BUCKEYE PARTNERS, L.P.

No Longer Reporting

The company has not filed an annual or quarterly report since its Q3 FY2019 10-Q, filed Nov 1, 2019. Its latest SEC filing is a 15-12B from Feb 28, 2020.

The sections below describe the company as of the FY2018 annual report.

What Did They Do?

Sells petroleum-product transportation, storage, processing and marketing services to energy companies, refiners, marketers and other customers.

How Did They Make Money?

Customers pay fees for pipeline transportation, terminal handling and storage, while Buckeye also earns money by buying and selling petroleum products. Pipeline transportation is typically paid by fee; common-carrier pipelines generally have no long-term contracts.

FY2018 revenue

Who Were Their Customers?

Refiners, marketers and other energy companies use Buckeye’s pipelines and terminals; some buy storage and marine-terminal services under long-term arrangements. Buckeye also sells refined petroleum products wholesale in areas served by its assets.

Did Revenues Turn Into Profits?

Not on paper. It lost $59M in FY2018, but brought in more cash than it spent: $300.2M of free cash flow.

Operating income, FY2018

10% of revenue

▼ −39% vs FY2017 ($685.4M, 19%)

Net income, FY2018

−1% of revenue

▼ Now a loss vs FY2017 ($478.8M, 13%)

Free cash flow, FY2018

7% of revenue

▼ −34% vs FY2017 ($455.1M, 12%)

How Were They Changing?

Since the FY2018 annual report

Latest quarter: Q3 FY2019, the three months to Sep 30, 2019

Revenue: ▼ −11%; vs $909.5M in Q3 FY2018
Net income: ▲ Now profitable; vs −$745.8M in Q3 FY2018

Nov 1, 2019 IFM-affiliated entities acquired Buckeye, ending its public listing Buckeye became a wholly owned subsidiary of the IFM Global Infrastructure Fund, and its units were suspended from NYSE trading and slated for delisting.

Shrank. Revenue fell 38% in 4 years, from $6.6B in FY2014 to $4.1B in FY2018, about 11% a year.

Processing added to services The latest report describes processing as part of the services offered, while the older report describes transportation, storage and marketing but does not include processing in its description.

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