X
<

Buckeye Partners’ 4Q17 Earnings and Growth Outlook

PART:
1 2 3 4
Part 3
Buckeye Partners’ 4Q17 Earnings and Growth Outlook PART 3 OF 4

Why Buckeye Partners Doesn’t Expect a Distribution Cut in 2018

Buckeye Partners’ 4Q17 distributions

In this article, we’ll look into Buckeye Partners’ (BPL) distribution plans for 2018. But first, let’s look into BPL’s recent quarter distribution. Buckeye Partners declared a flat distribution of $1.2625 per unit for the fourth quarter of 2017, which represented a 2.0% YoY (year-over-year) increase compared to the same quarter in the previous year. Based on the current distribution, the publicly traded partnership is trading at an attractive distribution yield of 9.9%. 

Why Buckeye Partners Doesn’t Expect a Distribution Cut in 2018

Interested in BPL? Don't miss the next report.

Receive e-mail alerts for new research on BPL

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Buckeye Partners’ distribution plans

Buckeye Partners managed to cover its distribution in the fourth quarter of 2017 with distribution coverage of 1.01x. BPL expects its distribution coverage to fall below 1 in 2018 due to lower terminal capacity utilization and other factors. However, the partnership doesn’t expect to announce a distribution cut even if its distribution coverage falls below 1.

Buckeye Partners’ peer NuStar Energy (NS) recently announced a ~45% distribution cut, effective the first quarter of 2018. This cut was mainly due to a massive decline in the partnership’s distribution coverage.

In the next part of this series, we’ll look into Buckeye Partners’ outlook and recent analyst recommendations.

X

Please select a profession that best describes you: