Buckeye Partners, L.P. BPL reported third-quarter 2015 earnings from continuing operations of 78 cents per unit, lagging the Zacks Consensus Estimate of 92 cents by 15.2%. On a year-over-year basis, earnings decreased approximately 12.4%.
Total Revenues
In the quarter under review, Buckeye Partners’ total revenues were $728.4 million, way below the Zacks Consensus Estimate of $1,110 million by 34.4%. Revenues also plunged nearly 53.7% year over year.
Total revenues declined primarily due to weak contributions from the Merchant Services and Development & Logistics segments, partially offset by higher contributions from Global Marine Terminals.
Operational Highlights
In the third quarter, the partnership’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations increased 1.8% year over year to $204.2 million.
Total costs and expenses were $584.8 million, down almost 143.6% from prior-year expenses. The partnership managed to cut overall costs primarily due to cost savings at Merchant Services.
The partnership’s operating income decreased 3.6% to nearly $143.5 million from $148.9 million a year ago.
Interest and debt expenses during the quarter remained relatively flat year over year at nearly $43 million.
Financial Screening
As of Sep 30, 2015, Buckeye Partners had cash and cash equivalents of $7.1 million compared with $8.2 million as of Dec 31, 2014.
Long-term debt, as of Sep 30, 2015, was $3,632.8 million, up from $3,389 million as of Dec 31, 2014.
During the quarter, capital expenditures surged 35.6% to $134.7 million from $99.3 million in the prior year.
Cash Distribution Update
The partnership has announced a third-quarter 2015 cash distribution of $1.175 per limited partner unit, up 4.4% from the prior-year payout of $1.125 and 1.1% higher than the second-quarter payout of $1.1625. This will be paid on Nov 17, 2015, to unitholders of record as of Nov 9, 2015.
Upcoming Peer Releases
ONEOK Partners, L.P. OKS is slated to report third-quarter 2015 results on Nov 3. The Zacks Consensus Estimate is at 47 cents per share.
Plains All American Pipeline, L.P. PAA is expected to report third-quarter 2015 results on Nov 3. The Zacks Consensus Estimate is at 26 cents per share.
Magellan Midstream Partners LP MMP is expected to report third-quarter 2015 results on Nov 3. The Zacks Consensus Estimate is pegged at 73 cents per share.
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