April 13, 2017 [OPIS] - NuStar Energy said that it will acquire Navigator Energy Services for about $1.475 billion, subject to purchase price adjustments.
Navigator owns and operates crude oil transportation, pipeline gathering and storage assets located in the Midland Basin of West Texas.
Navigator’s assets include approximately 500 miles of crude oil mainline transportation pipelines with approximately 74,000 b/d, ship-or-pay volume commitments and deliverability of approximately 412,000 b/d through multiple outbound interconnects.
It also owns a pipeline gathering system with more than 200 connected producer tank batteries capable of more than 400,000 b/d of pumping capacity covering over 500,000 dedicated acres.
Navigator owns approximately 1 million bbl of crude oil storage capacity with 440,000 bbl leased to third parties.
The acquisition is expected to close in mid-to-late May 2017.
NuStar’s CEO Bradley Barron said, “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.”
——————————
Access tank storage data on tank terminals worldwide and help your company grow locally or internationally. Learn more.
