SAN ANTONIO–(BUSINESS WIRE)–NuStar Energy L.P. (NYSE: NS) announced today that it has closed on the sale of its Eastern U.S. Terminals to Sunoco LP for $250 million. The Eastern U.S. Terminals are comprised of eight terminal locations: Andrews AFB in Washington, D.C.; Baltimore, MD; Blue Island, IL; Jacksonville, FL; Linden, NJ; Paulsboro, NJ; Piney Point, MD; and Virginia Beach, VA. The companies first announced this 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 $140 to $160 million on strategic capital, all of which will be funded by internally generated cash flows. In addition, we expect to spend $35 to $45 million on reliability capital for the year.”
“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 the transaction.
About NuStar Energy L.P.
NuStar Energy L.P., a publicly traded master limited partnership based in San Antonio, is one of the largest independent liquids terminal and pipeline operators in the nation. NuStar currently has 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, and NuStar has operations in the United States, Canada and Mexico. For more information, visit NuStar Energy L.P.’s website at www.nustarenergy.com and its Sustainability page at www.nustarenergy.com/sustainability.
About Sunoco LP
Sunoco LP is a master limited partnership with core operations that include the distribution of motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states as well as refined product transportation and terminalling assets. Sunoco’s general partner is owned by Energy Transfer LP.
