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Buckeye Partners’ 1Q15 Earnings Missed Estimates

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Revenue

Buckeye Partners (BPL) missed most analysts’ estimates in its 1Q15 earnings. Its reported revenue stood at $1008.1 million, while the consensus estimates were $1628.5 million—a shortfall of $540 million. The shortfall can be attributed to lower refined petroleum product prices and a decrease in sales volume in Buckeye Partners’ Merchant Services segment.

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EBITDA

Although Buckeye Partners missed its revenue estimates by a huge margin, its EBITDA (earnings before interest, tax, depreciation, and amortization) fell short of consensus estimates by a marginal $2.8 million. Buckeye Partners’ 1Q15 EBITDA was $205.6 million, while the consensus estimates were $208.4 million.

Buckeye Partners’ peers, Sunoco Logistics (SXL), MPLX LP (MPLX), and Shell Midstream Partners (SHLX) also missed EBITDA estimates in 1Q15. Together, Buckeye Partners and Sunoco Logistics account for ~9.49% of the Alerian MLP ETF (AMLP).

About Buckeye Partners

Buckeye Partners is an MLP (master limited partnership) that provides midstream logistics solutions including transportation, storage, and marketing of liquid petroleum products. The partnership operates through four segments:

  • Domestic Pipelines & Terminals – Operates liquid petroleum pipelines and terminals. It has pipelines located primarily in the Northeast and Midwest. It has liquid petroleum products terminals located throughout the US.
  • Global Marine Terminals – An integrated network of marine terminals located primarily in the East Coast and Gulf Coast regions of the US and in the Caribbean
  • Merchant Services – Markets liquid petroleum products in areas served by the Domestic Pipelines & Terminals and the Global Marine Terminals segments
  • Development & Logistics – Operates pipelines and performs engineering and construction management services for third parties

In the next part of this series, we’ll analyze Buckeye Partners’ recent operating performance.

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