January, 2020 [Kallanish Energy] – Magellan Midstream Partners LP said Tuesday it’s selling three marine terminals to Buckeye Partners LP for $250 million, Kallanish Energy reports.
The terminals are located in New Haven, Connecticut, Wilmington, Delaware, and Marrero, Louisiana.
“Magellan remains focused on capital discipline and managing our business for the long term,” said Michael Mears, CEO. “Optimization of our asset portfolio, including divestiture of facilities outside our strategic footprint, is an important element to maximize unitholder value and our strong financial position.”
The sale is expected to close by late first quarter or early second quarter of 2020, subject to regulatory approvals.
The partnership intends to provide 2020 financial guidance as part of its fourth-quarter 2019 earnings release on Jan. 30, but doesn’t expect the terminals sale to have a material impact on its future financial results.
With the trio of terminals added to its portfolio, Buckeye operates 113 terminals in 22 states, with storage capacity totaling more than 56 million barrels.
Jefferies served as financial advisor and GableGotwals acted as legal counsel to Magellan in connection with the sales transaction.
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