Genesis Energy sells Powder River Basin midstream assets

By Patrick C. Miller | September 04, 2018

Genesis Energy of Houston is selling its Powder River Basin midstream assets in Wyoming for about $300 million to an affiliate of Silver Creek Midstream, headquartered in Irving, Texas.

The assets include the Genesis Powder River Basin Pipeline, an associated crude gathering system and a rail facility. Genesis plans to use proceeds from the sale to reduce the balance outstanding under its revolving credit facility.

In conjunction with the transaction, Genesis executed an amendment to its existing revolving credit facility, which sets the bank leverage ratio to 5.50x throughout the remaining term of the facility ending May 8, 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 is a diversified midstream energy master limited partnership. Its operations include offshore pipeline transportation, sodium minerals and sulfur services, onshore facilities and pipeline transportation and marine transportation. The company’s operations are primarily located in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida, Wyoming and the Gulf of Mexico.