Buckeye Partners, L.P. Announces Closing of Sale of Package of Domestic Pipeline and Terminal Assets
December 18 2018 - 5:45PM
Buckeye Partners, L.P. (“Buckeye”) (NYSE: BPL) announced today that
it completed the sale of a package of domestic pipeline and
terminal assets (collectively, the “Asset Package”) to a subsidiary
of InstarAGF Asset Management Inc. for cash proceeds of $450
million. The Asset Package includes: a jet fuel pipeline from
Port Everglades, Florida to the Ft. Lauderdale and Miami, Florida
airports; pipelines and terminal facilities serving the Reno,
Nevada; San Diego, California and Memphis, Tennessee airports; and
refined petroleum products terminals in Sacramento and Stockton,
California. Buckeye Development & Logistics, a subsidiary
of Buckeye, will continue to operate and maintain these assets for
the buyer under a long-term contract. The proceeds from the
sale were used to repay borrowings on Buckeye’s revolving credit
facility.
As previously announced following the completion
of Buckeye’s strategic review, this sale was one of several actions
designed to: (1) maintain Buckeye’s investment grade credit rating
by reducing leverage; (2) provide increased financial flexibility,
eliminating the need for Buckeye to access the public equity
markets to fund annual growth capital; and (3) reallocate capital
to the higher return growth opportunities across our remaining
assets. The process to obtain the regulatory approvals that
are conditions to closing Buckeye’s previously announced sale of
its equity interest in VTTI B.V. (“VTTI”) remains on track and
Buckeye currently expects to close the VTTI sale early in first
quarter of 2019.
About Buckeye Partners,
L.P.
Buckeye Partners, L.P. (NYSE: BPL) is a publicly
traded master limited partnership which owns and operates, or owns
a significant interest in, a diversified global network of
integrated assets providing midstream logistic solutions, primarily
consisting of the transportation, storage, processing and marketing
of liquid petroleum products. Buckeye is one of the largest
independent liquid petroleum products pipeline operators in the
United States in terms of volumes delivered, with approximately
6,000 miles of pipeline. Buckeye also uses its service
expertise to operate and/or maintain third-party pipelines and
perform certain engineering and construction services for its
customers. Buckeye’s global terminal network, including
through its interest in VTTI B.V. (“VTTI”), comprises more than 135
liquid petroleum products terminals with aggregate tank capacity of
over 178 million barrels across our portfolio of pipelines, inland
terminals and marine terminals located primarily in the East Coast,
Midwest and Gulf Coast regions of the United States as well as in
the Caribbean, Northwest Europe, the Middle East and Southeast
Asia. Buckeye’s global network of marine terminals enables it
to facilitate global flows of crude oil and refined petroleum
products, offering its customers connectivity between supply areas
and market centers through some of the world’s most important bulk
liquid storage and blending hubs. Buckeye’s flagship marine
terminal in The Bahamas, Buckeye Bahamas Hub, is one of the largest
marine crude oil and refined petroleum products storage facilities
in the world and provides an array of logistics and blending
services for the global flow of petroleum products. Buckeye’s
Gulf Coast regional hub, Buckeye Texas Partners, offers world-class
marine terminalling, storage and processing capabilities.
Through its 50% equity interest in VTTI, Buckeye’s global terminal
network offers premier storage and marine terminalling services for
petroleum product logistics in key international energy hubs.
Buckeye is also a wholesale distributor of refined petroleum
products in certain areas served by its pipelines and
terminals. As discussed in this press release, we expect to
divest our equity interest in VTTI early in the first quarter of
2019, subject to normal regulatory approvals. 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 the forward-looking
statements set forth in this press release are statements regarding
the disposition of certain pipelines and terminals and our equity
interest in VTTI and the anticipated use of proceeds derived
therefrom. These statements are subject to, among other
risks, (i) changes in federal, state, local, and foreign laws
or regulations to which we are subject, including those governing
pipeline tariff rates and those that permit the treatment of us as
a partnership for federal income tax purposes, (ii) terrorism and
other security risks, including cyber risk, adverse weather
conditions, including hurricanes, environmental releases, and
natural disasters, (iii) changes in the marketplace for our
products or services, such as increased competition, changes in
product flows, better energy efficiency, or general reductions in
demand, (iv) adverse regional, national, or international economic
conditions, adverse capital market conditions, and adverse
political developments, (v) shutdowns or interruptions at our
pipeline, terminalling, storage, and processing assets or at the
source points for the products we transport, store, or sell, (vi)
unanticipated capital expenditures in connection with the
construction, repair, or replacement of our assets, (vii)
volatility in the price of liquid petroleum products, (viii)
nonpayment or nonperformance by our customers, (ix) our ability to
integrate acquired assets with our existing assets and to realize
anticipated cost savings and other efficiencies and benefits, (x)
satisfaction of the conditions to the respective closings of the
divestitures discussed herein and (xi) our ability to successfully
complete our organic growth projects and to realize the anticipated
financial benefits. 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, 2017, 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 except
as required by law.
Contact:Kevin J. GoodwinVice President &
Treasurerirelations@buckeye.com(800) 422-2825
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