Note: Any reference to ratings and its underlying recommendation does not reflect the opinion of The Bahamas Investor or any of its contributors.

December 16, 2013 (Zacks.com)–Buckeye Partners L.P.’s earnings per unit in third-quarter 2013 lagged the Zacks Consensus Estimate, while revenues beat the same. On a year-over-year basis, the partnership’s bottom line was diluted due to issue of new units and higher total costs and expenses.

Quarterly revenues improved from the prior-year level mainly on the back of higher contribution from Pipeline & Terminal, Energy Services and International Operations. The partnership’s Perth Amboy terminal project and Chicago storage facility secured lucrative long-term contracts.

Buckeye’s BORCO storage expansion project is also on schedule for completion. In addition, the partnership’s acquisition of several assets from Hess Corp. is expected to act as catalyst for future growth. However, the threat of service disruption might prove challenging. We are retaining our Neutral recommendation on the stock.

This is an excerpt from Zacks/NASDAQ.com as it appeared on December 17, 2013. For updates or to read the current version of this post in its entirety, please click here.

Continue reading this post >