Hey All,
Just wanted to get your thoughts on the movement of BPL today.
The stock fell 4% following a couple things all announced at once.
1) Earnings - Beat estimates by a fair amount. Other financials metrics represented upside surprises as well.
2) 50% acquisition of VTTI - a global terminaling business. I would assume this is the primary driver of the loss. However, Buckeye is an MLP where acquisitions are expected, and the entire fall in Buckeye's stock price is larger than the market cap of the entire VTTI. Global terminalling has been a huge value driver for Buckeye, although some of these locations are located far away from their assets.
3) Buckeye issued 7.5 MM additional units at 66.08 (8% under pre announcement price, 4% below post) This I assume is a primary driver as well, but I don't really understand why it happened. This is even stranger because Buckeye uses an ATM issuance and is very sensitive to Volumetric activity in the market, often taking the program offline if volume falls too far.
I wasn't sure if I should post this in the IB or S&T thread but here it is.
Thoughts?
