SOURCE: Buckeye Partners, L.P.

Buckeye Partners, L.P.

October 22, 2009 08:00 ET

Buckeye Partners to Acquire Refined Product Pipelines and Terminals in Key Midwest Markets

HOUSTON, TX--(Marketwire - October 22, 2009) - Buckeye Partners, L.P. (NYSE: BPL) has signed an agreement with ConocoPhillips (NYSE: COP) to purchase three refined-product storage and distribution terminals and two refined-product pipelines and associated storage tanks in the Chicago and St. Louis areas.

"These assets will give Buckeye greater access to important markets and refinery operations in the Midwest," said Forrest E. Wylie, Chairman and CEO of Buckeye's general partner. "The combined footprint increases the commercial value to our customers by offering enhanced distribution connectivity and flexible storage capabilities. In addition, this transaction is supported by stable tariff and fee-based revenues and presents incremental opportunities to expand our product marketing activities. We anticipate a smooth integration and rapid realization of operating synergies. The resulting improvement in asset utilization and identified organic growth projects are expected to increase distributable income to our partnership unit holders."

Buckeye Partners, L.P. (www.buckeye.com) is a publicly traded partnership that owns and operates one of the largest independent refined-petroleum products pipeline systems in the United States in terms of volumes delivered, with approximately 5,400 miles of pipeline. Buckeye Partners, L.P. also owns 64 refined-petroleum products terminals, operates and maintains approximately 2,400 miles of pipeline under agreements with major oil and chemical companies, owns a major natural gas storage facility in northern California, and markets refined-petroleum products in certain of the geographic areas served by its pipeline and terminal operations. The general partner of Buckeye Partners, L.P. is owned by Buckeye GP Holdings L.P. (NYSE: BGH).

This press release includes forward-looking statements that we believe to be reasonable as of today's date. Such statements are identified by use of the words "anticipates", "believes", "estimates", "expects", "intends", "plans", "predicts", "projects", "should", and similar expressions. Actual results may differ significantly because of risks and uncertainties that are difficult to predict and that may be beyond Buckeye's control. Among them are (1) changes in laws or regulations to which we are subject, including those that permit the treatment of us as a partnership for federal income tax purposes, (2) terrorism, adverse weather conditions, environmental releases, and natural disasters, (3) changes in the marketplace for our products or services, such as increased competition, better energy efficiency, or general reductions in demand, (4) adverse regional or national economic conditions or adverse capital market conditions, (5) shutdowns or interruptions at the source points for the products we transport, store, or sell, (6) unanticipated capital expenditures in connection with the construction, repair, or replacement of our assets, (7) volatility in the price of refined petroleum products and the value of natural gas storage services, and (8) nonpayment or nonperformance by our customers. You should read our Annual Report on Form 10-K and our most recent Quarterly Report on Form 10-Q for a more extensive list of factors that could affect results. We undertake no obligation to revise our forward-looking statements to reflect events or circumstances occurring after today's date.