SOURCE: Buckeye Partners, L.P.

Buckeye Partners, L.P.

March 18, 2011 08:45 ET

Buckeye Partners, L.P. Announces Agreement to Acquire Refined Products Terminals and Pipelines From BP

HOUSTON, TX--(Marketwire - March 18, 2011) - Buckeye Partners, L.P. ("Buckeye") (NYSE: BPL) announced today that it has signed a definitive agreement with BP Products North America Inc. and its affiliates ("BP") to acquire 33 refined petroleum products terminals with total storage capacity exceeding 10 million barrels and approximately 1,000 miles of refined petroleum products pipelines, including BP's approximately 50% interest in Inland Corporation ("Inland"), for a total transaction purchase price of $225 million. The terminal and pipeline assets are located in the Midwestern, Southeastern, and Western United States, further extending Buckeye's operations into new, key geographic markets. Buckeye's proposed acquisition of BP's interest in Inland, which represents $60 million of the total transaction purchase price, is subject to Inland's other shareholders' existing rights of first refusal. Buckeye expects the acquisition to close in the second quarter of 2011, subject to regulatory approvals, other customary closing conditions, and, with respect to BP's interest in Inland, the co-owners' right of first refusal. 

"This transaction is a key step in our continued expansion and geographic diversification efforts and further facilitates our participation in several key growth markets outside our current system footprint," said Forrest E. Wylie, Buckeye's Chairman and CEO. "This acquisition provides stable tariff and fee-based revenue streams that are supported by multi-year throughput commitments by BP. We expect the acquisition to be immediately accretive to our distributable cash flow. In addition, we have identified several opportunities for further commercial development of these assets and anticipate a smooth integration and rapid realization of operating synergies with our existing assets."

Buckeye Partners, L.P. (NYSE: BPL) 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 also owns 69 liquid petroleum products terminals with aggregate storage capacity of approximately 53 million barrels, operates approximately 2,600 miles of pipeline under agreements with major oil and chemical companies, owns a high-performance natural gas storage facility in Northern California, and markets refined petroleum products in certain regions served by its pipeline and terminal operations. Buckeye's flagship marine terminal in the Bahamas, BORCO, is one of the largest oil and petroleum products storage facilities in the world, serving the international markets as a premier global logistics hub. Buckeye is celebrating its 125th anniversary as a midstream energy company in 2011. More information concerning Buckeye can be found at www.buckeye.com.

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 our control. Among them are (1) changes in federal, state, local and foreign 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, including hurricanes, 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, national or international economic conditions, adverse capital market conditions, and adverse political developments, (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, (8) nonpayment or nonperformance by our customers, (9) our ability to realize efficiencies expected to result from our previously announced reorganization, and (10) our ability to integrate acquired assets with our existing assets and to realize anticipated cost savings and other efficiencies. You should read our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2010, 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.