Martin Midstream Partners LP on Wednesday said it sold its East Texas Pipeline, a natural gas liquids (NGL) system, to an undisclosed buyer for $17.5 million, marking the second infrastructure divestiture in less than three months for the Kilgore, TX-based company.
The proceeds from the sale of the pipeline, which has been idled since last September, are to go toward reducing debt. Over the past year, the pipeline has produced a net loss of $1.6 million. When it was in service, the East Texas Pipeline delivered NGLs from East Texas to Beaumont east of Houston.
“The East Texas Pipeline sale is one more step along the partnership’s strategic path of selling noncore assets and using the proceeds to reduce leverage,” said CEO Ruben Martin.
In June, Martin announced an agreement to sell its interests in four natural gas storage facilities in the Southeast to Hartree Cardinal Gas LLC for $215 million.
Martin reported a net loss of $191.2 million (minus $4.82/share) for the second quarter, compared with a net loss of $4.5 million (minus 18 cents) in the year-ago period. Much of that loss stemmed from Martin’s discontinuation of its Cardinal Gas Storage business, which realized a loss of $180.6 million, management said during the 2Q2019 earnings conference call.
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