Buckeye Partners LP
Monday, May 13, 2019
Monday, May 13, 2019
HOUSTON, May 2019 (GLOBE NEWSWIRE) — Buckeye Partners, L.P. (“Buckeye”) (NYSE: BPL) today reported its financial results for the first quarter of 2019. Net income attributable to Buckeye was $80.8 million for the first quarter of 2019 compared to $112.4 million for the first quarter of 2018. Adjusted EBITDA (as defined below) for the first quarter of 2019 was $216.4 million compared to $261.7 million for the first quarter of 2018.
Buckeye’s first quarter 2019 results were impacted by the sale of the partnership’s 50% equity interest in VTTI, which was completed in January 2019, and the sale of the package of domestic pipeline and terminal assets (the “Domestic Asset Package”), which closed in December 2018. Included in the first quarter 2018 results was a $43.6 million contribution to Adjusted EBITDA from the divested assets.
Net income attributable to Buckeye was $0.52 per diluted unit for the first quarter of 2019 compared to $0.74 per diluted unit for the first quarter of 2018. The diluted weighted average number of units outstanding in the first quarter of 2019 was 154.5 million compared to 149.5 million in the first quarter of 2018.
“Our first quarter results demonstrated the stability of our diversified asset portfolio,” stated Clark C. Smith, Chairman, President and Chief Executive Officer. “Our Domestic Pipelines and Terminals segment benefited from higher average pipeline tariff rates, driven by annual escalations on our systems, and increased pipeline and terminal throughput volumes, after adjusting for the Domestic Asset Package sale. Within our Global Marine Terminals segment, strong performance by our Buckeye Texas Partners facilities, which benefited from annual fee escalations and continued operating efficiencies during the quarter, was partially offset by the continued impact of challenging market conditions in the segregated storage market. Our Buckeye Merchant Services segment continued to generate strong utilization across our portfolio of assets and again achieved a record contribution to our other segments, while favorable spreads more than offset weaker rack margins in this business. Finally, all of our businesses benefited from our operating and administrative teams’ continued focus on managing costs across the organization,” stated Mr. Smith.
Distributable cash flow (as defined below) for the first quarter of 2019 was $144.5 million compared to $169.2 million for the first quarter of 2018. Buckeye also reported distribution coverage of 1.24 times for the first quarter of 2019.
Distribution. Buckeye also announced today that its general partner declared a cash distribution of $0.75 per limited partner unit (“LP Unit”) for the quarter ended March 31, 2019. The distribution will be payable on May 28, 2019 to unitholders of record on May 20, 2019. Buckeye has paid distributions in each quarter since its formation in 1986.
Conference Call. Buckeye will host a conference call with members of executive management today, May 10, 2019, at 11:00 a.m. Eastern Time. To access the live webcast of the call, go to https://edge.media-server.com/m6/p/u6g2ffa9 ten minutes prior to its start. Interested parties may participate in the call by dialing 877-870-9226 and entering the conference ID 2636028. A replay will be archived and available at this link through June 9, 2019, and the replay also may be accessed by dialing 800-585-8367 and entering the conference ID 2636028.
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