Hess Corp. is selling 20 liquid petroleum products terminals to Buckeye Partners L.P. for $850 million, part of its plan to sell off assets as it shifts to exploration and production and away from refining.
Hess said Wednesday that the deal brings the value of its divestitures this year to $5.4 billion. The New York company has used money from its completed asset sales to repay debt and strengthen its balance sheet. It is also planning to repurchase shares under its $4 billion buyback program.
Buckeye is a limited partnership that owns and operates a liquid petroleum products pipeline system in the United States. It has storage capacity of more than 70 million barrels. The deal would boost the Houston company's cash flow and give it a larger footprint. The acquisition includes 19 terminals located in major metropolitan sites along the East Coast and another in the Caribbean, with a total storage capacity of approximately 39 million barrels.
The transaction is expected to close before the end of the year.
Shares of Hess fell 30 cents after hours to $78.10 in after-hours trading. Shares of Buckeye fell $1.50, or 2.3 percent, to $62.85 after the market closed.