TEPPCO Expands Marine Services Fleet with Acquisition of Vessels from TransMontaigne
June 12 2009 - 9:00AM
Business Wire
TEPPCO Partners, L.P. (NYSE:TPP) today announced it has
purchased marine assets, including 19 boats and 28 barges, from
TransMontaigne Product Services, Inc. for all cash consideration of
$50 million. The acquisition complements the partnership�s existing
fleet of vessels that currently transports petroleum-based products
along the nation�s inland waterway system and in the Gulf of
Mexico. The newly acquired marine assets are based primarily in
Miami, Florida, with additional assets located in Mobile, Alabama,
and Houston, Texas. The acquired vessels primarily deliver bunker
fuels for cruise liners and cargo ships as well as fuel oil for
electric generation plants.
�With the addition of these well-maintained assets complementing
our existing fleet, TEPPCO has significantly strengthened its
position as a major provider of marine services in the Gulf Coast
region,� said Jerry E. Thompson, president and chief executive
officer of TEPPCO�s general partner. �The acquisition of these
vessels is immediately accretive to distributable cash flow per
unit, and is supported by long-term contracts of up to five years
with well-capitalized counterparties at attractive terms. This
purchase is an example of our stated objective of leveraging the
partnership�s diverse geographic footprint to pursue targeted
growth opportunities.�
Market fundamentals in the areas currently served by the
acquired assets offer TEPPCO the potential to expand relationships
with existing customers, and provide additional transportation
services to other third parties. The partnership also expects the
transaction to provide synergies and opportunities to optimize the
existing fleet acquired in February 2008, resulting in the
formation of the Marine Services segment. With the TransMontaigne
purchase, TEPPCO increases its fleet to 70 boats and 153
barges.
TEPPCO Partners, L.P., is a publicly traded energy logistics
partnership with operations that span much of the continental
United States. TEPPCO owns and operates an extensive network of
assets that facilitate the movement, marketing, gathering and
storage of various commodities and energy-related products. The
partnership�s midstream network is comprised of approximately
12,500 miles of pipelines that gather and transport refined
petroleum products, crude oil, natural gas, liquefied petroleum
gases (LPGs) and natural gas liquids, including one of the largest
common carrier pipelines for refined petroleum products and LPGs in
the United States. TEPPCO�s storage assets include approximately 27
million barrels of capacity for refined petroleum products and LPGs
and about 14 million barrels of capacity for crude oil. TEPPCO also
owns a marine transportation business that operates primarily on
the United States inland and Intracoastal Waterway systems, and in
the Gulf of Mexico. For more information, visit TEPPCO�s website.
Texas Eastern Products Pipeline Company, LLC, the general partner
of TEPPCO Partners, L.P., is owned by Enterprise GP Holdings
(NYSE:EPE).
This news release includes forward-looking statements. Except
for the historical information contained herein, the matters
discussed in this news release are forward-looking statements that
involve certain risks and uncertainties. These risks and
uncertainties include, among other things, insufficient cash from
operations, market conditions, governmental regulations and factors
discussed in TEPPCO Partners, L.P.'s filings with the Securities
and Exchange Commission. If any of these risks or uncertainties
materializes, or should underlying assumptions prove incorrect,
actual results or outcomes may vary materially from those expected.
The partnership disclaims any intention or obligation to update
publicly or reverse such statements, whether as a result of new
information, future events or otherwise.
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