Martin Midstream Partners plans to sell some of its Corpus Christi terminal assets to NuStar.
The company is selling its 900,000 barrel crude oil storage terminal, known as the Corpus Christi crude terminals, its refined product barge terminal, certain pipelines and related easements as well as dockage and trans-loading assets for a gross consideration of $107 million.
Martin Midstream expects to receive net proceeds of around $93 million after transaction fees and expenses. The transaction is expected to close prior to year-end 2016.
Ruben Martin, president and CEO, of Martin Midstream, says: ‘This sale of assets is a significant positive event for the partnership and a necessary first step to ultimately returning Martin Midstream to a growth trajectory.
‘While these assets have historically performed well for the partnership, they are not critical to its success moving forward.
Given our focus on reduction of leverage, we feel this asset sale and distribution right-sizing are prudent moves for the partnership at this time.’