NuStar Energy to acquire Navigator Energy Services

NuStar Energy to acquire Navigator Energy Services

NuStar Energy has entered into a definitive agreement to acquire Navigator Energy Services for approximately $1.475bn. Navigator owns and operates crude oil transportation, pipeline gathering and storage assets located in the Midland Basin of West Texas.

The assets include:

  • Approximately 500 miles of crude oil mainline transportation pipelines with approximately 74,000 barrels per day, ship-or-pay volume commitments and deliverability of approximately 412,000 barrels per day through multiple outbound interconnects;
  • A pipeline gathering system with more than 200 connected producer tank batteries capable of more than 400,000 barrels per day of pumping capacity covering over 500,000 dedicated acres; and
  • Approximately 1 million barrels of crude oil storage capacity with 440,000 barrels leased to third parties.

The acquisition is expected to close in mid-to-late-May this year, subject to customary closing conditions, including the receipt of regulatory approvals.

ST - NuStar Energy fourth quarter earnings

NuStar President and CEO, Bradley C. Barron said: “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. 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.”

Navigator Energy Services’ Chief Executive Officer, John O’Shea and Co-Founder & Chief Commercial Officer, Matt Vining said: “We could not be more excited for all of Navigator’s stakeholders in finding a future owner in NuStar that shares our commitment to exceptional customer and employee relations. We will be working with NuStar to provide a seamless transition for customers and employees alike.”

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17th April 2017

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