Martin Midstream says it will pay $120M for remaining stake in Cardinal Gas Storage

IndustriesAssociated Press

Oil and natural gas distributor Martin Midstream Partners said Monday it will pay $120 million to get full ownership of Cardinal Gas Storage Partners, which helps run four natural gas storage facilities in North Louisiana and Mississippi.

Martin Midstream Partners owns 42.2 percent of Cardinal, and it will buy the rest of the company from Energy Capital Partners. Martin Midstream Partners said it will retire $265 million in financings by buying the rest of the company, and it said the deal will add 15 cents to its annual distributions by the end of 2015.

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The company expects to complete the deal during the third quarter.

Martin Midstream Partners LP is based in Kilgore, Texas. Its units closed at $36.30 on Friday.