NYSE:BPL

Stock Analysis Report

Executive Summary

Buckeye Partners, L.P. owns and operates liquid petroleum products pipelines in the United States and internationally.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has Buckeye Partners's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BPL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.02%

BPL

0.09%

US Oil and Gas

0.06%

US Market


1 Year Return

22.9%

BPL

-17.6%

US Oil and Gas

19.3%

US Market

Return vs Industry: BPL exceeded the US Oil and Gas industry which returned -4.2% over the past year.

Return vs Market: BPL underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

BPLIndustryMarket
7 Day0.02%0.09%0.06%
30 Day0.5%-6.5%1.7%
90 Day-0.6%-6.3%9.0%
1 Year33.5%22.9%-14.4%-17.6%21.8%19.3%
3 Year-14.0%-34.4%-11.4%-19.8%49.5%39.9%
5 Year-21.8%-47.7%-20.5%-32.2%73.1%54.1%

Price Volatility Vs. Market

How volatile is Buckeye Partners's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Buckeye Partners undervalued compared to its fair value and its price relative to the market?

1.57x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: BPL ($41.46) is trading above our estimate of fair value ($25.18)

Significantly Below Fair Value: BPL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BPL is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: BPL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BPL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BPL is overvalued based on its PB Ratio (1.6x) compared to the US Oil and Gas industry average (1x).

Future Growth

How is Buckeye Partners forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

22.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BPL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: BPL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BPL's is expected to become profitable in the next 3 years.

Revenue vs Market: BPL's revenue (4.2% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: BPL's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BPL's Return on Equity is forecast to be low in 3 years time (12.3%).

Past Performance

How has Buckeye Partners performed over the past 5 years?

-21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BPL is currently unprofitable.

Growing Profit Margin: BPL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BPL is unprofitable, and losses have increased over the past 5 years at a rate of -21.2% per year.

Accelerating Growth: Unable to compare BPL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BPL is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-13.3%).


Return on Equity

High ROE: BPL has a negative Return on Equity (-2.22%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed

Financial Health

How is Buckeye Partners's financial position?


Financial Position Analysis

Short Term Liabilities: BPL's short term assets ($435.7M) do not cover its short term liabilities ($478.8M).

Long Term Liabilities: BPL's short term assets ($435.7M) do not cover its long term liabilities ($3.9B).


Debt to Equity History and Analysis

Debt Level: BPL's debt to equity ratio (94%) is considered high.

Reducing Debt: BPL's debt to equity ratio has reduced from 125.1% to 94% over the past 5 years.


Balance Sheet

Inventory Level: BPL has a high level of physical assets or inventory.

Debt Coverage by Assets: BPL's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: BPL has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: BPL has been profitable on average in the past, therefore cash runway is not a concern.

Dividend

What is Buckeye Partners's current dividend yield, its reliability and sustainability?

7.23%

Current Dividend Yield


Dividend Yield vs Market

company7.2%marketbottom25%1.4%markettop25%3.7%industryaverage4.5%forecastin3Years7.2%

Current dividend yield vs market & industry

Notable Dividend: BPL's dividend (7.24%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: BPL's dividend (7.24%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: BPL's dividend payments have been volatile in the past 10 years.

Growing Dividend: BPL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: BPL is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: BPL's dividends in 3 years are not forecast to be well covered by earnings (100.7% payout ratio).

Management

How experienced are the management team and are they aligned to shareholders interests?

6.7yrs

Average management tenure


CEO

Clark Smith (64yo)

7.8yrs

Tenure

US$8,754,998

Compensation

Mr. Clark C. Smith is a Member of the Advisory Boards of Haddington Ventures, L.L.C. He currently serves on the Board of Directors of the Association of Oil Pipelines. Mr. Smith was recently appointed by  ...


CEO Compensation Analysis

Compensation vs Market: Clark's total compensation ($USD8.75M) is above average for companies of similar size in the US market ($USD6.46M).

