Exhibit 99.1
Buckeye - 2003 Second Quarter
News Release Buckeye Partners, L.P.
NYSE: BPL P. O. Box 368
Emmaus, PA 18049
(800) 422-2825
Contact: Stephen R. Milbourne 03-05
Manager, Investor Relations
smilbourne@buckeye.com
(800) 422-2825
BUCKEYE PARTNERS, L.P. ANNOUNCES 2003 SECOND QUARTER RESULTS,
DECLARES QUARTERLY DISTRIBUTION
AND ANNOUNCES ACQUISITION OF MINORITY INTEREST IN NGL PIPELINE
Emmaus, PA July 24, 2003 . . . Buckeye Pipe Line Company, the
general partner of Buckeye Partners, L.P. (the "Partnership"),
today reported that the Partnership's net income for the second
quarter of 2003 was $17.6 million, or $0.61 per unit, an increase
of 6.7 percent compared with net income of $16.5 million, or $0.61
per unit in the second quarter of 2002. Net income per unit
results reflect the issuance of 1,750,000 LP units in a public
offering in the first quarter of 2003. Revenue in the second
quarter of 2003 was $67.0 million compared with revenue of $61.1
million in the second quarter of 2002. Operating income in 2003
was $25.5 million compared with $24.7 million in the second
quarter of 2002.
Pipeline volume for the second quarter of 2003 was 1,103,000
barrels per day, a 0.2 percent decrease from the second quarter of
2002. A 4.1 percent increase in gasoline volumes was offset by
decreases in distillate and jet fuel volumes. Costs and expenses
for the second quarter 2003 were $41.5 million compared to $36.4
million for the second quarter of 2002. During the second quarter
2003, expense increases were primarily related to increases in
payroll and payroll benefits, power, and outside services.
William H. Shea Jr., President and Chief Executive Officer of
Buckeye Pipe Line Company, the general partner of the Partnership,
said, "We are pleased to report solid financial performance by
Buckeye in the second quarter of 2003. Revenue, net income, and
operating income all increased compared with results achieved in
the second quarter of 2002. In addition, earlier this month,
Buckeye completed the issuance of $300 million of 4-5/8 percent 10-
year senior unsecured notes in a registered offering. The public
debt offering, and the issuance of 1.75 million of additional LP
units in the first quarter of this year, has strengthened
Buckeye's balance sheet and positioned the Partnership for future
growth."
The Board of Directors of Buckeye Pipe Line Company also
declared a regular quarterly partnership cash distribution of
$0.6375 per unit payable August 29, 2003, to unitholders of record
on August 6, 2003. This is the 66th consecutive quarterly cash
distribution paid by the Partnership.
Separately, the Partnership announced that it had entered
into a definitive agreement to purchase approximately 20 percent
of the partnership interests in West Texas LPG Pipeline Limited
Partnership ("WTP") from certain affiliates of the Williams
Companies, Inc. (NYSE: WMB) for $28.5 million. WTP owns and
operates a pipeline system that delivers natural gas liquids to
Mont Belvieu, Texas for fractionation. The natural gas liquids
are delivered to the WTP pipeline system from the Rocky Mountain
area via connecting pipelines and from gathering fields located in
West and Central Texas. The majority owner and operator of WTP
are affiliates of Chevron Pipeline Company. The transaction is
scheduled to close in August 2003.
Mr. Shea stated, "We are excited about our entry into the NGL
pipeline business through the proposed acquisition of a minority
partnership interest in WTP. WTP is one of the premier NGL
pipelines delivering product to Mont Belvieu, Texas for further
processing. We look forward to working with our partner Chevron
to build upon this pipeline system's record of success. Based on
WTP's historic financial performance, we expect the transaction to
be immediately accretive to the cash flow of Buckeye Partners,
L.P."
Buckeye Partners, L.P., through its subsidiary partnerships,
is one of the nation's largest independent pipeline common
carriers of refined petroleum products with nearly 3,800 miles of
pipeline. The Partnership also operates approximately 1,400 miles
of pipeline under agreement with major oil and chemical companies,
and owns terminals in Illinois, Indiana, Michigan, New York, Ohio
and Pennsylvania. For more information about Buckeye Partners,
L.P., visit the Partnership's website at www.buckeye.com.
Buckeye will host the 2003 second quarter conference call on
Friday, July 25, at 10:00 a.m. Eastern Time. Interested parties
may listen via the Internet, on either a live or replay basis at
http://www.firstcallevents.com/service/ajwz384980277gf12.html. A
replay will also be available from July 26, 2003 to July 31, 2003
by dialing (800) 642-1687 Code: 1631778
* * * * *
This press release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 that the General
Partner believes to be reasonable as of today's date. Actual
results may differ significantly because of risks and
uncertainties that are difficult to predict and many of which are
beyond the control of the Partnership. You should read the
Partnership's Annual Report on Form 10-K, and its most recently
filed Form 10-Q, for a more extensive list of factors that could
affect results. Among them are (1) adverse weather conditions
resulting in reduced demand; (2) changes in laws and regulations,
including safety, tax and accounting matters; (3) competitive
pressures from alternative energy sources; (4) liability for
environmental claims; (5) improvements in energy efficiency and
technology resulting in reduced demand; (6) labor relations; (7)
changes in real property tax assessments; (8) regional economic
conditions; (9) market prices of petroleum products and the demand
for those products in the Partnership's service territory; (10)
disruptions to the air travel system; (11) security issues
relating to the Partnership's assets; and (12) interest rate
fluctuations and other capital market conditions. The Partnership
undertakes no obligation to revise its forward-looking statements
to reflect events or circumstances occurring after today's date.
Buckeye - 2003 Second Quarter
BUCKEYE PARTNERS, L.P.
CONDENSED STATEMENT OF INCOME
(In Millions, Except Per Unit Amounts)
Three Months Six Months
Ended Ended
June 30 June 30
------------ ------------
2003 2002 2003 2002
---- ---- ---- ----
Revenue $ 67.0 $ 61.1 $ 132.8 $ 118.0
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Costs and Expenses
Operating expenses 32.6 28.0 64.7 54.0
Depreciation and amortization 5.5 5.1 11.0 10.3
General and administrative 3.4 3.3 6.8 7.0
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Total costs and expenses 41.5 36.4 82.5 71.3
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Operating Income 25.5 24.7 50.3 46.7
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Other income (expenses)
Investment income 0.6 0.1 1.1 0.7
Interest and debt expense (4.9) (5.3) (10.1) (10.6)
Minority interest and other (3.6) (3.0) (7.0) (5.9)
------- ------- ------- -------
Total other income (expenses) (7.9) (8.2) (16.0) (15.8)
------- ------- ------- -------
Net Income $ 17.6 $ 16.5 $ 34.3 $ 30.9
======= ======= ======= =======
Net Income per unit $ 0.61 0.61 $ 1.21 $ 1.14
======= ======= ======= =======
Average Number of units 28.9 27.2 28.4 27.2
Pipeline Operating Data
Volume (thousand barrels / day) 1,103.0 1,104.7 1,111.3 1,081.1
Barrel-miles (billions) 13.1 13.2 25.2 25.1
Average tariff rate (cents / barrel) 55.5 53.3 54.4 52.8
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