Genesis Energy Buys a Fleet

Genesis Energy (NYSE: GEL  ) has added 18 vessels to its list of assets. The partnership announced that it has inked an agreement to acquire the downstream transportation business of Hornbeck Offshore Transportation (NYSE: HOS  ) , which is essentially composed of those vessels. The price is roughly $230 million.

For its money, Genesis Energy will be buying nine barges and an equal number of tugboats. All are used to ship crude oil and refined products, and service refineries and storage terminals on the Gulf Coast and Eastern Seaboard, as well as on the Great Lakes and the Caribbean Sea.

At the moment, the company's inland barge operations are serviced by 50 barges and 23 push/tow boats.

The acquisition is subject to approval from the relevant regulatory bodies and is expected to close by the end of Q3. Genesis Energy said it will fund the transaction from its $1 billion revolving credit facility.

Once that occurs, said the partnership, it and Hornbeck "expect to enter into transition service agreements to facilitate a smooth transition of operations and uninterrupted services for both employees and customers."

The company said it anticipated that the new assets would be "immediately accretive" to its distributable cash flow per unit.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2550405, ~/Articles/ArticleHandler.aspx, 8/20/2014 8:49:41 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement