Emmaus, Pennsylvania-based Buckeye Partners, L.P., a master limited partnership (MLP), is one of the largest independent common carriers of refined petroleum products in the U.S in terms of volume delivered, with approximately 5,400 miles of pipelines, located mostly in the Northeast and the Midwest. The partnership also operates approximately 2,700 miles of pipelines for major oil and chemical companies. In addition to its pipeline assets, Buckeye has extensive bulk storage and terminaling assets, with 51 terminals that have an aggregate storage capacity of approximately 20 million barrels.
Buckeye segregates its operations into three reportable operating segments: Pipeline Operations, Terminalling and Storage, and Other Operations. The Pipeline Operations segment receives petroleum products from refineries, connecting pipelines, bulk and marine terminals and transports these products to other locations for a tariff charge. This segment also includes the operations of Buckeye NGL. The Terminalling and Storage segment provides bulk storage and terminal throughput services. The Other Operations segment consists primarily of the Partnership's contract operation of third-party pipelines, which are owned primarily by major petrochemical companies. This segment also performs pipeline construction management services, typically for cost plus a fixed fee, for the same clients. During 2006, the above three segments contributed 76%, 18% and 6%, respectively, to the partnership's revenue, and 79%, 17% and 4%, respectively, to the partnership's operating income.
On June 25, the partnership and its publicly-traded general partner, Buckeye GP Holdings (Ticker: BGH) went through a change of control following the completion of the previously announced sale of Carlyle/Riverstone's interest in the GP. The new owners of the GP are ArcLight Capital Partners, Kelso & Company, and Lehman Brothers Holdings Inc. With the change of control, the partnership's Chairman, CEO, and President, William H. Shea, Jr. has been replaced with Forrest E. Wylie. Mr. Wylie was most recently the Vice Chairman of Pacific Energy Partners that recent merged with Plains All American, L.P.