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Buckeye Partners L.P. L.P. Units Reports Operating Results (10-Q)

May 08, 2012 | About:
10qk

10qk

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Buckeye Partners L.P. L.P. Units (BPL) filed Quarterly Report for the period ended 2012-03-31.

Buckeye Partnrs has a market cap of $5.1 billion; its shares were traded at around $53.25 with a P/E ratio of 20.9 and P/S ratio of 1.1. The dividend yield of Buckeye Partnrs stocks is 7.4%. Buckeye Partnrs had an annual average earning growth of 3.5% over the past 10 years. GuruFocus rated Buckeye Partnrs the business predictability rank of 2.5-star.

Highlight of Business Operations:

Pipelines & Terminals. Adjusted EBITDA from the Pipelines & Terminals segment was $88.2 million for the three months ended March 31, 2012, which is a decrease of $1.9 million, or 2.1%, from $90.1 million for the corresponding period in 2011. The negative factors impacting Adjusted EBITDA were $12.4 million of operating expenses related to pipeline and terminal assets acquired during the second half of 2011, a $5.2 million decrease in revenue due to lower pipeline and terminalling volumes on assets existing prior to acquisitions in 2011 (which we refer to as our legacy assets), a $4.6 million increase in operating expenses, which included integrity program expenditures, payroll costs and environmental remediation expenses, $3.1 million in unfavorable settlement experience, a $2.9 million increase in acquisition and integration expenses, a $2.3 million increase in other costs and a $1.4 million decrease in earnings from equity investments primarily due to the sale of our interest in West Texas LPG Pipeline Limited Partnership in May 2011.

International Operations. Adjusted EBITDA from the International Operations segment was $31.7 million for the three months ended March 31, 2012, which is an increase of $6.2 million, or 24.1%, from $25.5 million for the corresponding period in 2011. The increase in Adjusted EBITDA was primarily related to a $4.7 million net increase in storage fees, which includes a full quarter of operations for BORCO and a decrease in storage capacity leased due to maintenance activities, $1.7 million of noncontrolling interests income related to the remaining 20.0% in BORCO not acquired by us until February 16, 2011 and a $1.1 million decrease in acquisition and integration expenses, partially offset by a $0.9 million increase in operating expenses, which included increases in other taxes, insurance costs and lease expenses and a decrease in professional fees and a $0.4 million decrease in ancillary service revenue.

Energy Services. Adjusted EBITDA from the Energy Services segment was a loss of $6.2 million for the three months ended March 31, 2012, which is a decrease of $9.0 million, or 323.7%, from earnings of $2.8 million for the corresponding period in 2011. During the period, market dynamics impacting the flow of product along the supply chain, such as warmer weather conditions and decreased consumer demand, created downward pressure on basis. As a result of declining basis in the Midwest refined petroleum commodity markets, the value of our inventory portfolio was adversely affected. The decrease in Adjusted EBITDA was primarily related to a $20.9 million net decrease in revenue, which included a $101.1 million decrease due to 9.6% of lower sales volumes and an $80.2 million increase as a result of approximately $0.23 per gallon increase in refined petroleum product sales price (average sales prices per gallon were $2.99 and $2.76 for the 2012 and 2011 periods, respectively).

This decrease in Adjusted EBITDA was partially offset by a $11.6 million net decrease in cost of product sales, which included a $100.5 million decrease due to 9.6% of lower volumes sold and an $88.9 million increase as a result of approximately $0.25 per gallon increase in refined petroleum product cost price (average cost prices per gallon were $2.99 and $2.74 for the 2012 and 2011 periods, respectively) and a $0.3 million decrease in operating expenses, which primarily related to payroll costs.

Development & Logistics. Adjusted EBITDA from the Development & Logistics segment was $2.5 million for the three months ended March 31, 2012, which is an increase of $1.1 million, or 80.5%, from $1.4 million for the corresponding period in 2011. The increase in Adjusted EBITDA was primarily due to a $1.4 million increase in project management revenue, $1.2 million in revenue related to the LPG storage caverns acquired in November 2011 and a $0.3 million increase in operating services contract revenue as a result of new contracts and higher fees, partially offset by a $1.2 million increase in operating expenses related to project management activities, a $0.3 million increase in operating expenses, which primarily related to payroll costs and $0.3 million in operating expenses of the LPG storage caverns.

Read the The complete Report

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