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Buckeye Partners Sells Pipeline and Terminal Assets to InstarAGF for $450 Million

Buckeye Partners, L.P., December 19, 2018

Buckeye Partners, L.P. (“Buckeye”) recently announced it has 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. 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.


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