInterconnect with Meeker cryogenic plants for deepcutNGL extraction optionalityForecast completion 3Q 2008

Rockies – ExxonMobilConditioning / Treating Plant


Rockies – Proposed White River Hub

MOU with Questar to develop new natural gas P/L hub that will connect EPD’s Meeker complex with 6 interstate pipelines in the Piceance Basin

Questar to construct and operate 50/50 JV

Proposed 7-mile, 30” P/L will have capacity to transport more than 2.5 Bcf/d

EPD committed 1.5 Bcf/d of capacityQuestar committed 0.5 Bcf/d

Open Season for remaining capacity (0.5 Bcf/d) – August 27 through September 14

Rockies Express QuestarWIC

CIGTransColorado Northwest

EnterpriseMeeker Plant

White River Hub

J.L. DavisGreasewood Plant

White River Hub PipelineQuestar PipelineEnterprise PipelinesGas Processing Plant


Rockies – Hobbs NGL Fractionator

Completed 75 MBPD NGL fractionator at HobbsCurrently handling approximately 50 MBPDFlexibility to supply nation’s largest NGL hub at Mt. Belvieu; 2nd largest hub at Conway, KS; and petrochem & refineries in West Texas, New Mexico and CaliforniaBuilding new 70-mile P/L from Hobbs to Odessa TX refinery to exclusively supply ethylene facility


Rockies – MAPL Expansion

Completed 50 MBPD Phase I expansion of MAPL’s Rocky Mountain pipeline

Pipeline looping (161 miles) finished –added 30 MBPD incremental capacityComplete pump station work adding another 20 MBPD of capacity by end of 3Q 2007Long-term shipper dedication agreements in place


Other Major Projects Update


Initial gas flow from the Atlas / Mondofields started July 19Approximately 280 MMcf/d flowing from 5 wells in early SeptemberRamp-up of initial 15 wells should continue over the next several months and producers expect to reach 1 Bcf/dcapacity by year end 2007

Benefit from potential production from over 104 dedicated leases and Lease 181 area

Gross operating margin of $214 million per year at 1 Bcf/d ($44 million annual demand charge + $17 million per year for each 100 MMcf/d)

Independence Hub Update


Fractionator expansion completed on time and on budget – August 2007

26% increase in capacity, adding an additional 15,000 BPD of polymer-grade propylene fractionation capacity (net 73 MBPD)Refinery expansions and economic growth are key drivers to expected 5% to 6% growth in demand for polymer-grade propylene

Refinery grade propylene gathering pipeline expansions

Construction of second lateral to TOTAL plant in Port Arthur in progressExpanding refinery grade propylene line to Texas City

Mont Belvieu Propylene Update


Sherman Extension178-mile 36” extension of Enterprise Texas Pipeline L.P.’s intrastate system from Morgan Mill, Texas to the interconnection with Boardwalk’s Gulf Crossing pipeline project near Sherman, Texas1.1 Bcf/d capacityProvides long-term, competitive market outlets for growing Barnett, East Texas and Waha area productionIn-service: 4Q 2008

Sherman Extension and Gulf Crossing Combination

Connecting Texas to a New Marketplace

Enterprise Gas PipelinesSherman ExtensionBoardwalk’s Gulf CrossingKinder Morgan Midcontinent ExpressEnterprise Petal Storage

Morgan Mill

Sherman

Bennington

Waha

Barnett

East Texas

Mid-Continent


Jan ‘05

Aug ‘07

Gas Production (Bcf/d)

1.1

2.7

Rigs

75

165

Producing Wells

3,781

7,000

Future

Barnett Shale – Significant Facts


Enterprise Gas Storage Facilities

Napoleonville3.0 / 3.3

Wilson6.4 / 16.4

Mont Belvieu0.0 / 20.0

Petal / Hattiesburg17.5 / 26.7

Working Gas Capacity (in Bcf)

Current Capacity 26.9

Potential Capacity by 2010 66.1

ShermanExtension

Kinder Morgan Midcontinent ExpressBoardwalk Gulf Crossing


Plan to develop 4 caverns into 20 Bcf of natural gas storage

Phase I – 5 Bcf– In-service 2Q 2010– Fully contracted

Phase II – 15 Bcf– Caverns 2–4

operational Spring 2011–2013

– Capacity to be marketed

Mont Belvieu (Texas) Gas Storage


Petal Gas Storage

Current capacity: 13.5 BcfFully subscribed

Growth plansDevelop Petal #8 cavern

– New 5 Bcf cavern available 2Q 2008

– 3.2 Bcf committed for average term of 7.5 years

– 1.8 Bcf of capacity to be marketed

– Develop additional cavern and expect firm contracts for another 5 Bcf of capacity; non-binding Open Season July 24–August 7

