McAdams Propane, Midstream Transportation merge with Meritum

McAdams Propane and Midstream Transportation Co. have merged with Meritum Energy Holdings.

According to a Meritum news release, McAdams Propane has been a leader in the retail propane business in north and east Texas, and most recently expanded into the Waco market with the opening of its McGregor location. Midstream Transportation was formed in 2014 and is a rapidly growing leader in the propane and liquids transportation business, operating about 75 transports throughout the southern United States. Midstream Transportation has been a key partner for Meritum over the last 10 years as it has delivered a substantial portion of the propane to Meritum’s Pico locations. McAdams and Midstream are based in Center, Texas, and have branches throughout their footprint, including service centers in Center and Baytown, Texas.

As part of the merger, the McAdams family has retained a substantial equity position in Meritum Energy Holdings, and Josh McAdams has joined Meritum’s board of directors. The 2017 LP Gas Rising Leader will also join Meritum’s executive leadership team as an executive vice president and president of Midstream Transportation.

“Josh and his parents, Billy Bob and Lisa McAdams, have built an incredible business and team over the past 30-plus years, and we are excited to have them as a part of the Meritum family,” says Chris Hill, CEO of Meritum Energy.

Meritum will continue to operate the retail propane business under the McAdams Propane and Midstream Transportation brands, and the same team of employees will continue to serve the local markets.

The combined companies, Meritum says, will be able to share strengths and resources and provide the ability for McAdams and Midstream to access the expanded capital structure of Meritum. The regional home office in Center will continue to be the support office for all McAdams and Midstream operations, with the same people providing support and resources for the team and the McAdams customers.

“I believe the combination of these companies, and the quality of leadership teams of each, will create one of the most creative, capable and well-respected organizations in the propane, NGL and fuel distribution industry,” says Hill.

Josh McAdams adds, “We are pleased to announce this strategic merger of McAdams Propane/Midstream Transportation with Meritum Energy Holdings. This partnership will create significant synergies, enhancing our ability to serve customers across both the retail and wholesale propane sectors, as well as the NGL logistics market. We are confident that this merger will not only drive accelerated growth but also ensure the continued delivery of the exceptional customer service our clients have come to expect.”

The combined companies will distribute nearly 40 million gallons of propane annually, placing Meritum as a top 20 propane retailer in the United States. In addition to propane, the company delivers more than 50 million gallons per year of refined fuels, 10,000 MCF/day of compressed natural gas and over 150 million gallons of products moved annually by Midstream Transportation.

Josh McAdams and his family have been leaders in the Texas Propane Gas Association (TPGA), with Josh serving as a recent past president of the TPGA (2020-22). He also serves as a director of the Sabine River Authority, a position appointed by Texas Gov. Greg Abbott. The leadership of Meritum Energy has also served the propane industry in key roles with the Propane Education & Research Council (PERC) and the National Propane Gas Association (NPGA). Hill serves as the current chairman of PERC, while CFO Rob Chalmers and COO Tom Van Buren are past chairmen. Van Buren is also immediate past chairman of NPGA.

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