Kinder Morgan is valued at $37.57 billion, pays out a dividend yielding 4.19%, and carries a price to earnings ratio of 46.71. Kinder Morgan possesses an interest in approximately 37,000 miles of pipelines and about 180 terminals, and the company carries a price to book ratio of 2.87. Fundamentally, Kinder Morgan’s business model is profitable, with a TTM profit margin of 5.24%. In respect to earnings, Kinder Morgan is projected to grow in the mid-single digits range through 2015, however revenue is projected to drop from 2014 to 2015.
Energy Transfer is valued at $17.57 billion, pays out a dividend yielding 7.52%, and carries a price to earnings ratio of 30.33. The company carries a price to book ratio of 1.65. Fundamentally, Energy Transfer’s business model appears strong, with a TTM profit margin of 10.87%. The profit margin of the company has decreased substantially from over 50% in 2012 to the current level, and the company’s revenue growth is projected to be choppy in the forthcoming years.
Enbridge Inc (NYSE:ENB) is valued at $41.17 billion, pays out a dividend yielding 3.00%, and carries a price to earnings ratio of 57.77. Enbridge possesses a price to book ratio of 5.30. Fundamentally, the company’s business model is slightly profitable, with a TTM profit margin of 2.73%. Enbridge Inc (NYSE:ENB) is expected to sustain low-single digits growth, in terms of revenue, through 2015.
The Foolish Bottom Line:
Financially, Buckeye Partners, L.P. (NYSE:BPL) is relatively solid with the exception of its rather substantial debt load. The company possesses stable revenue growth, a growing dividend, and a predictable and established business model. Looking forward, the company is likely to experience moderate to fast-paced growth from its expansion plans and consistent increases in its tariff rates and volumes. All in all, Buckeye Partners, L.P. (NYSE:BPL) is a very strong investment earning four out of five stars, and one that will provide investors with returns that outperform the overall market for years to come, however investors should wait for a considerable pullback as Buckeye appears overbought at current prices.
Ryan Guenette has no position in any stocks mentioned. The Motley Fool recommends Enterprise Products Partners L.P. (NYSE:EPD) and Kinder Morgan. The Motley Fool owns shares of Kinder Morgan.
The article Has This Explosive MLP Overextended Itself in 2013? originally appeared on Fool.com.
Ryan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