Ability to add additional caverns should market support

Gulf CrossingGulf Crossing

Southeast Supply Header

Southeast Supply Header

MidContinentMidContinent ExpressExpress

Petal Gas Storage


Developing Natural Gas Marketing Business

Leverage strong supply systemMore than 20,000 miles of onshore / offshore natural gas pipelines25 Bcf of storage capacity; potentially 68 Bcf by 20129 Bcf/d of equity processing capacityHandle 10.5 Bcf/d or 20% of current US productionCurrent merchant activity only 6% of total current gross volumes or 600 MMcf/dCurrent system fuel and plant PTR approximately 3.5% of total current gross volumes or 350 MMcf/d

Excellent market connectivityRockiesLouisiana / Mississippi Gulf CoastTexas Intrastate

Wealth of informationAccess largest existing and new producing basins


Developing Natural Gas Marketing Business

Vision – Leverage existing Enterprise footprint to increase profit and create additional opportunities for growthContract third party assets; storage and transportProvide value added services to targeted customer baseDevelop strong risk control processes

Team involved in evaluating Deal Capture requirements: IT, Accounting, Risk Control & SOX Reporting

Modest forward commitments complemented by assets –high transparency

Flat book approach like NGLsOptimize around contract commitments and assets


Project Description 1Q07 2Q07 3Q07 4Q07 1Q08

Mont Belvieu Brine Projects DONEDEP S. Texas NGL P/L System - Phase 1 (EPD 34%) DONEIndependence Hub (EPD 80% Ownership) DONE

Jonah Phase V Expansion - Part 1 DONEMAPL Expansion - Skellytown to Conway DONEImport/Export Terminal Expansion DONECenterPoint Energy - Houston Interconnect DONE

Meeker Processing Plant #1 DONEHobbs Fractionator DONEMont Belvieu Propylene Fractionator Expansion DONEMont Belvieu Well Optimization DONEIndependence Trail DONEMAPL Phase I Expansion √DEP S. Texas NGL P/L System - Phase 2 (EPD 34%) √

Pioneer Processing Plant #1 √CenterPoint Energy - Wilson Pipeline Connection √

Jonah Phase V Expansion - Part 2 √

Major Organic Growth Projects Expected Start Dates – $2.5 Billion


Increased Cash Flows –Existing Projects

Cameron Highway Oil PipelineExpect additional 150–160 MBPD of production from BP’s Atlantis platform in South Green Canyon at full production next yearCurrently running approximately 80–90 MBPD; 500 MBPD capacityHeader system for additional oil discoveries in deepwater Gulf of Mexico

Nautilus / Manta Ray / Nemo gas pipeline; Neptune Processing Plant

Will benefit from dedication of natural gas production from South Green Canyon discoveries


Financial Overview


Maintain a strong balance sheet and credit metrics that support investment grade credit ratings

Key financial objective since IPOPrudently invest to expand the partnership through organic growth, acquisitions and joint ventures with strategic partners Manage capital and distributable cash flow to strengthen balance sheet and provide financial flexibility

Financial Objectives


Financial discipline while executing EPD’s growth strategyFinanced 59% of $14.2 billion in capital investment since 1999 with equity (includes total estimate of capital investment for 2007)Financed 65% of $6 billion GTM merger with equitySuccessfully and rapidly integrated businesses after GTM merger

– Refinanced GTM debt to reduce annual interest expense by approximately $50 million– Recognized synergies well in excess of street expectations

Strong track record of management supportManagement has invested approximately $450 million in new equity issues since EPD’s IPOReduced long-term cost of equity capital by eliminating the 50% GP incentive distribution rights (IDRs) in December 2002, resulting in more cash being retained by partnership

Strong coverage of distributions to limited partners1.2x coverage since 1999

History of Financial Discipline


Strong Financial Position

(1) Adjusted debt includes only 41.7% of the Hybrid securities with the remaining 58.3% included in Partners’ Equity since the rating agencies ascribe partial equity treatment to these securities.

(2) “Consolidated EBITDA” is used as defined in Enterprise Products Operating LLC’s $1.25 billion credit facility dated August 25, 2004, as amended.(3) As adjusted for offering of $800 million notes and subsequent repayment of $500 million, 4.0% notes due October 15, 2007.

