Martin Midstream Partners LP agreed on June 10 to sell Gulf Coast natural gas storage assets as the Kilgore, Texas-based company re-focuses on the refinery services industry.
The multimillion-dollar sale consists of Martin Midstream’s membership interests in Arcadia Gas Storage LLC, Cadeville Gas Storage LLC, Monroe Gas Storage LLC and Perryville Gas Storage LLC.
Hartree Cardinal Gas LLC, a subsidiary of Hartree Bulk Storage LLC, will buy the natural gas storage assets from Martin Midstream for $215 million in cash. The assets include 50 billion cubic feet of working capacity in northern Louisiana and Mississippi.
Ruben Martin, president and CEO of Martin Midstream’s general partner, said in a statement on June 10: “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.”
Hartree plans to operate the natural gas storage assets as independent facilities following closing of the transaction, expected by the end of the second quarter, said Steve Semlitz, co-founder of Hartree Partners LP.
“The natural gas storage assets are high-performing facilities strategically located in the Gulf Coast,” Semlitz said in a statement. “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.”
Hartree Bulk Storage is an independent storage, terminalling and related infrastructure platform company funded by Hartree Partners and funds managed by Oaktree Capital Management LP. The company is based in New York.
Vinson & Elkins LLP advised Hartree Bulk Storage’s subsidiary, Hartree Cardinal Gas, on its purchase. The law firm’s corporate team was led by partners John Grand and Peter Marshall.
Wells Fargo Securities LLC is Martin Midstream’s exclusive financial adviser for the transaction. Locke Lord LLP provided legal counsel to the company.
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