Buckeye Partners, L.P. Reports 2012 Third Quarter Earnings Results and Declares Cash Distribution

Buckeye Partners, L.P. Reports 2012 Third Quarter Earnings Results and
Declares Cash Distribution

HOUSTON, Nov. 2, 2012 (GLOBE NEWSWIRE) -- Buckeye Partners, L.P. ("Buckeye")
(NYSE:BPL) today reported net income attributable to Buckeye's unitholders for
the third quarter of 2012 of $85.1 million, or $0.87 per diluted unit,
compared to a net loss attributable to Buckeye's unitholders for the third
quarter of 2011 of $109.7 million, or a $1.18 loss per diluted unit. Buckeye's
Adjusted EBITDA (as defined below) for the third quarter of 2012 was $152.6
million compared with Adjusted EBITDA of $126.5 million for the third quarter
of 2011. Operating income for the third quarter of 2012 was $113.4 million
compared to an operating loss of $77.3million for the third quarter of
2011.Net income attributable to Buckeye's unitholders and operating income
for the third quarter of 2011 were negatively impacted by a non-cash charge
for the impairment of $169.6million of goodwill associated with the
acquisition of Lodi Gas Storage, L.L.C.Excluding the goodwill impairment
charge, net income attributable to Buckeye's unitholders for the third quarter
of 2011 would have been $59.9million, or $0.64per diluted unit, and
operating income for the third quarter of 2011 would have been $92.3million.

"Improving business conditions and the continued execution of our growth
strategy contributed to very strong results for the third quarter of 2012,"
stated Clark C. Smith, President and Chief Executive Officer."We benefited
from higher volumes and rates for our domestic pipelines and terminals and
increased cash flows from our international segment as a result of the 1.1
million barrel expansion at BORCO that became operational July
1^st.Additionally, our Perth Amboy marine terminal in the New York Harbor,
acquired in late July, contributed positively to third quarter results."

Buckeye also announced today that its general partner declared a cash
distribution of $1.0375 per limited partner ("LP") unit for the quarter ended
September 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
November30, 2012, to unitholders of record on November 12, 2012.This cash
distribution represents a 1.2% increase over the $1.025 per LP unit
distribution declared for the third 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, November 2, 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=120181&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 ID46981626.A replay will
be archived and available at this link through December 3, 2012, and the
replay also may be accessed by dialing 800-585-8367 and entering conference ID
46981626

Buckeye Partners, L.P. (NYSE:BPL) is a publicly traded master limited
partnership that owns and operates one of the largest independent liquid
petroleum products pipeline systems in the United States in terms of volumes
delivered, with over 6,000 miles of pipeline.Buckeye also owns approximately
100 liquid petroleum products terminals with aggregate storage capacity of
approximately 70 million barrels.In addition, Buckeye operates and/or
maintains third-party pipelines under agreements with major oil and chemical
companies, owns a high-performance natural gas storage facility in Northern
California, and markets liquid petroleum products in certain regions served by
its pipeline and terminal operations.Buckeye's flagship marine terminal in
The Bahamas, BORCO, is one of the largest crude oil and petroleum products
storage facilities in the world, serving the international markets as a
premier global logistics hub. More information concerning Buckeye can be found
at www.buckeye.com.

Adjusted EBITDA and distributable cash flow are measures not defined by
GAAP.Adjusted EBITDA is the primary measure used by our senior management,
including our Chief Executive Officer, to (i)evaluate our consolidated
operating performance and the operating performance of our business segments,
(ii) allocate resources and capital to business segments, (iii) evaluate the
viability of proposed projects, and (iv) determine overall rates of return on
alternative investment opportunities. Distributable cash flow is another
measure used by our senior management to provide a clearer picture of
Buckeye's cash available for distribution to its unitholders.Adjusted EBITDA
and distributable cash flow eliminate (i) non-cash expenses, including, but
not limited to, depreciation and amortization expense resulting from the
significant capital investments we make in our businesses and from intangible
assets recognized in business combinations, (ii) charges for obligations
expected to be settled with the issuance of equity instruments, and (iii)
items that are not indicative of our core operating performance results and
business outlook.

