Magellan (MMP) to sell independent terminals for $ 435 million
Magellan Midstream Partners, LP MMP recently signed an agreement to offload its independent terminal network, which includes 26 refined petroleum product terminals with a total storage capacity of nearly six million barrels, primarily in the southeastern United States. The Tulsa, OK-based company will sell the system for $ 435 million to Houston-based oil distribution company Buckeye Partners, LP.
Magellan Midstream CEO Michael Mears believes the sale of the company’s independent terminals illustrates its continued commitment to maximizing value for unitholders by leveraging all available alternatives, including leveraging the company’s portfolio. active. On behalf of Magellan Midstream, management expressed gratitude to all of its dedicated staff who have worked at these sites over the years for their service and serious efforts. The transaction is subject to satisfactory closing conditions. The partnership plans to use the proceeds of the sale for its capital allocation priorities.
Earlier in April, Magellan Midstream announced the completion of the sale of its nearly 50% joint venture interest in the MVP Terminalling, LLC, marine terminal, based in Pasadena, Texas to an unidentified buyer for $ 270 million. .
Notably, the MVP hub is a refined products marine storage terminal located along the Houston Ship Channel in Pasadena. The sale closed on April 19.
As a result, Magellan Midstream now owns approximately 25% of the MVP facility, which it will continue to operate. The facility includes more than five million barrels of storage, two ship docks and truck loading facilities. Additionally, the partnership mentions that the plant has space available to almost double its current storage capacity.
The divestiture marks an efficient allocation of portfolio assets while maintaining a significant presence for the company in order to continue to meet the increased demand for the logistics of exporting refined products.
About Magellan Midstream
Magellan Midstream, based in Tulsa, OK, is a Master Limited Partnership (MLP) that owns and operates a diverse portfolio of energy infrastructure assets. The company transports, stores and distributes mainly refined petroleum products and to a lesser extent, ammonia.
Zacks rank and choice of keys
Magellan Midstream currently wears a Zacks Rank # 3 (Hold). Some higher ranked players in the energy space are Oasis Petrol Inc. AEO, SilverBow Resources Inc SBOW and Whiting Oil Company WLL, each currently displaying a Rank 1 of Zacks (strong buy). You can see The full list of today’s Zacks # 1 Rank stocks here.
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