In a call with financial analysts following release of the company’s second-quarter earnings,
Smith declined to give specifics, noting the company plans to complete the review during the third quarter and later provide an update.
“Our strategy is to evaluate any and all business and strategic options,” Smith said. “No option will be off the table in our review.”
It is unclear how the review will affect local operations. Local Buckeye officials referred calls to
Smith said during Friday’s conference call that one of Buckeye’s main goals in restructuring is providing investors with an improved investment grade credit rating to provide shareholders with greater returns, and giving the company easier access to capital. Its shares, which have fallen about 50 percent in the last year, traded slightly higher Friday, closing up 98 cents, to $36.36.
“Their No. 1 goal is to maximize shareholder value, and they haven’t been doing that,” said analyst
Dollarhide, CEO of Longbow Asset Management, said many energy companies have struggled in recent years under a double whammy of volatile pricing and oversupply. He said Buckeye’s strategy is not unusual when major corporations seek ways to improve the bottom line.
“Putting everything on the table is not a sign of desperation,” Dollarhide said.
As for earnings, Buckeye posted net income of $91.9 million, or 59 cents a share, in the quarter. That was down from $112.7 million, or 80 cents a share, in the year-earlier period. Second-quarter revenue totaled $941 million, up from $810.2 million a year ago. Adjusted for earnings before interest, taxes, depreciation and amortization, the company said it earned $254.9 million compared with $269.2 million in the second quarter of 2017.
Buckeye missed on earnings and beat revenue expectations, according to Yahoo Finance. The average earnings estimate of 12 analysts was 74 cents a share. The average revenue estimate of five analysts was $818 million.
Buckeye announced a cash distribution of $1.26 per share for the second quarter, payable
Buckeye is in a battle with eastern
Having lost the decision at the state level, Buckeye is seeking federal permission to make the service bi-directional along the section, and Smith said Friday the company expects to begin the service by year’s end, pending a decision by the
As one of the largest independent pipeline and terminal owners and operators in the country, Buckeye stores, handles and transports petroleum products for commercial customers such as airlines, railroads and local home-heating oil dealers.
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