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.