HOUSTON, Dec. 11, 2013 (GLOBE NEWSWIRE) -- Buckeye Partners, L.P. ("Buckeye") (NYSE:BPL) announced today that it has completed its purchase of 20 liquid petroleum products terminals with total storage capacity of approximately 39 million barrels for $850 million from Hess Corporation ("Hess"). The 19 domestic terminals are located primarily in major metropolitan locations along the U.S. East Coast and have approximately 29 million barrels of refined petroleum products storage capacity, including approximately 15 million barrels of capacity strategically located in New York Harbor. The terminal on St. Lucia in the Caribbean has approximately 10 million barrels of crude oil and refined petroleum products storage capacity and has deep-water access. This acquisition increases Buckeye's total liquid petroleum storage capacity by approximately 53 percent to over 110 million barrels. Hess' Retail Marketing Business will be a key customer at these facilities under a multi-year storage and throughput commitment.
"We are excited to incorporate these strategic marine terminals into Buckeye's growing portfolio of assets," said Clark C. Smith, Buckeye's President and Chief Executive Officer. "This acquisition strengthens Buckeye's presence in major markets along the East Coast and further solidifies our position in the Caribbean. In the New York Harbor, the combination of the Port Reading facility, our Perth Amboy terminal, and our Linden hub provide the opportunity to create a large, integrated network that leverages our existing pipeline connections allowing us to optimize the capabilities at each location for our customers. The acquisition also enhances our position in Upstate New York and the Mid-Atlantic and further expands our footprint into several key, high-growth markets in the Southeast. In the Caribbean, the St. Lucia terminal improves our storage capabilities and allows us to offer customers a broader set of service offerings while furthering our ability to provide logistics solutions for the growing Latin American crude oil production. As a result of this transaction, we have a tremendous opportunity to create value by further extending our integrated network of marine terminals and overlaying our business model on these complementary assets. We expect the transaction will be immediately accretive to our distributable cash flow per unit, excluding first year transition-related expenses, and should provide long-term support for further distribution growth."
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts