Distributable cash flow is also an important non-GAAP financial measure for ourlimited partners since it serves as an indicator of our success in providing acash return on investment. Specifically, this financial measure indicates toinvestors whether or not we are generating cash flows at a level that cansustain or support an increase in our quarterly cash distributions.Distributable cash flow is also a quantitative standard used by the investmentcommunity with respect to publicly-traded partnerships because the value of apartnership unit is in part measured by its yield (which in turn is based on theamount of cash distributions a partnership can pay to a unitholder). The GAAPmeasure most directly comparable to distributable cash flow is net cash flowsprovided by operating activities Adjusted EBITDA. We define Adjusted EBITDA as net income or loss less equity inearnings of unconsolidated affiliates, plus distributions received fromunconsolidated affiliates, interest expense, provision for income taxes anddepreciation, amortization and accretion expense. Adjusted EBITDA is commonlyused as a supplemental financial measure by our senior management and byexternal users of our financial statements, such as investors, commercial banks,research analysts and rating agencies, to assess: (1) the financial performanceof our assets without regard to financing methods, capital structures orhistorical cost basis; (2) the ability of our assets to generate cash sufficientto pay interest cost and support our indebtedness; and (3) the viability ofprojects and the overall rates of return on alternative investmentopportunities.
Since Adjusted EBITDA excludes some, but not all, items thataffect net income or loss and because these measures may vary among othercompanies, the Adjusted EBITDA data presented in this press release may not becomparable to similarly titled measures of other companies. Company Information and Use of Forward Looking StatementsEnterprise Products Partners L.P. is one of the largest publicly tradedpartnerships and is a leading North American provider of midstream energyservices to producers and consumers of natural gas, NGLs, crude oil andpetrochemicals. Enterprise transports natural gas, NGLs, crude oil andpetrochemical products through approximately 35,000 miles of onshore andoffshore pipelines.
Services include natural gas gathering, processing,transportation and storage; NGL fractionation (or separation), transportation,storage and import and export terminaling; crude oil transportation; offshoreproduction platform services; and petrochemical transportation and services. Formore information, visit Enterprise on the web at EnterpriseProducts Partners L.P. is managed by its general partner, Enterprise ProductsGP, LLC, which is wholly-owned by Enterprise GP Holdings L.P (NYSE:EPE). Formore information on Enterprise GP Holdings L.P., visit its website at This press release contains various forward-looking statements and informationthat are based on Enterprises beliefs and those of its general partner, as wellas assumptions made by and information currently available to Enterprise. AlthoughEnterprise and its general partner believe that such expectations reflected insuch forward-looking statements are reasonable, neither Enterprise nor itsgeneral partner can give assurances that such expectations will prove to becorrect. Such statements are subject to a variety of risks, uncertainties andassumptions.