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Buckeye Partners, L.P. (BPL - Free Report) reported second-quarter 2017 earnings of 80 cents per unit, lagging the Zacks Consensus Estimate of $1.00 by 20%. Moreover, it was lower than the year-ago figure of $1.07 by 25.2%.

Total Revenue

In the quarter under review, Buckeye Partners’ total revenue came in at $810.2 million, missing the Zacks Consensus Estimate of $874 million by 7.3%.

Total revenues were up 4.3% year over year owing to better performance of the Domestic Pipelines & Terminals and Merchant Services segments in second-quarter 2017.

Operational Highlights

In the second quarter, the partnership’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations increased 4.9% year over year to $269.2 million.

Total costs and expenses were $639.6 million, up 8.9%. The partnership’s operating income was down 10.2% to nearly $170.6 million from $189.9 million a year ago.

Interest and debt expenses increased 18% to $56.4 million.

Financial Screening

As of Jun 30, 2017, Buckeye Partners had cash and cash equivalents of $2.4 million compared with $640.3 million as of Dec 31, 2016.

Long-term debt as of Jun 30, 2017 was $4,579.9 million, higher than $4,217.7 million as of Dec 31, 2016.

Total capital expenditure in second-quarter 2017 was $104.8 million, down 12.5% from $111.8 million a year ago.

Cash Distribution Update

The partnership announced third-quarter 2017 cash distribution of $1.2625 per limited partner unit, up 4.1% from the prior-year payout of $1.2125 per limited partner unit. The revised distribution will be paid on Aug 21, 2017, to unit holders of record as of Aug 14.

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

 

Peer Releases

Spectra Energy Partners, LP (SEP - Free Report) second-quarter 2017 earnings of 84 cents per share outpaced  the Zacks Consensus Estimate of 79 cents per share by 6.33%.

Enable Midstream Partners, LP (ENBL - Free Report) second-quarter 2017 earnings of 20 cents per share outpaced the Zacks Consensus Estimate of 16 cents per share by 25%.

Summit Midstream Partners, LP (SMLP - Free Report) second-quarter 2017 earnings of 12 cents per share outpaced the Zacks Consensus Estimate loss of 24 cents per share by 150%.

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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