Martin Midstream Partners has acquired the Texas asphalt terminal from Martin Resource Management.
The Hondo facility was bought for $27.4 million. In its fourth quarter financial results, Martin Midstream says it will spend $8.6 million to complete construction. It will be supported by long-term contractual agreements with Martin Resource Management.
Elsewhere, in its terminalling and storage segment, the company’s Smackover refinery exceeded cash flow forecast in 2016 primarily as a result of increased tolling and reservation fees. However, it experienced weaker margins in our lubricants platform throughout most of 2016, which was partially offset by the strengths in its grease business.
Ruben Martin, president and CEO, says: ‘The partnership made a strategic decision in the second half of the year to divest the Corpus Christi terminal assets as throughput at the facility continued to decline commensurate with Eagle Ford crude oil production. In addition to successfully closing the divestiture, we also saw the positive impact of working capital reductions during the quarter in our natural gas liquids business.’