Magellan Midstream Selling Partial Interest in Marine Joint Venture

Magellan Midstream Partners said it sold almost half of its interest in its Pasadena, Texas, marine terminal joint venture, MVP Terminalling, LLC, to an undisclosed buyer for $270 million.

Magellan now owns about 25% of the joint venture and remains the operator of the facility.

MVP Terminalling owns a refined petroleum products marine storage terminal along the Houston Ship Channel in Pasadena, which y includes over 5 million barrels of storage, two ship docks and truck loading facilities, with space to nearly double its current capacity.

“As Magellan has demonstrated in the past, we regularly review both potential investments and our own asset portfolio for opportunities to unlock incremental value for our investors,” said Michael Mears, chief executive officer. “With this transaction, we are optimizing our portfolio.”

Magellan said it will use the proceeds from this transaction consistent with its stated capital allocation priorities, including potential unit repurchases.

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