Duane Kokinda, president of Kinder Morgan Texas Pipeline LLC, said, “KMP is excited for the opportunity to join with Martin Midstream and Watco to develop this opportunity in the Permian Basin. We believe this unique partnership will provide a wide range of services and expertise for the benefit of customers in Reeves County and surrounding areas, while expanding each company’s footprint in this very active rich gas shale play.”Ruben Martin, president and chief executive officer of MMLP, said, “We are pleased to be involved with quality partners in the formation of this joint venture. This project represents another strategic transloading facility offering truck to rail logistics, one of MMLP’s core competencies.” Allan Roach, senior vice president of business development for Watco, said, “Watco is excited about opening our eighth crude by rail terminal to serve the burgeoning shale oil industry. We have great partners that each have over 20 years experience in serving this industry, and who know how to efficiently and economically design individual service plans for each of our customers.” Please contact Drew Ward, Kinder Morgan Texas Pipeline LLC, at (713) 369-9243, Allan Roach, Watco Companies LLC, at (620) 687-3478 or Gene Adams, Martin Midstream Partners L.P., at (817) 864-3114 for business opportunities. About Kinder Morgan Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company in North America. KMP owns an interest in or operates approximately 29,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO 2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMP is also the leading provider of CO 2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP and Kinder Morgan Management, LLC (NYSE: KMR) have an enterprise value of over $40 billion. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Combined, KMI, KMP and KMR constitute the largest midstream energy entity in the United States with an enterprise value of approximately $65 billion. For more information please visit www.kindermorgan.com. This news release includes forward-looking statements. Although Kinder Morgan believes that its expectations are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein are enumerated in Kinder Morgan’s Forms 10-K and 10-Q as filed with the Securities and Exchange Commission. About Martin Midstream Partners L.P. (NASDAQ: MMLP) Martin Midstream Partners is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States Gulf Coast region. The Partnership’s primary business lines include: terminalling and storage services for petroleum products and by-products; natural gas gathering, processing and storage, natural gas liquids distribution services; marine transportation services for petroleum products and by-products; and sulfur and sulfur-based products processing, manufacturing, marketing and distribution. Additional information concerning Martin Midstream is available on its website at www.martinmidstream.com. Statements about Martin Midstream Partners’ outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and all references to financial estimates rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside its control, which could cause actual results to differ materially from such statements. While Martin Midstream Partners believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in Martin Midstream Partners annual and quarterly reports filed from time to time with the Securities and Exchange Commission. Martin Midstream Partners disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events, or otherwise. About Watco Companies LLC Watco Companies, LLC (Watco) is a Pittsburg, Kan., based transportation company serving transportation, mechanical, and transload/intermodal needs of Customers throughout the nation. Watco is the owner of Watco Transportation Services, LLC (WTS), the largest privately-held short line railroad company in the U.S. operating 23 short line railroads on more than 3,700 miles of track as well as 24 industrial contract switching locations. Watco’s Mechanical Services division operates 14 railcar repair shops, 4 locomotive shops and 19 mobile mechanical shops. The Transload/Intermodal Services division currently manages 16 transload facilities, 7 warehouses and 1 intermodal location. Watco also owns Greens Port Industrial Park in the Houston Ship Channel. More information about Watco and its subsidiaries can be found at www.watcocompanies.com. Additional information concerning Watco is available on its website at www.watcocompnaies.com.
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and Martin Midstream Partners L.P. (NASDAQ: MMLP) today announced a new joint venture, Pecos Valley Producer Services LLC, to develop a multi-commodity rail terminal in Pecos, Texas. The new terminal will serve the growing oil and natural gas industries in the Permian Basin. The facility will be constructed and operated by a subsidiary of Watco Companies, Inc., the largest privately held short line railroad company in the United States. KMP holds a preferred equity position in Watco. The terminal will offer a variety of services to producers in the Permian Basin including crude oil hauling, storage, transloading and marketing. It will also provide producers access to light Louisiana sweet crude oil markets. Kinder Morgan and Martin Midstream Partners will offer immediate NGL storage, takeaway, and fractionation services, and seek to develop natural gas and crude gathering and processing systems within the area. Additionally, the joint venture has held initial discussions to develop a frac sand unit train terminal to service Reeves County and surrounding counties. The first stage of the terminal is expected to be completed and operational by May 2012. Crude oil, natural gas liquids, frac sand, pipe, tube, structural steel, rig mats and other commodities can be railed in and out, and transloaded to truck for delivery to the surrounding area. Once the terminal has been fully developed, it will encompass approximately 85 acres and will be able to support unit trains. Total railcar capacity is anticipated to be 300 to 600 per day based on demand. The terminal is strategically located along the Pecos Valley Southern Railway (PVS) and directly adjacent to the Union Pacific mainline in the city of Pecos, and will offer scalability and convenience for local area producers. Once fully operational, the terminal will create up to 45 new jobs. Bill Oglesby, executive director of the Pecos Economic Development Corporation, said, “We welcome Kinder Morgan and Martin Midstream’s announcement of this rail terminal in Pecos. This is a significant step for Pecos and Reeves County, and the development of our oil and gas resources.”