JP Energy Partners LP (NYSE: JPEP) signed a definitive agreement to acquire the assets of Southern Propane Inc. for about $14.9 million, the company said April 14.
The assets will complement Irving, Texas-based JP Energy’s existing Gulf Coast NGL assets and operations, the company said.
The acquisition is expected to close before the end of second-quarter 2015. JP Energy will fund the transaction through cash from the revolving credit facility and about 267,000 issued common units.
Southern Propane, based in Houston, distributes industrial and commercial propane.
Also, the company said it will connect its Silver Dollar Pipeline system to Magellan Midstream Partners LP’s (NYSE: MMP) Longhorn Pipeline. The Longhorn is at Barnhart terminal in Crockett County, Texas. JP executed an interconnection agreement with an affiliate of Tulsa, Okla.-based Magellan.
This provides a third takeaway option from Silver Dollar and direct access from the core of the Midland Basin to Houston end markets. The connection is expected to be in service by 2015’s third quarter.
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