Buckeye Partners, L.P ANNUAL REPORT

Transcription

1 Buckeye Partners, L.P ANNUAL REPORT

2 Buckeye Partners, L.P., through its subsidiary partnerships, is one of the nation s largest independent pipeline common carriers of refined petroleum products with nearly 4,500 miles of pipeline. The Partnership also provides bulk storage services at terminals in Illinois, Indiana, Massachusetts, Michigan, Missouri, New York, Ohio and Pennsylvania and operates approximately 1,300 miles of pipeline under agreement with chemical companies. BUCKEYE GP LLC Directors PARTNERSHIP INFORMATION Partnership Characteristics William H. Shea, Jr. Chairman of the Board Director since 2000 As a publicly traded partnership, Buckeye Partners, L.P. differs in several ways from stock corporations: A partner in a publicly traded partnership owns units of the partnership rather than shares of stock and receives cash distributions rather than dividends. The cash distributions are not taxable as long as the partner s tax basis in the partnership exceeds zero. Generally, a corporation is subject to federal and state income taxes but a partnership is not. All of the income, gains, losses and deductions of a partnership are passed through to its partners who are required to show their allocated share of these amounts on their personal income tax returns. While a holder of corporate stock receives a Form 1099 each year detailing required tax data, a unit holder of a partnership receives a tax reporting package including Schedule K-1 and other forms to file with their income tax return. This tax reporting package shows a partner s allocable share of the partnership s income, gains, losses and deductions. Compared to corporate form of organization, the partnership form enables Buckeye to distribute to investors a greater percentage of cash generated by the business. Brian F. Billings 1 Director since 1986 Michael B. Hoffman Director since 2004 Edward F. Kosnik 1 2 Director since 1986 Joseph A. LaSala, Jr. 1 Director since 2001 David M. Leuchen Director since 2004 Jonathan O Herron 1 2 Director since 1997 Frank S. Sowinski Director since 2001 Andrew W. Ward 2 Director since Member of Audit Committee Member of Finance Committee Officers OPERATING SYSTEMS Legend Buckeye Pipe Line Company, L.P. Buckeye Gulf Coast Pipe Lines, L.P. Everglades Pipe Line Company, L.P. Laurel Pipe Line Company, L.P. Norco Pipe Line Company, LLC Wood River Pipe Lines, LLC Buckeye Terminals, LLC Delivery point to customers marketing terminals JOINT VENTURE INTERESTS West Shore Pipeline Company West Texas LPG Pipeline Limited Partnership William H. Shea, Jr. President and Chief Executive Officer Stephen C. Muther Senior Vice President Administration General Counsel and Secretary Robert B. Wallace Senior Vice President Finance and Chief Financial Officer Eric Gustafson Senior Vice President Operations and Technology (effective 1/1/2005) Investor Information For more information about the Partnership please contact: Buckeye Partners, L.P. Stephen R. Milbourne Manager, Investor Relations 5 Radnor Corporate Center, Suite Matsonford Road Radnor, PA (800) smilbourne@buckeye.com or visit us on the Web at: Partnership Office Buckeye Partners, L.P. Post Office Box Buckeye Road, Emmaus, PA (484) Transfer Agent and Registrar EquiServe Trust Company, N.A. Post Office Box 43069, Providence, RI (800) Unitholder Tax Information Pricewaterhouse Coopers, LLP K-1 Support P.O. Box , Dallas, TX (800) Equal Opportunity Buckeye Partners, L.P. provides equal opportunity in all aspects of employment without regard to race, color, creed, religion, ancestry, national origin, gender, age, disability, veteran status, and martial status. Design: Sundberg & Associates, New York, NY Photography: Roger Tully Officers portrait: Ed Wheeler 2>

