Magnum owns and operates a natural gas liquids storage facility with multiple existing salt caverns and a potential capacity of greater than 10 million bbl.
The facility is located southwest of Salt Lake City, Utah, with rail and truck access to Western US markets.
The definitive agreement contemplates the purchase of Magnum NGLs LLC on a debt-free basis for a purchase price of US$280 million plus working capital adjustments at closing.
The transaction is fully financed and will be paid through a combination of $80 million cash and $200 million in NGL Common Units issued to the seller and subject to certain lock-up provisions.
The acquisition is expected to close in the first quarter of 2015.