The following is the text of a news release from Genesis Energy:
(HOUSTON) (Oct. 23) — Genesis Energy L.P. announced today that it has agreed to acquire for approximately $157 million the M/T American Phoenix from Mid Ocean Tanker Company and two related charters and management agreements. The American Phoenix, completed in 2012, is a modern, double-hulled, Jones Act qualified tanker with 330,000 barrels of cargo capacity. The vessel is operating under long-term charters into 2020 with high-quality counterparties, including a major integrated oil company.
This acquisition complements and further integrates our existing operations, including our Genesis Marine inland barge business (comprised of 62 barges and 24 push/tow boats) as well as our offshore tank barge and tug business (comprised of nine barges and nine boats).
“We are very pleased to have the opportunity to expand our marine transportation capabilities through the acquisition of the American Phoenix, which complements our existing marine operations,” said Grant Sims, chief executive officer of Genesis. “This asset fits squarely within our focus of providing the logistical capability to get the right barrel to the right location.”
The acquisition is subject to customary closing conditions, including obtaining regulatory approvals and third-party consents. Genesis has available and committed liquidity under its $1 billion revolving credit facility to effect this acquisition in addition to funding all of its organic growth capital requirements. The acquisition is expected to be immediately accretive to Genesis’ distributable cash flow per unit.
Genesis Energy L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis’ operations include pipeline transportation, refinery services and supply and logistics. The Pipeline Transportation Division is engaged in the pipeline transportation of crude oil and carbon dioxide. The Refinery Services Division primarily processes sour gas streams to remove sulfur at refining operations. The Supply and Logistics Division is engaged in the transportation, storage and supply and marketing of energy products, including crude oil, refined products, and certain industrial gases. Genesis’ operations are primarily located in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida and the Gulf of Mexico.