Buckeye Partners, L.P. (NYSE:BPL) reported second-quarter 2016 earnings from continuing operations of $1.07 per unit, beating the Zacks Consensus Estimate of 95 cents by 12.6%. Quarterly earnings also surged 50.7% year over year.
Year-over-year growth was driven primarily by the Global Marine Terminals segment on the back of incremental contribution from the completed buildout at the Buckeye Texas Partners joint venture, as well as strong demand for storage services across the segment’s legacy assets.
Total Revenue
In the quarter under review, Buckeye Partners’ total revenue came in at $777.1 million, missing the Zacks Consensus Estimate of $800 million by 2.9%. Quarterly revenues also fell 2.5% year over year.
Operational Highlights
In the second quarter, the partnership’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations surged 24.3% year over year to $256.6 million.
Total costs and expenses were $587.2 million, down 11.8%. The partnership managed to cut overall costs primarily on the back of cost savings at Merchant Services.
The partnership’s operating income increased 45% to nearly $190 million from $131 million a year ago.
Interest and debt expenses were up 14.1 % to $47.8 million.
Financial Screening
As of Jun 30, 2016, Buckeye Partners had cash and cash equivalents of $14.8 million, compared with $4.9 million as of Dec 31, 2015.
Long-term debt as of Jun 30, 2016 was 3,738.6 million, slightly up from $3,732.8 million as of Dec 31, 2015.
Total capital expenditure in second-quarter 2016 stood at $111.8 million, down 32% from $164.4 million a year ago.
Cash Distribution Update
The partnership announced a second-quarter 2016 cash distribution of $1.2125 per limited partner unit, up 4.3% from the prior-year payout of $1.1625. The revised dividend will be paid on Aug 22, 2016 to unitholders of record as of Aug 15.
Peer Releases
ONEOK (NYSE:OKE) Partners, L.P. (NYSE:OKS) reported second-quarter 2016 earnings of 54 cents per unit, beating the Zacks Consensus Estimate of 53 cents by 1.9%.
Rose Rock Midstream, L.P.’s (NYSE:RRMS) second-quarter 2016 earnings of 17 cents missed the Zacks Consensus Estimate of 35 cents by 51.4%.
PBF Logistics LP (NYSE:PBFX) reported second-quarter 2016 earnings of 76 cents, beating the Zacks Consensus Estimate of 51 cents by 49%.
Zacks Rank
Buckeye Partners currently carries a Zacks Rank #3 (Hold).
ONEOK PARTNERS (OKS): Free Stock Analysis Report
PBF LOGISTICS (PBFX): Free Stock Analysis Report
BUCKEYE PARTNRS (BPL): Free Stock Analysis Report
ROSE ROCK MIDST (RRMS): Free Stock Analysis Report
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