(1)

(1,2,3)

(3)

(3)

(3)

(3)

Senior NoteOffering As adjusted

($Millions) 6/30/07 Aug-07 6/30/07

Total Debt Excluding Hybrid Securities 5,009.7$ (793.9)$ 5,015.8$ 800.0

Hybrid Securities 1,250.0 1,250.0

Total Debt 6,259.7$ 6.1 6,265.8$

Minority Interests 434.7 434.7 Partners' Equity 6,345.0 6,345.0

Total Capitalization 13,039.4$ 13,045.5$

Total Debt/Capitalization (adjusted for equity content of Hybrids) 42.4% 42.4%

Ratio of Adjusted debt to Consolidated EBITDA 3.97x 3.98x

Percent of fixed rate debt 72% 74%

Average interest rate (including 100% of hybrids) 6.2% 6.4%

Average maturity in years 19 19

Liquidity (at June 30, 2007) $814 $1,108


Outlook

Continued strong operating fundamentals Generate substantial incremental gross operating margin and cash flow from $2.5 billion of new projects

Independence – $214 million of annual gross operating margin at full rates (equals 16% of EPD’s total 2006 gross operating margin) Ramp up of new projects will continue for the remainder of 2007 and 2008

Implementing new gas marketing business to lever existing natural gas processing, pipeline and storage franchiseIncrease distribution rate to partners at year end 2007 to a minimum of $1.99/unit based on current expectations


Non-GAAP Reconciliations



Enterprise Products Partners L.P.Gross Operating Margin (Dollars in 000s, Unaudited)

3Q 05 4Q 05 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07Gross operating margin by segment:

NGL Pipelines & Services 153,760$ 152,314$ 170,950$ 146,414$ 232,037$ 203,147$ 190,694$ 208,805$ Onshore Natural Gas Pipelines & Services 93,513 95,302 96,803 86,651 77,489 72,456 76,515 83,163 Offshore Pipelines & Services 16,922 15,325 17,252 20,515 38,364 27,276 19,707 31,046 Petrochemical Services 47,621 40,501 27,518 57,044 51,851 36,682 37,583 50,334

Total segment gross operating margin 311,816 303,442 312,523 310,624 399,741 339,561 324,499 373,348 Adjustments to reconcile Non-GAAP "Gross operating margin" to GAAP "Operating income"

Deduct depreciation, amortization and accretion in operating costs and expenses (103,028) (109,400) (104,816) (107,952) (112,412) (115,076) (119,492) (121,161) Deduct operating lease expense paid by EPCO, Inc. (528) (528) (528) (528) (526) (527) (526) (527) Add/deduct gains (losses) on sales of assets (611) (254) 61 136 3,204 (42) 73 (5,737) Deduct general and administrative expenses (13,252) (15,611) (13,740) (16,235) (15,823) (17,593) (16,630) (31,361)

Operating income 194,397$ 177,649$ 193,500$ 186,045$ 274,184$ 206,323$ 187,924$ 214,562$



Enterprise Products Operating LLCConsolidated EBITDA (Dollars in 000s, Unaudited)

3Q 05 4Q 05 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07Reconciliation of Non-GAAP "Consolidated EBITDA" to GAAP "Net income"

and GAAP "Net cash flows provided by operating activities"Net income (1) 131,344$ 108,607$ 135,329$ 126,320$ 208,349$ 133,215$ 112,818$ 144,290$

Adjustments to net income to derive Consolidated EBITDA (add or subtract as indicated by sign of number):

Add/deduct equity in (income) loss of unconsolidated affiliates (3,703) 15 (4,029) (8,013) (2,264) (7,259) (6,179) 6,211 Add interest expense (including related amortization) 60,538 59,852 58,077 56,333 62,793 60,818 63,358 71,275 Add depreciation, amortization and accretion in costs and expenses 104,562 111,559 106,316 110,205 114,140 116,781 121,089 123,823 Add operating lease expense paid by EPCO, Inc. 528 528 528 528 528 525 526 526 Add distributions from unconsolidated affiliates 8,480 8,670 8,253 12,095 6,737 15,947 16,947 18,079 Add/deduct provision for income taxes 3,223 4,404 2,892 6,272 3,214 8,820 8,779 (1,845) Deduct adjustments related to Duncan Energy Partners - - - - - - (36,832) (21,254) Add other adjustments - - (529) 529 - - - -

Consolidated EBITDA (2) 304,972 293,635 306,837 304,269 393,497 328,847 280,506 341,105 Adjustments to Consolidated EBITDA to derive Net cash flows provided by operating activities (add or subtract as indicated by sign of number):

