Martin Midstream Partners L.P. of Kilgore, TX has announced the sale of its East Texas Pipeline to an undisclosed buyer.
The net proceeds of approximately $17.5 million will be used to reduce outstanding borrowings under the partnership’s revolving credit facility.
Ruben Martin, president and chief executive officer of Martin Midstream GP LLC, the general partner of the partnership, said, “The East Texas Pipeline sale is one more step along the partnership’s strategic path of selling non-core assets and using the proceeds to reduce leverage. In addition, this transaction is immediately accretive as the pipeline has been idle since September 2018 producing a trailing 12 months net loss and negative EBITDA of approximately $1.6 million and $900,000, respectively.”
Martin Lubricants, a Martin Midstream subsidiary, operates a petroleum product blending and packaging plant in Smackover.
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