Buckeye believes that investors benefit from having access to the same
financial measures used by senior management and that these measures are
useful to investors because they aid in comparing Buckeye's operating
performance with that of other companies with similar operations.The Adjusted
EBITDA and distributable cash flow data presented by Buckeye may not be
comparable to similarly titled measures at other companies because these items
may be defined differently by other companies. Please see the attached
reconciliations of each of Adjusted EBITDA and distributable cash flow to net
income.

This press release includes forward-looking statements that we believe to be
reasonable as of today's date.Such statements are identified by use of the
words "anticipates," "believes," "estimates," "expects," "intends," "plans,"
"predicts," "projects," "should," and similar expressions.Actual results may
differ significantly because of risks and uncertainties that are difficult to
predict and that may be beyond our control.Among them are (i)changes in
federal, state, local, and foreign laws or regulations to which we are
subject, including those governing pipeline tariff rates and those that permit
the treatment of us as a partnership for federal income tax purposes,
(ii)terrorism, adverse weather conditions, including hurricanes,
environmental releases, and natural disasters, (iii)changes in the
marketplace for our products or services, such as increased competition,
better energy efficiency, or general reductions in demand, (iv)adverse
regional, national, or international economic conditions, adverse capital
market conditions, and adverse political developments, (v)shutdowns or
interruptions at our pipeline, terminal, and storage assets or at the source
points for the products we transport, store, or sell, (vi)unanticipated
capital expenditures in connection with the construction, repair, or
replacement of our assets, (vii)volatility in the price of refined petroleum
products and the value of natural gas storage services, (viii)nonpayment or
nonperformance by our customers, (ix)our ability to integrate acquired assets
with our existing assets and to realize anticipated cost savings and other
efficiencies and benefits, and (x) an unfavorable outcome with respect to the
proceedings pending before the Federal Energy Regulatory Commission ("FERC")
regarding Buckeye Pipe Line Company, L.P.'s tariff rates.You should read our
filings with the U.S. Securities and Exchange Commission, including our Annual
Report on Form 10-K for the year ended December 31, 2011 and our most recently
filed Quarterly Report on Form 10-Q, for a more extensive list of factors that
could affect results.We undertake no obligation to revise our forward-looking
statements to reflect events or circumstances occurring after today's date.

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     Nine Months Ended
                             September 30,          September 30,
                             2012      2011       2012        2011
Revenue:                                                       
Product sales                 $688,948 $884,436  $2,462,699 $2,775,698
Transportation and other      277,022  232,475   745,350    670,841
services
Total revenue                 965,970  1,116,911 3,208,049  3,446,539
                                                              
Costs and expenses:                                            
Cost of product sales and     698,019  881,596   2,476,659  2,773,899
natural gas storage services
Operating expenses            101,242  96,776    300,263    266,909
Depreciation and amortization 37,134   31,230    104,486    87,227
General and administrative    16,222   15,054    51,074     47,751
Goodwill impairment expense   --       169,560   --         169,560
Total costs and expenses      852,617  1,194,216 2,932,482  3,345,346
                                                              
Operating income (loss)       113,353  (77,305)    275,567    101,193
                                                              
Other income (expense):                                        
Earnings from equity          553      2,379     4,287      7,760
investments
Gain on sale of equity        --       --        --         34,112
investment
Interest and debt expense     (28,737)   (33,199)    (85,159)     (90,292)
Other income (expense)        90       (75)        57         432
Total other expense, net      (28,094)   (30,895)    (80,815)     (47,988)
                                                              
Net income (loss)             85,259   (108,200)   194,752    53,205
Less: Net income attributable (143)      (1,500)     (3,298)      (4,391)
to noncontrolling interests

Net income (loss)
attributable to Buckeye       $85,116  $(109,700)  $191,454   $48,814
Partners, L.P.
                                                              
Earnings (loss) per unit:                                      
Basic                         $0.87    $(1.18)     $1.97      $0.55
Diluted                       $0.87    $(1.18)     $1.97      $0.54

Weighted average units
outstanding:
Basic                         97,993   92,982    97,017     89,499
Diluted                       98,342   92,982    97,340     89,831


BUCKEYE PARTNERS, L.P.
SELECTED FINANCIAL AND OPERATING DATA
(In thousands)
(Unaudited)
                                                            
