Why Buckeye Partners Is Outperforming Its Peers in 2017



Series overview

In this series, we’ll do a comparative analysis of four MLPs that are involved in providing crude oil and refined products transportation and terminaling services. Below are the four MLPs we’ve chosen:

  • Sunoco Logistics Partners (SXL)
  • Plains All American Pipeline (PAA)
  • Magellan Midstream Partners (MMP)
  • Buckeye Partners (BPL)

We’ll analyze these four peers based on various key parameters. We’ll also see what Wall Street analysts are recommending for these stocks. Let’s start with their YTD (year-to-date) market performances.

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Market performance

Buckeye Partners has been outperforming our select MLPs since the beginning of 2017, rising 1.7% YTD. Sunoco Logistics and Magellan Midstream Partners have risen 0.70% and 1.1%, respectively. Plains All American Pipeline has fallen 2.3%.

The Alerian MLP ETF (AMLP), which is comprised of 25 midstream energy MLPs, has risen 0.30%. All four of our MLPs are part of the ETF.

Before the rout in energy prices, these four MLPs were trading below these levels. PAA, the largest midstream MLP in our group in terms of assets and market capitalization, has fallen 35.3%, and SXL has fallen 41.5% over the past two years. PAA’s and SXL’s huge falls can be attributed to their higher direct and indirect crude oil exposures. BPL and MMP have fallen 10.8% and 0.30%, respectively.

In the next part of this series, we’ll take a look at the recent EBITDA (earnings before interest, tax, depreciation, and amortization) growth for our four MLPs.


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