Monday, April 2, 2012

S&P maintains ‘Buy’ opinion on units of Buckeye Partners


S&P has reduced its 2012 earnings per unit estimate for Buckeye Partners to $3.49 from $3.75 based on lower revenues at its natural gas storage segment due to low gas prices, and a higher share count.

S&P kept its 2013 estimate of $3.99. It sees BPL gaining from its pending acquisition of Chevron's New York Harbor marine terminal as it should help position BPL to meet Northeast refining supply challenges. S&P kept its target price at $75, based on a target yield of 5.7percent on its forward projected distribution, in line with peers.

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