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|Marlin Midstream Partners, LP Announces Purchase of Transloader From NuDevco Midstream Development, LLC|
HOUSTON, July 30, 2014 (GLOBE NEWSWIRE) -- Marlin Midstream Partners, LP (Nasdaq:FISH), a Delaware limited partnership ("Marlin") today announced that it has entered into a definitive agreement with its sponsor NuDevco Midstream Development, LLC ("NuDevco") for the purchase of the East New Mexico Transloading Facility for approximately $7.4 million.
The purchase of the East New Mexico Transloading Facility is expected to close on August 1, 2014 and will immediately begin contributing to the partnership's distributable cash flow. The $7.4 million purchase price will be paid 75% in cash and the remaining 25% will be in the form of FISH Common Units issued to NuDevco. Assets acquired by Marlin as part of this transaction include one skid transloader that is expected to generate approximately $1.4 million in annual distributable cash flow. The transloader is supported by a Transloading Services Agreement with Associated Energy Services, LP ("AES") that includes minimum volume commitments. The East New Mexico Transloading Facility is situated in Sandoval County, New Mexico.
"We are excited to announce our first dropdown from our sponsor's subsidiary NuDevco Midstream Development, which marks our entry into New Mexico and adds another transloading facility to our crude oil logistics assets," said Chairman and CEO, W. Keith Maxwell III. "Upon closing, this transaction will be immediately accretive to the Partnership, which is purchasing the assets at approximately 5 times projected full year EBITDA."
The definitive agreement setting forth the terms of the acquisition was unanimously approved by the Conflicts Committee of the Board of Directors of Marlin's general partner and by the full board of directors. The Conflicts Committee engaged Simmons & Company International to act as its independent financial advisor and to render a fairness opinion, and Akin Gump Strauss Hauer & Feld, LLP to act as its legal advisor.
Marlin is a fee-based, growth oriented Delaware limited partnership formed to develop, own, operate and acquire midstream energy assets. Marlin currently provides natural gas gathering, transportation, treating and processing services, NGL transportation services and crude oil transloading services. Headquartered in Houston, Texas, Marlin's assets include two related natural gas processing facilities located in Panola County, Texas, a natural gas processing facility located in Tyler County, Texas, two natural gas gathering systems connected to its Panola County processing facilities, two NGL transportation pipelines that connect its Panola County and Tyler County processing facilities to third party NGL pipelines and two crude oil transloading facilities containing five crude oil transloaders.
This press release may contain forward-looking statements concerning Marlin's operations, economic performance and financial condition. These statements can be identified by the use of forward-looking terminology including "may," "will," "believe," "expect," "anticipate," "estimate," "continue," or other similar words. These statements discuss future expectations, contain projections of results of operations or financial condition or include other "forward-looking" information. Although Marlin believes that the expectations reflected in such forward-looking statements are reasonable, the Partnership can give no assurance that such expectations will be realized.
These forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from expectations include, but are not limited to, the following risks and uncertainties:
Such risks and uncertainties could cause actual results to differ materially from those contained in any forward-looking statement. Except as required by law, Marlin undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: Investor Contact: Financial Profiles, Inc. Kristen Papke, (310) 622-8225 FISH@finprofiles.com