Buckeye Partners (BPL), which mainly provides crude oil, refined products and NGL (natural gas liquids) transportation and terminaling services, has lost 2.2% YTD (year-to-date). By comparison, BPL’s peers, NuStar Energy (NS) and Kinder Morgan (KMI) have gained 20.5% and 42.1%, respectively, in 2016, while Sunoco Logistics Partners (SXL) has lost 8.3%.
At the same time, the Alerian MLP ETF (AMLP), which is made up of 26 midstream energy MLPs (master limited partnerships), has gained 1.8% in 2016. However, BPL and most of its peers are still trading below the levels before the rout in energy prices.
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BPL has gained 28.1% since its multiyear low in the beginning of 2016. The recovery in BPL’s share price could be attributed to the slight recovery in crude oil prices, renewal of BPL’s storage capacity, and recent acquisitions.
BPL is now trading 2.9% below its 50-day moving average and 6.6% below its 200-day moving average. Its 50-day moving average fell below its 200-day moving average in mid-November 2016, indicating a bearish trend in BPL’s stock.
Buckeye Partners’ 3Q16 EBITDA (earnings before interest, taxes, depreciation, and amortization) rose to $271.7 million from $204.1 million in 3Q15, which represents a YoY (year-over-year) rise of 33.1%. The partnership’s recent performance was driven by expansion projects and the strong performance of its terminaling business.
In this series, we’ll analyze BPL’S balance position and cash flow measures. Following an analysis of BPL’s financial statements, we’ll look into BPL’s valuations, key performance indicators, and analyst projections.
Let’s start by looking at the revenue split between BPL’s pipeline and terminal businesses.