Enterprise GP Holdings reported a 33% raise in distributable cash flow to a record $73.9 million for the first quarter of 2009 compared to $55.7 million in the year-ago quarter. Distributable cash flow for the first quarter of 2009 provided 1.1 times coverage of the $0.485 per unit distribution declared regarding the first quarter of 2009, which is planned to be paid on May 11, 2009 to unitholders of record as of the close of business on April 30, 2009, which comprises the 16 million class C units that converted to common units on February 1, 2009. This per unit distribution rate represents a 14.1% raise from the $0.425 per unit paid in May 2008 with respect to the first quarter of 2008.
Enterprise GP Holdings will obtain $88.3 million of total cash distributions from its investments regarding the first quarter of 2009. This symbolizes a 16% raise from the $76.2 million of cash distributions the parent company received with respect to the year-ago quarter. This raise in cash distributions is mainly because of higher cash distribution rates from Enterprise Products Partners, TEPPCO and Energy Transfer Equity, and extra units issued by Enterprise Products Partners, TEPPCO and Energy Transfer Partners.
The raise in consolidated net income for the first quarter was mainly because of raised operating income from our investments in Enterprise Products Partners, TEPPCO, and Energy Transfer Equity.
“In the first quarter of 2009, Enterprise GP Holdings reported record distributable cash flow for the fourth consecutive quarter as the underlying MLPs in which we are invested continue to post solid results,” said Ralph S. Cunningham, president and chief executive officer of Enterprise GP Holdings. “We continue to benefit from our diversified base of cash flows from these partnerships as they consistently generate solid results. The incentive distribution rights associated with our general partner interests should enhance our prospects for long-term cash distribution growth, allowing us to continue our track record of increasing quarterly cash distributions to our partners, as we have done every quarter since our initial public offering in August 2005,” continued Cunningham.
