AmeriGas To Sell Arizona Storage Facility To Plains LPG Services

Valley Forge, PA - AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. announced recently that the company has signed a definitive agreement to sell its Bumstead liquefied petroleum gas (LPG) storage terminal located near Phoenix, AZ to Plains LPG Services, L.P. for approximately $52M. The Partnership expects to realize a gain on the sale of approximately $48M. The 3.5 million barrel underground storage facility provides LPG storage for the western U.S. As part of the transaction, AmeriGas will retain the right to store propane for its retail operations under a long-term storage agreement.

Eugene V. N. Bissell, chief executive officer of AmeriGas, said: "We are extremely pleased with the agreement reached with Plains to sell the Bumstead terminal. The proceeds of the sale of the terminal will be used for general partnership purposes."

David L. Lugar, vice president of supply and logistics for AmeriGas, said, "While Bumstead will remain an important storage location for AmeriGas retail operations in the western U. S., divestiture of the facility will enable us to focus our resources on our core businesses." The transaction is expected to close within 90 days, subject to satisfaction of certain closing conditions.

SOURCE: AmeriGas Partners, Inc.