SOURCE: Buckeye Partners, L.P.

Buckeye Partners, L.P.

April 26, 2011 16:15 ET

Buckeye Partners, L.P. Announces Agreement to Sell Its Minority Interest in West Texas LPG Pipeline Limited Partnership

HOUSTON, TX--(Marketwire - Apr 26, 2011) - Buckeye Partners, L.P. ("Buckeye") (NYSE: BPL) announced today that it has signed an agreement to sell its 20 percent interest in West Texas LPG Pipeline Limited Partnership ("WTLPG") to affiliates of Atlas Pipeline Partners L.P. ("Atlas") for $85 million. WTLPG owns a 2,295-mile common-carrier pipeline system that transports NGLs from New Mexico and Texas to Mont Belvieu for fractionation. Chevron Pipeline Company, which owns the remaining 80 percent interest, is the operator of WTLPG. The transaction is expected to close in the second quarter of 2011, subject to customary closing conditions.

"We are pleased to announce the agreement to sell our minority interest in WTLPG to Atlas. As part of our continuous review of Buckeye's portfolio of assets, this non-operating partnership interest was identified as non-core and subsequently offered for sale," said Forrest E. Wylie, Buckeye's Chairman and CEO. "The proceeds from the sale will be redeployed to our core operating assets, and will be available to fund a portion of our internal growth capital projects planned for 2011."

Buckeye Partners, L.P. 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, and (9) 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/A 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.