Buckeye Partners (BPL) Reports Q4 EPS of $3.13, Revenues Beat

Buckeye Partners (NYSE: BPL) reported Q4 EPS of $3.13, versus $0.92 reported last year. Revenue for the quarter came in at $1.07 billion versus the consensus estimate of $849.2 million.

Net income attributable to Buckeye was $3.13 per diluted unit for the fourth quarter of 2018 compared to net income attributable to Buckeye of $0.85 per diluted unit for the fourth quarter of 2017. The diluted weighted average number of units outstanding in the fourth quarter of 2018 was 154.1 million compared to 147.3 million in the fourth quarter of 2017.

“We have reduced our leverage, strengthened our balance sheet, increased our distribution coverage ratio and significantly improved our overall financial flexibility as a result of our recently completed dispositions of the package of non-integrated domestic pipeline and terminal assets in December 2018 and our equity interest in VTTI in January 2019,” stated Clark C. Smith, Chairman, President and Chief Executive Officer. “We believe these actions solidified our investment grade credit rating, eliminated the need for Buckeye to access the public equity markets and will allow us to reallocate capital to the higher return growth opportunities across our remaining assets, positioning us to provide solid returns for our unitholders over the long-term.”

“Turning to our fourth quarter, Buckeye’s Adjusted EBITDA results declined compared to the same period in 2017 due in large part to the sale of VTTI. Challenging market conditions for segregated storage also continued to impact our Global Marine Terminals segment. These adverse market conditions were partially offset by the improved contribution from Buckeye Texas Partners, driven by our acquisition of the remaining 20% minority interest in 2018 and improved operating performance. Our Domestic Pipelines and Terminals segment benefited from record pipeline and terminal throughput volumes and strong demand on our Midwest systems, combined with higher butane blending margins. These benefits were offset by the impact of the first quarter 2018 expiration of a crude-by-rail contract at our Chicago Complex and lower storage and pipeline settlement revenues, driven by lower petroleum product prices. Our Buckeye Merchant Services segment was negatively impacted by weaker distillate market conditions and lower rack margins but continued to generate strong utilization across our portfolio of assets and achieved a record contribution to our other segments.”

For earnings history and earnings-related data on Buckeye Partners (BPL) click here.

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