Buckeye Partners Misses Q2 Earnings Estimates, Revenues Jump - Analyst Blog

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Buckeye Partners, L.P. ( BPL ) reported second-quarter 2014 earnings from continuing operations of 53 cents per unit, missing the Zacks Consensus Estimate of 84 cents by 36.9%. On a year-over-year basis, quarterly earnings decreased 33.8% primarily due to an increase in units outstanding and higher total costs and expenses.

Total Revenue

In the quarter under review, Buckeye Partners' total revenues were $1,809 million, surpassing the Zacks Consensus Estimate of $1,442 million by 25.5%. Reported top line surged 82.1% from the prior-year figure.

Total revenues improved mainly on the back of increased contribution from Buckeye Partners' Merchant Services (up 103.1% year over year), Global Marine Terminals (up 41.5%), Development & Logistics (up 37.3%) and Pipeline and Terminals (up 18.4%)  segments.

Operational Highlights

In the second quarter, Buckeye Partners' adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) from continuing operations edged down around 2% year over year to $150.8 million.

Total costs and expenses in the reported quarter were $1,706.8 million, up 94% year over year primarily due to higher cost of product sales and operating expenses.

The partnership's operating income decreased 10.4% to $102.2 million from $114 million a year ago.

Interest and debt expenses during the quarter increased 38.9% year over year to $42 million, primarily due to a higher debt level.

Financial Screening

As of Jun 30, 2014, Buckeye Partners had cash and cash equivalents of $21.9 million versus $5.0 million as of Dec 31, 2013.

Long-term debt, as of Jun 30, 2014, was $3,309.3 million compared with $3,092.7 million as of Dec 31, 2013.

During the quarter, Buckeye Partners spent $17.2 million as maintenance capital expenditures, up 31.8% from the prior-year period.

Business Update

During the second quarter of 2014, Buckeye Partners' new Perth Amboy pipeline connection commenced operations.

The partnership has announced that it will pay a cash distribution for second-quarter 2014 of $1.1125 per limited partner unit, up around 5% from the prior-year payout. The revised cash distribution will be paid on Aug 25, 2014 to unitholders of record as of Aug 18.

Other Earnings Releases

Enterprise Products Partners L.P. ( EPD ) announced second-quarter 2014 earnings of 67 cents per unit, missing the Zacks Consensus Estimate by 8.2%.

ONEOK Partners, L.P. ( OKS ) reported second-quarter 2014 earnings of 54 cents per unit, missing the Zacks Consensus Estimate of 66 cents by 18.2%.

Plains All American Pipeline, L.P. ( PAA ) reported second-quarter 2014 adjusted earnings of 49 cents per unit, surpassing the Zacks Consensus Estimate of 46 cents by 6.5%.

Zacks Rank

Buckeye Partners currently carries a Zacks Rank #3 (Hold).


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: BPL , EPD , PAA , OKS

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