3 Financial and Operating Highlights FINANCIAL DATA (millions,except per unit) Revenue $323.5 $272.9 $247.3 $232.4 $208.6 $200.8 $184.5 $185.0 $183.0 $183.5 Operating income $122.1 $ Income from continuing operations $82.9 $ Net income 1 $82.9 $ Per unit: 2 Income from continuing operations $2.76 $1.05 $2.65 $2.56 $2.38 $2.63 $1.93 $0.25 $2.03 $2.05 Net income $2.76 $1.05 $2.65 $2.56 $3.56 $2.82 $1.93 $0.25 $2.03 $2.05 Cash distributions $2.64 $2.54 $2.50 $2.45 $2.40 $2.18 $2.10 $1.72 $1.50 $1.40 OPERATING DATA Daily pipeline volumes (thousand barrels per day) 1, , , , , , , , , ,009.8 Barrel miles (billions) Average tariff rate (cents per barrel) includes a charge on early extinguishment of debt of $45.5 million; 2000 includes earnings from discontinued operations of $5.7 million plus a gain on the sale of discontinued operations of $26.2 million; 1999 includes earnings from discontinued operations of $5.2 million; 1997 includes a charge on early extinguishment of debt of $42.4 million to 1995 restated to reflect 2-for-1 unit split. REVENUE Dollars in Millions 340 OPERATING INCOME Dollars in Millions 130 CASH DISTRIBUTIONS Dollars per Unit $ $2.50 $2.25 $2.00 $1.75 $1.50 $ $ PIPELINE VOLUME Barrels per Day in Thousands 1,250 1,200 1,150 1,100 1,050 1, TERMINAL THROUGHPUT VOLUME Barrels per Day in Thousands MILES OF PIPELINE 4,500 4,250 4,000 3,750 3,500 3,250 3,000 2, , >

4 To Our Unitholders 2004 was another year of strong growth and exciting change for Buckeye Partners. Highlights of the year include: Excellent financial results with new records for pipeline volumes, revenue, operating income, and net income from continuing operations Three increases in the level of cash distributions paid to our unitholders, with another increase announced in the first quarter of 2005 The purchase of the General Partner by Carlyle/Riverstone Global Energy Fund II, LP Acquisition of five refined petroleum products pipelines and twenty-four refined petroleum products terminals from affiliates of Shell Oil Products US performance. These results were the basis for the Board of Directors to approve three increases in the quarterly cash distributions during A fourth increase in the distribution was announced in the first quarter of NEW OWNER OF GENERAL PARTNER In May, we welcomed Carlyle/Riverstone as the new owner of the General Partner of Buckeye. Riverstone s representatives Michael B. Hoffman, David M. Leuschen and Andrew W. Ward were appointed to our Board of Directors. Carlyle/Riverstone s experience in the energy industry, and its relationship with investment banks and other institutions active in the capital markets, have already proven to be a valuable resource in facilitating the growth of the Partnership. We look forward to working with the Carlyle/Riverstone team as we build on our record of providing solid financial returns to our unitholders. ACQUISITIONS AND GROWTH On October 1, 2004, we completed the largest acquisition in Partnership history with the addition of five refined products pipelines and twenty-four petroleum products terminals in the Midwestern United States. The pipeline systems and terminals were acquired from affiliates of Shell Oil Products, US. The pipeline systems originate in the St. Louis area and connect to Buckeye s existing pipeline FINANCIAL AND OPERATING RESULTS Partnership net income for 2004 was $82.9 million or $2.76 per unit, compared with 2003 net income before a special charge related to the prepayment of longterm debt of $75.6 million or $2.64 per unit (2003 net income, which included the $45.5 million special charge, was $30.2 million or $1.05 per unit). In 2004, pipeline volumes increased by 64,200 barrels per day, or 5.6 percent, and revenue increased by $50.6 million, or 18.5 percent, to a record $323.5 million. Operating income for 2004 increased by $12.8 million, or 11.7 percent, to $122.1 million. These excellent financial results add another year of strong growth to Buckeye s record of consistent financial These acquisitions fit well with our strategy of owning and operating refined products pipeline and terminals that provide stable fee-based revenues by serving demand-oriented markets. 2>