Deduct interest expense (60,538) (59,852) (58,077) (56,333) (62,793) (60,818) (63,358) (71,275) Add/deduct provision for income taxes (3,223) (4,404) (2,892) (6,272) (3,214) (8,820) (8,779) 1,845 Add/deduct cumulative effect of changes in accounting principles - 4,208 (1,475) - - 3 - - Add deferred income tax expense 1,952 2,767 1,487 7,693 3,198 2,272 1,616 2,568 Add amortization in interest expense 252 269 251 238 153 124 132 68 Add provision for non-cash asset impairment charge - - - - - 88 - - Add minority interest 903 2,754 2,199 533 2,029 4,429 5,743 5,778 Add/deduct loss (gain) on sale of assets 611 253 (61) (136) (3,204) 42 (73) 5,737 Add/deduct changes in fair market value of financial instruments 11 - (53) - 12 (10) 104 (406) Add/deduct net effect of changes in operating accounts (18,777) 45,431 244,509 (191,233) 84,262 (76,000) 165,936 (177,034) Add adjustments related to Duncan Energy Partners - - - - - - 36,832 21,254 Deduct other adjustments - - 529 (529) - - - -

Net cash flows provided by operating activities (3) 226,163$ 285,061$ 493,254$ 58,230$ 413,940$ 190,157$ 418,659$ 129,640$

Notes:Represents net income for Enterprise Products Operating LLC, the operating subsidiary of Enterprise Products Partners L.P.Defined as "Consolidated EBITDA" in Enterprise Products Operating LLC's $1.25 billion credit facility dated August 25, 2004, as amended.Represents net cash flows provided by operating activities for Enterprise Products Operating LLC.(3)

(1)(2)



Enterprise Products Partners L.P.Ratio of Adjusted Debt to Consolidated EBITDA (Dollars in 000s, Unaudited) Last Twelve

Months EndedJune 30, 2007 At June 30, 2007

Reconciliation of Non-GAAP "Consolidated EBITDA" to GAAP "Net income" Computation of "Adjusted debt"and GAAP "Net cash flows provided by operating activities" Senior debt obligations - principal 5,063,949$

Net income (1) 598,672$ Junior Subordinated Notes - principal ("Hybrid securities") 1,250,000 Adjustments to net income to derive Consolidated EBITDA Other (54,234) (add or subtract as indicated by sign of number): Total long-term debt 6,259,715

Deduct equity in income of unconsolidated affiliates (9,491) Adjustments to derive Adjusted debtAdd interest expense (including related amortization) 258,244 Deduct average equity content ascribed to Hybrid securities (4) (729,167) Add depreciation, amortization and accretion in costs and expenses 475,833 Deduct consolidated debt obligations of Duncan Energy Partners (190,000) Add operating lease expense paid by EPCO, Inc. 2,105 Adjusted debt 5,340,548$ Add distributions from unconsolidated affiliates 57,710 Add provision for income taxes 18,968 Deduct adjustments related to Duncan Energy Partners (58,086) Ratio of "Adjusted debt" to "Consolidated EBITDA"

Consolidated EBITDA (2) 1,343,955 Adjusted debt 5,340,548$ Adjustments to Consolidated EBITDA to derive net cash flows provided by Consolidated EBITDA 1,343,955$ operating activities (add or subtract as indicated by sign of number): Ratio of Adjusted debt to Consolidated EBITDA 3.97x

Deduct interest expense (258,244) Deduct provision for income taxes (18,968) Add cumulative effect of change in accounting principle 3 Add deferred income tax expense 9,654 Add amortization in interest expense 477 Add provision for non-cash asset impairment charge 88 Add minority interest 17,979 Add loss on sale of assets 2,502 Deduct changes in fair market value of financial instruments (300) Deduct net effect of changes in operating accounts (2,836) Add adjustments related to Duncan Energy Partners 58,086

Net cash flows provided by operating activities (3) 1,152,396$

Notes:Represents net income for Enterprise Products Operating LLC, the operating subsidiary of Enterprise Products Partners L.P.Defined as "Consolidated EBITDA" in Enterprise Products Operating LLC's $1.25 billion credit facility dated August 25, 2004, as amended.Represents net cash flows provided by operating activities for Enterprise Products Operating LLC.Represents 58.3% of the Hybrid securities' principal balance that is ascribed partial equity treatment by the rating agencies.

(1)(2)(3)(4)

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