Buckeye Partners, L.P. Reports 2012 Second Quarter Earnings Results and Declares Cash Distribution
HOUSTON, Aug. 3, 2012 (GLOBE NEWSWIRE) -- Buckeye Partners, L.P. ("Buckeye") (NYSE:BPL) today reported net income attributable to Buckeye's unitholders for the second quarter of 2012 of $54.4 million, or $0.55 per diluted unit, compared to net income attributable to Buckeye's unitholders for the second quarter of 2011 of $92.0 million, or $1.00 per diluted unit. Buckeye's Adjusted EBITDA (as defined below) for the second quarter of 2012 was $119.9 million compared with Adjusted EBITDA of $117.6 million for the second quarter of 2011. Operating income for the second quarter of 2012 was $81.8 million compared to $85.9 million for the second quarter of 2011. Net income attributable to Buckeye's unitholders for the second quarter of 2011 benefited from a gain of $34.1 million on the sale of a minority equity interest in West Texas LPG Pipeline Limited Partnership.
"Improvement in our Adjusted EBITDA over the second quarter of 2011 primarily reflects the successful integration of our pipeline and terminal acquisitions made during 2011," stated Clark C. Smith, President and Chief Executive Officer. "During the quarter, we experienced improving business conditions for our domestic pipelines and terminals as well as in our international operations, though we continue to be challenged in our Energy Services segment as backwardation and continued basis volatility negatively impacted our results. Looking forward, strengthening domestic volumes and increasing demand for storage, both domestically and internationally, are expected to contribute to improved results."
Mr. Smith continued, "We are excited to be moving forward with our integration and commercialization plans on our recently completed purchase of the Perth Amboy, New Jersey, marine terminal facility. Our teams are working to transform this facility into a highly-efficient, multi-product storage, blending, and throughput facility with a direct connection to our Linden complex. Another important milestone reached during the second quarter was the execution of a lease agreement with a major international petroleum company for 1.1 million barrels of storage capacity that was placed into service July 1, representing the initial phase of our BORCO expansion."
Buckeye also announced today that its general partner declared a cash distribution of $1.0375 per limited partner ("LP") unit for the quarter ended June 30, 2012. Class B unitholders will not receive a distribution of cash, but instead will be issued additional Class B units pursuant to Buckeye's partnership agreement. The distribution will be payable on August 31, 2012 to unitholders of record on August 15, 2012. This cash distribution represents a 2.5% increase over the $1.0125 per LP unit distribution declared for the second quarter of 2011. Buckeye has paid cash distributions in each quarter since its formation in 1986.
Buckeye will host a conference call with members of executive management today, August 3, 2012, at 11:00 a.m. Eastern Time. To access the live webcast of the call, go to http://investor.shareholder.com/media/eventdetail.cfm?eventid=116084&CompanyID=AMDA-QJUY2&e=1&mediaKey=D17492E652916DA0EAD3A8A9634A6324 10 minutes prior to its start. Interested parties may participate in the call by dialing 877-870-9226 and referencing conference ID 99543111. A replay will be archived and available at this link through September 3, 2012, and the replay also may be accessed by dialing 800-585-8367 and entering conference ID 99543111.
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