BUCKEYE PARTNER LP : Buckeye GP Holdings L.P. Reports Second Quarter 2008 Results and Increases Quarterly Distribution
07/29/2008| 07:01pm US/Eastern
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BREINIGSVILLE, Pa., July 29 /PRNewswire-FirstCall/ -- Buckeye GP Holdings
L.P. (NYSE: BGH) ("BGH") today reported its financial results for the second
quarter of 2008. BGH's net income for the second quarter of 2008 was $5.3
million, or $0.19 per common unit, compared with net income of $4.1 million,
or $0.15 per common unit, for the second quarter of 2007. Revenue in the
second quarter of 2008 increased to $492.5 million from revenue of $125.0
million in the second quarter of 2007. Operating income increased in the
second quarter of 2008 to $57.0 million from $44.2 million in the second
quarter of 2007.
BGH owns the general partner interest and incentive distribution rights
associated with Buckeye Partners, L.P. (NYSE: BPL) ("BPL") and reports its
financial results on a consolidated basis with the financial results of BPL.
BGH currently has no operating activities separate from those conducted by
BPL, and its cash flow is derived solely from cash distributions received from
BPL and BPL's operating subsidiaries.
The Board of Directors of MainLine Management LLC, the general partner of
BGH, declared a regular quarterly cash distribution of $0.31 per common unit,
or $1.24 per common unit on an annual basis, payable August 29, 2008 to
unitholders of record on August 8, 2008. This cash distribution represents an
increase in the quarterly cash distribution of 3.3 percent compared to the
quarterly cash distribution of $0.30 paid in May 2008 and an increase of 24.0
percent compared to the quarterly cash distribution of $0.25 paid in August
2007.
BGH will host a conference call to discuss the second quarter on
Wednesday, July 30, 2008, at 11:00 a.m. Eastern Time. Investors are invited to
listen to the conference call via the Internet, on either a live or replay
basis at: http://www.videonewswire.com/event.asp?id=49786. Interested parties
may participate in the call by joining the conference at (719) 325-4800 and
referencing conference ID 4159877. An audio replay of the conference call also
will be available through August 3, 2008 by dialing (719) 457-0820, Code:
4159877.
Buckeye GP Holdings L.P. is a limited partnership that owns Buckeye GP
LLC, the general partner of Buckeye Partners, L.P., and 100 percent of the
incentive distribution rights in Buckeye Partners, L.P. Buckeye GP Holdings
L.P. also owns the general partnership interests in certain of the operating
subsidiaries of Buckeye Partners, L.P. More information concerning Buckeye GP
Holdings L.P. is available at http://www.buckeyegp.com. More information
concerning Buckeye Partners, L.P. is available at http://www.buckeye.com.
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 we believe to be reasonable as of today's date. Such
statements are identified by use of the words "anticipates", "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 the control
of Buckeye GP Holdings L.P. Among them are (1) our expected receipt of
distributions and incentive distributions from Buckeye Partners, L.P.
("Buckeye"); (2) conflicts of interest between Buckeye, its general partner
and us; and (3) changes in laws or regulations to which we or Buckeye are
subject, including those that permit the treatment of Buckeye and us as
partnerships for federal income tax purposes. Additionally, Buckeye's ability
to generate cash sufficient to make distributions to us is subject to the
following factors: (1) terrorism, adverse weather conditions, environmental
releases and natural disasters; (2) changes in the marketplace for Buckeye's
products or services, such as increased competition, better energy efficiency
or general reductions in demand; (3) adverse regional or national economic
conditions or adverse capital market conditions; (4) shutdowns or
interruptions at the source points for the products Buckeye transports,
stores, or sells; (5) unanticipated capital expenditures in connection with
the construction, repair, or replacement of Buckeye's assets; and (6)
volatility in the price of refined petroleum products and the value of natural
gas storage services. You should read our Annual Report on Form 10-K 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.
BUCKEYE GP HOLDINGS L.P.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per unit amounts)
(Unaudited)
Three Months Six Months
Ended Ended
June 30, June 30,
2008 2007 2008 2007
Product sales $346,436 $1,035 $587,482 $5,950
Transportation and other 146,112 123,916 285,342 243,945
Total revenue 492,548 124,951 872,824 249,895
Costs and expenses:
Cost of product sold 341,591 1,032 578,203 5,876
Operating expenses 69,991 62,577 136,282 118,032
Depreciation and amortization 12,342 10,001 23,725 19,708
General and administrative 11,638 7,127 21,534 13,431
Total costs and expenses 435,562 80,737 759,744 157,047
Operating income 56,986 44,214 113,080 92,848
Other income (expenses):
Investment income 237 334 851 634
Interest and debt expense (18,270) (13,104) (36,448) (26,980)
Total other income (expenses) (18,033) (12,770) (35,597) (26,346)
Income before equity income and
non-controlling interest 38,953 31,444 77,483 66,502
Equity income 1,344 2,258 3,399 4,044
Non-controlling interest expense (34,980) (29,571) (69,716) (60,476)
Net income $5,317 $4,131 $11,166 $10,070
Net income per partnership unit
Basic $0.19 $0.15 $0.39 $0.36
Diluted $0.19 $0.15 $0.39 $0.36
Weighted average number of units
outstanding:
Basic 28,300 28,073 28,300 27,983
Diluted 28,300 28,300 28,300 28,300
SOURCE Buckeye GP Holdings L.P.
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