NuStar Energy completes sale of terminals in Eastern U.S.

NuStar Energy L.P. has closed on the sale of its eight terminals in the Eastern United States to Sunoco LP for USD250 million. The eight terminal are located in Andrews AFB in Washington, D.C.; Baltimore, Maryland; Blue Island, Illinous; Jacksonville, Florida; Linden, New Jersey; Paulsboro, New Jersey; Piney Point, Maryland; and Virginia Beach, Virginia. The companies first announced the sale on August 2, 2021.

“This divestiture will allow us to deploy the proceeds to further improve our debt metrics, and we continue to expect to self-fund our spending from our internally generated cash flows, in 2021 and beyond,” said Brad Barron, president and CEO of NuStar.

“With regard to 2021 capital spending estimates, we expect to now spend USD140 to USD160 million on strategic capital, all of which will be funded by internally generated cash flows. In addition, we expect to spend USD35 to USD45 million on reliability capital for the year,” Barron said.

“While these terminals are solid assets with great operations and employees, these facilities are no longer synergistic with NuStar’s core assets,” Barron added. “Sunoco LP has assets in NY Harbor and in the Southeast U.S. that should provide key synergistic opportunities to build on the success of these facilities.

“We are happy to pass the reins for the Eastern U.S. Terminals to Sunoco LP, a company with industry experience and operational synergies that will benefit the facilities, as well as the employees, now and in the future.”

Barclays served as exclusive financial adviser to NuStar on this transaction.

Prior to the sale, NuStar had approximately 10,000 miles of pipeline and 64 terminal and storage facilities that store and distribute crude oil, refined products, renewable fuels, ammonia and specialty liquids. The partnership’s combined system has approximately 57 million barrels of storage capacity at its facilities. NuStar has operations in the United States, Canada and Mexico.