Shares of Magellan Midstream Partners (MMP) gained 2.9% after the company inked a deal to sell its independent terminals network to Buckeye Partners for $435 million.
Magellan Midstream Partners is a publicly-traded company that primarily transports, stores, and distributes refined petroleum products and crude oil. It has access to nearly 50% of the refining capacity in the U.S.
Located in the south-eastern U.S., the terminal network includes 26 refined petroleum products terminals with approximately 6 million barrels of storage capacity. (See MMP stock analysis on TipRanks)
MMP CEO Michael Mears said, “The sale of our independent terminals demonstrates Magellan’s continued focus on utilizing all available options, including optimization of our asset portfolio, to maximize unitholder value.”
Magellan plans to use the sale proceeds towards its pre-defined capital allocation priorities.
Following the announcement, Stifel Nicolaus analyst Selman Akyol reiterated a Buy rating on the stock and increased the price target from $50 to $54.
This implies that shares are almost fully priced at current levels.
Akyol said, “We view the...read more...