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Sprague Resources to acquire Coen Energy

Staff Writer |
Sprague Resources announced today that its operating subsidiary, Sprague Operating Resources, has signed a definitive agreement to purchase the membership interests of Coen Energy and Coen Transport, as well as assets consisting of four bulk plants and underlying real estate.

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Coen Energy, located in Washington, PA, provides energy products and complimentary energy field services to over 7,000 Energy Field Services, Commercial, and Residential customers located in Pennsylvania, Ohio and West Virginia.

The Energy Field Services segment provides fuel sales, delivery, management and related services supporting the Marcellus and the Utica shale drilling activity.

The Coen Energy business is supported by four in-land bulk plants, two throughput locations, approximately 100 delivery vehicles and nearly 250 employees.

The transaction is expected to contribute an additional $7 to $8 million of adjusted EBITDA on an annual basis, and is also expected to be immediately accretive to unitholders.

Sprague intends to fund the transaction with borrowings from its senior secured credit facility; closing is expected to occur in the fourth quarter.

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