Buckeye Partners L.P.
) first quarter 2013 operating earnings increased sharply by
59.3% year over year to 86 cents per unit. Earnings also
surpassed the Zacks Consensus Estimate by 19.5%.
Strong performance from the Pipeline and Terminal operation
was the primary earnings driver in the first quarter.
Total revenue at the end of the quarter was $1,345 million
versus $1,259.4 million in the prior-year quarter, reflecting a
surge of 6.8%. Quarterly revenue edged out the Zacks Consensus
Estimate by 1.4%.
The modest revenue growth was attributed to favorable
contribution from the pipeline and international storage
businesses partially offset by low returns from the Energy
Revenue from Pipeline and Terminal operations increased 17.0%
year over year to $194.2 million in the first quarter,
constituting 14.4% of the overall revenue. Revenue from
international operations rose a whopping 240.1% in the first
quarter. This division contributed 12.7% to gross revenue.
However, the upswing was partially constrained by a 6.7%
decline in the partnership's Energy Services revenue.
The Bahamas Oil Refinery Company International Limited
("BORCO") facility brought online 1.6 million barrels of storage
capacity during the quarter.
In the first quarter, total costs and expenses rose 4% year
over year to $1,225.8 million. The combination of a 4.1% and
13.8% rise in cost of product sales and gas storage as well as
depreciation and amortization expenses led to the cost
The partnership's adjusted Earnings Before Interest, Tax,
Depreciation and Amortization (EBITDA) moved up 38% year over
year to $158.8 million.
Interest and debt expenses during the quarter were $30.2
million versus $28.8 million reported in the year-ago quarter.
Total cash and cash equivalents as of Mar 31, 2013, were $4.6
million versus $6.8 million as of Dec 31, 2012.
Buckeye's long-term debt as of Mar 31, 2013, was $2,455.4
million compared with $2,735.2 million as of Dec 31, 2012.
The partnership spent $67.2 million on capital expenditure
during the quarter compared with $74.3 million in the prior-year
The partnership once again raised its cash distribution rate.
The current distribution rate of the partnership stands at $1.05
per unit, which reflects a 1.2% increase from the first quarter
2012 cash distribution of $1.0375 per unit. The distribution will
be payable on May 31, 2013, to unit holders of record on May 16,
Other Oil and Gas Pipeline Operators
Magellan Midstream Partners LP
) reported first quarter earnings of 51 cents per unit beating
the Zacks Consensus Estimate of 49 cents.
El Paso Pipeline Partners
) posted first quarter earnings of 58 cents per unit exceeding
the Zacks Consensus Estimate by 7.4%.
TC PipeLines LP
) registered first quarter 2013 earnings of 52 cents per unit
falling behind the Zacks Consensus Estimate by 20.0%.
Buckeye Partners presently retains a short-term Zacks Rank #4
Based in Houston, Texas, Buckeye Partners, LP owns and
operates refined petroleum products pipeline systems in the
BUCKEYE PARTNRS (BPL): Free Stock Analysis
EL PASO PIPELIN (EPB): Free Stock Analysis
MAGELLAN MDSTRM (MMP): Free Stock Analysis
TC PIPELINES (TCP): Free Stock Analysis
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