Buckeye Partners, L.P. to Acquire Liquid Petroleum Products Terminals Network From Hess for $850 Million

Buckeye Partners, L.P. to Acquire Liquid Petroleum Products Terminals Network
From Hess for $850 Million

Marine Terminals Located on East Coast and in Caribbean

HOUSTON, Oct. 9, 2013 (GLOBE NEWSWIRE) -- Buckeye Partners, L.P. ("Buckeye")
(NYSE:BPL) announced today that it has signed a definitive agreement with Hess
Corporation ("Hess") and its subsidiaries to acquire 20 liquid petroleum
products terminals with total storage capacity of approximately 39 million
barrels for $850 million. 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, which is subject to regulatory
approvals and customary closing conditions, is expected to close before

"This acquisition is a tremendous opportunity for Buckeye to create value by
overlaying our commercial operating model on a premier platform of
complementary assets," stated Clark C. Smith, President and Chief Executive
Officer. "We have a proven track record of value creation through executing on
opportunities to apply the Buckeye model to terminals previously operated
primarily on a proprietary basis such as these. We expect this acquisition,
which includes a multi-year storage and throughput commitment by Hess, 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."

The 19 domestic terminals are located in the New York Harbor, Upstate New
York, Mid-Atlantic, and Southeast.All but two of the facilities are marine
terminals and 12 have deep-water access.Mr. Smith added, "This acquisition
expands our footprint into several key, high growth markets in the Southeast,
including Florida, and we look forward to furthering our customer
relationships in these areas by leveraging the capabilities of these assets
and our superior customer service model.The Port Reading and other New York
Harbor terminals extend our connectivity and service capabilities in this
strategic location.The proximity of the Port Reading terminal to our Perth
Amboy terminal and Linden hub provides the opportunity to create a large,
integrated network in New York Harbor that would leverage the pipeline
connections between these facilities and allow us to optimize the capabilities
at each facility for our customers.In addition, the St. Lucia terminal
improves our capabilities in the Caribbean storage market with more
geographically diverse service offerings to allow us to accommodate a larger
portion of the growing Latin American crude oil production volumes.As a
result of this transaction, we believe that our integrated network of marine
terminals should allow us to capture meaningful synergies from global logistic
product flows through the comprehensive set of terminal services we expect to
be able to offer our customers."

"The acquisition of these assets represents a continued investment by Buckeye
in strategic marine terminal assets that provide versatility and unique
capabilities," Mr. Smith added."This platform of assets enhances our
positioning to further expand our marine terminal business for future
growth."After fully integrating these assets and executing on Buckeye's
initial operational and commercialization plans over the first twelve months
of operations, Buckeye's acquisition multiple is expected to be less than
eight times Adjusted EBITDA.

UBS acted as the exclusive financial advisor to Buckeye in connection with
this transaction.

A presentation concerning the transaction will be available on the "Investor
Center" section of Buckeye's website, www.buckeye.com.

Buckeye will host a conference call with members of executive management
tomorrow, October 10, 2013, at 10:00 a.m. Eastern Time. To access the live
Webcast of the call, go to http://www.media-server.com/m/p/kvnyda2vten
minutes prior to its start.Interested parties may participate in the call by
dialing 877-331-4219.A replay will be archived and available at this link
until November 10, 2013, and the replay also may be accessed by dialing
800-585-8367 and entering conference ID 83241944.

Buckeye Partners, L.P. (NYSE:BPL) is a publicly traded master limited
partnership that owns and operates one of the largest independent liquid
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 70 million barrels.In addition, Buckeye operates and/or maintains
third-party pipelines under agreements with major oil and chemical companies,
owns a high-performance natural gas storage facility in Northern California,
and markets liquid 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 crude oil and petroleum products storage
facilities in the world, serving the international markets as a global
logistics hub. More information concerning Buckeye can be found at

Adjusted EBITDA and distributable cash flow are measures not defined by
GAAP.Adjusted EBITDA is the primary measure used by our senior management,
including our Chief Executive Officer, to (i)evaluate our consolidated
operating performance and the operating performance of our business segments,
(ii) allocate resources and capital to business segments, (iii) evaluate the
viability of proposed projects, and (iv) determine overall rates of return on
alternative investment opportunities.Distributable cash flow is another
measure used by our senior management to provide a clearer picture of
Buckeye's cash available for distribution to its unitholders.Adjusted EBITDA
and distributable cash flow eliminate (i) non-cash expenses, including, but
not limited to, depreciation and amortization expense resulting from the
significant capital investments we make in our businesses and from intangible
assets recognized in business combinations, (ii) charges for obligations
expected to be settled with the issuance of equity instruments, and (iii)
items that are not indicative of our core operating performance results and
business outlook.

Buckeye believes that investors benefit from having access to the same
financial measures used by senior management and that these measures are
useful to investors because they aid in comparing Buckeye's operating
performance with that of other companies with similar operations.The Adjusted
EBITDA and distributable cash flow data presented by Buckeye may not be
comparable to similarly titled measures at other companies because these items
may be defined differently by other companies. Please see the attached
reconciliations of each of Adjusted EBITDA and distributable cash flow to net

This press release references forward-looking estimates of Adjusted EBITDA
investment multiples projected to be generated by the Hess terminals. A
reconciliation of estimated Adjusted EBITDA to GAAP net income is not provided
because GAAP net income generated by the Hess terminals for the applicable
periods is not accessible. Buckeye has not yet completed the necessary
valuation of the various assets to be acquired, a determination of the useful
lives of these assets for accounting purposes, or an allocation of the
purchase price among the various types of assets. In addition, interest and
debt expense is a corporate-level expense that is not allocated among
Buckeye's segments and could not be allocated to the Hess terminal operations
without unreasonable effort. Accordingly, the amount of depreciation and
amortization and interest and debt expense that will be included in the
additional net income generated as a result of the acquisition of the Hess
terminals is not accessible or estimable at this time. The amount of such
additional resulting depreciation and amortization and applicable interest and
debt expense could be significant, such that the amount of additional net
income would vary substantially from the amount of projected Adjusted

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 (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, adverse weather conditions, including hurricanes,
environmental releases, and natural disasters, (iii)changes in the
marketplace for our products or services, such as increased competition,
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, terminal, and storage 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 refined petroleum
products and the value of natural gas storage services, (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) the acquisition of the marine facilities from
Hess may not be consummated, (xi) we may not realize the expected benefits of
the acquisition of the marine terminal facilities from Hess, (xii) our ability
to successfully complete our organic growth projects and to realize the
anticipated financial benefits, and (xiii) an unfavorable outcome with respect
to the proceedings pending before the Federal Energy Regulatory Commission
("FERC") regarding Buckeye Pipe Line Company, L.P.'s transportation of jet
fuel to the New York City airports.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, 2012 and our Quarterly Reports on Form 10-Q
for the quarters ended March 31, 2013 and June 30, 2013, 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.

CONTACT: Kevin J. Goodwin
         Senior Director, Investor Relations
         (800) 422-2825
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