WHIPPANY, N.J., Sept. 19 /PRNewswire-FirstCall/ -- Suburban Propane
Partners, L.P. (the "Partnership") (NYSE: SPH), a nationwide marketer of
propane gas, fuel oil and related products and services, announced today
that its operating subsidiary, Suburban Propane, L.P. (the "Operating
Partnership"), has signed a definitive agreement to sell its Tirzah, South
Carolina underground granite propane storage cavern, and associated 62-mile
pipeline, to Plains LPG Services, L.P. ("Plains") for approximately $55
million in cash, subject to adjustments. The 57.5 million gallon
underground storage cavern is connected to the Dixie Pipeline and provides
propane storage for the eastern United States. As part of the agreement,
the Operating Partnership entered into a long-term storage arrangement with
Plains that will enable the Operating Partnership to continue to meet the
needs of its retail operations, consistent with past practices. The
proceeds from the sale will be used for general corporate purposes. The
transaction is expected to close within the next 30 days, subject to
satisfaction of certain closing conditions.
In announcing the sale, President Michael J. Dunn, Jr. said, "The
transaction further strengthens the Partnership's already strong balance
sheet and is expected to be accretive to cash flow. The sale supports the
Partnership's strategy of repositioning assets in markets that provide the
best return on investment. We are proud of our Tirzah facility and we
recognize the value enhancement potential as a result of Plains' ability to
explore additional business opportunities."
Suburban Propane Partners, L.P. is a publicly traded Master Limited
Partnership listed on the New York Stock Exchange. Headquartered in
Whippany, New Jersey, Suburban has been in the customer service business
since 1928. The Partnership serves the energy needs of approximately
1,000,000 residential, commercial, industrial and agricultural customers
through more than 300 locations in 30 states.
SOURCE Suburban Propane Partners, L.P.
 back to top
Related links:
http://suburbanpropane.com
http://www.prnewswire.com/comp/112074.html /
CONTACT:
Michael Stivala, Controller & Chief
Accounting Officer of Suburban Propane Partners, L.P.,
+1-973-503-9252
|