5 From Left to Right: William H. Shea, Jr., President and Chief Executive Officer and Chairman of the Board Robert B. Wallace, Senior Vice President Finance and Chief Financial Officer Stephen C. Muther, Senior Vice President Administration, General Counsel and Secretary system at several locations. These pipelines add approximately 900 miles to our system and significantly expand the Partnership s service territory in the Midwest. The terminals, located in Indiana, Illinois, Michigan, Missouri and Ohio, add approximately 9.3 million barrels of storage capacity, and more than triple our terminal throughput volumes. Integration of these new assets into the Buckeye system has proceeded on schedule. We expect final integration to be completed during the second quarter of In January 2005, we also announced an agreement to purchase a major pipeline system and interests in five associated products terminals from affiliates of ExxonMobil Corporation. The pipeline system originates at a refinery owned by Valero in Paulsboro, New Jersey and serves customers in Pennsylvania and New York. The pipelines complement the Partnership s existing infrastructure in the Northeastern United States. We plan to connect one of the acquired pipelines to our existing pipeline system in the vicinity of Allentown, Pennsylvania. This connection will provide increased options and flexibility for our customers. The proposed acquisition is expected to close in the first half of 2005, subject to regulatory approvals and other customary closing conditions. Both of these acquisitions will provide new growth opportunities for Buckeye. The acquisitions fit well with our strategy of owning and operating refined products pipeline and terminals that provide stable fee-based revenues by serving demand-oriented markets. We will continue to pursue growth opportunities which are consistent with this strategy, and which will enhance the value of your investment in Buckeye. ACKNOWLEDGEMENTS AND THANKS Buckeye s success is the result of the contributions and hard work of many people. I am particularly grateful to our management team and employees; their ability, experience, dedication and hard work were demonstrated once again this year as we integrated the largest acquisition in Buckeye s history while competently maintaining the daily operations of our existing pipelines and terminals. I am also pleased to welcome the new employees that have joined the Buckeye family to support the operation and maintenance of the newly acquired assets. We value the skills and considerable experience these new employees bring to our workforce. I would also like to thank our customers for entrusting us with their business. We appreciate their confidence in us. We remain committed to providing them with reliable, safe, and cost-effective service. On behalf of our Board of Directors and employees, I would like to thank Mr. Alfred W. Martinelli for more than 45 years of service, wise guidance and counsel to Buckeye. Al ably served as Chairman of the Board from the formation of the Partnership in December 1986 until his retirement in May We extend our very best wishes to Al for a healthy and happy retirement. Sincerely, William H. Shea, Jr. Chairman of the Board of Directors Buckeye GP LLC As General Partner 3 >

6 two thousand tank trucks load petroleum products each day terminals owned and operated by Buckeye. 2,000Approximately tank trucks 4>

