(Source: PRNewswire-FirstCall)
HOUSTON, July 28 /PRNewswire-FirstCall/ -- Buckeye GP Holdings L.P. ("BGH") today reported its financial results for the second quarter of 2009. BGH's net income for the second quarter of 2009 was $9.8 million, or $0.35 per common unit, compared with net income of $5.3 million, or $0.19 per common unit, for the second quarter of 2008. BGH recorded an operating loss in the second quarter of 2009 of $35.4 million compared with operating income of $57.0 million in the second quarter of 2008. This operating loss was the result of special charges of $100.7 million recorded by Buckeye Partners, L.P. ("Buckeye") during the second quarter to recognize an asset impairment and for expenses related to an organizational restructuring.
BGH owns the general partner interest and incentive distribution rights associated with Buckeye and reports its financial results on a consolidated basis with the financial results of Buckeye. BGH currently has no operating activities separate from those conducted by Buckeye, and its cash flow is derived solely from cash distributions received from Buckeye and Buckeye's operating subsidiaries.
Forrest E. Wylie, Chairman and CEO of BGH's general partner, stated, "Despite serious challenges presented in the current economic climate, BGH continued to perform well through the second quarter of 2009. In addition, BGH expects to benefit from the improvements to Buckeye's financial position that are anticipated to result from its recently announced organizational changes. We are pleased to announce that, in light of BGH's solid operating results for the second quarter, the Board of Directors of BGH's general partner has approved a $0.02 increase in the quarterly cash distribution to unitholders."
The Board of Directors of MainLine Management LLC, the general partner of BGH, declared a regular quarterly partnership cash distribution of $0.37 per common unit, or $1.48 per common unit on an annualized basis, payable on August 31, 2009 to unitholders of record on August 7, 2009. As indicated by Mr. Wylie, this cash distribution represents an increase in the quarterly distribution of 5.7 percent compared to the quarterly cash distribution of $0.35 paid in May 2009 and an increase of 19.4 percent compared to the quarterly cash distribution of $0.31 paid in August 2008.
BGH will host a conference call to discuss its financial results for the second quarter of 2009 on Wednesday, July 29, 2009, 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=60543. Interested parties may participate in the call by joining the conference at (800) 289-0493 or (913) 982-5575 and referencing conference ID 6982489.
