40.97 0.00 (0.00%)
After hours: 5:44PM EDT
|Bid||40.96 x 1400|
|Ask||40.97 x 800|
|Day's Range||40.85 - 40.94|
|52 Week Range||25.71 - 42.65|
|Beta (3Y Monthly)||0.93|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||3.00 (8.82%)|
|1y Target Est||N/A|
“As a private company, we will have access to the resources and long-term commitment needed to better pursue new capital investment in existing assets and targeted acquisition opportunities as our sector continues to evolve, including further geographic and product diversification,” the CEO said of the deal.
Moody's Investors Service ("Moody's") placed Buckeye Partners, L.P.'s (Buckeye) Baa3 senior unsecured rating and Ba1 junior subordinated notes rating on review for downgrade. "The review for downgrade will evaluate the possibility that Buckeye's leverage will increase and the financial policy become less conservative once the going private transaction closes, among other considerations" said Arvinder Saluja, Moody's Vice-President.
Master limited partnerships and energy infrastructure sector-related exchange traded funds stood out Friday after Australian-based IFM Investors agreed to buyout Buckeye Partners (NYSE: BPL) for $6.5 billion. ...
Buckeye Partners (NYSE:BPL) announced that the company is being bought out by IFM Investors, which played a role in BPL stock skyrocketing more than 25% on Friday.The Houston, Texas-based business said today that it will be acquired in an all-cash deal that has an enterprise value of $10.3 billion, as well as equity value of $6.5 billion. The move will see IFM pay Buckeye roughly $41.50 per the latter's unit, which amounts to about a 27.5% premium over Buckeye's closing unit price on May 9.This amount also tallied up to roughly a 31.9% premium over its volume-weighted average unit price since Nov. 1, which is the last trading that transpired before Buckeye said it was weighing strategic options. Buckeye's portfolio includes a network of integrated midstream assets.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis network has 6,000 miles of pipeline that includes over 100 delivery locations, as well as 115 liquid petroleum products terminals with aggregate tank capacity that surpasses the mark of 118 million barrels. The company's network of marine terminals can be mostly found in the East Coast, as well as the Gulf Coast regions and the Caribbean.Buckeye has close to 2,000 employees located around the U.S. and it has a number of subsidiaries across the nation.BPL stock is up roughly 28.1% on Friday following the news, bringing the stock price of the company to $41.70 per share. Nevertheless, shares are down roughly 22% throughout the last 12 months through Thursday. More From InvestorPlace * 10 Great Stocks to Buy on Dips * 7 Dangerous Dividend Stocks to Stay Far Away From * 7 Cloud Stocks to Buy on Overcast Days Compare Brokers The post Buckeye Partners News: BPL Stock Skyrockets on Buyout appeared first on InvestorPlace.
IFM Investors, a global institutional funds manager, plans to acquire Houston-based master limited partnership Buckeye Partners LP (NYSE: BPL) in a multibillion-dollar all-cash deal. IFM Global Infrastructure Fund will acquire Buckeye for $41.50 per common unit, according to a May 10 press release.
Buckeye Partners (BPL) surpasses Q1 revenue estimates. Today, it enters into a deal, under which the IFM Global Infrastructure Fund will acquire all outstanding public common units of the firm.
Asset manager IFM Investors will acquire pipeline operator Buckeye Partners LP in an all-cash deal for $6.5 billion, they said in a joint statement on Friday. Under the terms of the deal, Buckeye shareholders will get $41.50 per common unit held. This represents a 27.5 percent premium to Buckeye's closing price on Thursday.
Buckeye Partners L.P. said Friday it has agreed to be acquired by IFM Investors in an all-cash deal with an enterprise value of $10.3 billion and equity value of $6.5 billion. IFM will pay $41.50 per Buckeye unit, equal to a 27.5% premium over Buckeye's closing unit price on May 9, and a 31.9% premium over its volume-weighted average unit price since Nov. 1, the last trading before Buckeye said it was weighing strategic options. Buckeye owns a network of integrated midstream assets, including 6,000 miles of pipeline with over 100 delivery locations and 115 liquid petroleum products terminals with aggregate tank capacity of over 118 million barrels. The company's network of marine terminals is located mostly in the East Coast and Gulf Coast regions and the Caribbean. Buckeye shares jumped 27% on the news, but are down 22% in the last 12 months through Thursday, while the S&P 500 has gained 5.4%.
