TEXT-S&P release on Enterprise Products Partners LP

(The following statement was released by the rating agency)

May 13 - Standard & Poor's Ratings Services said today that its rating on Enterprise Products Partners L.P. (EPD.N: Quote, Profile, Research) (BBB-/Stable/--) is unaffected by the announcement that the company has signed a Memorandum of Understanding (MOU) with TransCanada Corp. and Quicksilver Gas Services L.P. regarding the proposed Pathfinder Pipeline project.

The MOU is subject to the signing of definitive agreements and even if signed, requires no immediate capital commitment as the proposed pipeline (which will not be in service until late 2010) is still subject to a successful open season.

However, sector construction costs have increased considerably in recent years and unless curtailed, could influence the project and the amount of debt and equity Enterprise would need to fund its portion of the project's costs. As such, Enterprise's financing requirements for the project relative to its financial profile at this future point would need to be evaluated.

The Pathfinder Pipeline project is designed to provide initial service from Meeker, Colo. to the Northern Border Pipeline Co. system, and as such, is a natural outlet for Enterprise's growing asset base in the Rockies.

Under the terms of the MOU, Enterprise would acquire a 40% interest in the proposed Pathfinder Pipeline project and would form a new entity with Quicksilver to commit to shipping 500 million cubic feet per day.