Buckeye GP Holdings L.P. (BGH)

DaveOfDukeIPO (72.40) Submitted: 11/10/2009 10:03:25 AM : Start Price: $25.32 BGH Score: +8.42

paid out a dividend of $0.39

WilliamCrook2007 (< 20) Submitted: 5/26/2009 7:28:27 PM : Start Price: $19.30 BGH Score: +23.13

IBD

mann2538 (88.02) Submitted: 2/9/2009 4:49:57 PM : Start Price: $14.87 BGH Score: +58.10

Growing use of Gas/oil makes piplines dominate way in low cost transportation of these products, compelling dividend

jiggernit (99.45) Submitted: 10/10/2008 12:06:25 PM : Start Price: $9.70 BGH Score: +158.09

Yes, I'm betting on pipelines.

Morningstar5Star (94.37) Submitted: 3/24/2008 4:58:23 PM : Start Price: $24.79 BGH Score: +28.98

under review

donotpay (81.71) Submitted: 3/13/2008 8:56:30 PM : Start Price: $22.45 BGH Score: +38.08

Good dividend stock. Up about 63% since 08/06.

donotpay1 (81.91) Submitted: 3/12/2008 7:32:49 PM : Start Price: $22.13 BGH Score: +37.77

Good dividend stock. Up about 63% since 08/06.

NtscrbEnergy (94.34) Submitted: 3/13/2007 8:04:45 AM : Start Price: $17.14 BGH Score: -79.91

Buckeye GP Holdings L.P (BGH) formed in March 2006 is primarily a Master Limited Partnership (MLP) that owns and controls the general partner interest and incentive distribution rights of Buckeye Partners. Buckeye Partners is involved in operating refined oil products pipeline mainly in Northeast and Midwest regions of United States. It has an operational pipeline capacity of approximately 5,350 miles and 45 refined petroleum products terminals with storage capacity of 17.6 million barrels. BGH’s revenues are completely dependent on the cash distribution of Buckeye Partners as the company receives 45% of the cash distributed to limited partners.

The pipeline operations generate about 75% of the over all inflows of Buckeye Partners, where half of the pipeline revenues is generated from carrying natural gas. The company’s cash flows are based on volumes carried as against the prices of crude or natural gas. Thus in the scenario of bottoming prices, company might actually benefit from the consequential upward rise in demand. The future of the industry also looks attractive as consumption of natural gas is expected to grow by 900 billion cubic feet in 2007.

Looking ahead in 2007, Buckeye Partners short term growth potential seems to be govern by tariff rise and expansion projects. As the pipeline industry in general is witnessing a more or less stabilizing trend, a tariff rise will be highly unlikely. Moreover, as the states in which company operates are not likely to experience high rise in demand in comparison to the other faster growing regions, thus making it very difficult for the company to deliver high returns. Further, considering one of industries most costly stock valuation, limited opportunities for acquisition and modest cash flow distribution, it will be better to stay away from the stock, especially at current high prices.