JP Energy Partners will acquire all the assets of Southern Propane Inc. for $14.9 million.
The midstream deal is expected to close before the end of the second quarter. Houston-based Southern Propane is a propane distribution and logistics company.
Irving-based JP Energy (NYSE: JPEP) will fund the acquisition through its own credit and the issuance of 267,000 shares of stock.
Southern Propane gives JP Energy a stronger position along the Texas Gulf Coast.
In a separate deal, JP Energy announced a new agreement with Magellan Midstream Partners L.P. to connect the Silver Dollar pipeline to that company’s Longhorn pipeline at the Barnhart terminal in Crockett County.
The deal connects the hot Midland drilling production to the refinery capacity in Houston.
JP Energy will continue looking for M&A moves and deals that complement the company’s existing pipeline system, according to a press release.