HOUSTON–(BUSINESS WIRE)–Genesis Energy, L.P. (NYSE: GEL) announced today that it has completed the previously announced divestiture of its Powder River Basin Midstream business and received approximately $300 million in total net cash proceeds. Proceeds from the sale will be used by Genesis to reduce the balance outstanding under its revolving credit facility. Under Genesis’ credit facility, Genesis will receive pro forma credit from its senior secured lenders for the transaction for the period ending September 30, 2018.
The Powder River Basin Midstream business includes Genesis’ Powder River Basin Pipeline along with the associated crude oil gathering system and rail facility.
Deutsche Bank Securities Inc. and Raymond James & Associates, Inc. acted as financial advisors to Genesis. Akin Gump Strauss Hauer & Feld LLP acted as legal advisor to Genesis.
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, marine transportation and onshore facilities and transportation (formerly known as supply and logistics). 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 expected benefits of the divestiture. Actual results may vary materially. We undertake no obligation to publicly update or revise any forward-looking statement.