Buckeye Partners has reported income from continuing operations for the fourth quarter of 2014 of $104 million (€91.8 million) compared to income from continuing operations for the fourth quarter of 2013 of $87.5 million.
Adjusted EBITDA (as defined below) from continuing operations for the fourth quarter of 2014 was $223.5 million compared to $178.6 million for the fourth quarter of 2013.
Income from continuing operations attributable to Buckeye’s unitholders was $0.82 per diluted unit for the fourth quarter of 2014 compared to $0.75 per diluted unit for the fourth quarter of 2013. The diluted weighted average number of units outstanding in the fourth quarter of 2014 was 127.6 million compared to 114.1 million in the fourth quarter of 2013.
‘Year over year, we realised a full quarter benefit from the terminals acquired from Hess as well as a meaningful contribution for the first full quarter from the Buckeye Texas Partners assets in Corpus Christi. We also enjoyed a full quarter contribution from new growth capital investments, including the crude oil rail and storage projects at our Chicago Complex as well as truck rack and pipeline connection projects at our Perth Amboy facility,’ says Clark Smith, chairman, president and CEO, Buckeye Partners.
‘While we expect certain aspects of our business will likely be negatively impacted by the decline in petroleum product prices we have seen over the past six months, other businesses are expected to benefit, as contango drives interest in storage and lower refined product prices potentially drives higher throughput volumes,’ comments Smith.
On 30 January 2015, Buckeye announced the initiation of an open season for the Michigan/Ohio Pipeline Expansion Project. This project would allow the company to offer expanded service to transport refined petroleum products west to east, from supply locations in Michigan and Ohio to destination locations in Ohio and Western Pennsylvania.
Distributable cash flow (as defined below) from continuing operations for the fourth quarter of 2014 was $160.1 million compared to $117.8 million for the fourth quarter of 2013. Buckeye also reported distribution coverage of 1.10 times for the fourth quarter of 2014.
Full year results: For 2014, Buckeye reported income from continuing operations of $374.5 million compared to income from continuing operations for 2013 of $351.6 million.
Income from continuing operations attributable to Buckeye’s unitholders was $3.11 per diluted unit for 2014 compared to $3.23 per diluted unit for 2013. The diluted weighted average number of units outstanding for 2014 was 119.9 million compared to 107.7 million for 2013.
For 2014, adjusted EBITDA from continuing operations was $763.6 million compared to $648.8 million for 2013. Distributable cash flow from continuing operations for 2014 was $526.8 million compared to $454.2 million for 2013. Buckeye reported distribution coverage of 0.96 times for 2014.
‘Looking forward, construction of the 50,000 barrels per day condensate splitter and refrigerated LPG storage capacity at our Corpus Christi facility continues and these assets are expected to be placed in service by mid-2015,’ says Smith. ‘One hundred percent of this capacity is subject to long-term contracts with Trafigura, our joint venture partner. Once operational, these assets are expected to generate significant incremental cash flows and deliver additional value to our unitholders.’
Discontinued operations: As of 31 December 2014, Buckeye completed the sale of all of the outstanding limited liability company interests in Lodi Gas Storage to Brookfield Infrastructure and its institutional partners. The net proceeds, after closing adjustments, of $103.4 million were used to reduce the indebtedness outstanding under Buckeye’s revolving credit facility and for general partnership purposes.