HOUSTON, July 28 /PRNewswire-FirstCall/ -- Buckeye GP Holdings L.P.
(NYSE: BGH) ("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. (NYSE:BPL) ("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.
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 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 that we believe to be
reasonable as of today's date. Such statements are identified by
use of the words "anticipates", "believes", "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; (6) volatility in the price of
refined petroleum products and the value of natural gas storage
services; (7) nonpayment or nonperformance by Buckeye's customers;
and (8) Buckeye's ability to realize the efficiencies expected to
result from its recently announced reorganization. You should read
our Annual Report on Form 10-K and our most recent 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, ----------
---------- 2009 2008 2009 2008 ---- ---- ---- ---- Revenues:
Product sales $201,777 $346,436 $470,556 $587,482 Transportation
and other 149,443 146,112 297,504 285,342 ------- ------- -------
------- Total revenue 351,220 492,548 768,060 872,824 -------
------- ------- ------- Costs and expenses: Cost of product sales
193,440 341,591 444,116 578,203 Operating expenses 68,842 69,991
142,742 136,282 Depreciation and amortization 13,559 12,342 26,923
23,725 Asset impairment expense 72,540 - 72,540 - General and
administrative 10,158 11,638 20,193 21,534 Reorganization expense
28,113 - 28,113 - ------ --- ------ --- Total costs and expenses
386,652 435,562 734,627 759,744 ------- ------- ------- -------
Operating (loss) income (35,432) 56,986 33,433 113,080 -------
------ ------ ------- Other income (expense): Investment income 142
237 294 851 Interest and debt expense (16,236) (18,270) (33,639)
(36,448) ------- ------- ------- ------- Total other expense
(16,094) (18,033) (33,345) (35,597) ------- ------- ------- -------
(Loss) income before equity income (51,526) 38,953 88 77,483 Equity
income 3,142 1,344 5,224 3,399 ----- ----- ----- ----- Net (loss)
income (48,384) 40,297 5,312 80,882 Less: net loss (income)
attributable to noncontrolling interest 58,156 (34,980) 14,609
(69,716) ------ ------- ------ ------- Amounts attributable to
Buckeye GP Holdings L.P. $9,772 $5,317 $19,921 $11,166 ======
====== ======= ======= Net income per partnership unit: Diluted
$0.35 $0.19 $0.70 $0.39 ===== ===== ===== ===== Weighted average
number of limited partner units outstanding: Diluted 28,300 28,300
28,300 28,300 ====== ====== ====== ====== DATASOURCE: Buckeye GP
Holdings L.P. CONTACT: Stephen R. Milbourne, Manager, Investor
Relations, +1-800-422-2825, Web Site: http://www.buckeyegp.com/
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