Buckeye Partners, L.P. (BPL): Go for International Growth With This MLP

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For a company that does about $150 million in EBITDA each quarter, the asset package could boost that number by 16%. These assets would be a great strategic fit for Buckeye Partners, L.P. (NYSE:BPL)’s MLP structure and would fit much better than in Hess Corp. (NYSE:HES)’ current business model focused on exploration and production. Even if it doesn’t acquire these particular assets, if the past is any indication, Buckeye will more than likely acquire storage and terminal assets that fit nicely within its current Caribbean assets.

Final Foolish thoughts
In my option, Buckeye Partners, L.P. (NYSE:BPL)’s international operations are what sets the company up for great future growth. Not only will BORCO continue to expand, but Buckeye has the financial capacity to continue acquiring similar assets. These assets are great suppliers of distributable cash flow to help support its nearly 6% distribution. Even better, as these assets grow, it will support future distribution growth.

The article Go for International Growth With This MLP originally appeared on Fool.com.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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