7 Partnership Overview Buckeye Partners, L.P. is a publicly traded master limited partnership that provides pipeline transportation and refined petroleum products terminalling and storage services through facilities that we own and operate in the United States. Buckeye provides pipeline transportation services principally in the Northeast and upper Midwest states through our pipeline operating subsidiaries, Buckeye Pipe Line Company, L.P., Everglades Pipe Line Company, L.P., Laurel Pipe Line Company, L.P., Norco Pipe Line Company, LLC and Wood River Pipe Lines LLC. Buckeye operates one of of approximately 15.4 million barrels in Illinois, Indiana, Massachusetts, Michigan, Missouri, New York, Ohio and Pennsylvania. Buckeye also owns Buckeye Gulf Coast Pipe Lines, L.P., which operates and maintains pipelines under agreements with major oil and chemical companies. In addition, Buckeye is the largest stockholder of West Shore Pipe Line Company, holds a 20% interest in West Texas LPG Pipeline, L.P., and is a majority owner of WesPac Pipelines, Ltd. WesPac specializes in constructing and operating jet fuel pipelines serving airport facilities. the cash available for distribution to our unitholders. Our business strategy to accomplish this objective is to: Own and operate high-quality logistics assets Increase throughput on our pipelines and terminals that have available capacity Expand our pipeline and terminals to facilitate customer-generated growth Maintain and enhance the integrity of our pipelines and terminals Focus on providing superior customer service in order to remain the provider the nation s largest independent common of choice in markets served, and carrier pipeline networks providing refiners, BUSINESS STRATEGY Pursue selective strategic acquisition wholesalers, marketers, airlines, railroads Buckeye s objective is to increase the opportunities that complement our and other commercial end-users with 1.3 value of our unitholders investment by existing asset base or provide entry dependable, all-weather transportation consistently growing our cash flow and into new markets. of refined petroleum products. Buckeye s unique combination of experienced and responsive professional staff, technical expertise and modern transportation facilities has earned the Partnership a reputation for high-quality, safe, reliable and efficient transportation services. Buckeye provides terminalling and refined products storage services through Buckeye Terminals, LLC, and affiliate subsidiaries. Buckeye Terminals owns and operates 38 refined petroleum terminals with an aggregate storage capacity The average pipeline tariff rate charged by Buckeye for transporting one gallon of petroleum product to its delivery destination. Besides being the safest mode, pipelines are also the cheapest and most efficient means for moving petroleum products to consumption markets. 5>

8 PIPELINE OPERATIONS major metropolitan areas. With pipeline of product into Buckeye s various out- Buckeye owns and operates approximately 4,500 miles of pipelines serving approximately 100 delivery locations. The Company transports refined petroleum products including gasoline, jet fuel, diesel fuel, heating oil and kerosene from major supply sources to industry-owned terminals located within major end-use markets. Buckeye also transports other refined products, such as propane and butane, refinery feedstocks and blending components. Transportation service is typically provided on a common carrier basis under published tariffs for approximately 110 customers. Buckeye is not affiliated with any major oil company and does not own the material that it transports. Buckeye provides an efficient and vital transportation link between major petroleum refining and supply locations volumes driven primarily by demand in the end-use markets it services, Buckeye s business is stable because it is geographically diversified, connected to many different sources of supply, serves numerous delivery locations and fosters strong customer loyalty. Buckeye s Eastern Markets Buckeye s pipelines in the East Region serve markets in New Jersey, Pennsylvania, New York, Connecticut and Massachusetts. On Buckeye Pipe Line Company, L.P. s eastern pipelines, most shipments originate in New York Harbor at Linden, New Jersey. At Linden, receipts are handled from numerous sources including connecting pipelines, deepwater and bulk storage terminals and local refineries. Over 3.0 million barrels of tankage at Buckeye s bound pipelines. From Linden, product moves west to Macungie, Pennsylvania or east to the three major New York City airports (Kennedy, LaGuardia and Newark) and commercial marketing terminals on Long Island. At Macungie nearly 2.0 million barrels of tankage facilitate the shipment of products to delivery points in central and western Pennsylvania and central and western New York State. Market areas include Reading, Harrisburg, Altoona, Pittsburgh and Scranton/ Wilkes-Barre in Pennsylvania and Binghamton, Syracuse, Utica, Rochester and Buffalo (through a connecting carrier) in New York. Buckeye also owns a pipeline that originates in New Haven, Connecticut and carries refined products to the Hartford, Connecticut and Springfield, 100,000,000 and consumption centers, including Linden station accommodate the staging Massachusetts areas, including Bradley barrels Buckeye delivered approximately 100 million barrels of jet fuel last year to the 11 major airports in our service territory. 6>

9 4,500 miles With the October 2004 purchase of the Wood River Pipe Lines, Buckeye added 895 miles of pipeline bringing the system total to approximately 4,500 miles. 7>