Compensation vs Earnings: Clark's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Clark Smith
Chairman7.8yrsUS$8.75m0.14% $8.9m
Keith St. Clair
Executive VP & CFO of Buckeye GP LLC11yrsUS$3.43m0.088% $5.6m
Khalid Muslih
Executive VP & President of Global Marine Terminals - Buckeye GP LLC5.8yrsUS$2.95m0.042% $2.7m
Robert Malecky
Executive VP and President of Domestic Pipelines & Terminals Business Unit - Buckeye GP LLC7.8yrsUS$2.90m0.071% $4.5m
William Hollis
Senior VP & President of Buckeye Services - Buckeye GP LLC5.3yrsUS$2.43m0.019% $1.2m
Gary Bohnsack
VP, Controller & Chief Accounting Officer of Buckeye GP LLC2.4yrsno data0.0020% $125.7k
Kevin Goodwin
VP & Treasurer0yrsno datano data
Todd Russo
Senior VP6.7yrsUS$1.35m0.0020% $128.3k
Mark Esselman
Senior Vice President of Global Human Resources - Buckeye GP LLC7.8yrsno data0.033% $2.1m
Joseph Sauger
Senior Vice President of Global Marine Terminals Operations & Engineering - Buckeye GP LLC5.4yrsno data0.022% $1.4m

6.7yrs

Average Tenure

56yo

Average Age

Experienced Management: BPL's management team is seasoned and experienced (6.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Clark Smith
Chairman7.8yrsUS$8.75m0.14% $8.9m
Frank Sowinski
Lead Independent Director of Buckeye GP LLC5.3yrsUS$268.34k0.021% $1.3m
Joseph LaSala
Director of Buckeye GP LLC9yrsUS$233.33k0.0065% $414.8k
Oliver Richard
Director of Buckeye GP LLC10.8yrsUS$235.32k0.015% $970.6k
Martin White
Director of Buckeye GP LLC9yrsUS$230.82k0.016% $1.0m
Barbara Duganier
Director of Buckeye GP LLC6.1yrsUS$258.32k0.0084% $539.2k
Barbara Baumann
Director of Buckeye GP LLC5.2yrsUS$234.57k0.0056% $359.3k
Mark McKinley
Director of Buckeye GP LLC12.1yrsUS$221.82k0.018% $1.2m
Larry Payne
Director of Buckeye GP LLC5.2yrsUS$226.32k0.0069% $442.2k
Pieter Bakker
Director of Buckeye GP LLC8.5yrsUS$220.32k0.014% $893.4k

7.3yrs

Average Tenure

64.5yo

Average Age

Experienced Board: BPL's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BPL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.1%.


Top Shareholders

Company Information

Buckeye Partners, L.P.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Buckeye Partners, L.P.
  • Ticker: BPL
  • Exchange: NYSE
  • Founded: 1886
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Implied Market Cap: US$6.382b
  • Market Cap: US$6.382b
  • Shares outstanding: 153.92m
  • Website: https://www.buckeye.com

Number of Employees


Location

  • Buckeye Partners, L.P.
  • One Greenway Plaza
  • Suite 600
  • Houston
  • Texas
  • 77046
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BPLNYSE (New York Stock Exchange)YesLimited Partnership UnitsUSUSDDec 1986
B4DDB (Deutsche Boerse AG)YesLimited Partnership UnitsDEEURDec 1986

Biography

Buckeye Partners, L.P. owns and operates liquid petroleum products pipelines in the United States and internationally. The company operates through three segments: Domestic Pipelines & Terminals, Global Marine Terminals, and Merchant Services. The Domestic Pipelines & Terminals segment transports liquid petroleum products, including gasoline, jet fuel, and various distillates. This segment also provides crude oil services, including train loading/unloading, storage, and throughput; and turn-key operations and maintenance, asset development, and construction services for third-party pipeline, terminal, and energy assets, as well as operates and/or maintains third-party pipelines. It owns and operates approximately 6,000 miles of pipeline located primarily in the northeastern and upper midwestern portions of the United States, and services 100 delivery locations; 110 active terminals that provide bulk storage and throughput services with aggregate storage capacity of 55 million barrels; and 2 underground propane storage caverns. The Global Marine Terminals segment provides marine accessible bulk storage and blending, rail and truck rack loading/unloading, and petroleum processing services located primarily in the East Coast and Gulf Coast regions of the United States, as well as in the Caribbean. This segment owns and operates seven liquid petroleum products and crude oil terminals. The Merchant Services segment is involved in the wholesale distribution of refined petroleum products, including gasoline, natural gas liquids, propane, ethanol, and biodiesel, as well as petroleum distillates, such as heating oil, diesel fuel, kerosene, and fuel oil. This segment also provides fuel oil supply, butane, and distribution services. Buckeye GP LLC serves as the general partner of the company. Buckeye Partners, L.P. was founded in 1886 and is based in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/01 23:32
End of Day Share Price2019/10/31 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.