Shares of Buckeye Partners Continued to Slide in November, Here's Why
Shares of oil and gas transportation and logistics company Buckeye Partners (NYSE: BPL) slid 13% in November. This continues the trend of Buckeye's price trending down in 2017. Year to date, the stock is down 29%. While there was no single day of trading that spurred the decline, it had another quarter of earnings results that weren't too inspiring.
Perhaps the best measuring stick for midstream master limited partnerships is management's ability to strike a balance between spending wisely to grow the business, paying its investors a distribution, and maintaining balance sheet integrity. One of the most effective ways to do this is to retain some operating cash flow for investment rather than pay out all available cash to shareholders. This gives the company the ability to spend on growth without remaining wholly reliant on external capital like debt or issuing shares.
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Source: Fool.com