10 2.1million Assuming an average fill-up of 15 gallons, Buckeye delivers enough gasoline to refuel approximately 2.1 million vehicles each day 365 days a year. 8>

11 International Airport in Connecticut and Westover Air Force Base in Massachusetts. Laurel Pipe Line Company, L.P. s large diameter pipeline transports product from five refineries and connecting pipeline carriers in southern New Jersey and Philadelphia to delivery terminals across Pennsylvania. Laurel is also connected to a major interstate pipeline with access to U. S. Gulf Coast refineries. Market areas served by Laurel are primarily centered around Reading, Harrisburg, Altoona and Pittsburgh. Buckeye and Laurel facilities are interconnected near Reading, Pennsylvania, providing customers in central and western Pennsylvania with product supply flexibility and efficient distribution from both the New York Harbor and Philadelphia supply origins. Buckeye s Midwest Markets In the Midwest, Buckeye Pipe Line Company, L.P. operates a network of pipelines that transport a wide range of refined products to markets in Indiana, Michigan, Ohio and Pennsylvania. These pipelines offer the flexibility of multiple origin and delivery points. The heart of the network is the north-south corridor linking Lima and Toledo, Ohio with Detroit, Michigan. Source points include refineries at Whiting, Indiana; Detroit, Michigan; and Lima and Toledo, Ohio. In addition, Buckeye is connected to terminals and pipelines with access to the U. S. Gulf Coast. Major delivery areas in the Midwest include Huntington and Indianapolis, Indiana; Detroit, Flint, Owosso and Bay City, Michigan; Columbus, Lima, Toledo and Cleveland, Ohio; and Pittsburgh, Pennsylvania. In the Midwest, Buckeye also handles liquefied petroleum gases ( LPG s ) and refinery feedstocks. LPG s are transported to Huntington, Indiana; Lima and Toledo, Ohio; and Woodhaven, Michigan. Feedstocks, such as naphtha and alkylates, are transported to refineries at Lima, Toledo and Detroit. Norco Pipe Line Company, LLC owns and operates a 422-mile refined petroleum products pipeline that runs from Hartsdale, Indiana west to Galesburg, Illinois and east to Toledo, Ohio, with two 11-mile pipelines connecting major storage terminals in Hartsdale and East Chicago, Indiana. Norco s major markets are Toledo, Ohio; South Bend, Indiana; and Peoria, Illinois. Wood River Pipe Lines LLC owns and operates 5 pipelines which transport refined petroleum products from the St. Louis area to markets in Indiana, Illinois, Missouri and Ohio. The 309-mile North Line delivers refined products to the Chicago area and other markets in Illinois and Indiana, and connects to Buckeye Pipe Line at East Chicago, Indiana. The 355-mile East Line delivers refined products across Illinois and Indiana and connects to Buckeye Pipe Line at Lima, Ohio. The 191- mile Two Rivers pipeline transports refined products to Buckeye Terminals 1.3 million barrel facility on the Ohio River in Mt. Vernon, Indiana. The 24-mile ATF line delivers jet fuel to the Lambert-St. Louis Airport, and the 16-mile St. Louis Line carries refined products to terminals in St. Louis. Everglades Everglades Pipe Line Company, L.P. operates a 37-mile pipeline that transports commercial aviation fuels from Port Everglades, Florida to Fort Lauderdale- Hollywood International Airport and Miami International Airport. 9>

