IRVING, Texas--(BUSINESS WIRE)--JP Energy Partners LP (“JP Energy”) (NYSE:JPEP) announced that it has signed a definitive agreement to acquire substantially all of the assets of Southern Propane Inc. (“Southern”), a Houston-based industrial and commercial propane distribution and logistics company, for approximately $14.9 million, subject to certain adjustments. The acquisition is expected to close before the end of the second quarter of 2015 and will be funded through the use of cash from JP Energy’s revolving credit facility and the issuance of approximately 267,000 JPEP units. The acquisition is expected to be immediately accretive to distributable cash flow per unit and is a strong addition to the company’s existing Gulf Coast NGL assets and operations.
JP Energy has also executed an interconnection agreement with an affiliate of Magellan Midstream Partners, L.P. (“Magellan”) to connect its Silver Dollar Pipeline System to Magellan’s Longhorn pipeline at Barnhart Terminal in Crockett County, TX. The interconnection provides producers with a third takeaway option from the Silver Dollar Pipeline System and direct access from the core of the Midland Basin to Houston end markets. The connection is expected to be in service by the third quarter of 2015.
“We are pleased to announce the acquisition of Southern and the interconnection agreement with Magellan. Both transactions further the execution of our strategic growth plan. We will continue to evaluate bolt-on NGL segment acquisitions that are strategically aligned with current operations as well as Silver Dollar Pipeline System enhancements that create value for our producer customers,” stated J. Patrick Barley, CEO of JP Energy.
About JP Energy Partners LP
JP Energy Partners LP (JPEP) is a publicly traded, growth-oriented limited partnership that owns, operates, develops and acquires a diversified portfolio of midstream energy assets. Our operations currently consist of: (i) crude oil pipelines and storage; (ii) crude oil supply and logistics; (iii) refined products terminals and storage; and (iv) NGL distribution and sales, which together provide midstream infrastructure solutions for the growing supply of crude oil, refined products and NGLs in the United States. To learn more, please visit our website at www.jpenergypartners.com.
Forward looking statements
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