Martin Midstream Partners has completed the sale of its membership interests in Arcadia Gas Storage, Cadeville Gas Storage, Monroe Gas Storage Company and Perryville Gas Storage to Hartree Cardinal Gas.
The net proceeds after sales expenses of $212 million have been used to reduce outstanding borrowings under the company’s revolving credit facility.
Ruben Martin, president and CEO of Martin Midstream, says: ‘Beginning last year, the partnership committed to strengthening its balance sheet through strategic initiatives aimed at reducing leverage.
‘The first set of initiatives was executed in 2018 with the divestiture of our interest in West Texas LPG Pipeline and the sale of a non-strategic terminal asset located in Nevada. One January 1, 2019, we completed the next initiative with the acquisition of Martin Transport from Martin Resource Management.
‘Today we continue to advance our strategic initiatives with the announcement of the completion of the sale of our natural gas storage assets. Combined, these transactions have generated net cash proceeds of $283 million, which was used to pay down debt, while only reducing the partnership’s EBITDA by $3.5 million.’