Martin Midstream Partners L.P. Announces Sale of Natural Gas Storage Assets
June 10 2019 - 8:00AM
Martin Midstream Partners L.P. (“the Partnership”) (NASDAQ: MMLP)
announced today that it has entered into a definitive agreement
with Hartree Cardinal Gas, LLC, a subsidiary of Hartree Bulk
Storage LLC, to sell its membership interests in Arcadia Gas
Storage, LLC, Cadeville Gas Storage LLC, Monroe Gas Storage, LLC
and Perryville Gas Storage LLC (the “Natural Gas Storage Assets”)
for $215.0 million in cash.
Ruben Martin, President and Chief Executive
Officer of Martin Midstream GP LLC, the general partner of the
Partnership said, “Our agreement to sell the Natural Gas Storage
Assets is an important piece of the Partnership’s strategy to
strengthen the balance sheet and re-focus our operational expertise
on the refinery services industry.”
The Natural Gas Storage Assets consist of
approximately 50 billion cubic feet of working capacity located in
northern Louisiana and Mississippi. The transaction is
expected to close on or around the end of the second quarter,
subject to customary closing conditions.
“We are excited about the opportunity for
Hartree Bulk Storage to acquire the Natural Gas Storage Assets and
operate them as independent facilities,” said Steve Semlitz,
co-founder of Hartree Partners L.P., “the Natural Gas Storage
Assets are high-performing facilities strategically located in the
Gulf Coast. Hartree Bulk Storage plans on further optimizing these
facilities and their capabilities in the near-term, to better serve
customers in the ever-growing Gulf Coast region.”
About Martin Midstream Partners (NASDAQ:MMLP)The
Partnership is a publicly traded limited partnership with a diverse
set of operations focused primarily in the United States Gulf Coast
region. The Partnership's primary business segments include: (1)
natural gas services, including liquids transportation and
distribution services and natural gas storage; (2) terminalling,
storage and packaging services for petroleum products and
by-products; (3) sulfur and sulfur-based products processing,
manufacturing, marketing and distribution; and (4) land and marine
transportation services for petroleum products and by-products.
About Hartree Bulk StorageHartree Bulk Storage
LLC is an independent storage, terminalling and related
infrastructure platform company funded by Hartree Partners L.P. and
funds managed by Oaktree Capital Management L.P. Headquartered in
New York, Hartree Bulk Storage capitalizes on the strong global
demand for energy and commodity infrastructure assets via mergers
and acquisitions, greenfield projects and joint venture
partnerships. The platform provides independent solutions to
refiners, petrochemical manufacturers, utilities, pipeline
companies, marketers and producers of natural gas, crude oil,
refined products, NGLs and other products.
AdvisorsThe following advisors are serving in
their respective roles for the transaction: Wells Fargo
Securities, LLC is serving as the Partnership’s exclusive financial
advisor. Locke Lord LLP is acting as legal counsel to the
Partnership.
Forward-Looking StatementsStatements about the
Partnership's outlook and all other statements in this release
other than historical facts are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements and all references to
financial estimates rely on a number of assumptions concerning
future events and are subject to a number of uncertainties and
other factors, many of which are outside the Partnership's control,
which could cause actual results to differ materially from such
statements. While the Partnership believes that the
assumptions concerning future events are reasonable, it cautions
that there are inherent difficulties in anticipating or predicting
certain important factors. A discussion of these factors,
including risks and uncertainties, is set forth in the
Partnership's annual and quarterly reports filed from time to time
with the Securities and Exchange Commission. The Partnership
disclaims any intention or obligation to revise any forward-looking
statements, including financial estimates, whether as a result of
new information, future events, or otherwise except where required
to do so by law.
Additional information concerning the
Partnership is available on the Partnership's website at
www.MMLP.com or by contacting:
Sharon Taylor - Head of Investor Relations(877)
256-6644
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