12 Refined Products Transported The total long-haul volume of petroleum products delivered during 2004 averaged approximately 1,200,600 barrels per day, which was 64,200 barrels per day, or 5.6 percent above 2003 shipments. Gasoline Approximately 50 percent of Buckeye s deliveries are various grades of gasoline, including regular, mid-grade, and premium unleaded gasoline, natural gasoline and other blend stocks. Gasoline demand is largely related to general economic activity. Distillate Distillate volumes account for approximately 25 percent of Buckeye s pipeline volume and include diesel fuel, heating oil and kerosene. Diesel fuel is used predominantly by over-the-road truck carriers and demand largely depends on general economic activity. Heating oil and kerosene consumption are generally used for space heating and demand is more directly related to the weather. Jet Fuel Buckeye serves the airline industry through direct connections to eight major airports, as well as through indirect connections to numerous other airports. Buckeye also delivers military jet fuel to various military bases. Approximately 23 percent of Buckeye s pipeline deliveries are jet fuel. Other Products Buckeye also transports liquefied petroleum gases and other specialty products. LPGs, including butane and propane, are used for space heating and crop drying, as well as by refineries as blending components. Feedstocks, such as naphtha and alkylates, are used by refineries in the production of gasoline and other finished refined products. These volumes are primarily transported on Buckeye s Midwest system, and account for slightly more than 2 percent of pipeline volumes. TERMINAL OPERATIONS Buckeye Terminals, LLC significantly increased the number of petroleum storage and truck loading terminals it owns and operates to a total of 38 active facilities as part of the acquisition from affiliates of Shell Oil Company in the fourth quarter. The company now operates terminals in the states of Missouri, Indiana, Illinois, Michigan, New York, Ohio and Pennsylvania. Volumes handled at the truck loading terminals owned throughout 2004 averaged 78,150 barrels per day, an increase of 5,750 barrels per day or 7.9% over the throughput handled at the same terminals during In addition, throughput averaging 82,600 barrels per day was handled during 2004 at the truck loading facilities acquired from Shell during the calendar year. During 2004, projects were completed 750employees Buckeye has more than 750 highly skilled employees dedicated to providing safe and reliable transportation and terminalling services to our customers. 10 >

13 1billion tanks have the capacity to gallons of storage Buckeyes hold more the 25 million barrels of petroleum products; at 42 gallons per barrel, that s more than 1 billion gallons of storage. 11 >

14 230,000 neıghbors at several of the company s terminals to upgrade automation systems, improve the integrity of terminal assets, optimize use of system capacity, and add new business or improve customer service. The acquisition of the assets from Shell significantly increases Buckeye s role in the terminal industry and the company has invested significantly in new resources and operating infrastructure to support this growing component of its overall business. CONTRACT PIPELINE OPERATIONS Buckeye Gulf Coast Pipe Lines, L.P. ( BGC ) operates and/or maintains approximately 1,200 miles of gas and liquid pipelines in the United States Gulf Coast area. BGC is also the majority owner and operator of a 90-mile crude butadiene pipeline system that extends from the Houston Ship Channel to the Beaumont, Texas area. BGC has contracts with owners of major chemical plants to operate their pipelines, and underground storage facilities. BGC also owns pipelines which are leased to third parties. BGC has an experienced staff of engineering, construction and operating personnel dedicated to providing superior and cost effective pipeline and storage service to the oil and gas and petrochemical industries. During 2004, BGC completed a 14 mile pipeline from Mont Belvieu, Texas to the Houston ship channel area. JOINT VENTURES AND MINORITY INTERESTS WesPac Pipelines Ltd. ( WesPac ) is a joint venture between Buckeye and Kealine Partners that owns and operates pipelines serving the Reno/Tahoe International Airport in Nevada and the San Diego Airport in California. WesPac focuses on building pipelines directly to airports to replace trucking as the final leg in the transportation chain. WesPac identifies airports in high growth areas that currently do not have direct pipeline supply. During 2004, WesPac began construction of a new pipeline and terminal to serve customers at the Memphis Airport in Tennessee. Through its subsidiary Buckeye Pipe Line Holdings, L.P., the Partnership owns an approximate 25% equity interest in West Shore Pipe Line Company and a 20% partnership interest in West Texas LPG Pipeline Limited Partnership. West Shore owns and operates a refined Buckeye has more than 230 thousand neighbors along its rights-of-way in the communities where it operates. products pipeline system that originates in the Chicago, Illinois area and extends north to Green Bay Wisconsin and northwest to Madison, Wisconsin. West Texas LPG owns and operates a natural gas liquids pipeline system that delivers NGLs to Mont Belvieu, Texas, from gathering fields in West and Central Texas and New Mexico, as well as NGLs transported from the Rocky Mountain region via connecting pipelines. 12 >

