HOUSTON, July 28 /PRNewswire-FirstCall/ -- Buckeye Partners, L.P. (NYSE: BPL) ("Buckeye") today reported its financial results for the second quarter of 2009. Net income attributable to Buckeye's unitholders before special charges for the second quarter of 2009 was $52.1 million, or $0.78 per LP unit, compared with net income attributable to Buckeye's unitholders of $40.9 million, or $0.63 per LP unit, reported for the second quarter of 2008. Buckeye's Adjusted EBITDA (as defined below) for the second quarter of 2009 was $84.2 million compared to $73.3 million in the second quarter of the prior year. As previously announced, Buckeye recorded special charges during the second quarter to recognize an asset impairment and for expenses related to an organizational restructuring. The special charges associated with these actions were $72.5 million and $28.1 million, respectively. After the special charges, Buckeye reported a net loss of $48.4 million, or $1.17 per LP unit, for the second quarter of 2009.

Forrest E. Wylie, Chairman and CEO of Buckeye's general partner, stated, "Despite serious challenges presented in the current economic climate, Buckeye continued to perform well through the second quarter. Adjusted EBITDA for the second quarter and first half of 2009 increased 15% and 17%, respectively, relative to those periods in 2008. Although we experienced volume declines in our pipeline and terminalling and storage businesses that largely offset the benefits of increased tariffs and fees, new terminals added since the second quarter of 2008 and effective cost management made a substantial contribution to our earnings in the second quarter of 2009."

"In addition, we continue to take important steps to position the company well for both difficult economic times and in anticipation of eventual economic recovery," Wylie continued. "As we previously announced, we are implementing comprehensive organizational changes that we expect will result in annual savings of $18-22 million beginning in 2010. These changes should enhance our competitive market position through improved customer service, higher productivity, and lower operating costs, and enable us to respond more rapidly to changing needs in the markets we serve. We are pleased to announce that, in light of Buckeye's solid operating results for the second quarter of 2009, the Board of Directors of Buckeye's general partner has approved a $0.0125 increase in the quarterly cash distribution to unitholders."

The Board of Directors of Buckeye GP LLC, the general partner of Buckeye, declared a regular quarterly partnership cash distribution of $0.9125 per LP unit, payable August 31, 2009 to unitholders of record on August 7, 2009. As indicated by Mr. Wylie, this cash distribution represents a quarterly increase in the distribution of $0.0125 per LP unit to an annualized cash distribution level of $3.65 per LP unit. This is the 90th consecutive quarterly cash distribution paid by Buckeye.

Buckeye will host a conference call to discuss its financial results for the second quarter 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) 981-5575 and referencing conference ID 6982489. An audio replay of the conference call also will be available through August 3, 2009 by dialing (719) 457-0820 and referencing conference ID 6982489.

Buckeye Partners, L.P. (www.buckeye.com) is a publicly traded partnership that owns and operates one of the largest independent refined petroleum products pipeline systems in the United States in terms of volumes delivered, with approximately 5,400 miles of pipeline. Buckeye Partners, L.P. also owns 64 refined petroleum products terminals, operates and maintains approximately 2,400 miles of pipeline under agreements with major oil and chemical companies, owns a major natural gas storage facility in northern California, and markets refined petroleum products in certain of the geographic areas served by its pipeline and terminal operations. The general partner of Buckeye Partners, L.P. is owned by Buckeye GP Holdings L.P. (NYSE: BGH).

EBITDA, a measure not defined under generally accepted accounting principles ("GAAP"), is defined by Buckeye as net income attributable to Buckeye unitholders before income from discontinued operations, interest and debt expense, income taxes, depreciation and amortization. Adjusted EBITDA, which also is a non-GAAP measure, is defined by Buckeye as EBITDA plus the difference between the estimated annual land lease expense for Buckeye's natural gas storage facility to be recorded under GAAP and the actual cash to be paid for the annual land lease. Additionally, in the second quarter of 2009, Buckeye's management redefined Adjusted EBITDA to exclude the impairment expense of $72.5 million related to its NGL pipeline and the reorganization expense of $28.1 million related to its "best practices" initiative in order to evaluate the results of Buckeye's operations on a consistent basis over multiple time periods. This press release also includes discussion of net income attributable to Buckeye's unitholders before special charges, which is a non-GAAP measure derived by excluding from net income attributable to Buckeye's unitholders charges to recognize an asset impairment and for expenses related to an organizational restructuring. EBITDA, Adjusted EBITDA, and net income attributable to Buckeye's unitholders before special charges should not be considered alternatives to net income, operating income, cash flow from operations, or any other measure of financial performance presented in accordance with GAAP. Because EBITDA and Adjusted EBITDA exclude some items that affect net income attributable to Buckeye's unitholders and these items may vary among other companies, the EBITDA and Adjusted EBITDA data presented may not be comparable to similarly titled measures at other companies. Management uses Adjusted EBITDA to evaluate Buckeye's consolidated operating performance and the operating performance of its operating segments and to allocate resources and capital to the operating segments. Additionally, Buckeye's management uses Adjusted EBITDA to evaluate the viability of proposed projects, and to determine overall rates of return on alternative investment opportunities. Net income attributable to Buckeye's unitholders before special charges is a useful measure for investors because it allows comparison of Buckeye's core operations from period to period. Buckeye believes that investors benefit from having access to the same financial measures used by Buckeye's management. Please see the reconciliation of EBITDA and Adjusted EBITDA to net income attributable to Buckeye's unitholders, the most directly comparable GAAP measure, in the attached under the heading "Adjusted EBITDA reconciliation." In addition, please see the reconciliation of net income attributable to Buckeye's unitholders before special charges to net income attributable to Buckeye's unitholders, the most directly comparable GAAP measure, in the attached under the heading "GAAP reconciliation of revised net income allocated to limited partners."

This press release includes forward-looking statements that we believe to be reasonable as of today's date.