Master limited partnership Buckeye Partners (NYSE:BPL) reported third quarter earnings before the market opened this morning. Total revenues of $496 million surpassed analysts’ estimates of $485.7 million, and earnings of $0.79/common unit beat estimates by $0.04. Buckeye will distribute $0.875/unit for the quarter, bringing its annualized distribution to $3.50/unit.
Pipeline throughput was lower than the 2007 third quarter, but theaverage tariff/barrel increased to $0.686 from $0.655. The big jumpcame in crude oil terminaling and storage, which nearly doubledyear-over-year, and natural gas storage revenues of nearly $9 millioncompared with none a year ago.
Crude oil and natural gas storage made the difference for Buckeye thisquarter, and will continue to do so as the company expands its storagecapabilities. It may not be glamourous, but storage shines when itcomes to generating revenue.
Buckeye closed at $35.87 yesterday, 63% better than it’s 52-week low.
October 29, 2008