Better Buy: Buckeye Partners vs. Kinder Morgan
Matthew DiLallo, The Motley FoolMotley FoolDecember 10, 2018, 3:06 PM GMT. Buckeye Partners(NYSE: BPL) and Kinder Morgan(NYSE: KMI) are among the many energy midstream companies to experience the fallout of the oil market crash. Both companies have had to take drastic action to shore up their financial situation -- including cutting their high-yielding dividends -- so that they can fund expansion projects. However, one key difference between these two companies is that Kinder Morgan is way ahead of Buckeye Partners on its turnaround plan. Those moves should give the company the cash it needs to fund its current slate of expansions. However, the sales will negatively impact earnings and cash flow in the near term until the company's expansion projects come online toward the end of 2019. As a result, Buckeye is heading in reverse just as Kinder Morgan is accelerating.