Exhibit 99.1
News Release Buckeye Partners, L.P.
NYSE: BPL 5 Radnor Corp. Center-Suite 500
100 Matsonford Road
Radnor, PA 19087
(800) 422-2825
Contact: Stephen R. Milbourne 04-03
Manager, Investor Relations
smilbourne@buckeye.com
BUCKEYE PARTNERS, L.P. REPORTS 2004 FIRST QUARTER RESULTS
Emmaus, PA - April 30, 2004 . . . Buckeye Pipe Line Company, the general
partner of Buckeye Partners, L.P. (the "Partnership"), today reported
that the Partnership's net income for the first quarter of 2004 was $20.1
million, an increase of 20.4 percent from net income of $16.7 million in
the 2003 period. On a per unit basis, net income was $0.69 during the
first quarter of 2004 as compared with $0.60 last year and reflects the
issuance of 1,750,000 LP units in a public offering in February 2003.
Revenue in 2004 was $71.8 million compared with revenue of $65.8 million
in 2003. Operating income in 2004 was $28.1 million compared with $24.8
million in 2003.
Pipeline volume for the first quarter of 2004 was 1,165,000 barrels per
day, a 4.0 percent increase over the first quarter of 2003. Increased
first quarter 2004 revenue reflects increased pipeline transportation and
terminal throughput volumes as well as expanded Gulf Coast operations.
Costs and expenses for the first quarter 2004 were $43.7 million compared
to $41.0 million for the first quarter 2003. First quarter 2004
operating costs increased compared to last year as a result of higher
power costs related to additional pipeline volumes, additional costs
associated with expanded Gulf Coast operations, and payroll as well as
additional accruals related to benefit costs.
The Board of Directors of Buckeye Pipe Line Company also declared a
regular quarterly partnership cash distribution of $0.65 per unit payable
May 28, 2004, to unitholders of record on May 5, 2004. This is the 69th
consecutive quarterly cash distribution paid by the Partnership.
"We are pleased to announce strong first quarter earnings," said W. H.
Shea, Jr., President and Chief Executive Officer of the general partner.
"The strength of our earnings in the first quarter was driven by healthy
increases in revenues associated with both our pipeline and terminal
operations. Increased revenues resulted from colder winter weather,
temporary reductions in output at certain refineries in the Midwest due
to maintenance activities, and strong organic growth in demand in certain
of the markets served by the Partnership's pipelines and terminals. We
look forward to continued progress throughout the balance of the year."
The Partnership also noted that the previously announced sale of
Glenmoor, Ltd., the parent of the Partnership's general partner, to a new
entity formed by Carlyle/Riverstone Global Energy and Power Fund II,
L.P., is expected to close in early May, 2004.
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 agreements 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 2004 first quarter conference
call on Wednesday, May 5, at 11:00 a.m. Eastern Time. Interested parties
may listen via the Internet, on either a live or replay basis at
http://www.firstcallevents.com/service/ajwz405469259gf12.html. A replay
will also be available from May 5, 2004 to May 11, 2004 by dialing (800)
642-1687 Code: 7039821.
* * * * *
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 the demand for petroleum products in the market
areas served by the Partnership, government regulation, adverse weather
conditions, interest rates, liability for environmental claims, and
general economic conditions. The Partnership undertakes no obligation to
revise its forward-looking statements to reflect events or circumstances
occurring after today's date.
(more)
BUCKEYE PARTNERS, L.P.
CONDENSED STATEMENT OF INCOME
(In Millions, Except Per Unit Amounts)
Three Months
Ended
March 31
------------
2004 2003
---- ----
Revenue $ 71.8 $ 65.8
------- -------
Costs and Expenses
Operating expenses 34.4 31.6
Depreciation and amortization 5.8 5.5
General and administrative 3.5 3.9
------- -------
Total costs and expenses 43.7 41.0
------- -------
Operating Income 28.1 24.8
-------- -------
Other income (expenses)
Investment income 1.4 0.5
Interest and debt expense (5.3) (5.2)
Minority interest and other (4.1) (3.4)
------- -------
Total other income (expenses) (8.0) (8.1)
------- -------
Net Income $ 20.1 $ 16.7
======= =======
Net Income per unit $ 0.69 0.60
======= =======
Average Number of units 29.0 27.8
Pipeline Operating Data
Volume (thousand barrels / day) 1,165.0 1,119.8
Barrel-miles (billions) 13.0 12.1
Average tariff rate (cents / barrel) 55.3 53.2