BUSINESS SEGMENTS (Tables)

9 Months Ended

Sep. 30, 2013

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
Revenue:
Pipelines & Terminals	$	198,270		$	194,609		$	583,102		$	527,849
International Operations (1)	154,629			51,686			469,848			152,349
Natural Gas Storage	14,907			20,229			40,581			46,909
Energy Services	717,911			691,875			2,330,056			2,469,122
Development & Logistics	16,439			11,798			42,048			37,415
Intersegment	(13,398		)	(4,227		)	(26,537		)	(25,595		)
Total revenue	$	1,088,758		$	965,970		$	3,439,098		$	3,208,049

(1) The International Operations segment’s revenue generated in The Bahamas was $53.4 million and $48.2 million for the three months ended September 30, 2013 and 2012, respectively. For the nine months ended September 30, 2013 and 2012, the International Operations segment’s revenue generated in The Bahamas was $160.2 million and $141.4 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						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
Adjusted EBITDA:
Pipelines & Terminals	$	114,412		$	112,879		$	339,041		$	290,709
International Operations	40,475			33,548			112,921			95,805
Natural Gas Storage	(2,759		)	1,357			(10,343		)	(299		)
Energy Services	(2,220		)	1,619			9,744			(7,759		)
Development & Logistics	3,934			3,168			9,819			9,034
Total Adjusted EBITDA	$	153,842		$	152,571		$	461,182		$	387,490

Reconciliation of Net Income to Adjusted EBITDA:
Net income	$	78,251		$	85,259		$	246,120		$	194,752
Less: Net income attributable to noncontrolling interests	(997		)	(143		)	(3,095		)	(3,298		)
Net income attributable to Buckeye Partners, L.P.	77,254			85,116			243,025			191,454
Add: Interest and debt expense	34,341			28,737			94,827			85,159
Income tax expense	195			511			521			1,177
Depreciation and amortization	38,755			37,134			115,798			104,486
Non-cash deferred lease expense	944			975			2,828			2,925
Non-cash unit-based compensation expense	5,111			2,846			12,438			10,534
Less: Amortization of unfavorable storage contracts (1)	(2,758		)	(2,748		)	(8,255		)	(8,245		)
Adjusted EBITDA	$	153,842		$	152,571		$	461,182		$	387,490

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