On Apr 23, 2013, petroleum products and pipeline system owner Buckeye Partners L.P. (BPL - Analyst Report) reached a new 52-week high of $62.48. Successful operations at the partnership’s storage and pipeline units steered the stock to a new high.
Buckeye Partners’ Bahamas Oil Refining Company International Limited ("BORCO") marine facility was the primary growth driver. The Perth Amboy Terminal has been another significant addition to the partnership’s asset portfolio.
The partnership ensured solid returns by acquiring a 20% stake in the pipeline and terminal operator WesPac Pipelines – Memphis LLC in 2012. Buckeye’s revenue share from the terminal and storage division rose to 23.5% in 2012 from 19.2% in 2011.
Moreover, completion of the Louisiana Terminal and operational start-up of the propylene storage project in Chicago have further strengthened the partnership’s prospects.
Meanwhile, Buckeye’s healthy financials have well supported its multiple terminal ventures. In addition, consistent cash distribution has managed to retain the confidence of its unitholders.
We expect long-term earnings growth of 3.95% on the back of a solid sale growth expectation of 41.02%. The Zacks Consensus Estimate for 2013 projects an increase in earnings per share of 9.01% to $3.19 from $2.93 in 2012.
Buckeye Partners at present carries a Zacks Rank #3 (Hold). Other pipeline operators looking up are Atlas Pipeline Partners L.P. , Energy Transfers Partners L.P. (ETP - Analyst Report) and Magellan Midstream Partners L.P. (MMP - Analyst Report). All the above stocks at present retain a Zacks Rank #2 (Buy).