US pipeline operator NuStar Energy to buy Navigator Energy for $1.48 bn
12 April 2017
US pipeline operator NuStar Energy today struck a deal to buy privately held Navigator Energy Services for about $1.48 billion, in order to expand into the Permian basin.
The assets of Navigator Energy include about 500 miles of crude oil mainline transportation pipelines and about 1 million barrels of crude oil storage capacity with 440,000 barrels leased to third parties.
The acquisition is expected to close by mid- to late-May, NuStar said.
NuStar Energy is one of the US largest independent liquids terminal and pipeline operators having 8,700 miles of pipeline and 79 terminal and storage facilities that store and distribute crude oil, refined products and specialty liquids.
It has operations in the US, Canada, Mexico, the Netherlands, including St. Eustatius in the Caribbean, and the UK.
''We are excited about starting 2017 with a strategic acquisition, and the addition of Navigator's Permian assets marks NuStar's entry into one of the most prolific basins in the United States,'' said NuStar president and CEO Bradley p Barron.
''We expect that the purchase price, when coupled with modest future growth capex to build out the system, will result in a high single digit multiple as volumes ramp over time.''