EARNINGS PER UNIT

12 Months Ended

Dec. 31, 2011

EARNINGS PER UNIT

22. EARNINGS PER UNIT

Basic and diluted earnings per unit (includes LP Units and Class B Units in 2011) is calculated by dividing net income, after deducting the amount allocated to noncontrolling interests, by the weighted-average number of LP units outstanding during the period.

Pursuant to the Merger Agreement, BGH’s unitholders received a total of approximately 20.0 million of Buckeye’s LP Units in the aggregate in exchange for all outstanding BGH common units and management units. As a result, the number of Buckeye’s LP Units outstanding increased from 51.6 million to 71.4 million. However, for historical reporting purposes, the impact of this change was accounted for as a reverse split of BGH’s units of 0.705 to 1.0, together with the addition of Buckeye’s existing LP Units. Therefore, since BGH was the surviving accounting entity, the weighted average number of LP Units outstanding used for basic and diluted earnings per LP Unit calculations are BGH’s historical weighted average common units outstanding adjusted for the reverse unit split and the addition of Buckeye’s existing LP Units. Amounts reflecting historical BGH unit and per unit amounts included in this report have been restated for the reverse unit split.

The following table is a reconciliation of the weighted average units outstanding used in computing the basic and diluted earnings per unit for the periods indicated (in thousands, except per unit amounts):

	Year Ended December 31,
	2011		2010		2009
Net income attributable to Buckeye Partners, L.P.	$	108,501	$	43,080	$	49,594
Basic:
Weighted average units outstanding		90,423		25,627		19,578
Weighted average management units outstanding		—		389		374
Weighted average units outstanding—basic		90,423		26,016		19,952
Earnings per unit—basic	$	1.20	$	1.66	$	2.49
Diluted:
Weighted average units outstanding—basic		90,423		26,016		19,952
Dilutive effect of LP Unit options and LTIP awards granted		349		70		—
Weighted average units outstanding—diluted		90,772		26,086		19,952
Earnings per unit—diluted	$	1.20	$	1.65	$	2.49