November 05, 2018 [My San Antonio] - Pipeline and storage company NuStar Energy is selling its European terminals and other assets for $270 million as the company focuses on reducing its debt.
The San Antonio company is selling seven European liquids storage terminals — six in the United Kingdom and one in Amsterdam — to a subsidiary of Alberta, Canada-based Inter Pipeline Ltd.
NuStar’s president and CEO Brad Barron called the decision “difficult” but said the European assets “are not synergistic with our other operations.”
“This divestiture is a critical step in the implementation of a comprehensive plan launched earlier this year to position NuStar to successfully de-lever and deliver strong, sustainable distribution coverage for the future,” Barron said.
Equity funding for master limited partnerships like NuStar has tightened in the last year as shareholders have come to expect pipeline and storage companies to fund growth from cash flows rather than equity sales.
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