NuStar Energy LP has announced plans to sell its St. Eustatius Terminal, reported the company’s first quarter 2019 earnings results and reviewed NuStar’s growth and growth projects, in the Permian and across its system.
“Today, we are pleased to announce that we have signed a definitive stock purchase agreement to sell our storage terminal facility located at St. Eustatius in the Caribbean to Prostar Capital for approximately US$250 million, subject to adjustment,” said Brad Barron, President and CEO of NuStar Energy.
“It has become increasingly clear in recent months that the facility requires a new business model to ensure its long-term success and that NuStar’s best path forward is to sell the terminal to a buyer that is well-positioned to take advantage of the changing global crude oil trade flow patterns,” said Barron.
“We are pleased that this sale allows us to redeploy the sales proceeds to improve our financial metrics and fund our growth projects for our core business in North America. And we are very gratified to hand over the reins to purchasers with a business model that ensures a bright future for the facility and our employees there."
“We are excited to be acquiring a high-quality terminal facility with many key strategic advantages, including a location at the crossroads of global and regional oil trade, long-term customer relationships with major global oil traders, a strong local operations team, and a highly flexible infrastructure that allows for capacity expansion as growth opportunities arise,” said Steve Bickerton, Senior Managing Director of Prostar.
“We expect to close this transaction by the end of the second quarter, and we look forward to focusing all of our resources on strengthening our financial metrics to generate stable, consistent growth for our unitholders,” said Barron.
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