This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Buckeye Partners, L.P. Reports 2012 Fourth Quarter And Full Year Earnings Results And Declares Cash Distribution

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of Buckeye's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business.  Accordingly, Buckeye's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.

         
BUCKEYE PARTNERS, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per unit amounts)
(Unaudited)
         
  Three Months Ended December 31, Year Ended December 31,
  2012  2011  2012  2011 
Revenue:        
Product sales $ 869,602 $ 1,069,190 $ 3,332,301 $ 3,844,888
Transportation, storage and other services  279,591  243,881  1,024,941  914,722
Total revenue  1,149,193  1,313,071  4,357,242  4,759,610
         
Costs and expenses:        
Cost of product sales and natural gas storage services  868,158  1,077,680  3,344,817  3,851,579
Operating expenses  97,921  99,032  397,007  366,133
Depreciation and amortization  41,938  32,307  146,424  119,534
General and administrative  18,762  16,371  69,836  64,122
Asset impairment expense  59,950  --  59,950  --
Goodwill impairment expense  --  --  --  169,560
Total costs and expenses  1,086,729  1,225,390  4,018,034  4,570,928
         
Operating income  62,464  87,681  339,208  188,682
         
Other income (expense):        
Earnings from equity investments  1,813  2,674  6,100  10,434
Gain on sale of equity investment  --  615  --  34,727
Interest and debt expense (29,821) (29,269) (114,980) (119,561)
Other income (expense) (509) (242) (452)  190
Total other expense, net (28,517) (26,222) (109,332) (74,210)
         
Income before taxes  33,947  61,459  229,876  114,472
Income tax benefit (1,852) -- (675) (192)
Net Income $ 35,799 $ 61,459 $ 230,551 $ 114,664
Less: Net income attributable to noncontrolling interests (836) (1,772) (4,134) (6,163)
Net income attributable to Buckeye Partners, L.P. $ 34,963 $ 59,687 $ 226,417 $ 108,501
         
Earnings per unit:        
Basic $ 0.36 $ 0.64 $ 2.33 $ 1.20
Diluted $ 0.35 $ 0.64 $ 2.32 $ 1.20
         
Weighted average units outstanding:        
Basic  98,180  93,166  97,309  90,423
Diluted  98,514  93,565  97,635  90,772
 
BUCKEYE PARTNERS, L.P.
SELECTED FINANCIAL AND OPERATING DATA
(In thousands)
(Unaudited)
         
  Three Months Ended December 31, Year Ended December 31,
  2012  2011  2012  2011 
Revenue:         
Pipelines & Terminals  $ 191,277 $ 175,233 $ 719,126 $ 631,289
International Operations   102,013  47,909  254,362  193,960
Natural Gas Storage   24,430  16,559  71,339  65,990
Energy Services   824,152  1,078,906  3,293,274  3,888,961
Development & Logistics   12,796  12,131  50,211  43,068
Intersegment  (5,475) (17,667) (31,070) (63,658)
Total revenue  $ 1,149,193 $ 1,313,071 $ 4,357,242 $ 4,759,610
         
Total costs and expenses: (1)         
Pipelines & Terminals  $ 162,852 $ 93,037 $ 458,806 $ 340,710
International Operations   78,563  32,200  171,223  121,893
Natural Gas Storage   21,465  15,626  77,832  243,153
Energy Services   818,567  1,092,308  3,301,423  3,893,423
Development & Logistics   10,757  9,886  39,820  35,407
Intersegment  (5,475) (17,667) (31,070) (63,658)
Total costs and expenses  $ 1,086,729 $ 1,225,390 $ 4,018,034 $ 4,570,928
         
Depreciation and amortization:         
Pipelines & Terminals  $ 22,863 $ 14,967 $ 72,231 $ 55,469
International Operations   15,265  13,712  59,138  50,011
Natural Gas Storage   1,899  1,810  7,567  7,136
Energy Services   1,417  1,367  5,521  5,261
Development & Logistics   494  451  1,967  1,657
Total depreciation and amortization  $ 41,938 $ 32,307 $ 146,424 $ 119,534
         
