NuStar Closes on Acquisition of Navigator Energy Services, LLC
May 04 2017 - 11:37AM
Business Wire
NuStar Completes Purchase of Leading Crude Oil
Gathering, Transportation and Storage Assets in the Permian
Basin
NuStar Energy L.P. (NYSE: NS) today announced that it has closed
on the purchase of Navigator Energy Services, LLC for approximately
$1.475 billion. With the purchase, NuStar now owns and operates
crude oil transportation, pipeline gathering and storage assets
located in the Midland Basin of West Texas consisting of:
- more than 500 miles of crude oil
gathering and transportation pipelines with approximately 92,000
barrels per day, ship-or-pay volume commitments and deliverability
of approximately 412,000 barrels per day;
- a pipeline gathering system with more
than 200 connected producer tank batteries capable of more than
400,000 barrels per day of pumping capacity covering over 500,000
dedicated acres with fixed fee contracts; and
- approximately 1 million barrels of
crude oil storage capacity with 440,000 barrels contracted to third
parties.
“We believe these are the right assets, in the right place, at
the right time for NuStar,” said NuStar President and CEO Bradley
C. Barron. “The assets are strategically located in the core of the
core of the country’s most prolific basin, are well-built and
well-run, are backed by solid, fee-based customer contracts, and
are run on a business model and approach that falls right in our
wheelhouse. They also provide us with a strong growth platform
that, when coupled with our Eagle Ford system, will solidify our
presence in two of the most prolific basins in the United States,
which better positions us for distribution growth in the
future.
“We were very pleased with the market reception to our
acquisition financing, with strong demand for the equity and our
bond offering significantly oversubscribed,” noted Barron. “In
addition, we feel fortunate to bring aboard an experienced and
outstanding workforce at our new facilities, and we are working
with them to quickly integrate the operations into our system.”
About NuStar Energy
NuStar Energy L.P., a publicly traded master limited partnership
based in San Antonio, is one of the largest independent liquids
terminal and pipeline operators in the nation. NuStar currently has
more than 9,200 miles of pipeline and 81 terminal and storage
facilities that store and distribute crude oil, refined products
and specialty liquids. The partnership’s combined system has more
than 96 million barrels of storage capacity, and NuStar has
operations in the United States, Canada, Mexico, the Netherlands,
including St. Eustatius in the Caribbean, and the United Kingdom.
For more information, visit NuStar Energy L.P.'s website at
www.nustarenergy.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking statements regarding
future events. All forward-looking statements are based on the
Partnership’s beliefs as well as assumptions made by and
information currently available to the Partnership. These
statements reflect the Partnership’s current views with respect to
future events and are subject to various risks, uncertainties and
assumptions. These risks, uncertainties and assumptions are
discussed in NuStar Energy L.P.’s 2016 annual report on Form 10-K
and subsequent filings with the Securities and Exchange Commission.
Actual results may differ materially from those described in the
forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20170504006115/en/
NuStar Energy, L.P., San AntonioInvestors, Chris Russell,
Treasurer and Vice President Investor RelationsInvestor Relations:
210-918-3507orMedia, Mary Rose Brown, Executive Vice President and
Chief Administrative Officer,Corporate Communications:
210-918-2314website: http://www.nustarenergy.com
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