On Apr 23, 2013, petroleum products and pipeline system owner
Buckeye Partners L.P.
) reached a new 52-week high of $62.48. Successful operations at
the partnership's storage and pipeline units steered the stock to
a new high.
Buckeye Partners' Bahamas Oil Refining Company International
Limited ("BORCO") marine facility was the primary growth driver.
The Perth Amboy Terminal has been another significant addition to
the partnership's asset portfolio.
The partnership ensured solid returns by acquiring a 20% stake
in the pipeline and terminal operator WesPac Pipelines - Memphis
LLC in 2012. Buckeye's revenue share from the terminal and
storage division rose to 23.5% in 2012 from 19.2% in 2011.
Moreover, completion of the Louisiana Terminal and operational
start-up of the propylene storage project in Chicago have further
strengthened the partnership's prospects.
Meanwhile, Buckeye's healthy financials have well supported
its multiple terminal ventures. In addition, consistent cash
distribution has managed to retain the confidence of its
We expect long-term earnings growth of 3.95% on the back of a
solid sale growth expectation of 41.02%. The Zacks Consensus
Estimate for 2013 projects an increase in earnings per share of
9.01% to $3.19 from $2.93 in 2012.
Buckeye Partners at present carries a Zacks Rank #3 (Hold).
Other pipeline operators looking up are
Atlas Pipeline Partners L.P.
Energy Transfers Partners L.P.
Magellan Midstream Partners L.P.
). All the above stocks at present retain a Zacks Rank #2
ATLAS PIPLN PTR (APL): Free Stock Analysis
BUCKEYE PARTNRS (BPL): Free Stock Analysis
ENERGY TRAN PTR (ETP): Free Stock Analysis
MAGELLAN MDSTRM (MMP): Free Stock Analysis
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