Buckeye GP Holdings L.P. (BGH), an operator of refined petroleum products pipeline systems, Monday reported a marginal rise in third-quarter profit despite a surge in revenues, as costs for product sales and natural gas storage services more than doubled from last year.
Buckeye GP Holdings or BGH owns Buckeye GP LLC, which owns the general partner interest and incentive distribution rights associated with Buckeye Partners, L.P. B
BGH currently has no operating activities separate from those conducted by Buckeye Partners, and its cash flow is derived solely from cash distributions received from Buckeye Partners and its operating subsidiaries through the ownership of Buckeye GP.
Net income attributable to BGH was $11.94 million or $0.42 per unit, compared with $11.1 million or $0.39 per unit a year ago.
On average, 4 analysts polled by Thomson Reuters expected the company to report earnings of $0.44 per share. Analysts' estimates typically exclude special items.
Total revenue rose to $734.86 million from $423.44 million in the same quarter last year. Analysts estimated revenues of $606.59 million in the quarter.
Product sales were $564.04 million, compared with $258.19 million in the same quarter of fiscal 2009. Transportation and other services generated revenues of $170.81 million, up from $165.26 million last year.
Costs for product sales and natural gas storage services climbed to $560.25 million from $258.51 million in the prior-year quarter.
Commenting on the results, Forrest Wylie, chairman and chief executive officer of BGH's general partner MainLine Management LLC, stated, "Buckeye has seen favorable market trends and continues to successfully execute best practices initiatives allowing for continued growth in BGH's earnings and distributions."
Wylie also said that the proposed merger between Buckeye Partners and BGH is on track to close in the fourth quarter. The special meetings of each company's unitholders are each scheduled for November 16.
Further, BGH said that the board of MainLine Management declared a regular quarterly partnership cash distribution of $0.47 per unit, or $1.88 per unit on an annualized basis, payable on November 30 to unitholders of record on November 15.
In a separate announcement, Buckeye Partners today reported third-quarter net income attributable to its unitholders of $61.2 million or $0.93 per limited partner unit, compared with $57.9 million or $0.89 per limited partner unit a year ago.
Quarterly revenues were $734.86 million, up from $423.44 million in the same quarter of last year.
"The increase in our pipeline transportation volumes is a sign of improving economic conditions," Wylie said.
Buckeye Partners also said that its general partner Buckeye GP declared a cash distribution of $0.975 per limited partner unit for the third quarter, payable on November 30 to unitholders of record on November 15.
BGH closed Friday's trading at $45.05, up $1.02, on a volume of 45,900 shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.