BUSINESS SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2013

BUSINESS SEGMENTS

Financial information by segment

The following tables summarize our financial information by each segment for the periods indicated (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Revenue:
Pipelines & Terminals	$	190,632		$	167,312		$	384,832		$	333,240
International Operations (1)	144,369			50,428			315,219			100,663
Natural Gas Storage	11,791			16,469			25,674			26,680
Energy Services	650,326			746,821			1,612,145			1,777,247
Development & Logistics	13,697			13,152			25,609			25,617
Intersegment	(5,436		)	(11,542		)	(13,139		)	(21,368		)
Total revenue	$	1,005,379		$	982,640		$	2,350,340		$	2,242,079

(1) The International Operations segment’s revenue generated in The Bahamas was $54.1 million and $47.2 million for the three months ended June 30, 2013 and 2012, respectively.  For the six months ended June 30, 2013 and 2012, the International Operations segment’s revenue generated in The Bahamas was $106.8 million and $93.3 million, respectively.  The remainder relates primarily to the fuel oil supply and distribution services in the Caribbean.

Adjusted EBITDA by segment and reconciliation of net income to Adjusted EBITDA

The following tables present Adjusted EBITDA by segment and on a consolidated basis and a reconciliation of net income to Adjusted EBITDA for the periods indicated (in thousands):

		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2013			2012			2013			2012
Adjusted EBITDA:
Pipelines & Terminals		$	109,085		$	89,598		$	224,629		$	177,830
International Operations		37,203			30,591			72,446			62,257
Natural Gas Storage		(5,757		)	(388		)	(7,584		)	(1,656		)
Energy Services		4,773			(3,206		)	11,964			(9,378		)
Development & Logistics		3,187			3,337			5,885			5,866
Total Adjusted EBITDA		$	148,491		$	119,932		$	307,340		$	234,919
Reconciliation of Net Income to Adjusted EBITDA:
Net income		$	77,370		$	56,026		$	167,869		$	109,493
Less:	Net income attributable to noncontrolling interests	(940		)	(1,647		)	(2,098		)	(3,155		)
Net income attributable to Buckeye Partners, L.P.		76,430			54,379			165,771			106,338
Add:	Interest and debt expense	30,237			27,612			60,486			56,422
	Income tax expense	195			329			326			666
	Depreciation and amortization	39,452			34,325			77,043			67,352
	Non-cash deferred lease expense	942			975			1,884			1,950
	Non-cash unit-based compensation expense	3,984			5,061			7,327			7,688
Less:	Amortization of unfavorable storage contracts (1)	(2,749		)	(2,749		)	(5,497		)	(5,497		)
Adjusted EBITDA		$	148,491		$	119,932		$	307,340		$	234,919

(1) Represents amortization of negative fair values allocated to certain unfavorable storage contracts acquired in connection with the BORCO acquisition.