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How BPL Could Continue to Cover Its Distribution in 4Q16

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Buckeye Partners’ 4Q16 distributions

Buckeye Partners (BPL) is expected to grow its distribution at the fixed rate of $0.013 per unit in 4Q16. The partnership declared a distribution of $1.21 per unit for 3Q16, which represented a 4.3% YoY (year-over-year) increase over 3Q15 and a 1.0% sequential increase over 2Q16.

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Buckeye Partners’ 4Q16 distribution coverage

Buckeye Partners is expected to cover its distribution in the fourth quarter through strong distributable cash flow growth and fixed distribution growth. Buckeye Partners’ distributable cash flow for 3Q16 was $194.0 million compared to $135.6 million during 3Q15, a YoY increase of 43.1%. The increase in distributable cash flows drove BPL’s coverage ratio higher. BPL’s 3Q16 coverage ratio stood at 1.2x.

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