In the first transaction, MMLP purchased certain specialty lubricant product packaging assets (the "Packaging Assets") from
In the second transaction, the Partnership purchased all of the remaining Class A equity interests in
In conjunction with the Redbird transaction, our General Partner has agreed to relinquish its right to receive the next
"Additionally, we are pleased to acquire the remaining portion of the Redbird Gas Storage joint venture. The project is entering a period when multiple previously contracted storage assets are coming on line in less than a year. Our continued investment in Redbird Gas Storage reflects our view that Cardinal owns and is developing best-in-class, strategically-located natural gas storage assets. These assets represent continued focus on bringing high quality, fee-based cash flows to MMLP and its unitholders.
"Finally today, we are announcing that the owner of our general partner has reached a full and final settlement of all of the ongoing litigation disclosed in previous filings. We view this as an extremely positive development not only for MRMC, but also for MMLP, as the overhang to both operations has finally been removed. We are excited about the future of the Partnership as we continue to expand and diversify for the future."
The acquisition of the Packaging Assets represents MMLP's growing commitment to the specialty lubricant products business. With this acquisition, MMLP will be one of the largest independent manufacturers and distributors of specialty lubricant products, with estimated volumes in excess of 40 million gallons annually. These specialty lubricant products are used in various applications including hydraulic fluids, transmission fluids, motor oils, gear oils as well as other commercial and industrial applications.
The Packaging Assets are primarily located on-site at MMLP's naphthenic lubricant refinery in
Based on current market conditions and operational estimates, MMLP estimates the acquisition of the Packaging Assets will add an incremental
Cardinal currently has four natural gas storage projects in operation or under development, located in the southeastern
Three projects currently in development are under project financing arrangements with certain provisions that require cash flow sweeps and amortization of outstanding debt. As a result, Cardinal has not historically made distributions to its members with respect to these projects. Assuming no refinance of these Cardinal project financings, MMLP expects no material distributions from these projects in 2013 and 2014. Based on current market conditions and operational estimates, however, Cardinal intends to refinance the project finance debt into a revolving credit facility late 2013 or 2014.
MMLP currently anticipates investing a total of
The following advisors served in their respective roles for both transactions: Simmons & Company International provided fairness opinions to the Conflicts Committee and to the Board of Directors of the General Partner. Munsch, Hardt,
Forwarding Looking Statements
Statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and all references to financial estimates rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside MMLP's control, which could cause actual results to differ materially from such statements. While MMLP believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in the Partnership's annual and quarterly reports filed from time to time with the
Additional information concerning
CONTACT: For more information:
Joe McCreery- Head of Investor Relations 903-988-6425
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