Buckeye Partners, L.P. (BPL) Shares Fall Despite Good News About South Texas Facility


Buckeye Partners, L.P. (NYSE:BPL) shares plunged today, mostly because of the huge fall in oil prices. With crude hitting lows unseen for over 6 years, the stock took a plunge with just about every other oil related company on the market. However, this also comes at a time when the company today announces some rather good news.

Buckeye Partners, L.P. (NYSE:BPL) made a release allowing investors to know that their 50,000 barrel per day condensate splitter facility is commissioned and is generating revenue.

“The completion of commissioning and start-up of our condensate splitters represents a significant milestone in the first phase of the expansion at our South Texas facilities,” stated Clark C. Smith, Chairman, President and Chief Executive Officer. “I would like to recognize the hard work and commitment of the Buckeye employees and contractors who worked tirelessly to complete this complex project safely and successfully. The completion of the condensate splitters and the liquid petroleum gas (“LPG”) refrigerated storage, as previously announced, represent substantial progress towards completion of Buckeye’s planned build-out of the South Texas assets.”

The facilities will also be offering over 6 million barrels of petroleum storage capacity, and five marine docks.

The stock is down 6.47% or $3.94 following the news, hitting $56.97 per share. About 987,702 shares traded hands or 38.29% up from the average. BPL has declined 25.49% since May 4, 2015 and is downtrending. It has underperformed the S&P500 by 24.41%.

From a total of 5 analysts covering Buckeye Partners (NYSE:BPL) stock, 1 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 20% of the ratings are positive. The highest target price is $86 while the lowest target price is $73. The mean of all analyst targets is $76.60 which is 34.46% above today’s ($56.97) stock price. Buckeye Partners was the topic of 6 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. DA Davidson initiated shares on November 16 with a “Neutral” rating.

The institutional sentiment decreased to 0.99 in Q2 2015. It’s down 0.15, from 1.14 in 2015Q1. The ratio is negative, as 39 funds sold all their Buckeye Partners, L.P. shares they owned while 90 reduced their positions. 25 funds bought stakes while 103 increased their total positions. Institutions now own 80.24 million shares which is 0.35% more than the previous share count of 79.97 million in 2015Q1.

Argyll Research Llc holds 10.57% of its total portfolio in Buckeye Partners, L.P., equating to 250,000 shares. Excelsia Inc. owns 33,006 shares representing 5.14% of their total US portfolio. Moreover, C.V. Starr & Co. Inc. Trust has 4.97% of their total portfolio invested in the company, equating to 180,000 shares. The Kansas-based Tortoise Capital Advisors L.L.C. has a total of 4.9% of their portfolio invested in the stock. Eagle Global Advisors Llc, a Texas-based fund reported 2.40 million shares owned.

Since May 13, 2015, the stock had 1 insider purchase, and 0 selling transactions for a total of $64,915 in net activity. Esselman Mark S bought 1,000 shares worth $64,915. Sauger Joseph sold 2,508 shares worth $198,282. Pelton Patrick L sold 685 shares worth $55,334.

Buckeye Partners, L.P. owns and operates a diversified network of integrated assets providing midstream logistic solutions, primarily consisting of the transportation, storage and marketing of liquid petroleum products. The company has a market cap of $7.86 billion. The Firm operates in four divisions: Pipelines & Terminals; Global Marine Terminals; Merchant Services, and Development & Logistics. It has 19.79 P/E ratio. Buckeye GP LLC (Buckeye GP) is the Company’s general partner.