(Source: Shutterstock.com, Martin Resources Management, Martin Midstream Partners)
Martin Resource Management (MRMC) is proposing to buy spinoff Martin Midstream Partners (MMLP) for an estimated $100.3 million, according to a May 24 filing with the Securities and Exchange Commission.
In the deal, Martin Management would buy all outstanding common units of the midstream company for $3.05 per unit. The cost of the outstanding units totals $100.3 million, MRMC said in the SEC filing.
Both companies are headquartered in Kilgore, Texas, and provide services primarily along the Gulf Coast. Martin Resources created Martin Midstream in a public offering in 2002. According to the midstream firm’s website, the company offers terminals and storage services. Its transport services include a fleet of tanker trucks and inland marine barges for shipping petroleum products and by-products.
Martin Resources lists five other companies under its ownership, including Martin Energy Services, Martin Product Sales, Martin Crude Marketing, ALTEC Environmental Consulting, and Cross Oil Refining and Marketing.
In an analysis of the deal, brokerage and investment firm Stifel wrote the acquisition makes sense, “given MRMC and (President and CEO) Ruben Martin own more than 25% of (MMLP’s) common units, MMLP's high cost of capital, growth and leverage challenges, and low valuation.”
Furthermore, it’s unlikely other buyers will attempt to make a play and change the buyout offer, considering MRMC’s standing as the logical buyer, Stifel analysts said.
Recommended Reading
US Drillers Add Oil, Gas Rigs for First Time in Four Weeks
2024-10-11 - The oil and gas rig count rose by one to 586 in the week to Oct. 11. Baker Hughes said the total count was still down 36 rigs or 6% from this time last year.
US Oil, Gas Rig Count Holds Steady for Record Third Week
2024-11-08 - The oil and gas rig count was steady at 585 in the week to Nov. 8, Baker Hughes said on Nov. 8. Baker Hughes said that puts the total rig count down 31 rigs, or 5% below this time last year.
US Drillers Cut Oil, Gas Rigs for Second Week in a Row
2024-09-27 - The oil and gas rig count fell by 1 to 587 in the week to Sept. 27, the lowest since early September.
US Drillers Cut Oil, Gas Rigs for Fourth Week in a Row
2024-09-06 - The oil and gas rig count fell by one to 582 in the week to Sept. 6, the lowest since June.
US Drillers Add Oil, Gas Rigs for First Time in Five Weeks
2024-09-13 - The oil and gas rig count rose by eight in the week to Sept. 13 to 590, returning to mid-June levels. The increase was the biggest since the week to Sept. 15, 2023.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.