Martin Midstream Partners LP (NASDAQ: MMLP) announced Feb. 5 that it plans to sell certain NGL Marine equipment for $41.25 million.
Martin Midstream, based in Kilgore, Texas, said its subsidiary, Martin Operating Partnership LP, entered into a definitive agreement to sell six liquefied petroleum pressure barges.
The company has chosen to exit the NGL floating storage and trans-loading businesses, having been involved in such since the purchase of these barges in early 2013.
All proceeds from the divestiture will be used to repay outstanding indebtedness under its revolving credit facility.
In addition, management expects the divestiture to have a positive impact on distributable cash flow, the company said.
The barges, which were part of the natural gas services segment as floating storage, generated negative cash flow in 2014.
The sale is expected to be completed before the end of February.
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