Tulsa-based Magellan Midstream Partners, L.P. announced Thursday that it has agreed to sell its independent terminals network to a Houston company for $435 million.
To be sold to Buckeye Partners, L.P., the network accounts for 26 refined petroleum products terminals with about 6 million barrels of storage located primarily in the country's southeastern states.
"The sale of our independent terminals demonstrates Magellan’s continued focus on utilizing all available options, including optimization of our asset portfolio, to maximize unit-holder value," Magellan CEO Michael Mears said in a statement. "We would like to express Magellan’s gratitude to all employees dedicated to these facilities for their contributions and efforts through the years."
The sale is expected to close upon the receipt of required regulatory approvals. Magellan intends to use the proceeds consistent with its stated capital allocation priorities.
Magellan is a publicly traded partnership that primarily transports, stores and distributes refined petroleum products and crude oil. It owns the longest refined petroleum products pipeline system in the country, with access to nearly 50% of the nation’s refining capacity, and can store more than 100 million barrels of petroleum products such as gasoline, diesel fuel and crude oil.