BREINIGSVILLE, Pa., July 20 /PRNewswire-FirstCall/ -- Buckeye Partners, L.P. (NYSE:BPL) ("Buckeye") today announced that it has completed a comprehensive "best practices" review of its business. As a result of this review, Buckeye is implementing organizational changes that are expected to result in annualized savings of $18-22 million, which should be fully realized beginning in 2010. An aggregate charge of $30-34 million will be recorded related to this reorganization. Buckeye expects to record $22-30 million of expense in the second quarter with the balance being recognized in the second half of 2009. Aggregate cash costs are expected to be $32-36 million. These charges primarily represent expected severance payments, early retirement benefits, and other employee-related costs. These organizational changes will result in a workforce reduction of approximately 260 employees, or nearly 25 percent of Buckeye's workforce. "Buckeye has dedicated and committed employees that have been integral to our success, and it is very difficult to take actions that impact many of them and their families," stated Forrest E. Wylie, Chairman and CEO of Buckeye's general partner. "However, we must continuously challenge ourselves, particularly in the current economic environment, to ensure that we are positioned to generate the highest utilization of our assets at the lowest cost. Buckeye's new streamlined organizational structure is expected to enhance our competitive market position through improved customer service, higher productivity, and lower operating costs, and should position us to respond more rapidly to changing needs in the markets we serve." "It is important to emphasize that, although our organizational structure has changed, our core commitments have not," Wylie said. "Buckeye's absolute dedication to safe and environmentally responsible operations is unchanged, and the organizational changes being implemented will strengthen our commitment to asset integrity and quality assurance." Separately, Buckeye announced that it has completed a strategic review of certain of its operating assets and has determined that its pipeline system that transports natural gas liquids from Colorado to Kansas is non-core to its ongoing operations. Buckeye continues to evaluate various strategic alternatives, including actively marketing this asset. As a result of this analysis, Buckeye will record a non-cash charge of $65-75 million in the second quarter of 2009 to write the asset down to its fair value. Buckeye will host a conference call to discuss the reorganization and impairment charge on Tuesday, July 21, 2009, at 11:00 a.m. Eastern time. Investors are invited to listen to the conference call via the Internet, on either a live or replay basis, at: http://www.videonewswire.com/event.asp?id=60683. Interested parties may participate in the call by joining the conference at (888) 278-8446 or (913) 312-1480 and referencing conference ID 5075429. An audio replay of the conference call also will be available through July 25, 2009 by dialing (719) 457-0820 and referencing conference ID 5075429. Buckeye Partners, L.P. (http://www.buckeye.com/) 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 Partners, L.P. also owns 64 refined petroleum products terminals, operates and maintains approximately 2,400 miles of pipeline under agreements with major oil and chemical companies, owns a major natural gas storage facility in northern California, and markets refined petroleum products in certain of the geographic areas served by its pipeline and terminal operations. The general partner of Buckeye Partners, L.P. is owned by Buckeye GP Holdings L.P. (NYSE:BGH). 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, and include Buckeye's estimated annual savings as a result of the reorganization. Actual results may differ significantly because of risks and uncertainties that are difficult to predict and that may be beyond Buckeye's control. Among them are (1) changes in 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, 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 or national economic conditions or adverse capital market conditions, (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 create successfully anticipated efficiencies as a result of the reorganization. You should read our Annual Report on Form 10-K and our most recent 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. DATASOURCE: Buckeye Partners, L.P. CONTACT: Stephen R. Milbourne, Manager, Investor Relations of Buckeye Partners, L.P., +1-800-422-2825, Web Site: http://www.buckeye.com/

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