HOUSTON, TX -- (Marketwire) -- 06/01/11 -- Buckeye Partners, L.P. ("Buckeye") (NYSE: BPL) announced today that it has completed the purchase of 33 refined petroleum products terminals and 650 miles of refined petroleum products pipeline from BP North America Inc. and its affiliates ("BP") for $165 million. The terminal and pipeline assets are located in the Midwestern, Southeastern, and Western United States, further extending Buckeye's operations into new geographic markets. This acquisition includes over 10 million barrels of storage capacity, increasing Buckeye's total liquid petroleum storage capacity by approximately 19 percent to over 63 million barrels. BP will continue to be a key customer at these facilities under multi-year throughput commitments.
"We are excited to bring these new terminals and pipelines into Buckeye's growing portfolio of assets," said Forrest E. Wylie, Buckeye's Chairman and CEO. "This acquisition, which is expected to be immediately accretive to our distributable cash flow per unit, is the latest example of our commitment to creating long term unitholder value through strategic acquisitions that leverage our core strengths as an organization. Since we commenced our best practices initiative in July 2009, our improved commercial focus has allowed us to drive incremental volumes through our legacy assets, and we are committed to applying these best practices to further enhance the commercial utilization of our newly acquired facilities."
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 6,000 miles of pipeline. Buckeye also owns more than 100 liquid petroleum products terminals with aggregate storage capacity of over 63 million barrels, operates approximately 2,700 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 and our most recently filed 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.