Buckeye Partners, L.P. Reports 2013 First Quarter Results; Increases Quarterly Cash Distribution

Buckeye Partners, L.P. Reports 2013 First Quarter Results; Increases Quarterly
Cash Distribution

HOUSTON, May 3, 2013 (GLOBE NEWSWIRE) -- Buckeye Partners, L.P. ("Buckeye")
(NYSE:BPL) today reported net income attributable to Buckeye's unitholders for
the first quarter of 2013 of $89.3 million, or $0.86 per diluted unit,
compared to net income attributable to Buckeye's unitholders for the first
quarter of 2012 of $52.0 million, or $0.54 per diluted unit. Buckeye's
Adjusted EBITDA (as defined below) for the first quarter of 2013 was $158.8
million compared with Adjusted EBITDA of $115.0 million for the first quarter
of 2012. Operating income for the first quarter of 2013 was $119.1 million
compared to $80.7 million for the first quarter of 2012.

"During the first quarter of 2013, we continued to generate excellent
financial results, primarily due to the performance of our Pipelines &
Terminals segment, which benefitted from the strong contribution from our
terminal operations," stated Clark C. Smith, President and Chief Executive
Officer. "We also placed an additional 1.6 million barrels of leased storage
capacity into service at BORCO during the quarter, and realized improved
performance in the Energy Services segment." Mr. Smith further noted, "As a
result of Buckeye's exceptional results over the past three quarters and the
positive outlook we have for future periods, we are pleased to announce an
increase in our quarterly cash distribution."

With regard to the two orders issued by the Federal Energy Regulatory
Commission ("FERC") in February related to ongoing proceedings involving one
of Buckeye's operating subsidiaries, Buckeye Pipe Line Company, L.P., Mr.
Smith stated, "We are pleased with FERC's confirmation of our current tariff
rates and to have further clarity regarding the ratemaking methodology to be
followed in both competitive and non-competitive markets. We are in active
settlement discussions with respect to the ongoing complaint regarding
transportation of jet fuel to the New York City airports."

Buckeye announced today that its general partner declared a cash distribution
of $1.05 per limited partner ("LP") unit for the quarter ended March 31, 2013.
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 May 31, 2013 to unitholders of
record on May 16, 2013.This cash distribution represents a 1.2% percent
increase over the $1.0375 per LP unit distribution declared for the first
quarter of 2012.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, May 3, 2013, 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=128241&CompanyID=AMDA-QJUY2&e=1&mediaKey=D17492E652916DA0EAD3A8A9634A6324
ten minutes prior to its start.Interested parties may participate in the call
by dialing 877-870-9226.A replay will be archived and available at this link
until June 30, 2013, and the replay also may be accessed by dialing
800-585-8367 and entering conference ID 35684636.

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 approximately 6,000 miles of pipeline. Buckeye also owns more
than 100 liquid petroleum products terminals with aggregate storage capacity
of over 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, (x) our ability to successfully complete our
organic growth projects and to realize the anticipated financial benefits, and
(xi) an unfavorable outcome with respect to the proceedings pending before the
FERC regarding Buckeye Pipe Line Company, L.P.'s transportation of jet fuel to
the New York City airports.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, 2012, 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
                                                    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        1,073,693  1,031,485
services
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      (1,158)     (1,508)
interests
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          (1,158)           (1,508)
noncontrolling interests
Net income attributable to Buckeye        89,341           51,959
Partners, L.P.
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 (2,748)           (2,748)
contracts (1)
Adjusted EBITDA                           $ 158,849         $ 114,987
Less: Interest and debt expense,
excluding amortization ofdeferred        (29,382)          (27,917)
financing costs and debt discounts
Income tax expense, excluding non-cash    (131)             (337)
taxes
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 withrespect 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
 
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