Buckeye Beats on Q4 Earnings & Revenues, Ups Distribution
Buckeye Partners, L.P.BPL reported fourth-quarter 2015 earnings from continuing operations of $1.03 per unit, beating the Zacks Consensus Estimate of 98 cents by 5.1%.
Operating earnings in 2105 were $3.41 per share, beating the Zacks Consensus Estimate by a penny.
In the quarter under review, Buckeye Partners' total revenues were $840.2 million, topping the Zacks Consensus Estimate of $775 million by 8.4%.
Full-year revenues came in at $3,453.4 million, outpacing the Zacks Consensus Estimate of $3,408 million by 1.3%.
In the fourth quarter, the partnership's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations increased 9.4% year over year to $244.5 million.
Total costs and expenses were $662.4 million, down 42% from the prior year. The partnership managed to cut overall costs primarily due to cost savings at Merchant Services.
The partnership's operating income increased nearly 72.5% to nearly $177.7 million from $103 million a year ago.
Interest and debt expenses during the quarter remained relatively flat year over year at nearly $44 million.
As of Dec 31, 2015, Buckeye Partners had cash and cash equivalents of $4.8 million compared with $8.2 million as of Dec 31, 2014.
Long-term debt, as of Dec 31, 2015, was $3,732.8 million, up from $3,368.6 million as of Dec 31, 2014.
During the year, capital expenditures surged 26% to $594.5 million from $472 million in the prior year.
Cash Distribution Update
The partnership has announced a fourth-quarter 2015 cash distribution of $1.1875 per limited partner unit, up 4.4% from the prior-year payout of $1.1375. This will be paid on Mar 1, 2016, to unitholders of record as of Feb 23, 2016.
Upcoming Peer Releases
ONEOK Partners, L.P. OKS is slated to report fourth-quarter 2015 results on Feb 22. The Zacks Consensus Estimate is at 53 cents per share.
EnLink Midstream Partners, LP ENLK is slated to report fourth-quarter 2015 results on Feb 17. The Zacks Consensus Estimate is at 11 cents per share.
Shell Midstream Partners, L.P. SHLX is scheduled to report fourth-quarter 2015 results on Feb 24. The Zacks Consensus Estimate is pegged at 37 cents per share.
Buckeye Partners currently carries a Zacks Rank #3 (Hold).
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