Buckeye Partners L.P.'s
) fourth quarter 2013 earnings of 75 cents per unit were a
whopping 134.4% higher than the year-ago number. Earnings however
trailed the Zacks Consensus Estimate of 85 cents by 11.8%.
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Commencement of operation at the recently refurbished truck rack
at the Perth Amboy terminal and sales from BORCO facility
contributed to the bottom-line growth in 2013, as compared to
2012, due to the mid-year launch of BORCO facility in 2012.
Buckeye reported 2013 earnings of $3.23 per unit, surpassing the
Zacks Consensus Estimate of $3.21 marginally by 0.62% and the
2012 number by 36.3%. This upswing was due to a rise in pipeline
and terminal volumes by 5.8% and 6.8% respectively in 2013.
Buckeye Partners' total revenue at the end of the quarter was
$1.7 billion, up 47.2% year over year. Quarterly revenue also
surpassed the Zacks Consensus Estimate of $1.2 billion by 33.3%.
Revenues for the full year were reported at $5.1 billion, up
17.9% from $4.3 billion reported in 2012.
Top-line growth was largely attributed to increased sales volume
from the Merchant Services segment as a result of the Hess
Pipeline and Terminal operations
- Adjusted Earnings Before Interest, Tax, Depreciation and
Amortization (EBITDA) from this segment increased year over year
to $132.2 million from $116.7 million in the fourth quarter 2012.
This segment was a major contributor of the partnership's
favorable performance in the reported quarter. Expansion of
butane blending capacity added to the segment's adjusted EBITDA.
Global Marine Terminals
- This segment came out with another favorable performance in the
fourth quarter, posting adjusted EBITDA of $40.5 million, up from
$36.9 million in the corresponding year-ago quarter. This
increase can be attributed to the expansion of the storage
facility at BORCO and contribution from St. Lucia facility.
- Adjusted EBITDA in this segment decreased 79.9% year over year
to $1.8 million in the fourth quarter.
Development & Logistics
- This segment reported an increase in adjusted EBITDA of 37.2%
year over year to $4.1 million in the fourth quarter of 2013.
In the fourth quarter, total costs and expenses increased 43.7%
to $1.5 billion from $1.1 billion in the year-ago period. The
acquisition of Hess and other costs related to personnel and
maintenance led to the upswing in total expenses.
Buckeye Partners' adjusted EBITDA moved up nearly 8.0% year over
year to $178.6 million.
Interest and debt expenses during the quarter were $36.1 million
versus $29.8 million reported in the year-ago quarter.
Total cash and cash equivalents as of Dec 31, 2013, were nearly
$5.0 million versus $6.8 million as of Dec 31, 2012.
Buckeye Partners' long-term debt as of Dec 31, 2013, was $3.1
billion compared with $2.7 billion as of Dec 31, 2012.
The partnership spent $104.0 million on capital expenditure
during the quarter compared with $98.3 million in the prior-year
quarter. The higher capex in the reported quarter went to fund
Buckeye Partners' expansion of crude oil rail capabilities and
butane blending capacity to new locations.
Buckeye Partners' cash distribution rate in the fourth quarter,
2013, was $1.0875 per unit, which reflects a 4.8% increase from
the fourth quarter 2012 cash distribution of $1.0375 per unit.
The 2013 cash distribution of the partnership came to $4.275 per
unit, reflecting an increase of 3.0% from $4.15 in 2012.
Other Earnings Releases
Magellan Midstream Partners LP
) reported fourth quarter earnings of 88 cents per unit,
surpassing the Zacks Consensus Estimate of 82 cents by 7.3%.
El Paso Pipeline Partners
) posted fourth quarter earnings of 48 cents per unit, falling
behind the Zacks Consensus Estimate of 51 cents by 5.9%.
Kinder Morgan Energy Partners, L.P.
) released fourth quarter earnings of 33 cents per unit, which
fell short of the Zacks Consensus Estimate of 36 cents by 8.3%.
Buckeye Partners presently holds a Zacks Rank #3 (Hold).