Buckeye Partners Reports Mixed Quarterly Results in 3Q15
Buckeye Partners’ price movement
Buckeye Partners (BPL) has a market cap of $8.7 billion. After the company’s 3Q15 earnings report, which showed an 8.6% fall in revenue in 3Q15, BPL fell by 2.7% to close at $67.83 per share on October 30, 2015. Price movements on weekly, monthly, and YTD bases were 1.3%, 7.6%, and -6.1%, respectively.
Technically, the stock has broken the support of 20-day, 50-day, and 200-day moving averages throughout 2015. Currently, it’s trading 2.1% below its 20-day moving average, 0.5% above its 50-day moving average, and 6.2% below its 200-day moving average.
The Global X MLP ETF (MLPA) invests 5.3% of its holdings in Buckeye Partners. The ETF tracks a market cap–weighted index of US-listed MLPs and is structured as a C corporation. The YTD price movement of MLPA was -24.9% as of October 29, 2015.
Buckeye Partners’ (BPL) competitors and their market caps are listed below:
- Williams Companies (WMB)—$29.6 billion
- AmeriGas Partners (APU)—$4.0 billion
- Ferrellgas Partners (FGP)—$2.1 billion
- Pembina Pipeline Corporation (PBA)—$8.6 billion
Buckeye Partners’ performance in 3Q15
The company reported 3Q15 net revenue of $728.4 million, a fall of 8.6% when compared to its net revenue of $796.8 million in 2Q15. Revenue from its Pipelines & Terminals and Global Marine Terminals segments rose by 6.3% and 2.1%, respectively, and revenue from its Merchant Services and Development & Services segments fell by 16.1% and 9.1%, respectively, in 3Q15. The company’s operating income increased by 9.6% in 3Q15. The company’s 3Q15 net income and EPS (earnings per share) rose 9.4% and 9.9%, respectively, on a quarter-over-quarter basis to $99.9 million and $0.78 per share, respectively. The company’s cash and cash equivalents fell by 17.4%, and long-term debt rose by 1.6% in 3Q15.
Buckeye Pipe Line Transportation has executed transportation service agreements with all committed customers for the Michigan/Ohio Pipeline Expansion Project.
The Federal Energy Regulatory Commission approved a settlement between Buckeye Pipe Line Company and Delta Air Lines, JetBlue Airways, United Continental Holdings, and American Airlines.
About Buckeye Partners
Buckeye Partners owns and operates a diversified network of integrated assets providing midstream logistics solutions, mainly consisting of the transportation, storage, and marketing of liquid petroleum products.
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