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January 21, 2020

Magellan to sell New Haven petroleum terminal

Magellan Terminal, New Haven Harbor.

Magellan Midstream Partners, LP (NYSE: MMP) on Tuesday announced an agreement to sell its New Haven petroleum terminal to a Houston-based petroleum distributor.

The deal is part of a larger transaction involving the sale of three marine terminals to Buckeye Partners LP. for $250 million. In addition to New Haven, the other terminals are located in Wilmington, Del. and Marrero, La.  

"Magellan remains focused on capital discipline and managing our business for the long term," said Michael Mears, chief executive officer of the Tulsa, Okla.-based partnership. "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."

Magellan Midstream Partners is a publicly-traded partnership formed to acquire, own and operate a diversified portfolio of energy assets. Its primary business is the transportation, storage and distribution of refined petroleum products. Its current asset portfolio includes more than 80 petroleum products terminals, a 9,600-mile petroleum products pipeline system and an 1,100-mile ammonia pipeline system. 

The sale is expected to close by late first quarter or early second quarter 2020, subject to regulatory approval. 

The partnership intends to provide 2020 financial guidance as part of its fourth-quarter 2019 earnings release on Jan. 30 but does not expect the terminals’ sale to have a material impact on its future financial results. 

Jefferies served as financial advisor and GableGotwals served as legal counsel to Magellan in connection with the transaction.

 

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