Martin Midstream Partners, a publicly traded limited partnership, has sold its East Texas Pipeline to an undisclosed buyer for approximately $17.5 million.
The sale follows Martin Midstream Partners’ strategy of selling noncore assets and using the proceeds to reduce leverage. In this case, the funds will be used to reduce outstanding borrowings under the partnership’s revolving credit facility, according to Ruben Martin, president and CEO of the company.
“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 $0.9 million, respectively,” he said.
Martin Midstream Partners has a diverse set of operations, focused primarily in the United States Gulf Coast.