TSC Ratings' Updates: Buckeye

The following ratings changes were generated on Monday, Jan. 26.

We've upgraded Buckeye Partners(BPL Quote), which engages in the transportation, terminalling and storage of refined petroleum products for integrated oil companies, from hold to buy, driven by its robust revenue growth, growth in earnings per share, compelling growth in net income, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.

Revenue leaped by 294.9% since the same quarter a year ago, and EPS improved by 11.3%. The company has demonstrated a pattern of positive earnings per share growth over the past two years, and we feel that this trend should continue. Net income is up 28.1% compared with the year-ago quarter, rising from #36.4 million to $46.6 million. Net operating cash flow increased by 109.2% to $71.2 million. Return on equity has improved slightly, outperforming the S&P 500 but underperforming the oil, gas and consumable fuels industry. ...