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

August 08, 2012 | About:
10qk

10qk

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Buckeye Partners L.P. L.P. Units (BPL) filed Quarterly Report for the period ended 2012-06-30.

Buckeye Partners, L.p. has a market cap of $4.89 billion; its shares were traded at around $53.784 with a P/E ratio of 22.9 and P/S ratio of 1. The dividend yield of Buckeye Partners, L.p. stocks is 7.7%. Buckeye Partners, L.p. had an annual average earning growth of 3.5% over the past 10 years. GuruFocus rated Buckeye Partners, L.p. the business predictability rank of 2-star.

Highlight of Business Operations:

Energy Services. Adjusted EBITDA from the Energy Services segment was a loss of $3.2 million for the three months ended June 30, 2012, which is a decrease of $7.0 million, or 183.5%, from earnings of $3.8 million for the corresponding period in 2011. During the period, basis volatility and continued market backwardation negatively impacted the value of our inventory portfolio and contributed to the unfavorable impact on our overall sales margin. Basis is the difference between the physical spot price for a commodity and the prompt New York Mercantile Exchange (NYMEX) contract price for the respective physical commodity. The decrease in Adjusted EBITDA was primarily related to a $117.3 million decrease in revenue, which included a $45.6 million decrease as a result of approximately $0.18 per gallon decrease in refined petroleum product sales price (average sales prices per gallon were $2.89 and $3.07 for the 2012 and 2011 periods, respectively) and a $71.7 million decrease due to 8.3% of lower sales volumes.

This decrease in Adjusted EBITDA was partially offset by a $110.6 million decrease in cost of product sales, which included a $39.5 million decrease as a result of approximately $0.15 per gallon decrease in refined petroleum product cost price (average cost prices per gallon were $2.89 and $3.04 for the 2012 and 2011 periods, respectively) and a $71.1 million decrease due to 8.3% of lower volumes sold, and a $0.3 million increase in operating expenses, which primarily related to overhead costs.

Development & Logistics. Adjusted EBITDA from the Development & Logistics segment was $3.3 million for the three months ended June 30, 2012, which is an increase of $1.7 million, or 103.1%, from $1.6 million for the corresponding period in 2011. The increase in Adjusted EBITDA was primarily due to $1.4 million in revenue related to the LPG storage caverns acquired in November 2011, a $0.8 million increase in project management revenue and a $0.3 million increase in operating services contract revenue as a result of new contracts and higher fees. These increases were partially offset by a $0.6 million increase in expenses, which primarily related to overhead costs and a $0.2 million increase in operating expenses for the LPG storage caverns.

International Operations. Adjusted EBITDA from the International Operations segment was $62.3 million for the six months ended June 30, 2012, which is an increase of $6.1 million, or 10.9%, from $56.2 million for the corresponding period in 2011. The increase in Adjusted EBITDA was primarily related to a $1.6 million increase in storage fees, which includes a full period of operations for BORCO, $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 $3.0 million net decrease in expenses primarily related to lower professional fees. These increases were partially offset by a $0.2 million decrease in ancillary service revenue.

Development & Logistics. Adjusted EBITDA from the Development & Logistics segment was $5.9 million for the six months ended June 30, 2012, which is an increase of $2.9 million, or 92.7%, from $3.0 million for the corresponding period in 2011. The increase in Adjusted EBITDA was primarily due to a $2.6 million increase in revenue related to the LPG storage caverns acquired in November 2011, a $2.2 million increase in project management revenue and a $0.7 million increase in operating services contract revenue as a result of new contracts and higher fees, partially offset by a $1.5 million increase in operating expenses related to project management activities, a $0.6 million increase in operating expenses for the LPG storage caverns and $0.5 million increase in net expenses, which primarily related to overhead costs.

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