Buckeye Partners LP (BPL)
Q3 2012 Earnings Call
November 02, 2012 11:00 am ET
Clark C. Smith - Chief Executive Officer of of Buckeye GP, President of Buckeye GP and Member of The Board of Directors of Buckeye GP LIC
William H. Schmidt - Vice President of Buckeye GP LLC and General Counsel of Buckeye GP LLC
Keith E. St.Clair - Chief Financial Officer of Buckeye GP LLC and Executive Vice President of Buckeye GP LLC
Khalid A. Muslih - Senior Vice President of Corporate Development and Strategic Planning - Buckeye GP LLC
Mary F. Morgan - Senior Vice President of Buckeye GP LLC and President of International Pipelines & Terminals Business Unit
Jeremiah J. Ashcroft - Senior Vice President of of Buckeye GP LLC and President of Buckeye Services Business Unit
Brian J. Zarahn - Barclays Capital, Research Division
Harry Mateer - Barclays Capital, Research Division
Michael J. Blum - Wells Fargo Securities, LLC, Research Division
Selman Akyol - Stifel, Nicolaus & Co., Inc., Research Division
Curt N. Launer - Deutsche Bank AG, Research Division
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I would now like to turn to your host in today's conference over to Mr. Clark C. Smith, President and Chief Executive Officer.
You may begin, sir.
Clark C. Smith
Thank you, and good morning, everyone, and welcome to the Buckeye Partners Third Quarter 2012 Conference Call. Also speaking on the call today will be Keith St. Clair, our Executive Vice President and Chief Financial Officer. After I make some introductory remarks and discuss the operating highlights for the quarter, Keith will review our financial results in further detail.
Also on the call today are Bob Malecky, the President of Domestic Pipelines & Terminals; Jerry Ashcroft, President of Buckeye Services; Mary Morgan, President of International Pipelines & Terminals; Khalid Muslih, Senior Vice President of Corporate Development & Strategic planning; Jeff Beason, Vice President and Controller; and Bill Schmidt, Vice President and General Counsel.
Following our prepared remarks, we will open the call to questions. But first, I'd like for Bill to provide our forward-looking statements disclaimer.
William H. Schmidt
Thanks, Clark. Before we begin, I'd like to remind everyone that we may make statements on the call today that could be construed as forward-looking statements as defined by the SEC. Future results are subject to numerous contingencies, many of which are outside our control, and any forward-looking statements we make are qualified by the risk factors and other information set forth in our Form 10-K for the year ended December 31, 2011, and our most recent Form 10-Q, each is filed with the SEC.
In addition, during the call, we will be discussing Buckeye's adjusted EBITDA and certain other non-GAAP measures. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in the press release that we issued earlier this morning, which is posted on the Investor Center section of Buckeye's website, www.buckeye.com.
Clark C. Smith
Thank you, Bill. I'd like to begin my comments by discussing our safety performance, which continues to be outstanding across all of Buckeye's assets. We continue to perform better than industry average safety benchmarks for OSHA recordable personal injuries and API motor vehicle incidents. We are on pace for an over 50% reduction in vehicle incidents in 2012 compared to 2011. BORCO, our largest terminal, has celebrated over 3.5 years without a loss time incident.
Okay, I know you are interested in our assessment of the impact of Hurricane Sandy on the Buckeye operations, so let me begin with this. First we are pleased to report that all Buckeye employees are accounted for and made it through the storm safety. Buckeye has managed through this crisis very well. Our emergency preparation, including acquiring and staging backup power generators, has proven to be critical in our ability to minimize any outages in the impacted areas. Our facilities in Pennsylvania and upstate New York were minimally impacted by the storm, and are back in full service.
Following the storm, our Linden facility switched to backup power generation and has been servicing the New York City and Pennsylvania markets on portable generator power. Late last night, the local utility restored power to the Linden area. And by the end of today, we expect to return to near-normal pipeline operations out of Linden with full pumping capabilities. Linden normally provides approximately 500,000 barrels per day to serve demand markets in New York including New York City and the area airports and Pennsylvania.
Although we remain concerned about the availability of petroleum products in the New York and New York-Jersey area several of the facilities that feed our Linden facility have restored operations and have begun to supply product into Linden. There are, however, several additional connecting facilities that are still working to reestablish supply in the Linden.
Certain facilities on Buckeye's pipeline system that delivered petroleum products the third-party terminals for supplying diesel and gasoline into New York City have been more affected by the storm. These facilities require some modest electrical cleanup work but we expect to have them operational later today. These facilities will run on backup power generation until the local utility is able to restore electrical service to the area.
We appreciate and want to recognize that our employees, the emergency responders and the utility personnel have been working tirelessly around the clock and have made great sacrifices in their efforts to get this essential transportation link back in service as soon as possible. We will continue to provide public updates on the status of our recovery going forward.