Buckeye Partners (BPL) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
Petrol is a big part of the U.S. and global economy, and that's why I have maintained a collection of up-, down- and midstream petroleum companies inside the model portfolios of my Profitable Investing. And like most market segments, the market for petroleum and the underlying companies and their stocks never moves in a continuous straight line.Source: SarahTz Via FlickrThe key to successfully investing in petrol is not just placing bets on higher prices, but treating it as an industry with many different participants that don't all rely on soaring prices. That said, the current higher prices for crude are indeed a general boost for many in this vital industry. And those prices may well continue to be supportive.But to start, the current bubbling up in petrol pricing shouldn't be viewed as a surprise. It's a product of some major overriding developments that favor profitability, particularly for U.S. petroleum companies.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnd to start, all it takes is to look at price of U.S. West Texas Intermediate (WTI) crude oil. Since 2016, the market for U.S. crude oil has gone from a low of $35.70 to a current level of $65.83 a barrel for a gain of 84.4%.US WTI Crude Oil Price Source BloombergThe price, of course, was higher in October, before oil slipped to a near-term low on Dec. 24 along with the sell-off in the general stock market. * 7 Dividend Stocks That Could Double Over the Next Five Years But like for stocks, the realities of a growing U.S. economy and profitability of U.S. oil companies at even lower crude prices has been supporting the underlying market. And note, the much-lower crude oil prices five years and more ago worked to drive U.S. producers and related companies to increase technology in the fields in order to drive down lift costs for crude.This means that U.S. companies can pump crude at lower costs, so margins at sale can be positive even with lower market prices. This means that you can invest now with more certainty of profits -- even with lower prices.The tested, lower-cost producers in the U.S. have been leading to a continued upward march in U.S. production, which since 2016 has soared by more than 33%.US Crude Oil Production Keeps Climbing Source BloombergAnd according to the U.S. Energy Information Administration (EIA), this continued climb in production should result in that the U.S. will be a net oil exporter by 2021.Adding to the positive market developments are that the Organization of Petroleum Exporting Countries plus Russia and other nations (OPEC+) continue to largely adhere to production cuts, resulting in the proven data from shipping records of December 2018 showing production cuts of 1.2 million barrels per day (MBPD) with only Russia and Iraq showing some slippage in their cuts. More Crude on the MoveOne of the big limitations has been the infrastructure to move crude to refineries and marine terminals for export. But the approval process for additional pipeline capacity has been stepped up, with pipeline companies continuing to add capacity to move stuck crude to the market.This now is showing up with the periodic drops in U.S. stockpiles of crude, as tracked by the EIA. The stockpiles on given weeks shows lows not seen since last June, and they may well head lower with the further developments in transportation.US Crude Stockpiles Down West Texas WTI Up Source EIA, BloombergThe periodic drawdown in stockpiles is showing up in the export market. And what is particularly interesting is how much more U.S. crude is being shipped to Europe. Over the past five years, U.S. crude exports have gone from zero to nearly 1.4 billion barrels according to records from the U.S. Census Department.US Crude Exports to Europe Source US Census, BloombergThis surge in U.S. crude in Europe is now affecting European crude markets. For North Sea crude prices set at ports in the Netherlands, Argus Media (Private), a business intelligence analytics company, is stating that one third of the time, U.S. crude imports in Europe are driving the prices for European crude oil.That puts U.S. producers further on the way to narrowing the price discount of WTI to the currently higher Brent crude prices. That discount now at $8.61 per barrel is down from recent highs by 23.65%. And this in turn, should help to increase the margins for U.S. producer and related companies.WTI (White) vs Brent (Green) Crude Oil Prices Source Bloomberg Globe Takes More than MakesNow, OPEC+ isn't going to limit production forever. However, there are some reasons to see limits in their capacity to bring significantly more crude oil to the market. First, Iran remains under U.S. sanctions with no daylight in negotiations in sight -- and waivers are set to end on May 2. And with more availability of U.S. exported oil, it favors U.S. producers.In addition, even if other major former producers get sorted out politically, they will take years to get back into the oil business. This includes the imploding nation of Venezuela, the broken-apart Libya and the very unsettled West African nations, including Nigeria.Then there's the problem with Saudi Arabia and Russia, which are both post peak in production with the major fields in Saudi Arabia being drained with dropping reserves.Meanwhile, the globe's demand for crude oil remains firmly on the ascent. And even with rising U.S. production and exports, there continue to be shortfalls in supply against global consumption of crude oil. The EIA tracks overall supply and consumption, and as the graph shows, consumption keeps peaking over supply.Add in the U.S. drop in stockpiles and the supply-and-demand statistics favor supported crude oil prices.Global Oil Supply (White) Global Oil Consumption (Gold) Source EIA Bloomberg My Way to Profit from PetrolAs I started, the way to invest in petrol is to own a variety of companies, from downstream refiners to midstream transportation companies as well as upstream producers. This treats the petrol market as an industry and not