Buckeye Partners’ 4Q15 EBITDA estimates
Buckeye Partners (BPL) is expected to release its 4Q15 earnings on February 5, 2016. In this series, we’ll talk about BPL’s 4Q15 estimates, as well as the contribution of each of its segments to earnings, market performance, and analyst recommendations. Let’s start with analysts’ earnings estimates.
Wall Street analysts’ 4Q15 consensus EBITDA[1. Earnings before interest, taxes, depreciation, and amortization] estimate for BPL is ~$236.6 million. BPL’s 4Q15 estimate is 41.1% more than the 4Q14 adjusted EBITDA.
According to Wall Street estimates, BPL’s peers NuStar Energy (NS), VTTI Energy Partners (VTTI), and Sunoco Logistics (SXL) are expected to post a year-over-year EBITDA growth of 15.5%, 3.7%, and 35.5%, respectively, in 4Q15 versus 4Q14.
Buckeye Partners’ 4Q15 EBITDA drivers
The EBITDA is expected to be driven by the following factors:
- recent projects placed into service, including the 1.1 million barrels of refrigerated LPG[2. Liquefied petroleum gas] storage facility, 1.5 million barrels of condensate and naphtha storage, and the 50,000 barrels per day condensate splitter
- higher storage demand for crude oil and refined products given the supply glut
- renewal of contracts at BPL’s Global Marine Terminals
Buckeye Partners’ adjusted EBITDA versus consensus estimates
The 3Q15 EBITDA estimate for BPL was ~$221.7 million while the adjusted EBITDA was ~$198.4 million, a ~10.5% miss. We’ll have to wait for the 4Q15 earnings release to see whether BPL beats or misses its 4Q15 EBITDA estimates. We’ll cover this in our post-earnings series once the company reports its results. BPL forms 0.12% of the PowerShares Dividend Achievers Portfolio (PFM).