Genesis Energy to Buy Stakes in Marathon Oil Gulf Pipelines
Stock Chart for Genesis Energy LP (GEL)
Genesis Energy LP (GEL) expanded its position in the Gulf of Mexico, buying oil-pipeline stakes from Marathon Oil Corp. (MRO) for $205.9 million today and planning a new line with Enterprise Products Partners LP. (EPD)
Genesis, based in Houston, will buy Marathon Oil’s interests in pipelines connected to terminals in Louisiana including Poseidon Oil Pipeline (0038755D) Co., the Odyssey Pipeline and the Eugene Island Pipeline System, according to a statement today.
The pipelines will allow Genesis to provide more options to oil producers and refiners, it said.
Genesis will also build a Gulf of Mexico oil-gathering pipeline with Enterprise Products Partners to serve the Lucius development area in the deep-water Gulf, it said in a separate statement today.
Marathon Oil continues to look for opportunities to improve its asset base after selling about $3.5 billion of exploration and production holdings from 2006 to 2010, John Porretto, a Marathon Oil spokesman, said in an e-mail today.
“We continue the ongoing review of our global portfolio with a goal of an additional $1.5 billion to $3 billion in divestitures between mid-2011 and 2014,” Porretto said.
Genesis rose 1.6 percent to $28.32 at the close in New York. Marathon Oil climbed 0.2 percent to $31.03.
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