just a one-way bet.Starting downstream in the refinery market, look at Marathon Petroleum (NYSE:MPC). This refiner is well-placed to capitalize on U.S. crude supplies thanks to its takeover of Andeavor last year. It has revenues up 29.1% over the trailing year and the stock is valued at a 70% discount to its sales, making for a bargain.Then move up to the midstream with a collection of pipeline and marine terminal companies. Some of the best include Enterprise Products Partners (NYSE:EPD), Kinder Morgan (NYSE:KMI), Buckeye Partners (NYSE:BPL) and Plans GP Holdings (NYSE:PAGP). What these have in common are long histories of being successful toll-takers in transporting petrol. And in turn, they pay out big distributions, providing ample dividend yields. And they are in part shielded from petrol pricing risk which provides balance in a properly invested portfolio of the petroleum market.But you're reading this because the market for crude oil is up recently, and I believe that trend is well-supported for some time to follow. So, upstream is where the bigger gains are being found right now. And in particular, you should be focused in the heart of the U.S. petroleum production market -- the Permian Basin.And the company that is right at the source of all of this additional U.S. production of oil and gas is Viper Energy (NASDAQ:VNOM). And it is unique in that it doesn't drill or lift crude oil or natural gas.Viper Energy is instead the leading landlord of the petroleum patch primarily in the Permian Basin. As a landlord, the company leases out its land for exploration and development companies (E&P) for fee income and royalties on the oil and gas that gets pumped out of its land.This means little capital is needed beyond the land. And it means that the company doesn't have to worry as much about the price fluctuations in oil and gas for its operations. But of course, the higher the price of crude and the higher the price for natural gas, the higher the royalties and the higher the income.It has a large collection of operators on its land including Devon Energy (NYSE:DVN), BP (NYSE:BP), XTO Energy, EOG Resources (NYSE:EOG), ConocoPhillips (NYSE:COP), Occidental Petroleum (NYSE:OXY), Anadarko Petroleum (NYSE:APC) and many others. Each continues to develop leased properties.Since coming to the public market in 2014 through a drop-down of assets from Diamondback Energy (NASDAQ:FANG), the proven developed reserves of petroleum have climbed by 764%. And royalty income per acre of its land has grown by 368%.Overall oil and gas produced on Viper's land was up 63% in 2018. And the company is projecting that on an organic basis (meaning existing land statistics and not counting additional land and land development), that production will climb at least by 24% for 2019.In addition, Viper completed an additional share sale recently. That additional cash is going to expand its land properties. And with Diamondback having much more land in its existing assets, there is more room for a further drop-down for more productive petroleum land in its portfolio. This will mean more growth potential for leases and royalty income. Venom for Better ReturnTotal Return for Viper Energy Source BloombergViper Energy has been a good performer. Over the past two years, the stock has generated a total return of 125.4% including its ample and rising dividend. And this even includes the slip with the general stock market in the fourth quarter of last year.But since Dec. 24, 2018 (the market low for U.S. WTI) to date, Viper has soared by over 50% in total return, reflecting the realities of the economy and the market for high and rising royalty income from its leased lands. Viper by the NumbersViper, as noted above, is working well as a landlord. Revenues for the trailing year are up by 67.9%. And since it doesn't drill or pump oil, its operating margin is a whopping 70.3%. This in turn drives a great return on shareholders' equity of 20.6%. It has gobs of cash and its debts are at a minimal 24.8% of its valuable assets, so its credit is very good.Then we come to that nice dividend. The current distribution is at 51 cents which has been climbing over the last three years by an average annual gain of 37.32%. That distribution equates to a yield of just under 6%. And I'm expecting a dividend distribution hike to be declared on April 30 by around 10%, making for an even better yield.And even though Viper changed from a passthrough to a taxable entity effective on May 10, 2018, the give up of the tax-shielding of its distributions is made up for by the ease of ownership by more investors seeking to avoid K-1 tax forms in favor of 1099-DIV reporting.The stock has been performing and paying well. And yet, the shares are reasonably valued with a price to book at 3.23 times. This is down from over 4.5 times book seen earlier last year. And more important, the underlying book value per share has climbed over the past year by 36.36% meaning that the underlying value of the book of assets is up and growing and not just the stock price.Now that the additional shares have been placed in the market successfully earlier this year, the stock makes for a good buy for growth from the upstream of the petrol market and lots of income that will complement the midstream and downstream companies in a balanced petrol portfolio.Neil George is the editor of Profitable Investing and does not have any holdings in the securities mentioned above. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks That Could Double Over the Next Five Years * 6 S&P 500 Stocks Ready to Break Out * 5 Mining ETFs to Dig Into Compare Brokers The post Energy Stocks to Buy Now, Even with Oil Prices Up appeared first on InvestorPlace.
At Insider Monkey we follow nearly 750 of the best-performing investors and even though many of them lost money in the last couple of months of 2018 (some actually delivered very strong returns), the history teaches us that over the long-run they still manage to beat the market, which is why it can be profitable […]
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