The business primarily consists of 30 barges, of which seven will be sub-leased under similar terms of an existing FMT lease, as well as 14 push and tow boats which transport heavy refined petroleum products, principally serving refineries and storage terminals.
This further integrates the Genesis fleet to 50 barges, capable of transporting heavy-refined products and with minor modifications, half of the barges will transport crude oil as well.
The acquisition, along with existing marine vessels and pipeline expansion of terminal and storage facilities in Texas will provide incremental transportation service for Eagle Ford and other Texas production to refining markets throughout the Gulf Coast region.
Genesis CEO Grant Sims said we are very pleased to have the opportunity to expand our inland marine transportation business with such quality vessels and this acquisition demonstrates our strategic focus on enhancing our transportation of crude oil and heavy refined petroleum products.
Genesis Energy whose operations are mostly in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida and the Gulf of Mexico, estimates the assets will generate $17 to $19 million of cash flow, on an annual basis.
