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Buckeye (BPL) Misses Q4 Earnings, Beats Revenue Estimates

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Buckeye Partners, L.P. reported fourth-quarter 2016 earnings of 78 cents per unit, lagging the Zacks Consensus Estimate of $1.05 by 25.7%. Further, the reported figure was lower than the year-ago of $1.03 by 24.3%.

 

 

Total Revenue

In the quarter under review, Buckeye Partners’ total revenue came in at $924.1 million, beating the Zacks Consensus Estimate of $810 million by 14.1%. Quarterly revenues were, up 9.9% year over year owing to higher contribution from the Product Sales and Transportation, storage and other services segments.

Total revenues in 2016 were $3.25 billion, 2.8% higher than the Zacks Consensus Estimate of $3.16 billion. However, the revenues were down 5.8% year over year.

Operational Highlights

In the fourth quarter, the partnership’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations increased 4.3% year over year to $255.1 million.

Total costs and expenses were $767.1 million, up 15.8%. The partnership’s cost went up due to higher costs of product sales and higher operating expenses.

The partnership’s operating income was down  11.7% to nearly $156.9 million from $177.7 million a year ago.

Interest and debt expenses were up 14.7 % to $50.9 million.

Buckeye Partners L.P. Price, Consensus and EPS Surprise

 

Buckeye Partners L.P. Price, Consensus and EPS Surprise | Buckeye Partners L.P. Quote

Financial Screening

As of Dec 31, 2016, Buckeye Partners had cash and cash equivalents of $640.4 million, compared with $4.9 million as of Dec 31, 2015.

Long-term debt as of Dec 31, 2016 was $4,217.7 million, up from $3,732.8 million as of Dec 31, 2015.

Total capital expenditure in fourth-quarter 2016 was $106.3 million, down 34.2% from $161.4 million a year ago.

Cash Distribution Update

The partnership announced fourth-quarter 2016 cash distribution of $1.2375 per limited partner unit, up 4.2% from the prior-year payout of $1.1875. The revised dividend will be paid on Feb 28, 2017 to unit holders of record as of Feb 21.

Upcoming Peer Releases

Enable Midstream Partners LP is slated to announce fourth-quarter 2016 earnings on Feb 21. The Zacks Consensus Estimate is pegged at 17 cents.

Sunoco Logistics Partners L.P. is scheduled to report fourth-quarter 2016 earnings on Feb 22. The Zacks Consensus Estimate stands at 22 cents.

Delek Logistics Partners L.P. (DKL - Free Report) is scheduled to report fourth-quarter 2016 earnings on Feb 27. The Zacks Consensus Estimate stands at 48 cents.

Zacks Rank

Buckeye Partners currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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