Magellan Midstream to sell its independent terminal network
Magellan Midstream Partners, L.P., based in Tulsa, Oklahoma, U.S.A., has agreed to sell its independent terminal network for USD435 million to Buckeye Partners, L.P. The network consists of 26 refined petroleum products terminals with approximately 6 million barrels of storage located primarily in the southeastern U.S.
The transaction is expected to close upon the receipt of required regulatory approvals.
Magellan intends to use the proceeds from this transaction consistent with its stated capital allocation priorities.
“The sale of our independent terminals demonstrates Magellan’s continued focus on utilizing all available options, including optimization of our asset portfolio, to maximize unitholder value,” said Michael Mears, chief executive officer. “We would like to express Magellan’s gratitude to all employees dedicated to these facilities for their contributions and efforts through the years.”
Magellan Midstream Partners, L.P. is a publicly traded partnership that primarily transports, stores and distributes refined petroleum products and crude oil. The partnership owns the longest refined petroleum products pipeline system in the United States, with access to nearly 50% of the country’s refining capacity, and can store more than 100 million barrels of petroleum products such as gasoline, diesel fuel and crude oil.