Martin Midstream Partners L.P. Completes Sale of Natural Gas Storage Assets
July 01 2019 - 8:00AM
Martin Midstream Partners L.P. (the “Partnership”) (NASDAQ: MMLP)
announces the completion of the sale of its membership interests in
Arcadia Gas Storage, LLC, Cadeville Gas Storage LLC, Monroe Gas
Storage Company, LLC and Perryville Gas Storage LLC to Hartree
Cardinal Gas, LLC, a subsidiary of Hartree Bulk Storage LLC.
The net proceeds after sales expenses of approximately $212.0
million have been used to reduce outstanding borrowings under the
Partnership’s revolving credit facility.
Ruben Martin, President and Chief Executive
Officer of Martin Midstream GP LLC, the general partner of the
Partnership said, “Beginning last year, the Partnership committed
to strengthening its balance sheet through strategic initiatives
aimed at reducing leverage. The first set of initiatives was
executed in 2018 with the divestiture of our interest in West Texas
LPG Pipeline Limited Partnership and the sale of a non-strategic
terminal asset located in Nevada. On January 1, 2019, we completed
the next initiative with the acquisition of Martin Transport, Inc.
from Martin Resource Management Corporation. Today we continue to
advance our strategic initiatives with the announcement of the
completion of the sale of our natural gas storage assets. Combined,
these transactions have generated net cash proceeds of
approximately $283.0 million, which was used to pay down debt,
while only reducing the Partnership’s EBITDA by approximately $3.5
million. This debt reduction translates, on a pro-forma basis, to
an estimated leverage of 4.6 times and 4.0 times at year end 2019
and 2020, respectively. As a result of the sale of our
natural gas storage assets, the Partnership will record a
significant non-cash loss in the second quarter of 2019. However,
the completion of these strategic initiatives has reduced leverage
substantially and repositioned the Partnership to create value for
our unitholders.”
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.
AdvisorsThe following advisors served in their
respective roles for the transaction: Wells Fargo Securities,
LLC served as the Partnership’s exclusive financial advisor.
Locke Lord LLP acted 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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