Genesis Energy to acquire part of FMT fleet
Written byGenesis Energy, L.P., Houston, Tex., has a goal of becoming the premier supplier of crude oil, refined products and CO2 transportation in the U.S. Gulf of Mexico. It will bolster its crude oil transportation business following its recent deal to acquire the black oil transportation business of Florida Marine Transporters, Inc., Mandeville, La., and its affiliates for $141 million.
The acquisition includes a relatively new fleet of 30 double-hull, OPA 90-compliant tank barges and 14 push/tow boats which transport heavy refined petroleum products to refineries and storage terminals along the U.S. Gulf Coast, Intracoastal Canal and western river systems of the United States, including the Red, Ouachita and Mississippi Rivers. The acquisition is expected to close in the third quarter of this year.
Genesis says that with this most recent acquisition, it will have a fleet of 50 barges capable of transporting heavy refined products. Half of the barges could also be upgraded to transport crude oil. Last year, it acquired the 51% of the DG Marine inland barge business it did not own for $25.5 million in cash. The DG Marine fleet comprises 20 tank barges and 10 push/tow boats.
Genesis CEO Grant Sims, says the acquisition would enhance the company’s transportation of crude oil and heavy refined petroleum products “in a way that complements the continued growth of our integrated midstream business. At current market and utilization rates, we would estimate that these assets will generate $17 to $19 million of cash flow on an annual basis.”
June 29, 2011
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