                       Three Months Ended        Nine Months Ended
                       September 30,             September 30,
                       2012       2011         2012         2011
Revenue:                                                    
Pipelines & Terminals  $194,609  $162,740    $527,849    $456,056
International           51,686    47,986      152,349     146,051
Operations
Natural Gas Storage    20,229    15,742      46,909      49,431
Energy Services        691,875   894,618     2,469,122   2,810,055
Development &           11,798    10,766      37,415      30,937
Logistics
Intersegment           (4,227)     (14,941)      (25,595)      (45,991)
Total revenue          $965,970  $1,116,911  $3,208,049  $3,446,539
                                                            
Total costs and                                              
expenses: (1)
Pipelines & Terminals  $103,158  $93,482     $297,043    $247,679
International           30,615    30,329      92,660      89,693
Operations
Natural Gas Storage    21,872    187,820     56,367      227,527
Energy Services        692,303   889,203     2,482,856   2,801,115
Development &           8,896     8,323       29,151      25,323
Logistics
Intersegment           (4,227)     (14,941)      (25,595)      (45,991)
Total costs and         $852,617  $1,194,216  $2,932,482  $3,345,346
expenses
                                                            
Depreciation and                                             
amortization:
Pipelines & Terminals  $18,272   $14,727     $49,368     $40,502
International           14,971    12,868      43,873      36,299
Operations
Natural Gas Storage    1,893     1,807       5,668       5,326
Energy Services        1,510     1,379       4,104       3,894
Development &           488       449         1,473       1,206
Logistics
Total depreciation and  $37,134   $31,230     $104,486    $87,227
amortization
                                                            
Operating income                                             
(loss):
Pipelines & Terminals  $91,451   $69,258     $230,806    $208,377
International           21,071    17,657      59,689      56,358
Operations
Natural Gas Storage    (1,643)     (172,078)     (9,458)       (178,096)
Energy Services        (428)       5,415       (13,734)      8,940
Development &           2,902     2,443       8,264       5,614
Logistics
Total operating income  $113,353  $(77,305)     $275,567    $101,193
(loss)
                                                            
Adjusted EBITDA:                                            
Pipelines & Terminals  $112,879  $86,510     $290,709    $260,743
International           33,548    30,095      95,805      86,248
Operations
Natural Gas Storage    1,357     426         (299)         266
Energy Services        1,619     6,978       (7,759)       13,578
Development &           3,168     2,519       9,034       5,563
Logistics
Adjusted EBITDA        $152,571  $126,528    $387,490    $366,398
                                                            
Capital additions: (2)                                       
Pipelines & Terminals  $34,944   $26,644     $107,050    $61,156
International           48,704    62,442      122,203     122,837
Operations
Natural Gas Storage    235       852         1,964       5,673
Energy Services        1,020     538         1,507       1,228
Development &           102       431         281         474
Logistics
Total capital           $85,005   $90,907     $233,005    $191,368
additions
                                                            
Summary of capital                                           
additions: (2)
Maintenance capital     $11,889   $16,803     $35,764     $36,569
expenditures
Expansion and cost      73,116    74,104      197,241     154,799
reduction
Total capital           $85,005   $90,907     $233,005    $191,368
additions
                                               September    December 31,
                                                  30,
Key Balance Sheet                               2012         2011
information:
Cash and cash                                   $2,951      $12,986
equivalents
Long-term debt, total                           2,672,677   2,393,574
(3)
                                                            
__________________                                          
(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 $602.6 million and $324.0 million as of September 30, 2012 and December 31,
2011, respectively.


