from SNL Energy Finance Daily
Magellan Midstream to divest terminals network to Buckeye Partners for $435M
Byline: Dyna Mariel Bade
Magellan Midstream Partners LP has agreed to sell its independent terminals network, located mainly in the Southeastern U.S., to Buckeye Partners LP for $435 million.
Magellan's network consists of 26 refined petroleum products terminals with approximately 6 million barrels of storage capacity, according to a June 10 news release. The partnership will use the deal's proceeds to pursue 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," Magellan Midstream CEO Michael Mears said.
The deal is slated to be completed after regulatory approvals. Magellan transports, stores and distributes refined petroleum products and crude oil.