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
TheStreet Open House

Buckeye Partners, L.P. Reports 2013 First Quarter Results; Increases Quarterly 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per unit amounts)
(Unaudited)
 
  Three Months Ended
  March 31,
  2013  2012 
Revenue:    
Product sales $ 1,069,217  $ 1,027,888 
Transportation and other services  275,744   231,551 
Total revenue  1,344,961   1,259,439 
     
Costs and expenses:    
Cost of product sales and natural gas storage services  1,073,693   1,031,485 
Operating expenses  97,357   97,218 
Depreciation and amortization  37,591   33,027 
General and administrative  17,171   16,975 
Total costs and expenses  1,225,812   1,178,705 
     
Operating income  119,149   80,734 
     
Other income (expense):    
Earnings from equity investments  1,629   1,949 
Interest and debt expense  (30,249)  (28,810)
Other income (expense)  101   (69)
Total other expense  (28,519)  (26,930)
     
Income before taxes  90,630   53,804 
     
Income tax expense  (131)  (337)
     
Net income  90,499   53,467 
Less: Net income attributable to noncontrolling interests  (1,158)  (1,508)
Net income attributable to Buckeye Partners, L.P. $ 89,341  $ 51,959 
     
Earnings per unit:    
Basic $ 0.87  $ 0.55 
Diluted $ 0.86  $ 0.54 
     
Weighted average units outstanding:    
Basic  103,247   95,229 
Diluted  103,571   95,558 
 
 
BUCKEYE PARTNERS, L.P.
SELECTED FINANCIAL AND OPERATING DATA
(In thousands)
(Unaudited)
   
  Three Months Ended
  March 31,
  2013  2012 
Revenue:    
Pipelines & Terminals $ 194,200 $ 165,928
International Operations  170,850  50,235
Natural Gas Storage  13,883  10,211
Energy Services  961,819  1,030,426
Development & Logistics  11,912  12,465
Intersegment  (7,703)  (9,826)
Total revenue $ 1,344,961 $ 1,259,439
     
Total costs and expenses: (1)    
Pipelines & Terminals $ 99,911 $ 96,364
International Operations  148,820  29,389
Natural Gas Storage  18,705  14,477
Energy Services  956,658  1,038,205
Development & Logistics  9,421  10,096
Intersegment  (7,703)  (9,826)
Total costs and expenses $ 1,225,812 $ 1,178,705
     
Depreciation and amortization:    
Pipelines & Terminals $ 18,128 $ 15,785
International Operations  15,696  13,516
Natural Gas Storage  1,892  1,876
Energy Services  1,396  1,356
Development & Logistics  479  494
Total depreciation and amortization $ 37,591 $ 33,027
     
Operating income (loss):    
Pipelines & Terminals $ 94,289 $ 69,564
International Operations  22,030  20,846
Natural Gas Storage  (4,822)  (4,266)
Energy Services  5,161  (7,779)
Development & Logistics  2,491  2,369
Total operating income $ 119,149 $ 80,734
     
Adjusted EBITDA:    
Pipelines & Terminals $ 115,544 $ 88,232
International Operations  35,243  31,666
Natural Gas Storage  (1,827)  (1,268)
Energy Services  7,191  (6,172)
Development & Logistics  2,698  2,529
Adjusted EBITDA $ 158,849 $ 114,987
     
Capital additions: (2)    
Pipelines & Terminals $ 43,013 $ 37,397
International Operations  23,545  34,993
Natural Gas Storage  9  1,526
Energy Services  73  284
Development & Logistics  546  113
Total capital additions $ 67,186 $ 74,313
     
Summary of capital additions: (2)    
Maintenance capital expenditures $ 5,133 $ 13,110
Expansion and cost reduction  62,053  61,203
Total capital additions $ 67,186 $ 74,313
     
  March 31, December 31,
Key Balance Sheet information: 2013  2012 
Cash and cash equivalents $ 4,564 $ 6,776
Long-term debt, total (3)  2,455,412  2,735,244
     
(1) Includes depreciation and amortization.
(2) Amounts exclude accruals for capital expenditures.
(3) Includes long-term debt portion of Buckeye Partners L.P. Credit Facility of $385.0 million and $665.0 million as of March 31, 2013 and December 31, 2012, respectively.
 
 
BUCKEYE PARTNERS, L.P.
SELECTED FINANCIAL AND OPERATING DATA - Continued
(Unaudited)
 
  Three Months Ended
  March 31,
  2013  2012 
     
Pipelines & Terminals (average bpd in thousands):    
Pipelines:    
Gasoline  681.0   662.7 
Jet fuel  321.3   332.5 
Middle distillates (1)  368.8   337.4 
Other products (2)  29.3   23.0 
Total pipelines throughput  1,400.4   1,355.6 
Terminals:    
Products throughput  953.9   877.2 
     
Pipeline Average Tariff (cents/bbl)  78.9   79.4 
     
Energy Services (in millions of gallons):    
Sales volumes  312.0   344.8 
 
(1) Includes diesel fuel and heating oil.
(2) Includes liquefied petroleum gas, intermediate petroleum products and crude oil.
 
 
BUCKEYE PARTNERS, L.P.
SELECTED FINANCIAL AND OPERATING DATA
Non-GAAP Reconciliations
(In thousands, except coverage ratio)
(Unaudited)
   
  Three Months Ended
  March 31,
  2013  2012 
     
Net income $ 90,499  $ 53,467 
Less: Net income attributable to noncontrolling interests  (1,158)  (1,508)
Net income attributable to Buckeye Partners, L.P.  89,341   51,959 
Add: Interest and debt expense  30,249   28,810 
Income tax expense  131   337 
Depreciation and amortization  37,591   33,027 
Non-cash deferred lease expense  942   975 
Non-cash unit-based compensation expense  3,343   2,627 
Less: Amortization of unfavorable storage contracts (1)  (2,748)  (2,748)
Adjusted EBITDA $ 158,849  $ 114,987 
Less: Interest and debt expense, excluding amortization of deferred financing costs and debt discounts  (29,382)  (27,917)
Income tax expense, excluding non-cash taxes  (131)  (337)
Maintenance capital expenditures  (5,133)  (13,110)
Distributable cash flow $ 124,203  $ 73,623 
     
Distributions for coverage ratio (2) $ 102,681  $ 94,197 
     
Coverage ratio  1.21   0.78 
     
(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 limited partner units ("LP units") outstanding as of each respective period. Amount for 2013 reflects estimated cash distributions for LP units for the quarter ended March 31, 2013. Distributions with respect to the 8,160,943 Class B Units expected to be outstanding on the record date for the quarter ended March 31, 2013 will be paid in additional Class B units rather than in cash.
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 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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