BUCKEYE PARTNERS, L.P.

CIK:0000805022|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue:
Total revenue from contracts with customers	$ 658,747	$ 768,823	$ 2,142,813	$ 2,532,281
Total revenue	811,415	909,548	2,632,089	3,033,492
Costs and expenses:
Cost of product sales	410,018	514,811	1,481,522	1,852,537
Operating expenses	156,936	159,562	466,388	470,935
Depreciation and amortization	66,896	68,464	196,639	199,171
General and administrative	18,691	21,578	58,647	66,659
Goodwill impairment	0	536,964	0	536,964
Other, net	49	0	(1,745)	(16,153)
Total costs and expenses	652,590	1,301,379	2,201,451	3,110,113
Operating income (loss)	158,825	(391,831)	430,638	(76,621)
Other (expense) income:
Earnings (loss) from equity investments	4,711	(292,387)	10,927	(276,633)
Interest and debt expense	(50,107)	(60,332)	(151,849)	(179,003)
Other expense, net	(120)	(152)	(4,037)	(764)
Total other expense, net	(45,516)	(352,871)	(144,959)	(456,400)
Income (loss) before taxes	113,309	(744,702)	285,679	(533,021)
Income tax expense	(464)	(634)	(1,059)	(1,906)
Net income (loss)	112,845	(745,336)	284,620	(534,927)
Less: Net income attributable to noncontrolling interests	(495)	(499)	(1,489)	(6,631)
Net income (loss) attributable to Buckeye Partners, L.P.	$ 112,350	$ (745,835)	$ 283,131	$ (541,558)
Earnings (loss) per unit attributable to Buckeye Partners, L.P.:
Basic (in dollars per share)	$ 0.73	$ (4.86)	$ 1.83	$ (3.57)
Diluted (in dollars per share)	$ 0.73	$ (4.86)	$ 1.82	$ (3.57)
Weighted average units outstanding:
Basic (in shares)	153,922	153,512	153,896	151,908
Diluted (in shares)	154,741	153,512	154,671	151,908
Product sales
Revenue:
Total revenue from contracts with customers	$ 419,326	$ 525,426	$ 1,502,895	$ 1,874,463
Transportation, storage and other services
Revenue:
Total revenue from contracts with customers	$ 392,089	$ 384,122	$ 1,129,194	$ 1,159,029

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income (loss)	$ 284,620	$ (534,927)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	196,639	199,171
Amortization of debt issuance costs, discounts and terminated interest rate swaps	11,179	11,755
Non-cash unit-based compensation expense	21,630	21,710
Loss (gain) on asset impairments, disposals and recoveries, net	1,021	(15,655)
Changes in fair value of derivatives, net	14,266	3,450
(Earnings) loss from equity investments	(10,927)	276,633
Distributions of earnings from equity investments	5,870	19,988
Goodwill impairment	0	536,964
Other non-cash items	3,477	1,869
Change in assets and liabilities, net of amounts related to acquisitions:
Accounts receivable, net	(3,075)	28,433
Construction and pipeline relocation receivables	6,134	(3,634)
Inventories	86,593	103,923
Prepaid and other current assets	(17,355)	(28,900)
Accounts payable	(22,057)	(32,126)
Accrued and other current liabilities	(10,599)	(7,563)
Other non-current assets and liabilities	10,675	15,099
Net cash provided by operating activities	578,091	596,190
Cash flows from investing activities:
Capital expenditures	(271,977)	(356,987)
Proceeds from sale of VTTI and DPTS asset package	985,000	0
Contribution to equity investment	(66,248)	(31,061)
Distributions from equity investments in excess of earnings	8,195	52,303
Acquisition of business, net of cash acquired	0	895
Proceeds from property disposals and recoveries	11,299	9,388
Net cash provided by (used in) investing activities	666,269	(325,462)
Cash flows from financing activities:
Net proceeds from issuance of Units and exercise of Unit options	0	261,958
Payment of tax withholding on vesting of LTIP awards	(2,343)	(6,782)
Proceeds from issuance of long-term debt, net of issuance costs	0	394,937
Loss on early extinguishment of debt	(3,647)	0
Repayment of long-term debt	(525,000)	(300,000)
Borrowings under the BPL Credit Facility	677,415	1,656,600
Repayments under the BPL Credit Facility	(942,017)	(1,428,880)
Net repayments under the BMSC Credit Facility	(98,685)	(74,003)
Acquisition of noncontrolling interest	0	(210,000)
Contributions from noncontrolling interests	0	7,400
Distributions paid to noncontrolling interests	(2,809)	(15,342)
Distributions to LP unitholders	(347,706)	(558,135)
Net cash used in financing activities	(1,244,792)	(272,247)
Net decrease in cash and cash equivalents	(432)	(1,519)
Cash and cash equivalents — Beginning of period	1,830	2,180
Cash and cash equivalents — End of period	$ 1,398	$ 661

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 1,398	$ 1,830
Accounts receivable, net	224,607	219,751
Construction and pipeline relocation receivables	8,125	14,259
Inventories	123,926	210,884
Derivative assets	5,651	18,019
Prepaid and other current assets	80,340	58,894
Total current assets	444,047	523,637
Property, plant and equipment	8,469,359	8,258,694
Less: Accumulated depreciation	(1,487,408)	(1,343,898)
Property, plant and equipment, net	6,981,951	6,914,796
Equity investments	199,682	1,111,793
Goodwill	470,875	470,875
Intangible assets	610,900	610,900
Less: Accumulated amortization	(366,168)	(317,589)
Intangible assets, net	244,732	293,311
Other non-current assets	168,823	41,138
Total assets	8,510,110	9,355,550
Current liabilities:
Line of credit	79,045	177,727
Current portion of long-term debt	0	525,000
Accounts payable	114,243	147,525
Derivative liabilities	1,045	1,320
Accrued and other current liabilities	263,378	276,193
Total current liabilities	457,711	1,127,765
Long-term debt	3,750,799	4,011,715
Other non-current liabilities	211,264	84,900
Total liabilities	4,419,774	5,224,380
Commitments and contingent liabilities (Note 4 - Commitments and Contingencies)
Buckeye Partners, L.P. capital:
Limited Partners (153,923,492 and 153,755,031 units outstanding as of September 30, 2019 and December 31, 2018, respectively)	4,112,328	4,160,143
Accumulated other comprehensive loss	(32,683)	(40,061)
Total Buckeye Partners, L.P. capital	4,079,645	4,120,082
Noncontrolling interests	10,691	11,088
Total partners’ capital	4,090,336	4,131,170
Total liabilities and partners’ capital	$ 8,510,110	$ 9,355,550