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Buckeye (BPL) Q1 Earnings Miss, Revenues Beat Estimates

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Buckeye Partners, L.P.  reported first-quarter 2017 earnings of 88 cents per unit, lagging the Zacks Consensus Estimate of $1.00 by 12%. Moreover, it was lower than the year-ago figure of $1.01 by 12.9%.

Total Revenue

In the quarter under review, Buckeye Partners’ total revenue came in at $969.3 million, beating the Zacks Consensus Estimate of $831.3 million by 16.6%.

Quarterly revenues were up 24.2% year over year owing to better performance of the Domestic Pipelines & Terminals and Merchant Services segments during the first quarter 2017.

Operational Highlights

In the first quarter, the partnership’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations increased 13.4% year over year to $277.5 million.

Total costs and expenses were $797.2 million, up 32.8%. The partnership’s operating income was down 4.5% to nearly $172 million from $180.2 million a year ago.

Interest and debt expenses increased 17 % to $55.9 million.

Buckeye Partners L.P. Price, Consensus and EPS Surprise

Financial Screening

As of Mar 31, 2017, Buckeye Partners had cash and cash equivalents of $4.9 million compared with $640.3 million as of Dec 31, 2016.

Long-term debt as of Mar 31, 2017 was $4,561 million, higher than $4,217.7 million as of Dec 31, 2016.

Total capital expenditure in first-quarter 2017 was $98.2 million, down 12.5% from $112.3 million a year ago.

Cash Distribution Update

The partnership announced first-quarter 2017 cash distribution of $1.25 per limited partner unit, up 4.2% from the prior-year payout of $1.20 per limited partner unit. The revised distribution will be paid on May 22, 2017, to unitholders of record as of May 15.

Peer Releases

Boardwalk Pipeline Partners L.P. first-quarter 2017 earnings of 47 cents per share outpaced the Zacks Consensus Estimate of 42 cents per share by 11.90%.

Enable Midstream Partners, LP first-quarter 2017 earnings of 26 cents per share outpaced the Zacks Consensus Estimate of 18 cents per share by 44.44%.

Enterprise Products Partners L.P. (EPD - Free Report) first-quarter 2017 earnings of 36 cents per share outpaced the Zacks Consensus Estimate of 32 cents per share by 12.50%.

Zacks Rank

Buckeye Partners currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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