NuStar closes Navigator acquisition
Published by Francesca Brindle,
Editorial Assistant
Hydrocarbon Engineering,
NuStar Energy L.P. has announced that it has closed on the purchase of Navigator Energy Services, LLC for approximately US$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 bpd, ship-or-pay volume commitments and deliverability of approximately 412 000 bpd.
- A pipeline gathering system with more than 200 connected producer tank batteries capable of more than 400 000 bpd of pumping capacity covering over 500 000 dedicated acres with fixed fee contracts.
- Approximately 1 million bbls of crude oil storage capacity with 440 000 bbls 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 US, 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.”
Read the article online at: https://www.hydrocarbonengineering.com/tanks-terminals/08052017/nustar-closes-navigator-acquisition/
You might also like
Five key takeaways from the AFPM Annual Meeting
Following the recent AFPM Annual Meeting in Dallas, Texas, US, the AFPM has released a snapshot of some of the key themes discussed throughout the conference.