Seeking Alpha

Buckeye Partners in $860M deal for Corpus Christi complex, to offer 5.5M units

  • Buckeye Partners (NYSE:BPL) agrees to acquire an 80% interest in a Corpus Christi terminal complex and associated Eagle Ford assets in south Texas from Trafigura for $860M.
  • BPL will own and operate a vertically integrated system of midstream assets including a deepwater, high volume marine terminal located on the Corpus Christi Ship Channel, a condensate splitter and liquefied petroleum gas storage complex in Corpus Christi, and three crude oil and condensate gathering facilities in the Eagle Ford shale.
  • The assets are supported by 7- to 10-year minimum volume throughput, storage and tolling agreements with Trafigura.
  • BPL expects the deal to be "highly accretive" to distributable cash flow per limited partner unit in 2016 and beyond.
  • To help fund the deal, BPL says it has launched a public offering of 5.5M limited partnership units.
  • BPL -1.7% AH.
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