Tulsa’s Magellan Midstream Partners, L.P. announced Thursday the $435 million sale of its independent terminals network.
The network is comprised of 26 refined petroleum products terminals with nearly 6 million barrels of storage.
Buckeye Partners, L.P. made the acquisition of the terminals that are primarily located in the southeastern U.S.
“The sale of our independent terminals demonstrates Magellan’s continued focus on utilizing all available options, including optimization of our asset portfolio, to maximize unitholder value,” said Michael Mears, chief executive officer. “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 from this transaction consistent with its stated capital allocation priorities.
The partnership 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.