Barclays CEO Energy-Power Conference September 7, 2016 - PowerPoint PPT Presentation

Barclays CEO Energy-Power Conference September 7, 2016

FORWARD-LOOKING STATEMENTS This presentation contains “forward - looking statements” that we believe to be reasonable as of the date of this presentation. T hese statements, which include any statement that does not relate strictly to historical facts, use terms such as “anticipate,” “a ssu me,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “plan,” “position,” “potential,” “predict,” “project,” or “strategy” o r the negative connotation or other variations of such terms or other similar terminology. In particular, statements, express or implied, regarding future results of operations or ability to generate sales, income or cash flow, to make acquisitions, or to make distributions to unitholders are forward-looking statements. These forward- looking statements are based on management’s current plans, expectations, estimates, assumptions and beliefs concerning future events impacting Buckeye Partners, L.P. (the “Partnership” or “BPL”) and therefore involve a number of risks and uncertainties, many of which are beyond management’s control. Although th e Partnership believes that its expectations stated in this presentation are based on reasonable assumptions, actual results may differ materially from those expressed or implied in the forward- looking statements. The factors listed in the “Risk Factors” sections of, as well as any other cautionary language in, the Partnership’s public filings with the Securities and Exchange Commission, provi de examples of risks, uncertainties and events that may cause the Partnership’s actual results to differ materially from the exp ectations it describes in its forward-looking statements. Each forward-looking statement speaks only as of the date of this presentation, and the Partnership undertakes no obligation to update or revise any forward-looking statement. 2

ORGANIZATIONAL OVERVIEW Buckeye owns and operates a diversified network of integrated assets providing midstream logistic solutions generating stable and consistent cash flows LTM Adjusted EBITDA (1) - $949.9 million BPL LTM Unit Performance Relative to Alerian (2) BPL: -2.6% 20% AMZ: -18.7% 10% 0% -10% -20% -30% -40% -50% Domestic Pipelines & Terminals -60% One of the largest independent liquid petroleum products pipeline operators in the United States with pipelines located primarily in the Northeast and Midwest and liquid Market and Financial Highlights petroleum products terminals located throughout the United States Market Data (3) Unit Price $70.26 Global Marine Terminals Market Capitalization $9.2 billion One of the largest integrated networks of marine Yield 6.9% terminals located primarily in the East Coast and Gulf Coast regions of the United States and in the Caribbean Financial Data (1) Merchant Services Adjusted EBITDA $949.9 million Distribution per Unit (Annualized) $4.85 Markets liquid petroleum products in areas served by Distribution Coverage Ratio 1.08x Domestic Pipelines & Terminals and Global Marine Debt to Adjusted EBITDA Ratio 4.12x Terminals (1) Last twelve months through June 30, 2016. See Non-GAAP Reconciliations at end of presentation. (2) Last twelve months relative performance from July 1, 2015 through June 30, 2016. (3) As of August 31, 2016.

RECENT DEVELOPMENTS AND QUARTERLY HIGHLIGHTS Buckeye reported last twelve months coverage of 1.08x (1) Quarterly Adjusted EBITDA Growth All segments contributed to 24% increase in Adjusted EBITDA quarter over quarter $256.6 Diversified asset base provided ability to $244.5 $244.6 capture incremental margins as a result of favorable market conditions $223.5 $212.9 Domestic Pipelines & Terminals $206.5 $204.2 $200.6 o Strong demand for storage assets as well as improved pipeline transportation and throughput revenues Global Marine Terminals 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 o Improved utilization and higher rates; boasting 99% utilization of available storage capacity Distribution Coverage Improvement o Successful recontracting of all capacity up for renewal through the end of the second quarter 1.08x o Significant incremental cash flows from Buckeye 1.04x Texas Partners’ South Texas assets 1.02x Merchant Services 0.99x o Continued benefit from disciplined business strategy to improve supply management and optimize assets 0.96x Demonstrated continued success of diversification strategy and quality of Buckeye commercial, technical, and operating teams (1) 2012 2013 2014 2015 LTM (1) Last twelve months through June 30, 2016. See Non-GAAP Reconciliations at end of presentation. 4

LOOKING FORWARD Expect to maintain quarterly distribution Strong balance sheet with sufficient liquidity to fund growth of $0.0125 per quarter for 2016 capital needs without accessing capital markets Expected 2016 growth capital  $300-340 million Buckeye has limited commodity exposure o Well positioned compared to peers with gathering o Available liquidity on revolver (1) $957.5 million and processing or upstream exposure o Debt to adjusted EBITDA ratio (2) 4.12x o Exposure to commodity prices, primarily related to settlement and butane blending, represents less than No debt maturities in 2016 five percent of Adjusted EBITDA 800 700 Domestic system is primarily demand-pull, limiting Debt Maturities $ In Millions Over Next 5 Years impact of supply disruptions 600 500 Consistent and predictable fee-based cash flows 400 across consolidated asset platform $542M $700M 300 Strong demand for storage assets across our 200 system $275M 100 o High utilization of available capacity in GMT segment - $125M - o Strong demand for product storage across domestic (3) 2016 2017 2018 2019 2020 assets Limited counterparty non-performance risk Market-based tariffs represent significant portion o Stable utilization by generally credit-worthy of pipeline revenue counterparties o Lien rights on storage inventory o Credit enhancements, such as letters of credit, collateral, lien rights, and/or prepayments, utilized as necessary Expect to maintain consistent quarterly distribution growth while also improving coverage and reducing leverage (1) For June 30, 2016. (2) Last twelve months through June 30, 2016. See Non-GAAP Reconciliations at end of presentation. (3) Reflects June 30, 2016 balance on revolving credit facility, which matures in 2020. 5

SYSTEM MAP Chicago Complex NY Harbor Caribbean Gulf Coast Geographically Diversified Four Buckeye Hubs 6

TRANSFORMATION SINCE 2010 Significant Geographic Diversification From Global Marine Terminals Segment Provides Acquisitions Significant Diversification in Adjusted EBITDA (1) Invested over $7 Billion in Acquisitions and Internal Growth o Acquired over 80 million bbls of storage capacity o Acquired over 65 domestic and international terminals, including over 25 marine locations, which provide additional optionality o Created four hubs through acquisitions and commercial efforts (2) (1) Last twelve months through June 30, 2016. See Non-GAAP Reconciliation at end of presentation. (2) Illustrates mid-point of projected capital spend. 7

DIVERSIFICATION DRIVES STABILITY 0% 3% Diversified portfolio generates stable, fee-based cash flows; ~95% of our June 30 YTD Adjusted EBITDA was fee-based PRODUCT DIVERSIFICATION 2010 2016 (3) Buckeye Texas Partners Refined (1) o Contribution from the build-out of our Buckeye Crude Oil/Condensate 3% Other (2) Texas Partners facility, including splitter and LPG refrigerated storage Other diversification opportunities o Exploring opportunities to utilize our footprint to provide producers with logistics solutions for condensates and NGLs o Expanding butane blending capabilities o Potential marine terminal project in the Gulf Coast to offer crude oil storage 97% GROWTH OF TERMINALS REVENUE AS % OF DOMESTIC P&T AS % OF TOTAL P&T/GMT (4) 2010 2016 (3) 2016 (3) Pipelines Terminals 30% 70% (1) Refined products primarily include gasoline, jet fuel, diesel and heating oil. (3) Through June 30, 2016 YTD. (2) Other products primarily include fuel oil, butane, propylene, diluent and asphalt. (4) Includes domestic and international pipelines and terminals businesses. 8