JP Energy Partners Announces Acquisition of Southern Propane, Inc. & New Silver Dollar Pipeline System Interconnection Agreem...
April 14 2015 - 7:30PM
Business Wire
JP Energy Partners LP (“JP Energy”) (NYSE:JPEP) announced that
it has signed a definitive agreement to acquire substantially all
of the assets of Southern Propane Inc. (“Southern”), a
Houston-based industrial and commercial propane distribution and
logistics company, for approximately $14.9 million, subject to
certain adjustments. The acquisition is expected to close before
the end of the second quarter of 2015 and will be funded through
the use of cash from JP Energy’s revolving credit facility and the
issuance of approximately 267,000 JPEP units. The acquisition is
expected to be immediately accretive to distributable cash flow per
unit and is a strong addition to the company’s existing Gulf Coast
NGL assets and operations.
JP Energy has also executed an interconnection agreement with an
affiliate of Magellan Midstream Partners, L.P. (“Magellan”) to
connect its Silver Dollar Pipeline System to Magellan’s Longhorn
pipeline at Barnhart Terminal in Crockett County, TX. The
interconnection provides producers with a third takeaway option
from the Silver Dollar Pipeline System and direct access from the
core of the Midland Basin to Houston end markets. The connection is
expected to be in service by the third quarter of 2015.
“We are pleased to announce the acquisition of Southern and the
interconnection agreement with Magellan. Both transactions further
the execution of our strategic growth plan. We will continue to
evaluate bolt-on NGL segment acquisitions that are strategically
aligned with current operations as well as Silver Dollar Pipeline
System enhancements that create value for our producer customers,”
stated J. Patrick Barley, CEO of JP Energy.
About JP Energy Partners LP
JP Energy Partners LP (JPEP) is a publicly traded,
growth-oriented limited partnership that owns, operates, develops
and acquires a diversified portfolio of midstream energy assets.
Our operations currently consist of: (i) crude oil pipelines and
storage; (ii) crude oil supply and logistics; (iii) refined
products terminals and storage; and (iv) NGL distribution and
sales, which together provide midstream infrastructure solutions
for the growing supply of crude oil, refined products and NGLs in
the United States. To learn more, please visit our website at
www.jpenergypartners.com.
Forward looking statements
This press release may include forward-looking statements within
the meaning of the federal securities laws. Statements that do not
relate strictly to historical or current facts are forward-looking.
These statements contain words such as "possible," "if," "will" and
"expect" and involve risks and uncertainties including, among
others, that JP Energy’s business plans may change as circumstances
warrant. When considering these forward-looking statements, you
should keep in mind the risk factors and other cautionary
statements in each of JP Energy’s documents and reports filed with
the Securities and Exchange Commission. Any forward-looking
statement applies only as of the date on which such statement is
made and JP Energy undertakes no obligation and does not intend to
correct or update these forward-looking statements to reflect
events or circumstances occurring after this press release except
as required by law. You are cautioned not to place undue reliance
on these forward-looking statements.
JP Energy Partners LPInvestor Relations,
866-912-3714investorrelations@jpep.com
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