NuStar Energy L.P. (NS) - Get NuStar Energy L.P. Report announced today that it has entered into an agreement to sell its terminals in Texas City, Texas, to BWC Terminals for $106 million. The acquisition is expected to close in the fourth quarter of 2020, subject to the satisfaction of customary closing conditions.
"While the Texas City terminals are great assets with outstanding operations and employees, the location and unique configuration of these terminals are no longer synergistic with NuStar's strategies for our other Gulf Coast assets," said Brad Barron, president and CEO of NuStar. "For this reason, we determined that the best path forward for the continued success of these facilities and NuStar is to allow them to be acquired by an entity that can take advantage of the terminals' niche petrochemical and petroleum capabilities. We are pleased that BWC Terminals has just such a business model.
"And while it was a difficult decision, this divestiture will allow us to deploy the proceeds to further improve our debt metrics and self-fund a larger proportion of our capital program," Barron said.
"We are pleased that our Texas City employees will now have the opportunity to be a part of a strong and growing company with a business model that is more operationally synergistic with the strengths of these terminals," Barron added. "This should create more growth opportunities for the operations and provide employees with more resources to ensure their continued growth and success as well."
BWC Terminals CEO Mike Suder commented, "I'm confident that Texas City is a natural fit for the BWC organization. Like NuStar Texas City, we store a diverse array of liquids—including hydrocarbons, chemicals, and agricultural products—and we believe the strength of our combined business will help further develop Texas City's operational capabilities."
Barclays served as exclusive financial adviser to NuStar on the transaction.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking statements regarding future events and expectations, including the timing of, the expected use of proceeds from and the other anticipated benefits from the sale of NuStar's Texas City business. All forward-looking statements are based on NuStar's beliefs as well as assumptions made by and information currently available to NuStar. These statements reflect NuStar's current views with respect to future events and expectations and are subject to various risks, uncertainties and assumptions. These risks, uncertainties and assumptions are discussed in NuStar Energy L.P.'s 2019 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. Except as required by law, NuStar does not intend, or undertake any obligation, to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
About NuStar Energy L.P.
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 approximately 10,000 miles of pipeline and 75 terminal and storage facilities that store and distribute crude oil, refined products and specialty liquids. The partnership's combined system has approximately 75 million barrels of storage capacity, and NuStar has operations in the United States, Canada and Mexico. For more information, visit NuStar Energy L.P.'s website at www.nustarenergy.com.
About BWC Terminals
Headquartered in Houston, Texas, BWC Terminals is a premier provider of bulk liquid storage and logistics services to refiners, manufacturers and distributors of bulk liquids in North America. The Company consists of 17 sites with over ten million barrels of storage capacity. The BWC Terminals facilities are equipped to store a wide range of petroleum, chemical and agricultural products. Additional information about BWC Terminals is available at www.bwcterminals.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20201102005521/en/