Genesis Energy, L.P. (GEL) announced today that an affiliate of Silver Creek Midstream, LLC has exercised its option to acquire and Genesis has signed a definitive agreement to sell its Powder River Basin Midstream Assets for approximately $300 million in net cash proceeds. Proceeds from the sale will be used by Genesis to reduce the balance outstanding under its revolving credit facility.
The Powder River Basin Midstream Assets include Genesis’ Powder River Basin Pipeline along with the associated crude oil gathering system and rail facility.
In conjunction with the transaction, Genesis executed an amendment to its existing revolving credit facility, which among other things, sets the bank leverage ratio to 5.50x throughout the remaining term of the facility, currently May 8th 2022.
The sale is subject to customary closing conditions, including obtaining regulatory approvals. The transaction is expected to close in the third quarter of 2018.
Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis’ operations include offshore pipeline transportation, sodium minerals and sulfur services, onshore facilities and pipeline transportation and marine transportation. Genesis’ operations are primarily located in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida, Wyoming and the Gulf of Mexico.
This press release includes forward-looking statements as defined under federal law. Although we believe that our expectations are based upon reasonable assumptions, we can give no assurance that our goals will be achieved, including statements regarding the closing of the acquisition and the expected benefits of the acquisition. Actual results may vary materially. We undertake no obligation to publicly update or revise any forward-looking statement.