BUCKEYE PARTNERS, L.P.
SELECTED FINANCIAL AND OPERATING DATA - Continued
(Unaudited)
                                                              
                          Three Months Ended        Nine Months Ended
                          September 30,             September 30,
                          2012        2011        2012        2011
                                                              
Pipelines & Terminals
(average bpd in                                                
thousands):
Pipelines:                                                     
Gasoline                   729.7      693.4      705.9      658.3
Jet fuel                   352.7      344.8      342.7      339.8
Middle distillates (1)     306.0      298.7      314.6      309.4
Other products (2)         18.8       19.6       23.5       24.7
Total pipelines throughput 1,407.2    1,356.5    1,386.7    1,332.2
Terminals:                                                     
Products throughput (3)    910.9      879.1      888.3      681.5
                                                              
Pipeline Average Tariff    84.5       77.3       82.0       76.1
(cents/bbl)
                                                              
Energy Services (in                                            
millions of gallons):
Sales volumes              233.4      297.4      836.7      960.8
                                                              
_________________                                              
(1) Includes diesel fuel, heating oil and kerosene.
(2) Includes liquefied petroleum gas ("LPG").
(3) Amounts include throughput volumes at 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        Nine Months Ended
                            September 30,             September 30,
                            2012        2011        2012       2011
Net income (loss)           $85,259    $(108,200)   $194,752  $53,205
Less: Net income
attributable to              (143)        (1,500)      (3,298)     (4,391)
noncontrolling interests
Net income (loss)
attributable to Buckeye      85,116     (109,700)    191,454   48,814
Partners, L.P.
Add:Interest and debt       28,737     33,199     85,159    90,292
expense
Income tax expense           511        --         1,177     (193)
(benefit)
Depreciation and             37,134     31,230     104,486   87,227
amortization
Non-cash deferred lease      975        1,030      2,925     3,091
expense
Non-cash unit-based          2,846      1,694      10,534    6,532
compensation expense
Goodwill impairment expense --         169,560    --        169,560
Less: Amortization of
unfavorable storage          (2,748)      (485)        (8,245)     (4,813)
contracts (1)
Gain on sale of equity       --         --         --        (34,112)
investment
Adjusted EBITDA             $152,571   $126,528   $387,490  $366,398
Less: Interest and debt
expense, excluding
amortization ofdeferred     (27,868)     (28,709)     (82,552)    (83,541)
financing costs and debt
discounts
Income tax (expense)         (511)        --         (1,177)     193
benefit
Maintenance capital          (11,889)     (16,803)     (35,764)    (36,569)
expenditures
Distributable cash flow     $112,303   $81,016    $267,997  $246,481
                                                               
Distributions for Coverage   $94,055    $88,357    $282,160  $261,742
Ratio (2)
                                                               
Coverage Ratio              1.19       0.92       0.95      0.94
_____________________                                           
(1)Represents the amortization of the negative fair values allocated to
certain unfavorable storage contracts acquired in connection with the
BORCOacquisition.
(2)Represents cash distributions declared for limited partner units ("LP
units") outstanding as of each respective period.Amounts for 2012 reflect
actualcash distributions paid on LP units for the quarters ended March 31,
2012 and June 30, 2012 and estimated cash distributions for the quarter ended
September 30, 2012.Distributions with respect to the 7,445,999 and 7,605,510
Class B Units outstanding on the record date for the quarters endingMarch 31,
2012 and June 30, 2012, respectively, and the 7,777,811 Class B units expected
to be outstanding for the quarter endingSeptember 30, 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)
(Unaudited)
                                                                
                                Three Months Ended      Nine Months Ended
                                September 30,           September 30,
                                2012      2011        2012      2011
                                                                
Net income attributable to Buckeye Partners, L.P., as              
adjusted:
Net income (loss), as reported   $85,259  $(108,200) $194,752 $53,205
Add: Goodwill impairment        --       169,560    --       169,560
expense
Net income, as adjusted          85,259   61,360     194,752  222,765
Less:Net income attributable   (143)      (1,500)      (3,298)    (4,391)
to noncontrolling interests
Net income attributable to
Buckeye Partners, L.P., as       $85,116  $59,860    $191,454 $218,374
adjusted
                                                                
Earnings per unit-diluted, as    $0.87    $0.64      $1.97    $2.43
adjusted
                                                                
Operating income, as adjusted:                                   
Operating income (loss), as      $113,353 $(77,305)  $275,567 $101,193
reported
Add: Goodwill impairment        --       169,560    --       169,560
expense
Operating income, as adjusted    $113,353 $92,255    $275,567 $270,753

CONTACT: Kevin J. Goodwin
         Senior Director, Investor Relations
         Irelations@buckeye.com
         (800) 422-2825
 
Press spacebar to pause and continue. Press esc to stop.