Market Overview

Genesis Energy, L.P. Enters Into Agreement to Sell Powder River Basin Midstream Assets and Amends Revolving Credit Facility


Genesis Energy, L.P. (NYSE:GEL) announced today that an affiliate of
Silver Creek Midstream, LLC has exercised its option to acquire and
Genesis has signed a definitive agreement to sell its Powder River Basin
Midstream Assets for approximately $300 million in net cash proceeds.
Proceeds from the sale will be used by Genesis to reduce the balance
outstanding under its revolving credit facility.

The Powder River Basin Midstream Assets include Genesis' Powder River
Basin Pipeline along with the associated crude oil gathering system and
rail facility.

In conjunction with the transaction, Genesis executed an amendment to
its existing revolving credit facility, which among other things, sets
the bank leverage ratio to 5.50x throughout the remaining term of the
facility, currently May 8th 2022.

The sale is subject to customary closing conditions, including obtaining
regulatory approvals. The transaction is expected to close in the third
quarter of 2018.

Genesis Energy, L.P. is a diversified midstream energy master limited
partnership headquartered in Houston, Texas. Genesis' operations include
offshore pipeline transportation, sodium minerals and sulfur services,
onshore facilities and pipeline transportation and marine
transportation. Genesis' operations are primarily located in Texas,
Louisiana, Arkansas, Mississippi, Alabama, Florida, Wyoming and the Gulf
of Mexico.

This press release includes forward-looking statements as defined under
federal law. Although we believe that our expectations are based upon
reasonable assumptions, we can give no assurance that our goals will be
achieved, including statements regarding the closing of the acquisition
and the expected benefits of the acquisition. Actual results may vary
materially. We undertake no obligation to publicly update or revise any
forward-looking statement.

View Comments and Join the Discussion!