Source: Buckeye Partners
Buckeye Partners, L.P. (NYSE: BPL) is celebrating its 125th year as a midstream energy company. Buckeye Pipe Line Company was founded in March 1886 as part of the Standard Oil Trust to gather and store crude oil in Ohio. Expansion into petroleum products transportation after World War II and acquisitions ultimately led to Buckeye Pipe Line Company becoming a leading independent common carrier pipeline. In 1986, Buckeye Pipe Line Company was reorganized into a publicly traded Master Limited Partnership, Buckeye Partners, L.P. Buckeye will also be celebrating 25 years as an MLP listed on the New York Stock Exchange later this year.
Today, Buckeye 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 also owns 69 liquid petroleum products terminals with aggregate storage capacity of approximately 53 million barrels, operates approximately 2,600 miles of pipeline under agreements with major oil and chemical companies, owns a high-performance natural gas storage facility in Northern California, and markets refined petroleum products in certain regions served by its pipeline and terminal operations. Buckeye’s flagship marine terminal, Bahamas Oil Refining Company International Limited (“BORCO”), is one of the largest oil and petroleum products storage facilities in the world, serving the international markets as a premier global logistics hub.
“From our first crude oil pipeline in 1886 to this year’s acquisition of BORCO, it’s the employees of Buckeye who have made the difference throughout the history of our company,” said Forrest E. Wylie, Buckeye’s Chairman and CEO. “Buckeye’s 125 years of success are really a tribute to our people, who are the best in the industry. We are celebrating our rich legacy, but we’re even more excited about the future. We believe Buckeye’s best days are still ahead.”
In November of last year, Buckeye merged with its general partner, Buckeye GP Holdings L.P., which ultimately lowered Buckeye’s cost of equity capital. The improved capital structure allowed Buckeye to make its largest acquisition to date in the beginning of 2011, with the purchase of BORCO for $1.7 billion.
Two weeks ago, Buckeye announced that it signed a definitive agreement to purchase 33 terminals with total storage capacity exceeding 10 million barrels and approximately 1,000 miles of pipeline from affiliates of BP plc for $225 million. This transaction demonstrates Buckeye’s commitment to continue to grow its footprint through expansion of its legacy asset system as well as through geographic diversification.