DENVER--(BUSINESS WIRE)--American Midstream Partners, LP (NYSE: AMID) (the "Partnership") today announced the execution of a multi-year, fee-based agreement with a major refinery customer to lease 650,000 barrels of storage capacity at the Harvey terminal. The Partnership expects total storage capacity at Harvey to increase to approximately 1.1 million barrels in 2016.
The Partnership’s total storage capacity has increased by approximately 40 percent, or 500,000 barrels, since the acquisition of the terminals segment in 2013. The buildout of the Harvey terminal is ahead of expectations, increasing more than 100 percent in 2015 with the addition of 300,000 barrels of incremental storage capacity, all of which is leased under multi-year, firm storage contracts.
“We are excited to support our customer’s regional refining operations with incremental storage capacity additions at the Harvey terminal,” said Lynn Bourdon, Chairman, President and Chief Executive Officer. “The Partnership’s strategic positioning in the Port of New Orleans combined with Blackwater’s exemplary safety record, outstanding customer service, and expertise in specialty chemical and petroleum product storage has contributed to a faster-than-expected buildout of the Harvey terminal.”
Harvey has 100,000 barrels of existing storage capacity that will be utilized for the new agreement, with construction of 550,000 barrels of incremental storage capacity currently underway. The Partnership expects 450,000 barrels of storage capacity to be in service by mid-2016 and the remaining 200,000 barrels of storage capacity to be in service by late 2016. The Partnership’s initial 2016 guidance announced in November 2015, including Adjusted EBITDA and capital expenditure guidance, includes the incremental storage capacity announced today.
The Harvey terminal is located on 56 acres on the west bank of the Mississippi River in the Port of New Orleans and equipped to handle a wide variety of petroleum and chemical products. Harvey is a full-service storage site, including 3,000 feet of rail track that can accommodate up to 50 cars, a two bay semi-automated truck loading facility, and a deepwater shipdock allowing for product transfers via ship, barge, railcar, and/or tank truck. When fully developed, Harvey has the potential to provide up to 2 million barrels of storage capacity.
American Midstream’s terminal operations consist of approximately 1.8 million barrels of storage capacity across three marine terminal sites located in Westwego, Louisiana; Brunswick, Georgia; and Harvey, Louisiana. The facilities are equipped to store a range of petroleum, chemical and agricultural products. Terminal operations are managed by Blackwater Midstream, a wholly-owned subsidiary of the Partnership.
About American Midstream Partners, LP
Denver-based American Midstream Partners, LP is a growth-oriented limited partnership formed to own, operate, develop and acquire a diversified portfolio of midstream energy assets. The Partnership provides midstream services in Texas, North Dakota, and the Gulf Coast and Southeast regions of the United States. For more information about American Midstream Partners, LP, visit www.AmericanMidstream.com.
Forward-Looking Statements
This press release includes forward-looking statements. These statements relate to, among other things, projections of operational volumetrics and improvements, growth projects, cash flows and capital expenditures. We have used the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," "potential," "line-of-sight," and similar terms and phrases to identify forward-looking statements in this press release. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. Our operations and future growth involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors which are described in greater detail in our filings with the SEC. Construction of the growth projects described in this press release is subject to risks beyond our control including cost overruns and delays resulting from numerous factors. In addition, we face risks associated with the integration of acquired businesses, decreased liquidity, increased interest and other expenses, assumption of potential liabilities, diversion of management’s attention, and other risks associated with growth and acquisitions, if consummated. Please see our Risk Factor disclosures included in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on March 10, 2015, and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, filed with the SEC on November 9, 2015. All future written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. The forward-looking statements herein speak as of the date of this press release. We undertake no obligation to update any information contained herein or to publicly release the results of any revisions to any forward-looking statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of this press release.
