Updating Buckeye Partners L.P. and Kraft Heinz Co.

Article Excerpt

BUCKEYE PARTNERS L.P. $67 (www.buckeye.com) is seeing strong demand for its oil-storage terminals as many producers store their crude instead of selling it at today’s depressed prices. However, lower prices are hurting revenue at Buckeye’s wholesaling business, which sells refined fuels, such as gasoline, home heating oil and propane. That’s why the partnership’s earnings fell 12.4% in the third quarter of 2015, to $0.78 a unit from $0.89 a year earlier. However, Buckeye recently opened a refrigerated liquefied petroleum gas facility in Texas, which should boost its future cash flow. As a result, it raised its quarterly distribution by 1.1%. The new annual rate of $4.70 a unit yields 7.0%. Buy. KRAFT HEINZ CO. $75 (www.kraftheinzcompany.com) earned $0.44 a share in the third quarter of 2015, down 4.3% from $0.46 a year earlier. Sales fell 9.0%, to $6.4 billion from $7.0 billion. If you exclude exchange rates and businesses it sold since the July 2015 merger of Kraft Foods Group…