15 Buckeye Partners, L.P., through its subsidiary partnerships, is one of the nation s largest independent pipeline common carriers of refined petroleum products with nearly 4,500 miles of pipeline. The Partnership also provides bulk storage services at terminals in Illinois, Indiana, Massachusetts, Michigan, Missouri, New York, Ohio and Pennsylvania and operates approximately 1,300 miles of pipeline under agreement with chemical companies. BUCKEYE GP LLC Directors PARTNERSHIP INFORMATION Partnership Characteristics William H. Shea, Jr. Chairman of the Board Director since 2000 As a publicly traded partnership, Buckeye Partners, L.P. differs in several ways from stock corporations: A partner in a publicly traded partnership owns units of the partnership rather than shares of stock and receives cash distributions rather than dividends. The cash distributions are not taxable as long as the partner s tax basis in the partnership exceeds zero. Generally, a corporation is subject to federal and state income taxes but a partnership is not. All of the income, gains, losses and deductions of a partnership are passed through to its partners who are required to show their allocated share of these amounts on their personal income tax returns. While a holder of corporate stock receives a Form 1099 each year detailing required tax data, a unit holder of a partnership receives a tax reporting package including Schedule K-1 and other forms to file with their income tax return. This tax reporting package shows a partner s allocable share of the partnership s income, gains, losses and deductions. Compared to corporate form of organization, the partnership form enables Buckeye to distribute to investors a greater percentage of cash generated by the business. Brian F. Billings 1 Director since 1986 Michael B. Hoffman Director since 2004 Edward F. Kosnik 1 2 Director since 1986 Joseph A. LaSala, Jr. 1 Director since 2001 David M. Leuchen Director since 2004 Jonathan O Herron 1 2 Director since 1997 Frank S. Sowinski Director since 2001 Andrew W. Ward 2 Director since Member of Audit Committee Member of Finance Committee Officers OPERATING SYSTEMS Legend Buckeye Pipe Line Company, L.P. Buckeye Gulf Coast Pipe Lines, L.P. Everglades Pipe Line Company, L.P. Laurel Pipe Line Company, L.P. Norco Pipe Line Company, LLC Wood River Pipe Lines, LLC Buckeye Terminals, LLC Delivery point to customers marketing terminals JOINT VENTURE INTERESTS West Shore Pipeline Company West Texas LPG Pipeline Limited Partnership William H. Shea, Jr. President and Chief Executive Officer Stephen C. Muther Senior Vice President Administration General Counsel and Secretary Robert B. Wallace Senior Vice President Finance and Chief Financial Officer Eric Gustafson Senior Vice President Operations and Technology (effective 1/1/2005) Investor Information For more information about the Partnership please contact: Buckeye Partners, L.P. Stephen R. Milbourne Manager, Investor Relations 5 Radnor Corporate Center, Suite Matsonford Road Radnor, PA (800) smilbourne@buckeye.com or visit us on the Web at: Partnership Office Buckeye Partners, L.P. Post Office Box Buckeye Road, Emmaus, PA (484) Transfer Agent and Registrar EquiServe Trust Company, N.A. Post Office Box 43069, Providence, RI (800) Unitholder Tax Information Pricewaterhouse Coopers, LLP K-1 Support P.O. Box , Dallas, TX (800) Equal Opportunity Buckeye Partners, L.P. provides equal opportunity in all aspects of employment without regard to race, color, creed, religion, ancestry, national origin, gender, age, disability, veteran status, and martial status. Design: Sundberg & Associates, New York, NY Photography: Roger Tully Officers portrait: Ed Wheeler 2>

16 Buckeye Partners, L.P.