NuStar closes on accretive acquisition that further expands its presence in Eagle Ford Shale play
Monday, Dec 17, 2012

NuStar Energy L.P. (NYSE: NS) today announced that it has closed on the purchase of crude oil pipeline, gathering and storage assets in the Eagle Ford Shale region from TexStar Midstream Services LP for approximately $325 million. The company is also acquiring natural gas liquids (NGL) assets from TexStar that are also in the Eagle Ford Shale region for approximately $100 million, and that acquisition is expected to close in the first quarter of 2013, subject to certain closing conditions.

“It is important to note that these crude oil assets should begin generating cash flow immediately, and NuStar takes on no commodity or margin risk as a result of this transaction or the NGL asset transaction”

The closing of the TexStar acquisition comes on the heels of NuStar’s announcement that the company plans to sell its San Antonio refinery, and another announcement that it has entered into a long-term pipeline and terminal services agreement with ConocoPhillips that will allow expansion of NuStar’s South Texas Crude Oil Pipeline System. All of these transactions are part of NuStar’s announced strategic redirection away from the margin-based refining and marketing business in order to further grow its fee-based pipeline and storage operations through internal growth projects and acquisitions.

“The TexStar acquisition and related projects make NuStar one of the top logistics players in the Eagle Ford Shale region. The crude oil assets we are purchasing from TexStar will be integrated with our existing pipeline and storage system in South Texas, and this will further integrate NuStar with producers and marketers of Eagle Ford Shale crude oil,” said Curt Anastasio, president and CEO of NuStar. It will also provide Eagle Ford crude producers with greater ability to move production to Corpus Christi, where they will have access to NuStar’s Corpus Christi storage and dock space that can be utilized for shipments to other markets.

Source: Business Wire

To access over 3,000 of the latest oil projects from across the world visit Projects OGP for free trial today

Member Profiles

Featured Profile

Featured Profile

Featured Videos

Featured Case Studies