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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%.

Buckeye Partners LP - Earnings Surprise | FindTheBest

Operating earnings in 2105 were $3.41 per share, beating the Zacks Consensus Estimate by a penny.

Total Revenues

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%.

Operational Highlights

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.

Financial Screening

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.

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 Nasdaq, Inc.


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

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