Pin Oak Holdings, LLC ("Pin Oak") announced the sale of Pin Oak Terminals, LLC ("Pin Oak Mt. Airy") to MPLX LP for approximately $450 million in cash. As part of the transaction, Pin Oak will retain an economic interest in the facility. Pin Oak is a partnership between Dauphine Midstream, LLC ("Dauphine") and Mercuria Energy Group Ltd. ("Mercuria").
Pin Oak Mt. Airy was the first asset developed, financed, constructed, and operated by Pin Oak. The greenfield site was acquired in 2012 with the objective of developing a full-service transportation hub on the Mississippi River. Pin Oak Mt. Airy has 4 million barrels of fully-leased storage capacity and an operational deep-water ship dock. The facility has the capability to expand its storage capacity to 10 million barrels and is permitted for construction of a second deep-water ship dock.
"Our team is very proud to have built a premier storage and logistics facility in Louisiana, and this transaction further validates our development strategy and ability to execute," said C. Mike Reed, Chief Executive Officer of Pin Oak. "We delivered top-tier logistics solutions for our customers, and we are pleased that our dedicated employees will continue to provide excellent service to our valued customers."
"As the project's initial developers, we remain grateful for our partnerships with the Port of South Louisiana, St. John the Baptist Parish government, and the St. John the Baptist Parish Sherriff's office. We look forward to seeing the continued growth of the terminal and building on our strong relationships with the local community," said Harris Ziskroit, Chief Investment Officer of Dauphine.
"Mercuria is pleased to have been a partner in constructing and operating a world-class terminal in Louisiana," said Brian Falik, Mercuria's Chief Investment Officer – Americas. "We look forward to Pin Oak actively developing additional terminals and forging strong ties with key customers and local communities."
Pin Oak recently commenced construction on its liquid bulk export terminal in Corpus Christi, Texas called Pin Oak Corpus Christi. Since acquiring Pin Oak Corpus Christi in 2017, Pin Oak has successfully executed an interconnection agreement with a crude oil pipeline and secured a multi-million-barrel long-term crude oil storage contract, with the capacity to construct additional third party storage. Pin Oak Corpus Christi is expected to commence full operations during the fourth quarter of 2019.
