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Buckeye Partners

Buckeye Partners NYSE:BPLLike NuStar, Houston-based Buckeye Partners (NYSE:BPL) is a master limited partnership. It owns and operates 6,100 miles of pipeline and 100 product terminals that provide storage capacity of just over 64 million barrels.

Buckeye is another one of John D. Rockefeller’s corporate grandchildren, tracing its roots to March 1886, when The Buckeye Pipe Line Company was incorporated as a subsidiary of Standard Oil Company. Buckeye became an independent publicly owned company after Standard Oil’s dissolution in 1911.

Today, Buckeye’s revenues sit at just over $5 billion, and in 2011 it ramped up margins to get to over $100 million in profits. Because it’s an MLP, 90% of its earnings are required to be paid out the investors as dividends. So, shareholders were treated to a whopping $4.16 per share, which currently registers as a 7.9% dividend yield. EPS estimates for 2012 and 2013 suggest a more modest return to shareholders, but steady nonetheless.

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