Operating income (loss):         
Pipelines & Terminals  $ 28,425 $ 82,196 $ 260,320 $ 290,579
International Operations   23,450  15,709  83,139  72,067
Natural Gas Storage   2,965  933 (6,493) (177,163)
Energy Services   5,585 (13,402) (8,149) (4,462)
Development & Logistics   2,039  2,245  10,391  7,661
Total operating income  $ 62,464 $ 87,681 $ 339,208 $ 188,682
         
Adjusted EBITDA:         
Pipelines & Terminals  $ 118,346 $ 100,274 $ 409,055 $ 361,018
International Operations   36,299  26,748  132,104  112,996
Natural Gas Storage   6,417  3,938  6,118  4,204
Energy Services   8,283 (11,781)  524  1,797
Development & Logistics   2,688  2,369  11,722  7,932
Adjusted EBITDA  $ 172,033 $ 121,548 $ 559,523 $ 487,947
         
Capital additions, net: (2)         
Pipelines & Terminals  $ 49,006 $ 42,522 $ 156,056 $ 103,678
International Operations   47,496  61,601  169,699  184,438
Natural Gas Storage   405  4,424  2,369  10,097
Energy Services   983  596  2,490  1,824
Development & Logistics   443  4,813  724  5,287
Total capital additions, net  $ 98,333 $ 113,956 $ 331,338 $ 305,324
         
Summary of capital additions, net: (2)         
Maintenance capital expenditures  $ 18,661 $ 20,898 $ 54,425 $ 57,467
Expansion and cost reduction   79,672  93,058  276,913  247,857
Total capital additions, net  $ 98,333 $ 113,956 $ 331,338 $ 305,324
         
      December 31,
Key Balance Sheet Information:      2012 2011
Cash and cash equivalent      $ 6,776 $ 12,986
Long-term debt, total (3)       2,735,244  2,393,574
_________________         
 (1) Includes depreciation and amortization, asset impairment expense and goodwill impairment expense.    
 (2) Amounts exclude accruals for capital expenditures.        
 (3) Includes long-term debt portion of Buckeye Partners, L.P. Credit Facility of $665.0 million and $324.0 million for 2012 and 2011, respectively.
 
BUCKEYE PARTNERS, L.P.
SELECTED FINANCIAL AND OPERATING DATA - Continued
(Unaudited)
         
  Three Months Ended December, 31 Year Ended December, 31
  2012  2011  2012  2011 
Pipeline & Terminals (average bpd in thousands):        
Pipelines:         
Gasoline   690.4  697.5  701.9  668.1
Jet fuel   328.5  342.9  339.2  340.6
Middle distillates (1)   345.2  379.8  322.3  327.2
Other products (2)   18.4  14.8  22.2  22.2
Total pipelines throughput   1,382.5  1,435.0  1,385.6  1,358.1
         
Terminals:         
Products throughput (3)   924.0  877.4  897.3  730.9
         
Pipeline Average Tariff (cents/bbl)   80.3  79.0  81.5  76.9
         
Energy Services (in millions of gallons)         
Sales volumes   269.6  377.0  1,106.3  1,337.8
         
_________________        
(1)  Includes diesel fuel, heating oil and kerosene.        
(2)  Includes liquefied petroleum gas ("LPG").        
(3)  Amounts for 2011 include throughput volumes on terminals acquired from BP Products North America Inc. and its affiliates ("BP") and ExxonMobil Corporation on June 1, 2011 and July 19, 2011, respectively.         
 
