Martin Midstream Partners said Monday it’s selling to Hartree Cardinal Gas its membership interests in Arcadia Gas Storage, Cadeville Gas Storage Monroe Gas Storage, and Perryville Gas Storage for $215 million in cash.
The storage assets consist of roughly 50 billion cubic feet of working capacity located in northern Louisiana and Mississippi. The transaction is expected to close on June 30, Kallanish Energy reports.
“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,” said Ruben Martin, president and CEO of Texas-based Martin Midstream.
“We are excited about the opportunity for Hartree Bulk Storage to acquire the natural gas storage assets and operate them as independent facilities,” said Steve Semlitz, co-founder of Hartree Partners LP, parent company of Hartree Cardinal Gas.
Wells Fargo Securities is serving as Martin Midstream’s exclusive financial advisor, and Locke Lord is serving as legal counsel to Martin.
Hartree Bulk Storage is an independent storage, terminalling and related infrastructure platform company funded by Hartree Partners L.P. and funds managed by Oaktree Capital Management.
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