Magellan Midstream To Acquire BP Assets For $289M

13th Jul 2010 14:09

DOW JONES NEWSWIRES Magellan Midstream Partners LP (MMP) agreed to acquire some storage and pipeline assets from BP PLC's (BP, BP.LN) North American pipelines business for $289 million, in a move it expects will aid the development of its East Houston terminal into a key distribution point. The agreement comes as BP is mulling a number of options to raise cash to deal with the Gulf oil spill. Other reported talks include a potential $10 billion asset sale to U.S. independent oil and gas producer Apache Corp. (APA). The petroleum pipeline and storage company will acquire 7.8 million barrels of storage capacity at a key U.S. oil hub at Cushing, Okla., where Magellan is constructing 2 million barrels of crude-storage capacity. The partnership also is acquiring more than 100 miles of pipeline, including a 40-mile stretch that extends its reach to the Texas City, Texas refining region. Magellan expects the acquisition, expected to close within 60 days, to add to earnings immediately. The company in May reported sharply higher first-quarter earnings as revenue soared 55% on higher fees and rates. Magellan's partnership units closed Monday at $48.15 and were inactive premarket. They are up 35% in the past year. -By Tess Stynes, Dow Jones Newswires; 212-416-2481; [email protected]; (END) Dow Jones Newswires July 13, 2010 09:09 ET (13:09 GMT)