American Midstream will sell its refined products terminalling business to Sunoco for $125 million.
The refined products terminalling business consists of terminals located in Caddo Mills, Texas and North Little Rock, Arkansas with a total of 1.3 million barrels of storage capacity spread across 21 tanks. The facilities have 77,500 barrels per day of total throughput capacity.
The acquisition builds on Sunoco's strategy of adding fee-based refined product terminals into the overall portfolio.
The acquisition is expected to close in the fourth quarter of 2018.
American Midstream says that this divestiture represents continued progress towards its capital allocation strategy designed to reduce leverage and strengthen the partnership. In addition, the divestiture of the terminals simplifies its business profile while creating capital flexibility.
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