BUCKEYE PARTNERS, L.P.
SELECTED FINANCIAL AND OPERATING DATA
Non-GAAP Reconciliations
(In thousands, except per unit amounts and coverage ratio)
(Unaudited)
         
  Three Months Ended December 31, Year Ended December 31,
  2012  2011  2012  2011 
         
Net income  $ 35,799 $ 61,459 $ 230,551 $ 114,664
Less: Net income attributable to noncontrolling interests  (836) (1,772) (4,134) (6,163)
Net income attributable to Buckeye Partners, L.P.   34,963  59,687  226,417  108,501
Add: Interest and debt expense   29,821  29,269  114,980  119,561
Income tax benefit  (1,852)  -- (675) (192)
Depreciation and amortization   41,938  32,307  146,424  119,534
Non-cash deferred lease expense   976  1,031  3,901  4,122
Non-cash unit-based compensation expense    8,986  2,618  19,520  9,150
Asset impairment expense    59,950  --  59,950  --
Goodwill impairment expense    --  --  --  169,560
Less: Amortization of unfavorable storage contracts (1) (2,749) (2,749) (10,994) (7,562)
Gain on sale of equity investment   -- (615)  -- (34,727)
Adjusted EBITDA  $ 172,033 $ 121,548 $ 559,523 $ 487,947
Less: Interest and debt expense, excluding amortization of deferred financing costs and debt discounts  (28,959) (28,400) (111,511) (111,941)
Income tax (expense) benefit, excluding non-cash taxes   82  -- (1,095) (6)
Maintenance capital expenditures  (18,661) (20,898) (54,425) (57,467)
Distributable cash flow  $ 124,495 $ 72,250 $ 392,492 $ 318,533
         
Distributions for coverage ratio (2) $ 94,033 $ 89,478 $ 376,193 $ 351,245
         
Coverage ratio    1.32  0.81  1.04  0.91
_____________________         
(1) Represents the amortization of the negative fair values allocated to certain unfavorable storage contracts acquired in connection with the BORCO acquisition.       
(2) Represents cash distributions declared for LP units outstanding as of each respective period. Amounts for 2012 reflect actual cash distributions paid on LP units for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012 and estimated cash distribution for the quarter ended December 31, 2012. Distributions with respect to the 7,445,999, 7,605,510 and 7,777,811 Class B Units outstanding on the record date for the quarters ended March 31, 2012, June 30, 2012, and September 30, 2012, respectively, and the 7,974,750 Class B units expected to be outstanding on the record date for the quarter ending December 31, 2012 are paid in additional Class B units rather than in cash.
 
BUCKEYE PARTNERS, L.P.
SELECTED FINANCIAL AND OPERATING DATA
Non-GAAP Reconciliations - Continued
(In thousands, except per unit amounts and coverage ratio)
(Unaudited)
         
  Three Months Ended December 31, Year Ended December 31,
  2012  2011  2012  2011 
         
Net income attributable to Buckeye Partners, L.P. (as adjusted):        
Net income (as reported)  $ 35,799 $ 61,459 $ 230,551 $ 114,664
Add: Asset impairment expense  59,950  --  59,950  --
Goodwill impairment expense  --  --  --  169,560
Net income (as adjusted)  95,749  61,459  290,501  284,224
Less: Net income attributable to noncontrolling interests (836) (1,772) (4,134) (6,163)
Net income attributable to Buckeye Partners, L.P. (as adjusted) $ 94,913 $ 59,687 $ 286,367 $ 278,061
         
Earnings per unit-diluted (as adjusted) $ 0.96 $ 0.64 $ 2.93 $ 3.06
         
Operating income (as adjusted):        
Operating income (as reported) $ 62,464 $ 87,681 $ 339,208 $ 188,682
Add: Asset impairment expense  59,950  --  59,950  --
Goodwill impairment expense  --  --  --  169,560
Operating income (as adjusted) $ 122,414 $ 87,681 $ 399,158 $ 358,242
CONTACT: Kevin J. Goodwin
         Senior Director, Investor Relations
         Irelations@buckeye.com
         (800) 422-2825

4 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,113.54 +61.81 0.36%
S&P 500 1,983.53 +9.90 0.50%
NASDAQ 4,456.0160 +31.3120 0.71%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs