BPL - Buckeye Partners: Strong Buy With 10% Yield And Significant Upside
Introduction
Buckeye Partners (BPL) is one of the few partnerships with an investment grade credit rating. However, the management waited a little too long to transition to the self-funding model desired by the market, but now this objective has been achieved. The result is a rare opportunity to purchase an investment grade partnership with low leverage and good growth prospects while the yield is still 10%.
The Business
BPL's business includes two major segments:
- Domestic Pipelines and Terminals (52% of adjusted EBITDA), and
- Global Marine Terminals (46% of adjusted EBITDA) and